|Posted: 24 Jun 2009 at 23:27 | IP Logged
these two MCQ are all about sales contract. I will list the questions briefly. I feel confused, because they seems to be contradictory.
1. On May 2, Handy Hardware sent Ram industries a signed purchase order that stated, in part, as follows, "ship for May 8 delivery 300 Model A-X socket sets at current dealer price. Terms 2/10/net 30" Ram received Handy's purchase order on May 4. On May5, Ram discovered that it had only 200 Model A-X socket sets and 100 Model W-Z in stock. Ram shipped A-X and W-Z without any explanation. The socket sets were received by Handy on May8.
Which of the following statements concerning the shipment is correct? (a)
a. Ram's shipment is an acceptance of Handy's offer.
b. Ram's shipment is a counteroffer.
c. Handy's order must be accepted by Ram in Writing before Ram ships the socket sets.
d. Handy's order can only be accepted by Ram shipping conforming goods.
2.Jefferson Hardware ordered 200 Ram hammers from Ajax Hardware. Ajax accepted in writing. Because don't have enough Ram hammers, Ajax sent 300 Strong hammers. Ajax stated on the invoice that the shipment was sent only as an accommodation. Which is correct? (c)
c. Ajax's shipment of Strong hammers is a breach of contract.
I am sooooooooooooo confused. These two are the similar situations. Why is the first one considered as acceptance while the second is taken as a breach of contract?