Business Law – Contracts?
Question by Bobbies: Business Law – Contracts?
One Stop, Inc. is a publishing company that produces records, books, and poems. Print express Inc is a vendor that One Stop, Inc. has contracted with for several years to provide any items that One Stop, Inc. may need in order to produce its works of arts. Print express Inc. sells CD’s, DVD’s, paper, printer ink, etc. One Stop Inc, entered into an oral contract with Print Express Inc. for them to sell 20,000 CD’s for $ 1000 on November 21, 2010. One Stop Inc. mailed the payment to Print Express Inc. on November 15, 2010 Print Express Inc. claims that they did not receive payment. THey also claim that there never was an agreement for the sale. One stop Inc. needed the CD’s because they were to have a CD of music shipped to the distributors by November 30, 2010. It take One Stop Inc. at least 9 days to produce the music. The distributors were to pay One Stop Inc. $ 500,000 for the music. On November 21st, the CD’s did not arrive: therefore One Stop Inc. lost the deal with the distributors. The distributors have pulled out of all future business with One Stop Inc.
Questions
1) Was there a contract?
2) What type of contact is this?
3) What are the requirements for this type of contract?
4) What exceptions are available if in fact a payment was mailed?
5) Is there evidence?
6) Plaintiff’s view?
7) Defendants view?
Best answer:
Answer by Felonious Monkey
1) Was there a contract?
Probably not. The Statute of Frauds requires all contracts for sale of goods over $ 500 to be in writing. This contract was for goods valued at $ 20,000,000.
2) What type of contact is this?
This is a sale of goods contract
3) What are the requirements for this type of contract?
It must be in writing
4) What exceptions are available if in fact a payment was mailed?
If One Stop purchased postal insurance they might be able to recover some of their lost profits
5) Is there evidence?
Depends – if they bought insurance they should have some type of receipt
6) Plaintiff’s view?
Who’s suing who? And for what?
7) Defendants view?
Who’s suing who? And for what?
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