Contract law- case study Tullula Investments Ltd is a large New York company, wh

Question

Contract law- case study

Tullula Investments Ltd is a large New York company, which owns and operates many hotel and restaurants throughout state. Italian Cuisine Ltd, a food and catering business whose headquarters are in Newark, NJ, supplies goods commonly used by businesses such as Tullula Investments Ltd. On September 1, 2014, Italian Cuisine Ltd sent a fax to Tullula Investments Ltd, which read:

"Can offer latest 'Speedy Pizza Ovens' at $100 each."

On October 1, 2013, Tullula Investments Ltd faxed a reply stating: "Will have four dozen. Need delivery by November 1, 2013." Upon receiving the fax Italian Cuisine Ltd then wrote back to Tullula Investments Ltd saying "thank you for your fax which is receiving our attention".

Subsequently and prior to November 1, 2013, Italian Cuisine Ltd packed the pizza ovens and loaded them on a van for delivery to Tullula Investments Ltd, but before the van set out, Tullula Investments Ltd phoned Italian Cuisine Ltd to say that they no longer needed the ovens.

Explain the legal positions of Tullula Investments and Italian Cuisine in relation to the law of contract, covering such issues as contract formation, performance and breach, and possible damages.

Explanation / Answer

Italian Cuisine Ltd's legal position

Italian Cuisine Ltd, investment's fax revert to Tullula Investment's fax did not state that they're taking Tullula Investment's fax as a conformation of sale. The right wording to confirm the sales would have been "sales order" or a purchase order. However neither of them were used in Italian Cuisine Ltd's revert to Tullula Investment's fax. Their fax which stated "thank you for your fax which is receiving our attention"was extremely vague and ambiguous to its intended audience. Because and intent to purchase does not necessarily quality as a conformation of purchase.

However , all said and done, Italian Cuisine Ltd's could attempt to sue Tullula Investments Ltd under the UCC

Contract liability : UCC stands for uniform commercial code lays down an outline for commerce laws comprising of rules of sales etc in the United States. Mirror Image Rule is a type of contract law that requires the person / individual or the organisation making an offer to accept and deliver on the terms and conditions stated in the offer without deviating from it. Battle of the forms is a legal scenario where the person / individual or the organisation making an offer through a contract receives an acceptance to that invitation through a separate contract. In such cases the contract can be voided in the event of ambiguity or discrepancies.

Tullula Investment's legal position

Tullula investment's legal position is that while Italian Cuisine Ltd's case against Tullula investments is weak and would be unlikely to make a good case against them, in the event that they do, Tullula investment's would not be able to dodge the UCC since legitimate contracts can only be voided under two circumstances.

#1 Contract Impossibility under UCC 2-615(a), under which a contract can be voided if one or more of the parties could not deliver fulfil their obligations due to unforseen, external circumstances and despite of their best efforts to find close substitutes or alternatives, they were unable to deliver. (in this case a draught)

#2 Substantial Performance , under which, one or more of the parties involved in the contract can be offset, if they've delivered a reasonable proportion of their obligations , to their best ability to do so.

Since Tullula investment's reason for voiding the contract does not satisfy the contract impossibility conditions. they can always file an appeal and or defend themselves using the Express Warranty & Buyer's Reliance also known as the

Federal Magnuson-Moss Warranty Act.

Express warranty & buyers reliance is a right to warranty facilitated by the federal Magnuson-Moss Warranty Act. This entitles a buyer to claim warranty as long as he or she is able to spot a valid defect or a reason for reimbursement / return or replacement of the product or service within a short duration of time from the date or time of purchase for any product or service rendered or sold at or above 15 USD $

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