Alice Snead, a sales representative for Franklin Grocery Wholesalers, called upo

Question

Alice Snead, a sales representative for Franklin Grocery Wholesalers, called upon Filthy Foods to discuss supplying Filthy Foods with some new items offered by Franklin's fresh produce divi- sion, as well as several items from Franklin's recently expanded canned goods division. To discuss the new varieties of fresh produce, Alice asked for Lindon Leader, the purchasing agent in charge of fresh fruits and vegetables whom Alice had dealt with in the past. After speaking to Lindon, Alice planned to speak to Kathleen Bercsi, the purchasing agent she knew was in charge of canned goods. Unknown to Alice, Lindon Leader had been transferred to the quality supervision department at Filthy Foods and no longer was a purchasing agent in the fresh produce division. Nonetheless, because Lindon had always been fond of Alice, he decided to enter into one contract with Alice for fresh produce and a second contract for canned goods. The fresh produce has not yet been delivered to Filthy Foods. but the canned goods have already been delivered and have been resold by Filthy Foods to its customers. a. Decide whether Filthy Foods is bound by the contract for the purchase of the fresh produce, and state why or why not. b. Decide whether Fithy Foods is bound by the contract for the purchase of the canned goods, and state why or why not.

Explanation / Answer

I am assuming that every sort of paperwork including purchase order, contract etc. has been done by both the parties before that transaction started.

a. If the fresh foods delivery has crossed the day as has been decided in the contract, then Filthy Foods is not bound to purchase the product or atleast pay for the delayed delivery.

b. Yes Filthy Foods is bound by the contract for the purchase of canned goods, because it was delivered on time and already has been sold by Filthy Foods.

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