Exciting Contract Dilemma: Ram Hammers vs. Strong Hammers
Which of the following statements is correct?
A) Ajax's shipment of Strong hammers is a breach of contract
B) Jefferson's order can only be accepted by Ajax's shipment of the goods ordered
C) Ajax's shipment of Strong Hammers is a counteroffer and no contract exists
D) Ajax's note of accommodation cancels the contract between Jefferson and Ajax
Answer:
The correct option is A) Ajax's shipment of Strong hammers is a breach of contract
When Jefferson Hardware ordered Ram hammers from Ajax Hardware, Ajax accepted the order in writing, which creates a valid and enforceable contract between the two parties. By sending Strong Hammers instead of Ram Hammers, Ajax has not fulfilled its obligation under the contract, which is a breach of contract.
The statement on the invoice that the shipment was sent only as an accommodation does not cancel the contract, and it does not alter the terms of the contract without the consent of Jefferson Hardware. In a situation like this, the legal concept of "substantial performance" may come into play. Substantial performance occurs when a party has substantially performed their obligations under a breach of contract, even if there are minor deviations or defects. If the party who has received the goods or services has accepted the performance, they may not be able to claim breach of contract.
Therefore, Jefferson Hardware has the right to reject the shipment and request the fulfillment of the original order or seek compensation for any damages incurred.