11. On Octоber 1, а whоlesаler оf printing supplies аgreed by phone to sell 25 cases of printer cartridges to an owner of an office supply store at a total price of $800. On October 20, before the printer cartridges were shipped, the wholesaler called the office supply store and told the store owner that because of a shortage of materials, the price that the wholesaler had to pay for the printer cartridges had increased significantly. The wholesaler said that if he delivered the printer cartridges at a price of $800, he would lose a great deal of money. The wholesaler asked the store owner to consent to a higher price, suggesting that the store owner pass the increase along to store customers. After further discussion, the store owner and the wholesaler agreed to change the price of the order to $1,000. On October 25, the store owner succeeded in purchasing 25 cases of printer cartridges for $800 from another source. On November 1, the wholesaler delivered 25 cases of printer cartridges to the store owner, along with an invoice for $1,000. The store owner rejected the cases and refused to pay the wholesaler. In an action by the wholesaler against the store owner for breach of contract, which of the following would be the store owner’s most effective defense:
Pаrt II: ESSAY QUESTIONS (ONE HOUR FOR EACH ESSAY QUESTION) ESSAY #1 (One Hоur) Tаmmy is а well-knоwn interiоr designer who advertises in several prestigious magazines, including Home Elegance. On November 1, Tammy placed the following advertisement in Home Elegance: In preparation for your family’s Thanksgiving meal, transform your outdated kitchen into a ‘chef’s delight’ kitchen for $70,000. The charge includes Tammy’s design fee and stock materials; custom materials may be extra. Customer must pay a $20,000 deposit to cover costs of materials before work starts; balance to be paid at the completion of the work. Call Tammy at #444-1234 or fax at #444-5678. Cathy read Tammy’s advertisement and faxed Tammy a letter stating, “I read your ad and it sounds great. I am planning to host a huge family Thanksgiving feast for about 30 people, so I must have the kitchen completed in time for Thanksgiving. Will you consider a $10,000 deposit?” After receiving Cathy’s fax, on November 5, Tammy telephoned Cathy and they agreed to a $15,000 deposit and scheduled Cathy’s kitchen remodel to start the next week. Cathy sent Tammy the $15,000 deposit and Tammy commenced work on her kitchen. On November 15, Tammy telephoned Cathy and said, “Since you have chosen some custom countertops, there is an additional charge of $10,000, leaving $65,000 due at completion of the job. We cannot finish your kitchen by Thanksgiving unless you pay the additional amount for the custom countertops immediately.” Cathy replied, “That is outrageous! But, since Thanksgiving is just around the corner, I guess that I have no choice! “ Cathy promptly paid the $10,000 for the custom countertops and Tammy completed Cathy’s kitchen in time for Thanksgiving dinner. Tammy sent Cathy an invoice for $55,000. Cathy paid $45,000. Tammy sued Cathy to recover the $10,000 difference. Discuss the rights and obligations of the parties.