Ethan enters into a business contract with Riley for the purchase of 200 school desks. The contract specifically states that Riley must deliver all of the 200 desks in one week, set them up and Ethan must determine that all 200 desks are in perfect condition, or Riley must remove all the desks immediately and Ethan will owe Riley nothing. Which statement below is correct based upon the application of default rules in this situation should Riley only be able to deliver 199 perfect, according to Ethan, school desks?
A) The court will override the provision in the contract and reform the contract to determine that Ethan will have to pay for the 199 desks.
B) The court will declare the original contract was too harsh and unfair and will declare it void.
C) The court will determine that since the parties specifically addressed a provision of the contract, it cannot be overridden by a default rule.
D) The court will determine that the harsh term of delivery in the contract will be severed from the contract to promote fair dealing and good faith.

Question

Quizplus · Accepted Answer

The court will likely uphold the specific provisions agreed upon in the contract, including the requirement for all 200 desks to be delivered in perfect condition, as parties are generally free to set their own terms in a contract.

Ethan Enters into a Business Contract with Riley for the Purchase