Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 10

Courts Distributors needed two hundred compact refrigerators on a rush basis. It contacted Eastinghouse Corporation, a manufacturer of refrigerators. Eastinghouse said it would take some time to quote a price on an order of that size. Courts replied, ''Send the refrigerators immediately and bill us later.'' The refrigerators were delivered three days later, and the invoice arrived ten days after that. The invoice price was $140,000. Courts believes that the wholesale market price of the refrigerators is only $120,000. Do the parties have a contract? If so, what is the price? Explain.