Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 20

Ames, Bell, Cain, and Dole each orally ordered LCD (liquid crystal display) televisions from Marvel Electronics Company, which accepted the orders. Ames's television was to be encased in a specially designed ebony cabinet. Bell, Cain, and Dole ordered standard televisions described as "Alpha Omega Theatre." The price of Ames's television was $1,800, and the televisions ordered by Bell, Cain, and Dole were $700 each. Bell paid the company $75.00 to apply on his purchase; Ames, Cain, and Dole paid nothing. The next day, Marvel sent Ames, Bell, Cain, and Dole written confirmations captioned "Purchase Memorandum," numbered 12345, 12346, 12347, and 12348, respectively, containing the essential terms of the oral agreements. Each memorandum was sent in duplicate with the request that one copy be signed and returned to the company. None of the four purchasers returned a signed copy. Ames promptly called the company and repudiated the oral contract, which it received before beginning manufacture of the set for Ames or making commitments to carry out the contract. Cain sent the company a letter reading in part, "Referring to yo ur ContractNo. 12347, please be advised I have canceled this contract. Yours truly, (Signed) Cain." The four televisions were duly tendered by Marvel to Ames, Bell, Cain, and Dole, all of whom refused to accept delivery. Marvel brings four separate actions against Ames, Bell, Cain, and Dole for breach of contract. Decide each claim.