On January 3,Cara wrote to SunTime Mfg.asking for shipment of 100 swimsuits on 90-day credit.In the letter,she gave references that indicated that her store was financially sound.Actually she had bills that she could not pay and hoped to turn the business around with the summer swimsuit sales.SunTime ships the suits on March 1;they are received March 15.Cara immediately puts them on display and seven are sold by March 20 when SunTime discovers that Cara has lied.SunTime may:
A) recover 93 suits plus incidental damages.
B) recover 100 suits provided that SunTime acts in ten days from the delivery date.
C) recover no suits since it has been ten days since the suits were shipped.
D) recover 93 suits.

Question

Quizplus · Accepted Answer

SunTime can recover the suits that have not been sold, which is 93 suits in this case. This is because Cara made a fraudulent misrepresentation by lying about her store's financial situation in order to obtain the credit, which constitutes a breach of contract. The fact that SunTime discovered the fraud after 10 days from the delivery date does not affect their right to recover the unsold goods. However, they cannot recover the incidental damages because these were not specified in the scenario.

On January 3,Cara Wrote to SunTime Mfg