Sarah calls John and orders 500 t-shirts over the phone.The t-shirts cost $10,000.John delivers and Sarah accepts 250 of the t-shirts.Before John can deliver the other t-shirts,Sarah cancels the order.Sarah refuses to pay for any of the t-shirts.John sues,who wins?

Question

Quizplus · Accepted Answer

When Sarah accepted the first 250 t-shirts, it established a partial performance agreement. Sarah cancelled the order before the rest of the t-shirts were delivered, but had already accepted and kept the first 250 t-shirts, which constituted acceptance of the contract for the first 250 t-shirts. Therefore, Sarah is liable for the cost of those 250 t-shirts. The rest of the order is cancelled, and Sarah does not need to pay for them.

Sarah Calls John and Orders 500 T-Shirts Over the Phone