Baker agreed to purchase a set of books on display in Flack's Book Store. The price for the set was $300, and Baker gave Flack $150 to 'bind the bargain'. Flack delivered the books to Baker's home the next day, but Baker refused delivery, as he had found a similar set in another shop at a slightly lower price. Baker is entitled to a return of his $150, because the title to the goods had not passed.

Question

Quizplus · Accepted Answer

The $150 given by Baker to "bind the bargain" acts as a form of earnest money or deposit, indicating his commitment to the purchase agreement. When Baker refused delivery, he breached the agreement, forfeiting his right to the return of the deposit based on the terms of the agreement and the principle of contract law.

Baker Agreed to Purchase a Set of Books on Display