In Crest Ridge Construction v. Newcourt, where an order for construction materials that Crest Ridge needed was rejected for failure to meet credit terms, and Crest Ridge had to find a higher-cost replacement and sued Newcourt for damages, the appeals court held that:

Question

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The appeals court held that Newcourt was liable as its actions gave Crest Ridge reason to believe the sale had been approved, even though the credit terms were not met. The court found that Newcourt had made representations that led Crest Ridge to believe the order was accepted, and therefore, could be held liable for damages resulting from Crest Ridge's reliance upon those representations. Options A and B are incorrect because they suggest that Crest Ridge did not follow the contract terms or did not have sufficient credit history, which was not the issue in the case. Option C is incorrect because there is no indication in the case that Newcourt imposed higher credit conditions on Crest Ridge than what was stated in the contract.

In Crest Ridge Construction V