Millet Grains Cooperative and Corn Cereals,Inc.,discuss the terms of a contract for periodic deliveries of corn. Millet Grains then faxes Corn Cereals a memo on Millet Grains's letterhead that summarizes the points on which they agreed,including a two-year term. Millet Grains begins to perform,and Corn Cereals accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 15-1.Between Millet Grains and Corn Cereals,this contract is most likely enforceable against

Question

Quizplus · Accepted Answer

The contract is most likely enforceable against both Millet Grains and Corn Cereals to the extent of the performance. This is because a contract was formed based on the discussions and the summary memo sent by Millet Grains. Both parties performed their respective obligations and Corn Cereals benefited from the deliveries made by Millet Grains. Therefore, Corn Cereals cannot refuse to pay for the deliveries received as this would be a breach of contract. However, the enforceability of the contract beyond the performed obligations may be uncertain due to the lack of a formal written agreement.