[Smeared cupcakes] Kai orders forty decorated cupcakes from Liu's bakery next door to be sold in his restaurant.During delivery,Lui trips and the box tips over.When Kai opens the box to inspect the cupcakes,the frosted decorations on the cupcakes are smeared.
-Must Kai accept the cupcakes?
A)Yes,if they are still sellable,he must perform under the terms of the contract.
B)Yes,unless the contract specifically states otherwise.
C)No,since the goods are partially destroyed,Lui may treat the contract as void.
D)No,but he must provide Lui with time to cure.
E)No,since the goods are partially destroyed,Kai may treat the contract as void.

Question

Quizplus · Accepted Answer

A)If goods are identified at the time the parties entered into a contract and these
goods are destroyed through no fault of the parties before risk passes to the buyer or lessee,the parties are excused from performance.If the goods are only partially destroyed,the buyer can inspect the goods and decide whether to 1)treat the contract as void or 2)ask the seller for a reduction of the contract price and then accept the damaged goods.
B)If goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer or lessee,the parties are excused from performance.If the goods are only partially destroyed,the buyer can inspect the goods and decide whether to 1)treat the contract as void or 2)ask the seller for a reduction of the contract price and then accept the damaged goods.
C)If goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer or lessee,the parties are excused from performance.If the goods are only partially destroyed,the buyer can inspect the goods and decide whether to 1)treat the contract as void or 2)ask the seller for a reduction of the contract price and then accept the damaged goods.
D)If goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer or lessee,the parties are excused from performance.If the goods are only partially destroyed,the buyer can inspect the goods and decide whether to 1)treat the contract as void or 2)ask the seller for a reduction of the contract price and then accept the damaged goods.
E)If goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer or lessee,the parties are excused from performance.If the goods are only partially destroyed,the buyer can inspect the goods and decide whether to 1)treat the contract as void or 2)ask the seller for a reduction of the contract price and then accept the damaged goods.

[Smeared Cupcakes] Kai Orders Forty Decorated Cupcakes from Liu's Bakery