Contracts – Formation and Breach

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  Contracts – Formation and Breach

As the purchasing manager, Russ looks for deals on office supplies and equipment.  An office supply company offered to sell Jabil six new industrial copy machines and four packaging machines for $15,000.  Russ thought the offer presented a great opportunity to replace the old equipment with new equipment.  Russ and the seller entered into an oral contract whereby Russ would pay the seller $15,000 cash on delivery to Jabil’s distribution center in St. Petersburg, Florida.  In the meantime, Russ lined up installers for the equipment.  When time came for delivery of the goods, the seller said that half of the copy machines  and packaging equipment had been sold to another company, but 3 copy machines and 2 packaging machines would be delivered.  

  • What rights does Russ have related to the oral contract for the equipment?  Is the seller in breach of contract?  Discuss why or why not.