Question

Bush Hardware ordered 300 Ram hammers from Ajax Hardware. Ajax accepted the order in writing. On the final date allowed for delivery, Ajax discovered it did not have enough Ram hammers to fill the order. Instead, Ajax sent 300 Strong hammers. Ajax stated on the invoice that the shipment was sent only as an accommodation. Which of the following statements is true?

A. Ajax's shipment of Strong hammers is a counteroffer, and no contract exists between Bush and Ajax.
B. Ajax's note of accommodation cancels the contract between Bush and Ajax.
C. Bush's order can be accepted only by Ajax's shipment of the goods ordered.
D. Ajax's shipment of Strong hammers is a breach of contract.

Answer 1

The correct statement is option C: Bush's order can be accepted only by Ajax's shipment of the goods ordered.

Step-by-step explanation:

The correct statement is option C: Bush's order can be accepted only by Ajax's shipment of the goods ordered. When Bush Hardware placed the order for 300 Ram hammers and Ajax accepted it in writing, a legally binding contract was formed.

However, by sending the 300 Strong hammers instead, Ajax did not fulfill the terms of the contract, and this constitutes a breach of contract. Ajax's note of accommodation does not cancel the contract, as it is not a valid counteroffer.