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QUESTION

Banner, Inc. manufactures flags.Promotions, Inc. is a marketing company. Promotions Inc. expects that 2012 will be a big year for patriotism because...

5.  Banner, Inc. manufactures flags.  Promotions, Inc. is a marketing company. Promotions Inc. expects that 2012 will be a big year for patriotism because of the Olympics and elections. It wants to ensure that it has a good supply of U. S. flags for its promotions during 2012.  It sends the following email to Banner, Inc. 

"Thank you for the information on pricing which you provided. The list price looks fine. This confirms that you will supply us with all of the U. S. mini-flags which we request during 2012."

            Banner emails  back: " Sounds good. We will supply the product as per your email at our normal list price."

            (a) Is there a contract between Banner, Inc. and Promotions, Inc.? If so, when is it created?      

 (b) Assume that Promotion buys nothing from Banner but buys 2000 flags from another company. Can Banner sue Promotion for breach of contract?

            (c) Assume Promotion places an order with Banner for 2000 flags. If Banner fails to deliver, will Banner be in breach?

6. Same as question 5, except that Promotion's email reads, 

"Thank you for the information on pricing which you provided. The list price looks fine. This confirms that you will supply us with all of the U. S. mini-flags which we require during 2012."

Different outcome?

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