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Olivia is a florist who specializes in roses.

She has a five-year written contract with Juan to sell him as many roses as he needs for his wedding chapel. Over the past three years, Olivia sold Juan between 4,000 and 5,000 roses annually. With three years remaining on the contract, Juan notified Olivia that he cannot continue to buy roses from her because of serious budget concerns. Olivia was selling the roses to Juan for $2.00 each, so her gross annual income on the contract was from $8,000 - $10,000.

Last month Ann (a new customer) emailed Olivia an order for "1,000 white stems" to decorate an event hall. The order did not specifying a particular price or flower. Ann assumed that Olivia would send roses, her specialty. Olivia instead sent orchids, the only "white stems" available at the time.

When Ann received the white orchids, she was surprised. Since Ann had no time to inquire about getting roses (as she expected), she used the orchids for the event.

Olivia subsequently billed Ann $5 each for the orchids, a price more than twice that of roses. Ann refused to pay the higher amount.

1. What contract rights and remedies, if any, does Olivia have against Juan?

2. What contract rights and remedies, if any, does Olivia have against Ann?

3. What defenses, if any, do Juan and Ann have?

Respuesta :

Answer:

Olivier does have sufficient contract rights because she already signed a 5 year contract to supply as many roses as possible to Juan. Juan cannot come at the end of two years and break the contract

Explanation:

1. 1. What contract rights and remedies, if any, does Olivia have against Juan?

The most important point of focus from the aspect of the law and statute of frauds is that from the scenario it was stated clearly that ''She has a five-year written contract with Juan to sell him as many roses as he needs for his wedding chapel. ''

Olivier does have sufficient contract rights because she already signed a 5 year contract to supply as many roses as possible to Juan. Juan cannot come at the end of two years and break the contract

2. What contract rights and remedies, if any, does Olivia have against Ann?

The scenario states clearly that ''Ann emailed Olivia an order for "1,000 white stems'' and ''Olivia instead sent orchids, the only "white stems" available at the time.''

Hence Olivia fulfilled Ann's orders and Ann has absolutely no case at all. Olivia has acted in accordance to Ann's request and has full rights to claim her payment.

3. What defenses, if any, do Juan and Ann have?

In summary the defenses of both parties are weak

1. Juan has a defense of unforeseen financial difficulties but this will be insufficient to override a written contract

2. Ann assumed that Olivia would send roses but assumption does not work in the eyes of the law but written agreements.

Additionally, Ann could argue that Olivia should have communicated the price of the orchids at the point of processing Ann's orders.

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