Reference no: EM131659318

Question: Hypothetical Question with Sample Answer. M. M. Salinger, Inc., a retailer of television sets, orders one hundred model Color-X sets from manufacturer Fulsom. The order specifies the price and that the television sets are to be shipped via Interamerican Freightways on or before October 30. Fulsom receives the order on October 5. On October 8, Fulsom writes Salinger a letter indicating that it has received the order and that it will ship the sets as directed, at the specified price. Salinger receives this letter on October 10. On October 28, Fulsom, in preparing the shipment, discovers it has only ninety Color-X sets in stock. Fulsom ships the ninety Color-X sets and ten television sets of a different model, stating clearly on the invoice that the ten sets are being shipped only as an accommodation. Salinger claims that Fulsom is in breach of contract. Fulsom claims that there was not an acceptance and, therefore, no contract was formed. Explain who is correct, and why.