Question

1. Rick of Ranger Rick’s Inc., orally agrees to sell to Mike of Mike’s Elk Hunts, and Mike agrees to buy from Rick 25 pairs of binoculars at $200 each. Mike sends Rick a check for $1,000 as a down payment. Rick accepts the check, but later refuses to deliver any binoculars. Mike sues for breach of contract. Is the contract enforceable?

• Yes, the entire contract is enforceable
• Yes, the contract is only enforceable to the extend of 5 pairs of binoculars
• No, all goods must be paid for before the contract is enforceable

Answer 1

Yes, the entire contract is enforceable

Rick had agreed for the sale of binoculars and also accepted the down payment. Mike can file a suit for damages for non-delivery of the goods and also recover the down payment so paid.