Case 1: A Chinese Company A offered to an Australian Company B, selling them a batch of some goods. Besides some necessary transaction terms and conditions were set out clearly in the offer, the offer also indicated that the payment was made by sight L/C and the delivery was to be made within two months after receipt of the L/C. Company B replied in their letter that they could accept the offer, but asked for immediate delivery. However, Company A didn't give any answer to this letter. Then presently Company B opened the letter of credit at sight, and indicated "immediate shipment". During that time the marketing price for the goods was rising greatly. So Company A refused to deliver the goods. Question: (1) Was the sales contract established between two companies? (2) Did Company A have the right to refuse to deliver the goods?
Case 1: A Chinese Company A offered to an Australian Company B, selling them a batch of some goods. Besides some necessary transaction terms and conditions were set out clearly in the offer, the offer also indicated that the payment was made by sight L/C and the delivery was to be made within two months after receipt of the L/C. Company B replied in their letter that they could accept the offer, but asked for immediate delivery. However, Company A didn't give any answer to this letter. Then presently Company B opened the letter of credit at sight, and indicated "immediate shipment". During that time the marketing price for the goods was rising greatly. So Company A refused to deliver the goods. Question: (1) Was the sales contract established between two companies? (2) Did Company A have the right to refuse to deliver the goods?
Related questions
Question
![Case 1: A Chinese Company A offered to an Australian Company B, selling them a batch of some goods.
Besides some necessary transaction terms and conditions were set out clearly in the offer, the offer also
indicated that the payment was made by sight L/C and the delivery was to be made within two months after
receipt of the L/C. Company B replied in their letter that they could accept the offer, but asked for
immediate delivery. However, Company A didn't give any answer to this letter. Then presently Company
B opened the letter of credit at sight, and indicated "immediate shipment". During that time the marketing
price for the goods was rising greatly. So Company A refused to deliver the goods.
Question:
(1) Was the sales contract established between two companies?
(2) Did Company A have the right to refuse to deliver the goods?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52d2dd6f-6ff9-45b4-bc92-9c80648934a4%2F25b97bed-8a53-4a83-8303-90b62febc8dd%2Fvvstex_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Case 1: A Chinese Company A offered to an Australian Company B, selling them a batch of some goods.
Besides some necessary transaction terms and conditions were set out clearly in the offer, the offer also
indicated that the payment was made by sight L/C and the delivery was to be made within two months after
receipt of the L/C. Company B replied in their letter that they could accept the offer, but asked for
immediate delivery. However, Company A didn't give any answer to this letter. Then presently Company
B opened the letter of credit at sight, and indicated "immediate shipment". During that time the marketing
price for the goods was rising greatly. So Company A refused to deliver the goods.
Question:
(1) Was the sales contract established between two companies?
(2) Did Company A have the right to refuse to deliver the goods?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)