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First Principles of Business Law |
| Statutory provisions affecting contracts for goods and services |
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3. Terms implied by law into contracts for the sale of goods |
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3.4. Terms regarding payment for goods bought and sold |
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Read the facts and the question and then choose the best answer. A, a shopowner, agrees to buy 50 steel display racks from B, a manufacturer, for a price of $5,000. B agrees to deliver the racks to A's shop but A and B do not discuss when payment is to be made. When B delivers the racks to A he demands immediate payment. A says that payment need only be made within a reasonable time of delivery, not at the same time as delivery. Is A correct? |
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(a) Yes, in the absence of an agreed time for payment, payment is due within a reasonable time of delivery. b) No, in the absence of an agreed time for payment, payment is due at the same time as delivery. |
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