First Principles of Business Law

Performance and breach of contract

3. Discharge of a contract by performance

3.4. Reciprocal obligations

 

 

 

Read the facts and the question and then choose the best answer.

A, a supplier, agrees to supply 30 kilograms of coffee beans each week to B, a cafe owner, for a price of $15 per kilogram. The next day A hears from a friend, C, that B is often very slow at making payment. When he takes the first consignment of coffee beans to B, A refuses to hand them over to B unless B pays her at the same time.

Is A entitled to insist on payment at the same time as delivery of the article to B?

(a) Yes. Unless otherwise agreed, payment for something must be made at the same time as delivery.

(b) No. Unless otherwise agreed, payment is only due within a reasonable time after delivery is made.

 

 

 

 

 

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