Question

Ace Corporation calls Deuce Manufacturing and orally orders a custom built piece of equipment at a cost of $5,000. Deuce informs Ace that the equipment will take three weeks to assemble and that they are very backed up and will start on Wednesday. On Tuesday, Ace calls Deuce to cancel the order.
A.Deuce may still enforce the contract because the machine was to be custom made.
B.Ace may void the contract but will owe Deuce damages for expected profits.
C.The contract was unenforceable from the beginning due to its oral nature so neither Ace nor Deuce have any rights.
D.Ace has effectively voided the contract.

Answer

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