Legal Question in Business Law in Maryland
Enforceable contract
Company (A) sells products to Company (B) which owns and operates a chain of stores. Over the phone, representatives from the two companies negotiate a sale of a product. Company (A) sends a letter to Company (B) with terms and tend days later ships product. Is there an enforceable contract.
1 Answer from Attorneys
Re: Enforceable contract
As long as the company reps had the authority to negotiate the contract on behalf of their companies, and all the material contract terms were agreed upon in the negotiation, it is an enforceable contract. If company A's shipment complied with the terms of the contract, it would be entitled to payment, unless there was a provision in the agreement that entitled
B to return the product in undamaged form and thereby cancel the contract.
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