Question: Flint, a retail seller of television sets, orders one hundred model Color-X sets from manufacturer Martin. The order specifies the price and that the television sets are to be shipped by Hummingbird Express on or before October 30. The order is received by Martin on October 5. On October 8, Martin writes Flint a letter indicating that the order was received and that the sets will be shipped as directed, at the specified price. This letter is received by Flint on October 10.
On October 28, Martin, in preparing the shipment, discovers it has only ninety Color-X sets in stock. Martin ships the ninety ColorX sets and ten television sets of a different model, stating clearly on the invoice that the ten are being shipped only as an accommodation. Flint claims Martin is in breach of contract. Martin claims the shipment was not an acceptance, and therefore no contract was formed. Explain who is correct, and why. For a sample answer to this question, go to Appendix B at the end of this text.