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7. If the man sues distributor on February 2 for breach of contract, which of the following is the distributor's best defense?
The man did not give the distributor notice of the resale until January 25, and the distributor received it by mail on January 26. In the meantime, the value of the engine had unexpectedly increased about 75% since December 1, and the distributor renounced the agreement.
In a writing signed by both parties on December 1, a man agreed to buy from a distributor a gasoline engine for $1,000, delivery to be made on the following February 1. Through a secretarial error, the writing called for delivery on March 1, but neither party noticed the error until February 1. Before signing the agreement, the man and the distributor orally agreed that the contract of sale would be effective only if the man notified the distributor in writing no later than January 2 that the man had arranged to resell the engine to a third person. Otherwise, they agreed orally, «There is no deal.» On December 15, the man entered into a contract with a mechanic to resell the engine to the mechanic at a profit.
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A is incorrect. The facts do not suggest that the delivery date relates to a basic assumption of the contract, and therefore the contract does not appear to be voidable on grounds of mistake.
C is incorrect. Even a dramatic increase in the value of the gasoline engine would not provide a basis for excuse on grounds of frustration (in any event, frustration of purpose is a defense available to buyers rather than sellers).
D is incorrect. A writing may be enforceable even if it omits a material term.