Case 21 Sale New printing machine

Arnold owns a printing works. He needs to expand the production capacity. Arnold calls
March 1
th
2!!" the supplier o# printing machines$ %enn$ asking him to come up with
an o&er o# a new printing machine. 'he #ollowing day$ March 1"
th
2!!"$ Arnold
recei(ed #ollowing letter #rom %enn)
*+ am happy to o&er you a ,rint-Magic ."! ci #or the special price o# /."!! 0 1normal
list price is /2."!! 03. Against payment + am happy to put in the machinery in your
place. 'he printing machine can 4e ready #or production at latest 4y 5ecem4er /1
st

2!!". Additional price #or ,C control module and installation o# this into the printing
machine is 2."!! 0. +n order to help you out on your acute need #or additional
production capacity you can rent 4y me at 1.!!! a month a used 1second hand3 printing
machine$ which + at no cost #or you will put into your place and later on pick up. 5ra#t
lease contract is enclosed. Acceptance o# the o&er must 4e in my position latest 2 days
#rom to date. Sincerely yours %enn.6
%enn7s letter was post stamped March 1
th
4ut due to mistake on %enn7s part dated
March 1.
th
. March 22
nd
%enn recei(ed #ollowing letter #rom Arnold)
*+ accept your o&er on the ,rint-Magic ."! ci at /."!! 0. 'he price #or putting in the
machinery we will ha(e to discuss a#ter 8aster. + accept you o&er on renting the used
1second hand3 printing machine and enclose the lease contract signed 4y me. March
21
st
2!!". Sincerely yours Arnold.6
+n the morning March /!
th
Arnold called %enn and they agreed that %enn same
a#ternoon should deli(er the rented machine. +n connection with %enn7s installation o#
the rented machine Arnold and %enn discussed the price #or putting in the new
machine. 'hey could$ howe(er$ not reach an agreement$ and they agreed that Arnold
should think it o(er and return on the issue.
April th called %enn urging him to reduce the installation price. 'hen %enn wrote to
Arnold)
9our acceptance was too late and due to that we ha(e no agreement at all. As you did
not accept my price #or the installation you will ha(e to pay the normal price /2."!! 0
#or the printing machine.
Arnold who would under no circumstances pay the demanded price #or the installation
protested and claimed that the two o# them had concluded a 4inding agreement on
/."!! #or the printing machine. A#ter some negotiation they decided to lea(e the
1
Case 21 Sale New printing machine
issue to 4e dealt with 4y the courts o# law$ and %enn consented to deli(er the printing
machine i# Arnold immediately paid /."!! 0 to %enn7s 4ank account and paid the
disputed amount /.!!! 0 as deposit to %enn7s attorney Cold7s o:ce. ;n the same day
Arnold paid the amounts to respecti(ely %enn and Cold.
No(em4er 1"
th
the new printing machine was deli(ered direct #rom the manu#acturer
to Arnold. %y mistake the ,C control unit #ollowed the printing machine. Arnold made
an installation company put in the ,C control unit to the printing machine$ which was
ready #or production No(em4er 2<
th.
'he rented second hand machine was dismantled.
No(em4er /!
th
%enn recei(ed #ollowing letter #rom Arnold)
'o date + 'rans#erred 1.!!! 0 1rent #or 5ecem4er month3 to your 4ank account. 'he new
machine is now ready #or production$ and the amount is there#ore the last rent payment.
No(em4er 2=
th
2!!". Sincerely yours Arnold.
>anuary 2
nd
2!!. Arnold recei(ed a letter #rom %enn claiming 2."!! 0 as payment #or
the ,C control unit$ which %enn has paid only 1."!! 0 #or. +n the letter %enn #urther
claimed continued rent #or the second hand machine and his reasoning was the
#ollowing)
+ ha(en7t recei(ed termination notice on the lease contract. 'he agreement could at the
earliest 4e terminated 5ecem4er /1
st
with one months notice e&ecti(e ?e4ruary 1
st

according to section . in the lease contract where it is stipulated) The agreement may
be terminated by one months notice to frst coming 1
st
in a month. 'he agreement is$
howe(er$ irre(oca4le until 5ecem4er /1
st
2!!". Conse@uently you can earliest terminate
the lease e&ecti(e March 1
st.
>anuary /
rd
%enn recei(ed a letter #rom Arnold denying paying #or the ,C control unit
stating)
'hat issue must 4e a matter 4etween you and the manu#acturer. Arnold #urther reAected
to pay additional rent #or the second hand machine claiming that the lease was
terminated 4y letter #rom No(em4er 2=
th
e&ecti(e >anuary 1
st
.
?inally Arnold claimed the /.!!! 0 deposited 4y attorney Cold.
2
Case 21 Sale New printing machine
,lease account #or the legal situation 4etween Arnold and %enn
Bhy should you consider Contract Act sec $ . and /2C
/