Business Law

Erma, a merchant, receives a brochure from Ammco regarding some merchandise that is sold in Erma’s business. Erma then sends in a purchase order ordering 25 units of merchandise (which exceeds $500.00 in value). Ammco upon receipt of the order, sends a letter of confirmation containing additional information which states that the price did not include shipping and insurance costs and that the shipping costs and insurance would be added on to the total contract price. Furthermore, Ammo delegates the obligation of shipping the merchandise to Ecco. While the goods were in transit, the truck was hijacked and all the merchandise, including Erma’s order. Applying “common law contract principles” are there Party issues? Formation issues? Proof issues? Performance issues? Breach and Discharge issues? What are the available remedies?

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