You own a grocery store and are looking to enter into an agreement with a wholesaler of fruitsand vegetables. You write to the wholesaler oFering to buy 100 cases of tomatoes, 100 cases ofbananas and 100 cases of pineapples, payable on delivery 30 days from today.Wholesaler writes we accept your oFer and adds interested at 5% for unpaid balances?Is there a valid contract? Explain.

Answer:

The contract is valid as in one way you as the grocery owner writes about the needs and sends them to the wholesaler. In the process, your specifics the needs and one component is that the products will be paid for 30 days from the time they were delivered (McKendrick, 2014). One thing that must be understood is the fact that the fruit wholesaler is acting any other business would act. In traducing an element of interest is something that must be accepted in the case. The reasoning is very simple. The interest will act as the benefit to the wholesaler for lending his or her products. Second is the fact that the wholesaler makes a claim through a formal document which makes the side to abide by the provisions (McKendrick, 2014).  With another element such as two parties and existence of a contract been in place then a valid contract is in existence.