Reference no: EM132731135

Problem 1: Leno Computers manufactures tablet computers for sale to retailers such as Fallon Electronics. Recently, Lenosold and delivered 200 tablet computers to Fallon for $20,000 on January 5, 2019. Fallon has agreed to pay for the 200 tablet computers within 30 days. Fallon has a good credit rating and should have no difficulty in making payments to Leno. What has not explained whether a valid contract exists between Leno Computers and Fallon Electronics?

a) The contract has commercial substance-Fallon Electronics has agreed to pay cash for the computers.

b) The parties have approved the contract and are committed to perform-Fallon Electronics has made a commitment to purchase the computers and Leno has approved the selling of the computers. In fact Leno has delivered the computers to Fallon.

c) The identification of the rights of the parties-Fallon has the right to the computers and Leno has the right to payment.

d) It is not probable that the consideration will be collected-although no cash has yet been paid by Fallon. Fallon has a good credit rating which indicates that the consideration will be collected.