Legal Question in Consumer Law in California

Contract Agreement

We signed a ''Quotation/Order'' for the purchase of a piece of radiology equipment for $92,500. The document was signed on September 26, 2001. On October 3, 2001 we made a business decision that we should not proceed with this equipment and sent a letter on that date to cancel.

Are we obligated to purchase this equipment?


Asked on 10/04/01, 1:07 pm

2 Answers from Attorneys

Re: Contract Agreement

Unfortunately, the answer to your question is not quite simple with the limited information you provided. The question arises as to whether your ''Quotation/Order'' was what the law deems to be an "offer" which is then accepted by the company. If the offer was accepted then yes you likely have a binding contract wherein. Your "cancellation" is probably a repudiation of the contract which may entitle the radiology company to collect damages equal to their lost profits.

You should have an attorney review the "Quotation/Order" with you. There may also be attorneys' fee provisions requiring you to pay their attorneys fees if you lose in court.

J. Caleb Donner

LEGAL WARRIORS (R)

805-494-6557

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Answered on 11/21/01, 5:50 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: Contract Agreement

It depends on a few things. What the terms of the Quotation/Order form said, etc. I would need to see the paper work and ask a few questions to give you an answer.

If you want, email the contract to 925-394-3044

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Answered on 11/21/01, 7:27 pm


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