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Like millions of other Americans, Earl was anxious to purchase one of the new Veringular two-way wrist videophones, the See and Speak. He went to the Electronics Boutique, a chain retailer of consumer electronic devices, to purchase one. The Electronics Boutique paid $1,500 to the factory for the See and Speak and charged its customers $2,500. Each See and Speak had to be ordered from the factory in Japan; orders were so plentiful that it was taking up to eight weeks to receive the devices after ordering. An Electronics Boutique salesperson filled out a preprinted form which had been drafted by the Electronics Boutique’s corporate legal department, in which Earl agreed to make a $300 down payment and to pay the remaining $2,200 upon delivery of the See and Speak to him. Earl signed the form without reading it.
When Earl’s See and Speak arrived from Japan six weeks later, Earl refused to accept it and demanded his $300 down payment back. The Electronics Boutique immediately sold that See and Speak for $2,500 to Eileen, who had also ordered one from the factory on the same terms as Earl. The Electronics Boutique then brought an action for breach of contract against Earl, who counterclaimed for return of his $300.
What will be the likely outcome of this action?
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Is this contract enforceable? What is needed to put Electronics Boutique in the same position as they would have been if the contract had been performed?
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