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Abe's Wholesale Fish reached a verbal agreement with Joseph's Fisheries to buy from them 2 tonnes of cod for $7,500 per ton per week for ten weeks. Abe drew up a written version of the contract and both parties signed it. Shortly after the first delivery, Joseph received a cheque from Abe for $10.400 ($5.700 per ton) in full settlement of the account, and discovered the first two digits of the amount per ton had been transposed (reversed reading $5,700 rather than $7,500) and neither party had noticed it at the time. Discuss what Abe may do in this case.

Abe's Wholesale Fish reached a verbal agreement with Joseph's Fisheries to buy from them 2 tonnes of cod for $7,500 per ton per week for ten weeks. Abe drew up a written version of the contract and both parties signed it. Shortly after the first delivery, Joseph received a cheque from Abe for $10.400 ($5.700 per ton) in full settlement of the account, and discovered the first two digits of the amount per ton had been transposed (reversed reading $5,700 rather than $7,500) and neither party had noticed it at the time. Discuss what Abe may do in this case.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Abe's Wholesale Fish reached a verbal agreement with Joseph's Fisheries to buy from them 2 tonnes of cod for $7,500 per ton per week for ten weeks. Abe drew up a written version of the contract and both parties signed it. Shortly after the first delivery, Joseph received a cheque from Abe for $10.400 ($5.700 per ton) in full settlement of the account, and discovered the first two digits of the amount per ton had been transposed (reversed reading $5,700 rather than $7,500) and neither party had noticed it at the time. Discuss what Abe may do in this case. Essay Toolbarnmogation
Transcribed Image Text:Abe's Wholesale Fish reached a verbal agreement with Joseph's Fisheries to buy from them 2 tonnes of cod for $7,500 per ton per week for ten weeks. Abe drew up a written version of the contract and both parties signed it. Shortly after the first delivery, Joseph received a cheque from Abe for $10.400 ($5.700 per ton) in full settlement of the account, and discovered the first two digits of the amount per ton had been transposed (reversed reading $5,700 rather than $7,500) and neither party had noticed it at the time. Discuss what Abe may do in this case. Essay Toolbarnmogation
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