Is the contract executed by and between B and S a contract of sale or a contract for a piece of work? Explain your answer.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Buyer B entered into a contract with Seller S for the manufacture for B 1,000 pcs of
plastic dogs and 1000 pcs of plastic cats in accordance with the sample given by B. The
plastic dogs and cats will be used by B in his business. S delivered in several
installments and B paid the agreed price. Subsequently B returned the 500 pcs of
assorted cats and dogs for failing to comply with the approved sample. S failed to return
the price paid for the 500 pcs returned items. Is the contract executed by and between
B and S a contract of sale or a contract for a piece of work? Explain your answer.

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