Business Law

Security Plus and Stone Quarries entered into a written sales agreement providing that Security would sell and install new security equipment described on an equipment list attached to the contract.  The list included a Sony video cassette recorder (VCR).  When the system was installed, Security installed a used Sharp VCR.  Quarry called Security the day after the installation and complained that the equipment was not a Sony and was used, not new.  Security told Quarry that the equipment was not used and that a Sharp VCR was better than a Sony.  Quarry telephoned Security personnel over a two week period during which they denied that the equipment was used.
After two weeks of calls, Security’s installation manager went to Quarry’s premises to see the equipment and admitted that it was used.  No one from Security advised Quarry in advance that it was installing used equipment temporarily until the right equipment arrived.  Security offered to replace it with a new Sony VCR as soon as one arrived, which would take one or two months.  Quarry asked Security to return its deposit and take the equipment back, but Security refused.  Quarry put all the equipment in boxes and stored it. Security sued Quarry for breach of contract.  Quarry filed a counterclaim, alleging breach of contract.  Security asserted that it had the right to replace the Sharp VCR within the month or two after Quarry rejected it, and thus it was not in breach of the contract.  Discuss whether or not Security is correct.

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