Breach Of Contract Lawsuit By Hospital On Surgical Instruments Company


The Hospital Administrator of Mega Hospital is negotiating with Acme Surgical Instruments to fill Mega Hospital’s requirements for surgical instruments. The Hospital Administrator of Mega Hospital sends Acme Surgical Instruments a purchase order form for surgical instruments that describes the quantity and type of each surgical instrument that Mega Hospital wants to purchase and other terms and conditions. The Mega Hospital form does not fix a price for each surgical instrument but it states that Acme Surgical Instruments should offer a price that will be fixed for two years. Acme Surgical Instruments sends its own purchase order form with Acme Surgical Instruments’ terms and conditions back to the Hospital Administrator, signed by Acme Surgical Instruments, with Acme Surgical Instruments’ prices but without specific reference to the two-year term. Under the Acme Surgical Instruments prices, payments by Mega Hospital would be about $10,000 per year. The Hospital Administrator signs Acme Surgical Instruments’ purchase order form and sends it back to Acme Surgical Instruments, indicating Mega Hospital’s agreement to the price terms. After six months, Acme Surgical Instruments decides that it is not making enough money from the arrangement, and Acme Surgical Instruments stops making shipments. Mega Hospital sues for breach of contract.

a)    What body or bodies of law govern this dispute and why? What body or bodies of law do not govern this dispute and why? Please be specific.
b)    Does the signed Acme Surgical Instruments purchase order form constitute an enforceable contract? Analyze referring to the essential elements of a contract.
c)    Does the signed Acme Surgical Instruments purchase order form contain all of the terms and conditions of the contract? If not, what additional information do you need to answer this question? Does this cause you to reconsider your answer to b?
d)    Would your answer be different if the total payments were $150 per year? Why or why not? Explain the significance of contracts requiring payment of less than $500.


The question belongs to Law and it discusses about a scenario where a hospital sues a surgical company for breach of contract for shipping surgical instruments and not failed or improper price negotiations.

Total Word Count 430

Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.