1. Bunge, a grain dealer, contracted with Recker, a farmer, to purchase 10,000 bushels of soybeans at $ 3.35 per bushel. The contract did not specify where the beans were to have been grown, except that they were to be grown in the United States. As a result of crop failure, Recker was unable to deliver the beans, even with several extensions of the deadline. Finally, Recker admitted that he could not deliver, claiming impossibility of performance. In the meantime, the market price had increased from $ 3.35, the agreed price, to $ 5.50 at the time agreed for delivery. Bunge sued for the difference between $ 3.35 and the market price at the time agreed for delivery. Will Recker be excused from his contractual obligations, or should he be held responsible for delivering as agreed?
Answer to relevant QuestionsIn teams of three or four, interview owners or managers of small businesses to learn some typical contracts in which the firms have been involved and how they were terminated. Discuss the principle of estoppel and provide examples of how this principle is applied in various situations. Discuss advantages and disadvantages to both sellers and buyers of shipping FOB destination and FOB shipping point. Explain the provisions of the Magnuson-Moss Warranty Act. It is often difficult for a third party to distinguish between an agent and an employee. Are there times when it is important to distinguish between the two? Should there be a clear identification system established?
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