The Snyder Mfg. Co., being a large user of coal, entered into separate contracts with several coal

Question:

The Snyder Mfg. Co., being a large user of coal, entered into separate contracts with several coal companies. In each contract, it was agreed that the coal company would supply coal during the year in such amounts as the manufacturing company might desire to order, at a price of \($55.00\) per ton. In February of that year, the Snyder Company ordered one thousand tons of coal from Union Coal Company, one of the contracting parties.

Union Coal Company delivered five hundred tons of the order and then notified Snyder Company that no more deliveries would be made and that it denied any obligation under the contract. In an action by Union Coal to collect \($55.00\) per ton for the five hundred tons of coal delivered, Snyder files a counterclaim, claiming damages of \($1,500\) for failure to deliver the additional five hundred tons of the order and damages of \($4,000\) for breach of agreement to deliver coal during the balance of the year. What contract, if any, exists between Snyder and Union?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Law And The Regulation Of Business

ISBN: 9781305509559

12th Edition

Authors: Richard A. Mann, Barry S. Roberts

Question Posted: