A grocery store enters into a contract with its supplier to supply 10,000 oranges for $5,000. The supplier always gets its oranges from a grower in Florida. However, due to an unusually cold winter, the entire Florida orange crop is wiped out, and the supplier has to get its oranges from a more expensive supplier in another location. The supplier contacts the grocery store and says that it will not be able to supply the oranges for less than $6,000. The grocery store replies that it will hold the supplier to the $5,000 price stated in the contract. The supplier goes ahead and delivers the oranges to the grocery store. The supplier immediately demands payment of $6,000. The grocery store refuses to pay.

In an action by the supplier against the grocery store, the supplier will be able to recover:

A. Only in quantum meruit because by demanding $6,000 the supplier repudiated its contract with the grocery store.

B. Only in quantum meruit because the supplier did not intend to operate at a loss.

C. $6,000 because of an unanticipated change of circumstances.

D. $5,000 because that was the contract price.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below ... View the full answer