Question: Java Jays International has a requirements contract with Joes Bean Corporation that obligated Joes to supply Java Jays with all the coffee beans it needs
Java Jays International has a requirements contract with Joes Bean Corporation that obligated Joes to supply Java Jays with all the coffee beans it needs for their seventy store locations for one year, at $2.20 per 15oz bag of coffee beans. A clause inserted in small print in the contract by Java Jays, and not noticed by Joes, states, The buyer reserves the right to reject any shipment for any reason without liability. For seven months, Joes orders and Java Jays delivers under the contract without any controversy. Then, because of a war break out in Brazil, the cost of a 15oz bag of coffee beans increases substantially. Joes tells Java Jays it cannot possibly fulfill their contract unless Java Jays agrees to pay $2.50 per 15oz bag of coffee beans. Java Jays, in need of the coffee beans, agrees in writing to modify the contract. Later that month, Java Jays learns it can buy coffee bean at $2.25 per 15oz bag from Emilys Coffee Beans. On the next delivery from Joes, Java Jays refuses delivery claiming that the contract allows them to do so and that it is required to only pay $2.20 per 15oz bag of coffee beans if it accept delivery. Discuss Java Jays contentions:
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