Question: On July 2 , 2 0 2 1 , Stella signed a contract to purchase 4 8 , 0 0 0 gallons of ethanol from
On July Stella signed a contract to purchase gallons of ethanol from Scarlett for resale at her three ethanol stations. When Stella signed the contract, the ethanol was warehoused in an off site holding tank three mile from Scarlett's production facility. The contract allowed for Stella to take delivery of the ethanol from the holding tank On July Stella had no storage facility of her own, and arranged with Scarlett to pick up the ethanol from the holding tank on July and immediately transport the ethanol to her retail ethanol stations. On July lightning strikes Scarlett's offsite holding tank that causes a major explosion destroying the holding tank and all gallons of ethanol stored in the tank. Scarlett invoices Stella on July for the gallons of ethand. Stella refuses to pay the invoice because she never received any ethanol from Scarlett's holding tank on July when she had arranged with Scarlett pick up the ethanol. Scarlett seeks your advice about the strength of her claim against Stella.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
