Question: The Snyder Manufacturing Co . , being a large user of coal, entered into a contract with Union Coal Company to purchase coal during the

The Snyder Manufacturing Co., being a large user of coal, entered into a contract with Union Coal Company to purchase coal during the year 1988 in such amounts as Snyder Manufacturing Co. might desire to order at a price of $49 per ton. In February, 1988, the Snyder Company ordered 1,000 tons of coal from Union Coal Company. Union delivered 500 tons of the order and then notified Snyder that no more deliveries would be made at that price and that it denied any obligation under the contract. Snyder had to acquire the 500 tons from another source at a higher price. Snyder sues Union for breach of the contract. What result and why? (Hint: Did Snyders promise to buy all it wanted really bind it to do anything?)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!