Farley and Trudy enter into a written contract whereby Farley agrees to sell and Trudy agrees to
Question:
Farley and Trudy enter into a written contract whereby Farley agrees to sell and Trudy agrees to buy 6,000 bushels of wheat at $3.75 per bushel, deliverable at the rate of 1,000 bushels a month commencing June 1, the price for each installment being payable ten days after delivery thereof. Although Farley delivered and received payment for the June installment, he defaulted by failing to deliver the July and August installments. By August 15, the market price of wheat had increased to $4 per bushel. Trudy thereupon entered into a contract with Albert to purchase 5,000 bushels of wheat at $4 per bushel deliverable over the ensuing four months. In late September, the market price of wheat commenced to decline and by December 1 was $3.25 per bushel. Explain whether Trudy would succeed in a legal action against Farley for breach of contract.
Step by Step Answer:
Essentials of Business Law and the Legal Environment
ISBN: 978-0324303957
9th edition
Authors: Richard A. Mann, Barry S. Roberts