CHAPTER 10 Contract Performance, Breach, and Remedies 289 Reviewing . .Contract Performance, Breach, and Remedies Vals Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a small organic herb grower, f an independent organization inspects the crop and certifies that it contains no pesticide or herbicide residue. Vals has a contract with several restaurant chains to supply pesto and intends to use Sun Farms basil in the pesto to fulfill these contracts. When Sun Farms is preparing to harvest the basil, an unex- pected hailstora destroys half the crop. Sun Farms attempts to purchase additional basil from other farms, but it is late in the season, and the price is twice the normal market price. Sun Farms is too small to this cost and Ienmediately notifies Val's that it will not fulfill the contract. Using the information presented in the chapter, answer the following questions. 1. Suppose that Sun Farms supplies the basil that survived the storm but the basil does not pass the chemical-residue inspection. Which concept discussed in the chapter might allow Val's to refuse to perform the contract in this situation? has been discharged by operation of law? Discuss fully. chemical-free basil anywhere. Nevertheless, Sun Farms is able to ship only 1,475 pounds to Val's 2. Under which legal theory or theories might Sun Farms claim that its obligation under the contract 3. Suppose that Sun Farms contacts every basil grower in the country and buys the last remaining Would this fulfill Sun Farms' obligations to Val's? Why or why not? 4. Now suppose that Sun Farms sells its operations to Happy Valley Farms. As part of the sale, all three parties agree that Happy Valley will provide the basil as stated under the original contract. What is this type of agreement called? DEBATE THIS The doctrine of commercial impracticability should be abolished Key Terms delegatee 269 delegation of duties 269 delegator 269 discharge 272 frustration of purpose 280 novation 277 obligee 266 obligor 266 penalty 283 performance 272 privity of contract 265 alienation 267 anticipatory repudiation 276 assignee 266 assignment 266 ility of performance 278