Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In December of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot

In December of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. The contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. Until February 2017, the supplier provided processed grain which could easily be used in your manufacturing process. However, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. The supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. Your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. Over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. After speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. Weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? Which would be the best option for your business and why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

More Books

Students also viewed these Law questions

Question

Who benefits from a sale-and-leaseback deal, and how?

Answered: 1 week ago