Question
Sun Maid Raisin Growers signed a contract to buy 1,800 tons of raisins from Victor Packing Co. i n California early in the year. Note,
Sun Maid Raisin Growers signed a contract to buy 1,800 tons of raisins from Victor Packing Co.in California early in the year. Note, raisins come from dried grapes.Victor planned to supply the raisins by purchasing them in the market very late in the year in order to get a good price to meet their contract obligations to Sun Maid.Victor waited too long.Heavy, "disastrous" rains destroyed 50% of the crop, and the price of raisins skyrocketed from $860 per ton to $1,600 per ton.Victor felt they could not meet Sun Maid's contract price without sustaining "disastrous" losses, and it notified Sun Maid that it was repudiating the contract.When Sun Maid sued for damages for breach of contract, Victor Packing Co. claimed that it should be excused from its performance obligations under the doctrine of commercial impracticability.
1) If you were the judge in this case:In forming your decision, you will need to assess whether the heavy rains and subsequent increase in market price of raisins were "foreseeable" events.How will you decide this question, and why?
2) How will you rule in this case? (that is, who wins and why? Defend your position completely taking into account its impact on both parties.)Number your responses (in separate paragraphs) to these questions.
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