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Vals Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a smallorganicherb grower, as long as an independent organization inspects the
Vals Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a smallorganicherb grower, as long as an independent organization inspects the crop and certifi esthat it contains nopesticide or herbicide residue. Vals has a contract with several restaurant chains tosupply pesto andintends to use Sun Farms basil in the pesto to fulfi ll these contracts. While Sun Farmsis preparingto harvest the basil, an unexpected hailstorm destroys half the crop. Sun Farmsattempts to purchaseadditional basil from other farms, but it is late in the season and the price is twice thenormal marketprice. Sun Farms is too small to absorb this cost and immediately notifi es Vals that itwill not fulfi ll thecontract. Using the information presented in the chapter, answer the followingquestions.1. Suppose that the basil does not pass the chemical-residue inspection. Which conceptdiscussed in thechapter might allow Vals to refuse to perform the contract in this situation?2. Under which legal theory or theories might Sun Farms claim that its obligation underthe contract hasbeen discharged by operation of law? Discuss fully.3. Suppose that Sun Farms contacts every basil grower in the country and buys the lastremainingchemical-free basil anywhere. Nevertheless, Sun Farms is able to ship only 1,475pounds to Vals.Would this fulfi ll Sun Farms obligations to Vals? Why or why not?4. Now suppose that Sun Farms sells its operations to Happy Valley Farms. As a part ofthe sale, all threeparties agree that Happy Valley will provide the basil as stated under the originalcontract. What is thistype of agreement called
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