Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Val's Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a small organic herbgrower, as long as an independent organization inspects

Val's Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a small organic herbgrower, as long as an independent organization inspects the crop and certifies that it contains nopesticide or herbicide residue. Val's has a contract with several restaurant chains to supply pestoand intends to use Sun Farms' basil in the pesto to fulfill these contracts. While Sun Farms ispreparing to harvest the basil, an unexpected hailstorm destroys half the crop. Sun Farmsattempts to purchase additional basil from other farms, but it is late in the season, and the price istwice the normal market price. Sun Farms is too small to absorb this cost and immediatelynotifies Val's that it will not fulfill the contract. Using the information presented in the chapter,answer the following questions.

1. Suppose that the basil does not pass the chemical-residue inspection. Which conceptdiscussed in the chapter might allow Val's to refuse to perform the contract in thissituation?

2. Under which legal theory or theories might Sun Farms claim that its obligation under thecontract has been discharged by operation of law? Discuss fully.

3. Suppose that Sun Farms contacts every basil grower in the country and buys the lastremaining chemical-free basil anywhere. Nevertheless, Sun Farms is able to ship only1,475 pounds to Val's. 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 a 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?

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

Morality And The Law

Authors: Roslyn Muraskin, Matthew Muraskin

1st Edition

013916958X, 9780139169588

More Books

Students also viewed these Law questions