Exam 5: Performance and Breach of Contract

You are the president of Haverland Fruit Company,and you ended negotiations with Western Jam and Jelly Co.(WJJ),having been highly insulted by the WJJ bid for Haverland strawberries at $12,000 per 10,000 baskets.Just before harvest you found a buyer in Anderson Bakeries at $30,000 for the baskets,but once the trucks had been loaded and sent off,word arrived that Anderson would refuse the shipment as it had been shut down by a strike.The berries will rot in two more days on the trucks.The WJJ president is now on the phone to you with an offer of $8,500 for the berries.What do you do,in what order,and what principles of law are in play?

Helen offered to sell her 10-speed touring bicycle to Jane for $200 on her return from a two-week bicycle trip to a distant city.At the end of the first week,Jane received a long distance telephone call from Helen,in which Helen advised Jane that she had decided not sell the bicycle on her return.Jane was disappointed,as a similar bicycle on the market would cost her at least $250.She decided to wait until Helen returned then urge her to go through with the sale.Before Helen reached home,her bicycle was stolen,and never found. -Helen's decision not to proceed with the sale was an express repudiation of the contract.

Chris,a carpenter,entered into a contract with Doug for the construction of a garage on Doug's property for $5,000.Chris had constructed all of the garage,except the door,when he refused to complete the contract. -Doug is entitled to ask the court for an order of specific performance of the contract.

Marnie fails to deliver any of the fruit pies she had contracted to make for Benny's Bakery. -If Benny really wanted the pies,and felt that Marnie would be able to meet her commitments,he could choose to treat the breach of condition as if it were a breach of warranty.

Julian decides that he would like the house being built for him,under contract with Porter Developers,to have a blue tile roof instead of a red tile roof.The two kinds of tile are equally available and are the same price,and no roofing of the house has yet been done.Porter alleges that this is a material alteration of the terms of the contract,since the roof is one-tenth of the value of the house,and that,therefore,it cannot be done without Porter's agreement to the change,which it will give only for a further payment of $5,000.Porter is right.