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Jahara Ltd

Question 34

Multiple Choice

Jahara Ltd. enters into a contract to supply glass bottles to Brine Co. for its line of baby dill pickles. Since it is a new relationship, both parties want the option to end the contract without problems, so they include a clause which allows either one of them to terminate the contract on 30 days written notice. Jahara finds that Brine Co. is too slow in paying its bills and too quick to question quality. On March 1st, Jahara Ltd. gives Brine Co. notice in writing that the contract will end on March 31st. Brine Co. insists that the 30 days notice clause means 30 working days, not 30 calendar days, and thus Jahara must supply them until April 1. Jahara refuses. Brine Co. loses two weeks of production when its supply of bottles runs out and sues Jahara for breach of contract. In this situation,


A) the court would allow evidence about the negotiations leading up to the contract to help them decide who is right here.
B) the court will rectify this contract to reflect what it considers to be a reasonable solution, if it cannot decide which of them is right.
C) if the court cannot decide, for lack of clear evidence, which of them is right, Brine Co. will lose.
D) the court would allow evidence about the contractual negotiations and may order rectification.
E) the court would allow evidence about the contractual negotiations leading up to the contract and consider existing case law.

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