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Veggie Time,Inc

Question 69

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Veggie Time,Inc.,is a distributor of canned vegetables.It has been dealing with Fresh Farmer for 10 years,purchasing Fresh Farmer's entire corn crop.Fresh Farmer's farm is so large and productive that Veggie Time has exclusively bought all of its corn from Fresh Farmer alone.Once again,Veggie Time has entered into a contract with Fresh Farmer to purchase its entire crop this season and has no other corn sellers under contract.For the past 10 years,Fresh Farmer has delivered 100,000 bushels of corn to Veggie Time.Unfortunately,due to an extraordinary amount of rain,Fresh Farmer's fields are now flooded and most of its crop is destroyed.Fresh Farmer can deliver only 10,000 bushels this season,and Veggie Time is about to suffer a huge loss.Does Veggie Time have any rights against Fresh Farmer to recover for its losses? What could Veggie Time do to mitigate its damages?

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This was an output contract,and Fresh Fa...

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