Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 19

The Perfection Produce Company entered into a written contract with Hiram Hodges for the purchase of three hundred tons of potatoes to be grown on Hodge's farm in Maine at a stipulated price per ton. Although the land would ordinarily produce one thousand tons and the planting and cultivation were properly done, Hodges was able to deliver only one hundred tons because an unprecedented drought caused a partial crop failure. Perfection accepted the one hundred tons but paid only 80 percent of the stipulated price per ton. Hodges sued the produce company to recover the unpaid balance of the agreed price for the one hundred tons of potatoes accepted by Perfection. Perfection counterclaimed against Hodges for his failure to deliver the remaining two hundred tons. Who will prevail? Why?