Clark refuses to pay more than $0.45 per ton. American Sand & Gravel sues for the remaining $0.10 per ton. Decision?

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Clark refuses to pay more than $0.45 per ton. American Sand & Gravel sues for the remaining $0.10 per ton. Decision?

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American Sand & Gravel, Inc., agreed to sell sand to Clark at a special discount if 20,000 to 25,000 tons were ordered. The discount price was $0.45 per ton, compared with the normal price of $0.55 per ton. Two years later, Clark orders and receives 1,600 tons of sand from American Sand & Gravel. Clark refuses to pay more than $0.45 per ton. American Sand & Gravel sues for the remaining $0.10 per ton. Decision?

Explanation & AnswerSolution by a verified expert

Explanation

To take the discount from Company A, Individual C must have ordered the specified quantity within a reasonable period. However, Individual C neither made the order for the specified quantity nor within a reasonable period of time because of which Individual C is not eligible for the discounted price. The court will decide in favor of Company A. So, Individual C will have to make the payment at the original price of the commodity.

Verified Answer

The judgment will be in favor of Company A as the discount period was already over when Individual C made the order.

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