Explain whether Trudy would succeed in a legal action against Farley for breach of contract.

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Explain whether Trudy would succeed in a legal action against Farley for breach of contract.

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Farley and Trudy enter into a written contract whereby Farley agrees to sell and Trudy agrees to buy six thousand bushels of wheat at $10.33 per bushel, deliverable at the rate of one thousand bushels a month commencing June 1, the price for each installment being payable ten days after delivery thereof. Although Farley delivered and received payment for the June installment, he defaulted by failing to deliver the July and August installments. By August 15, the market price of wheat had increased to $12 per bushel. Trudy thereupon entered into a contract with Albert to purchase five thousand bushels of wheat at $12 per bushel deliverable over the ensuing four months. In late September, the market price of wheat commenced to decline and by December 1 was $9.25 per bushel. Explain whether Trudy would succeed in a legal action against Farley for breach of contract.

Explanation & AnswerSolution by a verified expert

Explanation

In this case, Buyer T has made another contract with Individual A at an increased market price of the wheat, as the substitute for Seller F, since Seller F failed to deliver the product.
Under Section 2 (712) of the Uniform Commercial Code, Seller F is supposed to give coverage for the damages, which occur due to the failure of wheat's delivery as per the defined installment. In this context, the amount of coverage is going to be the difference between the prior and later contract's amount of 5,000 bushels of wheat since the price of the later contract is more than that of the previous contract.

Verified Answer

Person T is going to win the case since Section 2 (612) (3) of the Uniform Commercial Code states that Seller F's failure to deliver the wheat, as per the contract norm, is going to be treated as a breach of the contract, as a whole.
The buyer had to enter another contract with Individual A to buy wheat at an increased price due to the failure of Individual F to deliver the product. In this case, Section 2 (712) of the Uniform Commercial Code indicates that the buyer has the right to take coverage of the damages, which happened due to the failure of the delivery.

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