May Sun Maid recover from Victor the difference between the contract price and the market price before the end of the current crop year? Why or why not?

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May Sun Maid recover from Victor the difference between the contract price and the market price before the end of the current crop year? Why or why not?

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Victor Packing Co. (Victor) contracted to supply Sun Maid Raisin Growers 1,800 tons of raisins from the current year’s crop. After delivering 1,190 tons of raisins by August, Victor refused to supply any more. Although Victor had until the end of the crop season to ship the remaining 610 tons of raisins, Sun Maid treated Victor’s repeated refusals to ship any more raisins as a repudiation of the contract. To prevent breaching its own contracts, Sun Maid went into the marketplace to “cover” and bought the raisins it needed. Unfortunately, between the time Victor refused delivery and Sun Maid entered the market, disastrous rains had caused the price of raisins to skyrocket. May Sun Maid recover from Victor the difference between the contract price and the market price before the end of the current crop year? Why or why not?

Explanation & AnswerSolution by a verified expert

Explanation

A contract comes under anticipatory repudiation when one party denies performing the commitment under the contract.
Company SM can state the accomplishment goes ahead and the advance reimbursement becomes a breach and sue for damages. Company SM is not being authorized to result in destruction, it can be stopped by covering the contributing.

Verified Answer

This contract comes under the law of anticipatory repudiation. Company SM can sue on the basis of anticipatory repudiation. Company SM can preserve itself by an awning. Company SM may also retrieve, from Company V, the difference between the covering cost and the price of the contract with add on incidental and consequential damages and subtracting the expenses saved due to the contravention.

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