Perfection counterclaimed against Hodges for his failure to deliver the remaining two hundred tons. Who will prevail? Why?
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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? |
Explanation
As Organization P has accepted the delivery of a lesser quantity of the product, it is liable to pay the amount as decided under the contract. So, Individual H must get compensated for the damage.
Only the specified item grown in the farm of Individual H can be delivered as per the contract, which could not be produced because of draught. This results in the incapability of Individual H to deliver the entire quantity as promised in the contract. This, in turn, excuses performance and discharges both the parties from duties mentioned under the contract.
Verified Answer
The suit filed by Individual H will prevail due to unpaid balance. Additonally, in the counterclaim, Individual H will win because of the impossibility of execution of the contract.
