The evidence showed that there was no applicable custom or usage in the trade and that each party held its belief in good faith. Decision?

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The evidence showed that there was no applicable custom or usage in the trade and that each party held its belief in good faith. Decision?

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In a contract drawn up by Booke Company, it agreed to sell and Yermack Contracting Company agreed to buy wood shingles at $950 per bunch. After the shingles were delivered and used, Booke Company billed Yermack Company at $950 per bunch of nine hundred shingles. Yermack Company refused to pay because it thought the contract meant $950 per bunch of one thousand shingles. Booke Company brought action to recover on the basis of $950 per bunch of nine hundred shingles. The evidence showed that there was no applicable custom or usage in the trade and that each party held its belief in good faith. Decision?

Explanation & AnswerSolution by a verified expert

Explanation

The lack of price and quantity related information reflect that the contract is not clear. As the buyer company has assumed that a bunch contains 1,000 shingles and is priced at $950 but the seller company is under the assumption that a bunch contains 900 shingles and is priced at $950.
The buyer company received the bills after the use of the wood and is refusing to pay $950 for a bunch that contains 900 shingles. As per the Uniform Commercial Code, Company Y is under obligation to pay the price of the of the used wood to Company B.

Verified Answer

In this case, there is a lack of price agreement. Both companies did not define the quality and price of the shingles. At the time of the payment of the bills, Company Y denied paying $950 for a bunch that contained 900 shingles, which was decided by Company B.
Company Y has utilized the delivered woods. As per the Uniform Commercial Code, the buyer company has to pay the appropriate price to Company B.

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