Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 3

Julia contracts to sell to Hayden, an ice cream manufacturer, the amount of ice Hayden may need in his business for the ensuing three years to the extent of not more than 250 tons a week at a stated price per ton. Hayden makes a corresponding promise to Julia to buy such an amount of ice. Hayden sells his ice cream plant to Reed and assigns to Reed all Hayden's rights under the contract with Julia. On learning of the sale, Julia refuses to furnish ice to Reed. Can Reed successfully collect damages from Julia? Explain.