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

Exercise 26

Farley and Trudy entered into a written contract whereby Farley agreed to sell and Trudy agreed 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. Though 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 started 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.