The Regal Flour Milling Co. Ltd. was engaged in the processing of flour, which it packaged and sold to a wide variety of customers ranging from commercial producers of food products to retail grocery stores. Regal processed primarily wheat flour, although a small part of its business was devoted to specialty flours such as rice and corn. For some time, Regal had employed Barber as its wheat buying agent, but handled the purchasing of other grains itself. Barber was an independent buying agent who pooled orders from several large processors, and then negotiated and purchased on their behalf large quantities of wheat that were then shipped directly to the respective processors. In the course of his dealings with grain sellers, Barber learned that the Midwest United States had experienced a bumper crop of soybeans, and that growers were attempting to export as much of the surplus as possible. Knowing that Regal also processed certain quantities of other grains, and wanting to take advantage of the opportunity, Barber entered into a contract on behalf of Regal for the purchase of 500 tonnes of soybeans at an unprecedented low price. He then directed shipment of the soybeans to Regal's processing facilities. Barber then notified Regal of his purchase and the expected date of delivery.
a. Regal has no equipment capable of processing soybeans into flour, and upon learning of its commitment through Barber to purchase, refused to accept delivery of the beans. What are the rights and liabilities of the parties involved?
b. What may Regal do if, upon learning of the soybean contract, it believes it may be able to resell the beans even though it cannot process them itself?
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