Charles was a farmer who farmed 600 acres of land. Charles entered into a hand-s
ID: 442167 • Letter: C
Question
Charles was a farmer who farmed 600 acres of land. Charles entered into a hand-shake contract with 4H Grain Company. The agreement called for Charles to sell 20,000 bushels of corn to 4H in October, when Charles’ corn crop would be harvested. Unfortunately, there was a rain storm during the summer that damaged Charles’ corn crop, and part of the corn crop failed. Because of that failure, Charles was only able to offer 10,000 bushels of corn to 4H in October. 4H refused the offer of part of the amount that was to be delivered by Charles and sued Charles for breach of contract to deliver corn. There is nothing in the contract that addresses this situation. Who should win?
Explanation / Answer
Charles was a farmer who farmed 600 acres of land. Charles entered into a hand-shake contract with 4H Grain Company. The agreement called for Charles to sell 20,000 bushels of corn to 4H in October, when Charles’ corn crop would be harvested. Unfortunately, there was a rain storm during the summer that damaged Charles’ corn crop, and part of the corn crop failed. Because of that failure, Charles was only able to offer 10,000 bushels of corn to 4H in October. 4H refused the offer of part of the amount that was to be delivered by Charles and sued Charles for breach of contract to deliver corn. There is nothing in the contract that addresses this situation. Who should win?
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Answer ;
harles : Farmer
Farmed 600 acres of land.
Hand shake contract : Between Charles & 4H Grain Company.
Agreement states :
Charles to sell 20,000 bushels of corn to 4H in October
Charles’ corn crop would be harvested. Unfortunately, there was a rain storm during the summer that damaged Charles’ corn crop, and part of the corn crop failed.
Because of that failure,
Fact : Charles was only able to offer 10,000 bushels of corn to 4H in October.
4H refused the offer of part of the amount that was to be delivered by Charles
Finally
Sued Charles for breach of contract to deliver corn.
Reality : There is nothing in the contract that addresses this situation.
Analysis :
1 )
See in above information this has been specifically mentioned that this is hand shake contract.As per the system hand shake contracts these are not legally forceable.
2)
Though its hand shake contract , in the last line of problem its been specifically mentioned that nothing is mentioned on the addressing line of situation that means no considerations of natural calamities.
Here 4H company can not sue to Charles because of hand shake contracts & legally inforcability.
But the other fact is what ever the loss occurred to charles he will be responsible for that. 4H can not be held liable for loss.Even because of hand shake contracts even Charles can not sue to 4 H company.