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MMLU / A retailer agreed to purchase an orchard's total cherry production for a…

Problem

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question

A retailer agreed to purchase an orchard's total cherry production for a 12-month period. The contract included this provision: "Terms: Cash upon delivery €” deliveries to be made at least twice per month." The deliveries went as scheduled. At the beginning of the fifth month, the orchard sent notice to the retailer that a load of cherries was ready for pick up. The truck driver, however, forgot to take the retailer's check with him. The orchard turned over the cherries but advised the retailer to pay within three days. The retailer sent the check by mail but it arrived late by two days. The orchard refused to deliver any more cherries. The retailer sued the orchard for breach of the installment contract and demanded the difference in price between the cherries on the open market and what he would have paid under the contract. The orchard claimed that the delayed payment impaired the value of the contract and moved to dismiss. Will the court grant the orchard's motion to dismiss?

choices

  1. Yes, the agreement called for cash at delivery, which was not done when the driver forgot to deliver the check.
  2. Yes, the failure to make an installment on time was a breach because time is of the essence in all installment agreements.
  3. No, there is always a grace period of ten days for any single payment pertaining to an installment contract.
  4. No, the delay in one payment under these facts was not enough to impair the value of the contract under the Uniform Commercial Code.

subject

professional_law

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Source and history

task_id
3366fd48-ff88-5834-b49e-f328cc8f0c7c
task_key
all--test--3366fd48-ff88-5834-b49e-f328cc8f0c7c
task_revision_id
1
config / split
all / test

Official source

initial import