Question

2. Alvin Cagle was a potato farmer in Alabama who had had several business dealings with the H.C. Schmieding Produce Co. Several months before harvest, Cagle entered into an oral sales contract with Schmieding. The contract called for Schmieding to pay the market price at harvest time for all the red potatoes that Cagle grew on his 30-acre farm. Schmieding asked that the potatoes be delivered during the normal harvest months. As Cagle began harvesting his red potatoes, he contacted Schmieding to arrange delivery. Schmieding told the farmer that no contract had been formed because the terms of the agreement were too indefinite. Cagle demanded that Schmieding buy his crop. When Schmieding refused, Cagle sued to have the contract enforced. Has a valid sales contract been formed? Why or why not?

Answer 1

ANSWER

AS per the given question,

Facts of the Case The case is related to AC, who was a potato farmer in Alabama. He had several business dealings with H C S Produce Co. Several months before the harvest he entered a contract with the company. The contract asserted the company's responsibility to pay the market price at yield time for the red potatoes that AC grew on his 30 acre farm. The company asked that the potatoes be delivered during the normal harvest months. As AC started harvesting his red potatoes, he contacted the company to arrange for the necessary delivery mechanism. HCS told AC that no contract has been entered because the terms were too indefinite. Therefore the company refused to buy the crop. AC then sued the company to have the contract enforced.

Issue concerning the case The issue is whether a valid contract has been formed in this case

Findings and Decision of the Court The opinion was delivered by Mr. H. In the words of the Court "/t supported AC's Contract claim regarding the purchase of the potato crop, and found in favor of AC, awarding him compensatory damages for the breach of this contract. The court further stated that there is substantial evidence that the parties intended to be bound to the terms of the alleged contract regardless of the execution of a subsequent formal writing The evidence which was provided to the court was with regard to the below mentioned terms: types of potatoes ordered quantity ordered the price to be paid for the quantity ordered The approximate delivery date This evidence supports the intention of parties to enter into a contract.

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