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Case Brief
The Plaintiff: Maple Farms, Inc.
The Defendant: The City School District of Elmira
On June 15, 1973, the plaintiff and the defendant formed an agreement of a requirements contract. The contract’s purpose was for the plaintiff to supply milk to the defendant for the upcoming school year. The plaintiff would sell milk to the defendant for a fixed price which was the June market price of milk.
A doctrine in contract law that relieves the plaintiff from obligations under a contract that may be granted when performance has been rendered excessively difficult, expensive, or harmful by an unforeseen circumstance.
Whether it is commercially impracticable for the plaintiff to perform the requirements contract.
No, the court ruled that the contract was reasonable and that the plaintiff should be held to the contract.
The court noted that there was recent history of market price fluctuations and inflation that the plaintiff should have been aware of. The plaintiff committed a unilateral mistake which does not release the plaintiff from contract because it was a foreseeable circumstance.
Due to the plaintiff’s poor judgment, the court ruled that the plaintiff must perform on the contract.
Conclusion
The court ruled in favor of the defendant, so that the plaintiff would have to perform on the contract. This was an important case because it stressed the importance of wording in contracts. It is very important to research and apply a plan to all contracts so you can limit any unforeseeable circumstances and ensure quality of contract for all parties.