[ttn5031]

PSU contacts Shipley concerning the purchase of fuel oil heat the school building during winter months. In the phone conversation, Shipley agrees to make 8 shipments of oil to the school over a 6-month period from Oct 15, 1984 to April 15, 1985, totalling 750 gallons/month at $1.25/gallon.

Shipley makes 4 shipments. With each shipment, the delivery truck driver has PSU sign an invoice for the individual shipments. Within 10 days of shipment, PSU sends payment. All PSU checks were accepted by Shipley and deposited in their business account.

After 4 payment, Shipley send a letter to PSU that the price of fuel oil has risen drastically. They can't continue to supply feul at the terms set forth in the original agreement.

PSU receiving the letter,contacts Shipley and attempts to get them to change their mind. When they are unsuccessful, PSU close school. They refund all of the student's tuition.

PSU sues Shipley for breach of contract. What you think the rights and defenses, if any, of probably outcome


I guess:
Shipley might have a commercial impracticability defense.
Depends on the details of the contract. If there are no clauses allowing for drastic rises in price to change the deal, then the school should win.

Most likely though their damages will not include the refunded tuition. They could have taken the oil under protest and paid the higher rate, or found another supplier. And then sued for the difference. It was their choice not to pursue other ways of keeping the school open.

[JudyKayTee]

You asked my opinion and here it is - in the time it took you to write this post and then post it on two different threads and then read the answers you could have done your homework yourself.

This sounds like highs school business class.

I believe there's a posted policy about the board not helping with homework.

[progunr]

You asked my opinion and here it is - in the time it took you to write this post and then post it on two different threads and then read the answers you could have done your homework yourself.

This sounds like highs school business class.

I believe there's a posted policy about the board not helping with homework.

So well put!

I passed on this one, wish I had come up with as clever a response as you did!

[Fr_Chuck]

Sad law questions are not getting more realistic to real life. And even worst is that you are not wanting to do your own work, You will not learn anything without looking it up yourself

[twinkiedooter]

Gosh, with names like PSU and Shipley you could have at least rephrased or renamed in your post. Please do your own homework. That's what you need to do - learn to figure out this stuff before you end up in the real world and haven't a clue.