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Lucy, Esq.
Lucy, Esq., Attorney
Category: Business Law
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Experience:  Attorney
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Charles was a farmer who farmed 600 acres of land. Charles

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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 Grain 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 Grain 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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4H Grain will win. Charles promised to sell 20,000 bushels of corn. If the contract does not explain what happens if the crop is destroyed, Charles bears the risk of loss, because he agreed to provide a certain amount of corn by a certain date. He is in breach of the contract, as long as he does not produce the requisite corn by that date. 4H is not in breach, as long as they were wiling and able to purchase the corn on that date.

If it were actually impossible for Charles to perform the agreement, then Charles would win, because the contract would fail. But the contract is not considered impossible to perform, unless Charles was required specifically to provide grain that he grew personally, because he has the ability to purchase grain elsewhere and provide it to 4H.
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