A potato farmer bob agrees to sell 10,000 bags of potatoes

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Reference no: EM13146610

A potato farmer Bob agrees to sell 10,000 bags of potatoes and deliver them to "Save-a-Lot Supermarkets in yellow bags with green labels. When the potatoes arrive they have red labels, which the store considers will reduce the attractiveness of the display and reduce sales. The produce manager rejects delivery and arranges another supplier, Sally's Spuds, to supply potatoes in yellow bags with green labels. Due to the short notice, Save-a-Lot has to pay 5 cents a bag more to Sally than it had agreed to pay to Bob. Bob is able to sell the potatoes to an out of town buyer but at a profit that is $1000 less than what he would have made from the deal with Save-a- Lot. Bob and Save-a-Lot sue each other for breach of contract. What outcome would you expect? Explain why.

Reference no: EM13146610


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