Reference no: EM131657963

Question: Baker was a buyer and distributor of popcorn. Ratzlaff was a farmer who grew popcorn. Baker and Ratzlaff entered into a written contract pursuant to which Ratzlaff agreed that in the current year he would raise 380 acres of popcorn and sell the popcorn to Baker. Baker agreed to furnish the seed popcorn and to pay $4.75 per hundred pounds of popcorn. The popcorn was to be delivered to Baker as he ordered it, and Baker was to pay for the popcorn as it was delivered. At Baker's request, the first delivery was made on February 2 of the following year and the second on February 4. On neither occasion did Ratzlaff ask Baker to pay or Baker offer to pay. During that week, Ratzlaff and Baker had several phone conversations about further deliveries, but there was no discussion about payments. On February 11, Ratzlaff sent written notice to Baker that he was terminating the contract because Baker had not paid for the two loads of popcorn that had been delivered. In the meantime, Ratzlaff sold his remaining 1.6 million pounds of popcorn to another buyer at $8 per hundred pounds. Baker then sued Ratzlaff for breach of contract. Did Ratzlaff act in good faith in terminating the contract?