Question

The Perfection Produce Company entered into a written con- tract with Hiram Hodges for the purchase of three hundred tons of potatoes to be grown on Hodges’s farm in Maine at a stipulated price per ton. Though the land would ordinarily produce one thousand tons and although the planting and cultivation were properly done, Hodges was able to deliver only one hundred tons because an unprecedented drought caused a partial crop failure. Perfection accepted the one hun- dred tons but paid only 80 percent of the stipulated price per ton. Hodges sued the produce company to recover the unpaid balance of the agreed price for the one hundred tons of pota- toes accepted by Perfection. Perfection counterclaimed against Hodges for his failure to deliver the additional two hundred tons. Who will prevail? Why?

Answer 1

Solution

Impossibility.

Decision in favor of Hodges upon

(a) his claim for the unpaid balance

(b) the counterclaim of the Perfection Produce Company.

Impossibility of performance may arise from physical causes and excuses performance and discharges both parties from their contractual duties. The impossibility is objective because only potatoes grown upon a particular farm may be delivered under the contract. The failure of the crop to produce more than 100 tons of potatoes absolved Hodges from liability for his failure to deliver to the Perfection Produce Company any additional potatoes. Although not required to accept the 100 tons of potatatoes, Perfection is liable for the contract price of the goods accepted. Hodges is, therefore, entitled to the damages claimed by it.

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