Case summary: Company V.F. contracted with the company S.F. to buy 1500 pounds of basil, on the condition that an independent organization will inspect the crop of company S.F. Due to a sudden hailstorm, the crop of the company S.F. was destroyed and it was unable to perform its part of the contract.
To find: The reason available to company V.F. to deny the performance of the contract in case the basil provided by company S.F. does not pass the chemical residue test.
Explanation of Solution
Under the concept of Condition in Contract, the performance of some task is made mandatory by the parties before discharging their obligations. If these conditions are not fulfilled, the parties are not obligated to perform their part of the contract.
In the given case, the inspection of the crop by an independent auditor and the certification of its fitness is a condition precedent to the performance of the contract. If the crop of S.F. does not pass the residue test, V.F. can deny the performance of its part on the basis of non-fulfilment of the condition in the contract.
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Chapter 13 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
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