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Keywords

contractdamagestrial
contractdamagestrial

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Oloffson v. Coomer, 11 Ill.App.3d 918, 296 N.E.2d 871, 12 UCC Rep.Serv. 1082

Facts

On April 16, 1970, Clarence Coomer agreed to sell 40,000 bushels of corn to Richard Oloffson for delivery in October and December at specified prices. However, on June 3, 1970, Coomer informed Oloffson that he would not plant corn due to excessively wet conditions and advised Oloffson to find alternative sources for the corn. Oloffson subsequently covered his obligation by purchasing corn at higher prices, leading to the dispute over the appropriate measure of damages.

On April 16, 1970, Clarence Coomer agreed to sell 40,000 bushels of corn to Richard Oloffson for delivery in October and December at specified prices.

Issue

What is the proper measure of damages for the grain dealer when the farmer repudiated the contract before the delivery dates?

What is the proper measure of damages for the grain dealer when the farmer repudiated the contract before the delivery dates?

Rule

Under the Uniform Commercial Code, when a party repudiates a contract, the aggrieved party may either await performance for a commercially reasonable time or treat the repudiation as a breach and seek damages.

Under the Uniform Commercial Code, when a party repudiates a contract, the aggrieved party may either await performance for a commercially reasonable time or treat the repudiation as a breach and seek damages.

Analysis

The court analyzed the situation under the Uniform Commercial Code, determining that Oloffson had a duty to proceed under the breach provisions after Coomer's repudiation on June 3, 1970. The court found that Oloffson acted reasonably by covering his obligation immediately after learning of Coomer's refusal to perform, and thus was entitled to damages based on the market price on that date.

The court analyzed the situation under the Uniform Commercial Code, determining that Oloffson had a duty to proceed under the breach provisions after Coomer's repudiation on June 3, 1970.

Conclusion

The court affirmed the trial court's judgment, awarding Oloffson damages based on the market price of corn on June 3, 1970, which was the date of Coomer's repudiation.

The court affirmed the trial court's judgment, awarding Oloffson damages based on the market price of corn on June 3, 1970, which was the date of Coomer's repudiation.

Who won?

Richard Oloffson prevailed in the case because the court found that he was entitled to recover damages based on the market price at the time of Coomer's repudiation.

Richard Oloffson prevailed in the case because the court found that he was entitled to recover damages based on the market price at the time of Coomer's repudiation.

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