Acme Mills & Elevator Co. v. Johnson

141 Ky. 718 (1911)

 

RULE:

In contracts for the delivery of personal property at a fixed time and at a designated place, the vendee is entitled to damages against the vendor for a failure to comply, and the measure of damages is the difference between the contract price and the market price of the property at the place and time of delivery.

FACTS:

A buyer and a seller of wheat entered into a contract, which provided that the seller would deliver wheat to the buyer for the price of $1.03 per bushel. After the parties formed the contract, the market price of wheat fell to $1.00 per bushel, but the seller found another buyer who was willing to buy the wheat for the price of $1.16 per bushel, and sold the wheat to him for that price. When the seller failed to deliver the wheat to the buyer at the agreed upon time, the buyer sued to recover the value of the sacks he had given to the seller for delivering the wheat, as well as the amount that the seller had benefitted from the breach by selling the wheat to another buyer for a higher price.

ISSUE:

In contracts for the delivery of personal property at a fixed time and at a designated place, is the vendee entitled to damages against the vendor for a failure to comply?

ANSWER:

Yes.

CONCLUSION:

Because the seller failed to deliver the wheat at the agreed upon time, the buyer is entitled to damages, which is the difference between the contract price and the market price of the property at the place and time of delivery. However, because the market price of wheat had fallen below the contract price at the time of the breach, the buyer was not damaged and was actually benefitted to the extent of about $0.03 per bushel. Thus, the buyer is only entitled to recover the value of the sacks.

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