BUS 311 – Week 2 / Discussion 1

What were the terms of the contract between Campbell and the Wentzes? Did the Wentzes perform under the contract?

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The terms of the contract were that the Wentzes would deliver all the Chantenay red cored carrots grown on their farm during the 1947 season to the Campbell’s at a contracted price of $30 per ton. Within the contract there were provisions that prohibited farmers/sellers from selling their carrots to anyone else, except the carrots rejected by Campbell. Furthermore Campbell also controlled the right to determine who could buy the carrots they rejected. Campbell also had a liquidation damages provision of $50 per ton in the seller breached.

No, the Wentzes did not perform under the contract. Based on the contract the Wentzes entered into the contract far in advance willingly, and were furnished with the seeds for the carrots as part of the contract. Although this allowed for them to be subject to market value fluctuations, the terms were clearly expressed and agreed upon.

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