2 DISCUSSIONS
What were the terms of the contract between Campbell and the Wentzes?
The terms of the contract were the Wentzes to deliver all the Chantenay red cored carrots to Campbell. The red cored carrots were grown on Wentz farm from the 1947 growing season. Carrots were to be sold at $30 per ton. The contract prohibited sellers/farmers of Wentzes from selling their carrots to somebody else except carrots that were rejected by Campbell. It further stated that carrots that were rejected could only be sold to someone who Campbell’s approved.
Did the Wentzes perform under the contract?
Wentzes did not perform under contract because Wentzes sold the red carrots to another person or customer, who purchased carrots at a higher price, $50 per ton (Rogers,2012). This customer later sold carrots to Campbell. It seems Wentzes saw that Campbell was not giving them better price as compared to market price.
Did the court find specific performance to be an adequate legal remedy in this case?
The court did not find any legitimate reason for Campbell to sue Wentzes due to the fact that the contract was one sided and unfair to Wentzes. Equitable principles of legal remedy and unconscionable contract was shown in this case. As a matter of fact, equity intervenes whenever one party takes advantage of a ‘special inability’, such as illiteracy or combination of factors, held by another party. Normally, the transaction is oppressive and harsh to the weaker party (Burnham,2011). It seems there was a difference between contract price and purchase or market price, and therefore the transaction or contract would oppressive and harsh to Wentzes.
Why did the court refuse to help Campbell in enforcing its legal contract?
The court refused to assist Campbell because contract was one sided and never protected Wentzes Company. If Wentzes did not sell to someone else , she could not be able to get a fair price for the carrots.
How could Campbell change its contract in the future so as to avoid the unconsionability problem?
Campbell could change contract in future by thinking about the company which they will buy from. They could also become more competitive by educating farmers on producing carrots. Campbell could make a better offer price to farmers which was more competitive in the market and give Wentzes Company an incentive to sell to Campbell only.
References
Burnham, S. J. (2011). Contract law for dummies. John Wiley & Sons.
Rogers, S. (2012). Essentials of Business Law [Electronic version]. Retrieved from https://content.ashford.edu/