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Week 4 - Discussion 2 Sales Contracts Weaver Mills Co. in Country F contracted to purchase 100,000 yards of jute from Natural Fiber Co. in Country G...
Week 4 - Discussion 2
Sales Contracts
Weaver Mills Co. in Country F contracted to purchase 100,000 yards of jute from Natural Fiber Co. in Country G at US$ 0.64 per yard. Natural delivered 22,228 yards to Weaver at Weaver's plant, but it then informed Weaver that it would deliver no more. Several other of Weaver's suppliers also defaulted, so Weaver was forced to purchase a total of 164,503 yards of jute in the market a month later at a price of US$ 1.21 per yard. Weaver then sued Natural for the difference between the market price it had paid and contract price on the 77,772 yards of jute that Natural had not delivered. Both Countries F and G are signatories of the United Nations Convention on Contracts for the International Sale of Goods (CISG) and the parties' contract designated the CISG as the governing law.
Must Natural pay the amount Weaver demands? Explain your answer using principles of contract law and case law from your text.
