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Bolin Farms v. American Cotton Shippers: Difference between revisions
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{{Infobox Case Brief | {{Infobox Case Brief | ||
|court=Western District of Louisiana | |court=Western District of Louisiana | ||
|citation=370 F.Supp. 1353 | |||
|date=January 31, 1974 | |date=January 31, 1974 | ||
|subject=Contracts | |subject=Contracts | ||
|facts=In 1973, 11 cotton farms including Bolin Farms ("Bolin") entered [https://www.quimbee.com/keyterms/forward-sales-contract forward sales contract]s with cotton buyers including American Cotton Shippers Association ("American"). | |||
The forward contracts contained fixed prices for the purchase of cotton at the harvesting time. However, at the time of harvesting, the market price of cotton had unexpectedly doubled. | |||
Consequently, the farms regretted entering the forward contracts. | |||
|procedural_history=Bolin and other cotton farms filed suits against buyers (including American) seeking annulment of the forward contracts. | |||
The buyers ("American") counter-claimed in the United States [https://www.lawd.uscourts.gov/ District Court for the Western District of Louisiana] seeking a declaration that the contracts were valid & enforceable. | |||
|issues=Is a '''forward contract''' enforceable despite a significant change in market price between the time of contracting & the time of performance? | |||
|holding=Yes. A forward contract is enforceable even if there is a significant change in market price between the time of contracting & the time of performance. | |||
|reasons=Failure to deliver the cotton constituted a breach of contract. | |||
|case_text_links={{Infobox Case Brief/Case Text Link | |case_text_links={{Infobox Case Brief/Case Text Link | ||
|link=https://law.justia.com/cases/federal/district-courts/FSupp/370/1353/1801385/ | |link=https://law.justia.com/cases/federal/district-courts/FSupp/370/1353/1801385/ | ||
Latest revision as of 14:24, August 12, 2023
| Bolin Farms v. American Cotton Shippers | |
| Court | Western District of Louisiana |
|---|---|
| Citation | 370 F.Supp. 1353 |
| Date decided | January 31, 1974 |
Facts
In 1973, 11 cotton farms including Bolin Farms ("Bolin") entered forward sales contracts with cotton buyers including American Cotton Shippers Association ("American").
The forward contracts contained fixed prices for the purchase of cotton at the harvesting time. However, at the time of harvesting, the market price of cotton had unexpectedly doubled.
Consequently, the farms regretted entering the forward contracts.Procedural History
Bolin and other cotton farms filed suits against buyers (including American) seeking annulment of the forward contracts.
The buyers ("American") counter-claimed in the United States District Court for the Western District of Louisiana seeking a declaration that the contracts were valid & enforceable.Issues
Is a forward contract enforceable despite a significant change in market price between the time of contracting & the time of performance?
Holding
Yes. A forward contract is enforceable even if there is a significant change in market price between the time of contracting & the time of performance.
Reasons
Failure to deliver the cotton constituted a breach of contract.
