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Canadian Industrial v. Dunbar Molasses
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| Canadian Industrial v. Dunbar Molasses | |
| Court | New York Court of Appeals |
|---|---|
| Citation | 179 N.E. 383 |
| Date decided | January 5, 1932 |
Facts
Canadian Industrial Alcohol Co. ("Canadian Industrial" / "Canadian") contracted to buy 1,500,000 gallons of molasses (sugar) from Dunbar Molasses Co. ("Dunbar Molasses" / "Dunbar") to be sourced from the refinery in Yonkers, New York.
Dunbar's molasses shipments to Canadian were to begin after April 1st 1928.
Dunbar shipped over 344,000 gallons of molasses but then stopped! Dunbar was basically out of additional molasses to satisfy the 1.5 million gallons of ordered molasses (sugar).Procedural History
Canadian sued Dunbar for money damages.
Canadian won a jury court trial.Issues
What if the seller is out of stock?
Is a contracted seller that counts on the continuation of special circumstances to meet its contractual obligations released from performance when those circumstances end?Holding
No. A contracted seller that counts on the continuation of special circumstances to meet its contractual obligations isn't released from performance when those circumstances end.
Case Text Links
