SCOTT V. CROWN 765 P.2d 1043 (1988) CASE BRIEF

SCOTT V. CROWN

765 P.2d 1043 (1988)

NATURE OF THE CASE: This was a dispute over the sale of wheat. Scott (P) brought an action against Crown (D), buyer, claiming that D had breached a contract to purchase wheat by failing to pay for the shipment prior to delivery pursuant to P's demand for adequate assurance of performance, although payment was not due until after delivery. The trial court entered judgment for P. D appealed.

FACTS: Scott (P) sold Crown (D) 16,000 bushels of wheat. D paid P $2,000 in advance with the full balance to be paid within 30 days after delivery of all the grain. P delivered all the wheat under the contract and a balance of $49,000 was due on April 13, 1983. On March 1, 1983 they executed another contract for 13,500 bushels and another for 30 truckloads more. By March 15, 1983 Seller had delivered 9,086 bushels under the 13,500-bushel contract but refused to deliver anymore because of his belief that D could not pay for the wheat. P was told by his banker that D was not the 'best grain trader' and was advised to contact an agent from the Department of Agriculture for more information about D. The Department indicated that there was an active complaint against D for payments to other farmers. P refused to deliver any more grain and told D's truckers that he would not load any more grain until some questions were settled. From March 21 until April 6, P and his attorney tried to contact D by telephone but with no success. D then responded to a letter of March 23 with the statement that P was in breach and unless shipments resumed, D would resort to cover. D then notified P that he was canceling the contracts but if the contracts were performed he would pay according to the contract terms. P eventually sued D on April 25 for a breach of contract. The trial court gave the verdict to P and D appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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