SELLAND PONTIAC-GMC, INC. V. KING
384 N.W.2d 490 (1986)
NATURE OF THE CASE: Selland (P) challenged a judgment which denied a motion for a new
trial and/or amended findings of fact and conclusions of law in its suit against King (D)
seller for breach of contract. After a one-day bench trial the trial court had granted
judgment for D.
FACTS: Selland (P) contracted with King (D) to buy four school bus bodies. The oral
agreement was reduced to writing on May 12, 1983. D was to supply the bodies and P was to
supply the chassis for the buses. The bodies were to be manufactured by Superior. There was
no completion date on the written agreement. D was aware that P's customers needed the buses
by August for the start of school. The contract price was $47,600. There was no escape
clause provided in the event D's supply source should fail. P relied on the contract and
ordered four bus chassis from General Motors and they arrived at Superior's entry point in
Canada in June 1983. Superior went into receivership on July, 1983. D informed P of that
development in August. P claims that afterwards, D assured P that the buses would be
finished. D claims that he advised P of the Superior status and P elected to wait until
Superior came out of bankruptcy. The trial court found that P acquiesced to the delay in
production. The bodies were never manufactured as the company went out of business. P's
customer, cancelled the order in December 1983 and P sold the chassis at a loss. The trial
court gave judgment to D. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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