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George Dundee operates a lumber mill outside of Oklahoma City. Dundee has a contract to deliver 15 truckloads of cut specialty lumber to Lindenwood Homebuilders in St. Charles on September 1, 2013. Although Dundee's lumber mill was not damaged in the recent tornado that ripped through large portions of Oklahoma City, many of his employees were affected by the tornado. Dundee himself lost his home and his dog Muffy in the tornado. Dundee called Lindenwood Homebuilders on July 28, 2013 and told them he would not be able to deliver the 15 truckloads of lumber because of the tornado. Lindenwood told Dundee that it needed the specialty lumber to fulfill its requirements on numerous contracts that Lindenwood had to build custom homes. Lindenwood refused to let Dundee out the contract. Dundee did not deliver the lumber on September 1. Lindenwood sued Dundee for breach of contract seeking actual and consequential damages. Lindenwood argues that Dundee's lumber mill was operational and Dundee could have delivered the lumber. Dundee argues that the situation in Oklahoma City was desperate, and that Lindenwood could have tried to locate other suppliers of the lumber to meet its lumber needs. The case is tried before you, the Circuit Court of St. Charles County.

How would you decide the case? Explain your answer using the contract principles discussed in class.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9466321

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