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Wholesale Coal Company ordered 25 carloads of coal from Guyan Coal and Coke Company. Guyan could not come up with 25 carloads. However, it did have 7 carloads available.

Before shipping the coal, Guyan wrote back to Wholesale stating, "You can be sure that if it is possible to ship the entire twenty-five carloads, we will do so. But under the circumstances, this is the best we can promise you." When Guyan heard nothing from Wholesale, it shipped the 7 carloads.

When Wholesale did not pay for the 7 carloads, Guyan brought suit to compel payment. Wholesale countersued, claiming Guyan had not yet delivered the remaining 18 carloads. Was Wholesale correct? Explain.

Guyan Coal and Coke Company v. Wholesale Coal Company, 201 N.W. 194 (MI).

Management Theories, Management Studies

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