Bunge Corp. v. Recker

519 F.2d 449 (1975)

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Nature of the Case

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Facts

Bunge (P) entered into a contract with Recker (D) for the delivery of 10,000 bushels of no 2 yellow soybeans at $3.35 per bushel. Delivery was to be made at P's place of business. D was a farmer, but nothing in the contract required D to grow the beans. There was no delivery of the beans under this contract. Severe winter weather made it impossible for D to harvest 865 acres of his beans. P extended the time of the delivery as permitted by the contract to March 31. That delivery was not made, and P sued to recover the difference between the contract price ($3.35) and the market price on April 2 ($5.50). D answered with an excuse of performance by reason of an act of God in the destruction of part of his crop. The trial court found that the act of God defense did not apply as the good were not identified in the contract but the damages should be determined by January 31 market dates; the date P should have terminated the contract and demanded damages. The trial court found that P did not fulfill its standard duty of good faith and fair dealing in that it knew that D could not deliver and that the price of soybeans was rising.