Contracts II - Gwu - George Washington University

PROBLEM III. (20 percent)
The following edited excerpt comes from a recent case:
Doorenbos Poultry keeps chickens for egg
production. Midwest Hatchery sells started pullets,
which are hens that have reached the age of laying eggs
[about 18 weeks]. Doorenbos Poultry entered into a
contract with Midwest, to purchase 112,000 pullets to
be delivered on December 28 for $1.27 per pullet, plus
the cost of feed from the time of hatching. The
contract provided, "If Seller breaches this Contract,
at Seller's option, customer is entitled to either
replacement or refund of the price paid by Customer."
Prior to December 28, Midwest notified Doorenbos
Poultry it would be unable to deliver the chickens on
the date contemplated. Doorenbos Poultry agreed to the
delay, and cancelled arrangements to slaughter the
approximately 110,000 chickens in one of its
facilities. Over January 16, 17, and 18, Midwest
delivered 115,581 pullets to Doorenbos Poultry. As the
new chicks arrived, old pullets were moved out. Scott
Doorenbos, the president of Doorenbos Poultry, thought
the new chickens were 13 to 14 weeks of age rather than
18 weeks. Doorenbos testified he could not cancel the
order and return the chickens because his former flock
had already been removed. He explained the barns in
which the chickens are kept do not have heating.
Because the buildings maintain their temperature from
the body heat of the birds, Doorenbos believed water
lines in the barn would have frozen if he had not kept
the pullets. Doorenbos testified the pullets delivered
by Midwest did not start laying eggs until February 18.
Midwest sent Doorenbos Poultry an invoice for
$267,916.76, [but Doorenbos Poultry did not pay]. In
August, Midwest advised Doorenbos Poultry it wanted to
pick up the pullets if payment was not made. Doorenbos
Poultry was not interested in returning the birds. On
August 19, Doorenbos Poultry sent Midwest a check for
$184,135.18. [E]ighty percent of the pullets were
three weeks too young, and about twenty percent were
four weeks too young. Doorenbos Poultry lost $115,147
by moving the previous flock out before the new flock
was ready to lay eggs.
Write an essay identifying and discussing any claims and
defenses the parties might assert and any remedies they might
seek.
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