UCC and Common Law Case Scenarios - Essay Example | Topics and Well Written Essays - 500 words

UCC and Common Law Case Scenarios - - Essay Example Due to floods, Cereal Inc warehouse is flooded and cereals destroyed that result in the inability to supply as stated in the contract. However, soggy flakes is not damaged and supplies 10 bags to grocery Inc. Besides, before the delivery was made, Grocery Inc had requested to be supplied with a variety of cereals at its different stores. Due to the inconvenience Grocery Inc wants to turn down the supply and terminate the contract. Even though it is within their rights to be supplied with the cereals they had specified at different stores, a complication will arise if they cancel the supply and the contract. The supplier will protect themselves by using the gap-filling rule. In the contract, it is not specified what type of cereals to be supplied or where to be supplied. The gap can be used in the defense that Cereal Inc had the right to choose what to supply and where to deliver it. The gap-filling rule gives a party of the contract the possibility of concluding some aspects of the contract that are not specific. In this case, it was not articulate on the type of cereals to be supplied or the store they were to be delivered. Cereal Inc can use this as its defense as the cause of the damages was not deliberate and the fact that inability to make the supplies was not the intention at the time of signing the contract. The amicable way of dealing with this case is for both parties to have a consensus. Grocery Inc should not be in a hurry to terminate the contract and cancel the supplies. They should give Cereal Inc time to recover from the loss. Alternatively, the contract can be amended such that it is specific on the type of supplies and the destination. Tom had promised to sell his model trains to Harry once he retired. Harry prepared by building a house to store them and borrowed money to pay for them. However, when the time came Tom did not honor his promise. Tom was sued by Harry for breach of