Brief A Case – Coursework Example
HEGGBLADE MARGULEAS TENNECO V SUNSHINE BISCUIT Heggblade-Marguleas-Tenneco was formed by a merger between: the Kern County Land Company (KCL) and Tenneco in 1967. Before the merger, Heggblade-Marguleas Company was involved in the promotion of agricultural merchandise for different organizations, including KCL. Heggblade-Marguleas had never been involved in promotion of processed potatoes. KCL had grown processed potatoes but had never promoted them. Later after the merger, Heggblade-Marguleas took over KCL. Sunshine and biscuit was an independent American company which dealt with baking of cookies and cereals.
The dispute arose when KCL refused to take the order of 100000tons that they had agreed to buy from HMT terming that the business was slow and the tomatoes could not be complete. HMT viewed that the deal had to go on as agreed as they had already planted and met the end of their bargain (Witkin).The rule was sunshine biscuit could not have been forced and the order was ambiguous about the order and also the HMT had also been informed before to reduce the order of the agreement used this meant that a party is not bound by usage in business unless the party is informed and that one should only be held to only in the business where they are well informed and know about it.
The reasoning behind the ruling is although sunshine biscuit had anticipated for the following order list could not be answerable unless it had been in this business for long and it new a lot about it failure to that it was not liable for the loss that occurred to HMT and therefore could not be liable. While the company was willing to take the order it had not guaranteed about it.
Witkin. "Justia US law." Heggblade-Marguleas-Tenneco, Inc. v. Sunshine Biscuit, Inc. (2009): 59.