Question

Mayker, Inc., and Oylco contracted for Oylco to be the exclusive provider of Mayker's fuel oil for 3 months. The stated price was subject to increases of up to a total of 10% if the market price increased. The market price rose 25%, and Mayker tripled its normal order. Oylco seeks to avoid performance. Oylco's best argument in support of its position is that

A. The quantity was not definite and certain enough.
B. There was no meeting of the minds.
C. The contract was unconscionable.
D. Mayker ordered amounts of oil unreasonably greater than its normal requirements.

Answer 1

Oylco's best argument to avoid performance in the contract with Mayker, Inc. would be that Mayker ordered excessively more fuel oil than usual, which was not anticipated and could unfairly strain Oylco's operations. option d is answer

Step-by-step explanation:

If Mayker, Inc., and Oylco contracted for Oylco to be the exclusive provider of Mayker's fuel oil for 3 months with a clause allowing price increases in line with market price increases up to 10%, and Mayker subsequently tripled its normal order following a 25% market price increase

Oylco may seek to avoid performance. Oylco's best argument would likely be D. Mayker ordered amounts of oil unreasonably greater than its normal requirements.

This defense could be based on the concept of good faith and fair dealing in commercial transactions, suggesting that such a significant increase in order quantity was not anticipated within the bounds of the contract and may disrupt Oylco's ability to supply and maintain its operations or pricing structure. option d is answer