Question

Big Sur Beer entered into a written contract with Wisconsin Bottling whereby Big Sur agreed to buy from Wisconsin Bottling all bottles it needs for the next 15 months. The contract provided that the quantity was estimated to be 8,000 bottles per month and that the price would be equal to then industry average price for bottles as published in a select trade publication at the time of delivery. In the fourth month of the contract between Big Sur and Wisconsin Bottling Big Sur actually needed 8,900 bottles for its new beer lineup. Wisconsin Bottling was rethinking its contract with Big Sur because it realized it could get much higher prices from a different brewer in the area. Wisconsin Bottling refused to deliver the 8,900 bottles arguing that because this quantity exceeded the agreed-to estimate that it was relieved from performing under the contract. Which of the following is correct with regard to this contractual relationship and Wisconsin Bottling's argument:

• A. No contract was formed between the parties because a specific quantity of goods and price were not agreed to at the time the contract was entered into.
• B. Wisconsin Bottling is only obligated to sell and deliver 8,000 bottles.
O C. Wisconsin Bottling will not have to deliver the bottles because of the fact that another buyer will pay more for the bottles.
O D. Big Sur Beer could have, without breaching the contract with Wisconsin Bottling, elected to purchase 8,000 bottles from Wisconsin Bottling and 900 bottles from another seller.
O E. Wisconsin Bottling is obligated to deliver 8,900 bottles and must accept the contractually agreed to price.

Answer 1

Based on the information provided, the correct answer would be:

O E. Wisconsin Bottling is obligated to deliver 8,900 bottles and must accept the contractually agreed-to price.

In this scenario, Big Sur Beer and Wisconsin Bottling entered into a written contract that stated Big Sur would buy all the bottles it needs from Wisconsin Bottling for the next 15 months. Although the contract initially estimated a quantity of 8,000 bottles per month, it also included a provision that allowed for the actual quantity to exceed the estimate. Therefore, when Big Sur needed 8,900 bottles in the fourth month, it was within the scope of the contract.

Wisconsin Bottling's argument that it is relieved from performing under the contract because the quantity exceeded the estimate is not valid. The contract did not limit the quantity to the estimated amount, and there is no indication that exceeding the estimate would release Wisconsin Bottling from its obligations.

Therefore, Wisconsin Bottling is obligated to deliver the 8,900 bottles as required by the contract, and Big Sur is entitled to receive them at the contractually agreed-upon price.