Weaver Mills Co. in Country F contracted to purchase 100000 yards of jute from Natural Fiber Co. in Country G at US$ 0.64 per yard.

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Weaver Mills Co. in Country F contracted to purchase 100000 yards of jute from Natural Fiber Co. in Country G at US$ 0.64 per yard.

Must Natural pay the amount Weaver demands? Explain your answer using principles of contracgoct law and case law from your text.

 

Sales contract

Provide a well written answer of not less than 200 words to the following. Weaver Mills Co. in Country F  contracted to purchase 100000 yards of jute from Natural Fiber Co. in Country G at US$ 0.64 per yard.

Natural delivered 22228 yards to Weaver at Weaver’s plant but it then informed Weaver that it would deliver no more.

Several other of Weaver’s suppliers also defaulted so Weaver was forced to purchase a total of 164503 yards of jute in the market a month later at a price of US$ 1.21 per yard.

Weaver then sued Natural for the difference between the market price it had paid and contract price on the 77772 yards of jute that Natural had not delivered.

Both Countries F and G are signatories of the United Nations Convention on Contracts for the International Sale of Goods (CISG) and the parties’ contract designated the CISG as the governing law.

Must Natural pay the amount Weaver demands? Explain your answer using principles of contract law and case law from your text.