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Joe Jackson agreed to sell 10,000 cartons of orange juice to Quality Foods (hereinafter "Quality") for $2.50 each with delivery of 2,500 cartons on four consecutive Mondays beginning one month from the date of the agreement. Before the first day for delivery Joe Jackson informed Quality that he would be unable to perform their agreement because the price Joe would have to pay to obtain the orange juice had doubled since they made their agreement and it was impossible for him to afford to meet his obligation.
PART 1: Discuss in detail whether Joe has a valid defense against Quality's cause of action for breach of contract. Discuss all of the possibilities
PART 2: Would you answer be any different if the reason for Joe's inability to deliver the orange juice was because a severe and prolonged freeze had resulted in the destruction of the entire orange crop from which the orange juice was to have been obtained. Explain your answer in detail.
PART 3: In the above situation, suppose that Quality Foods had a contract to immediately deliver all of the shipments, upon receipt from Joe, to Juicy Frozen Orange Drink for $4.00 each. If Quality Foods were to prevail in its suit again Joe Jackson would it also be able to recover the loss incurred for the inability to deliver to Juicy Frozen Orange Drink? Discuss all of the possibilities.
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