. On August 15, 2014 Emma signed a contract to purchase 35,000 gallons of ethano
ID: 1194617 • Letter: #
Question
. On August 15, 2014 Emma signed a contract to purchase 35,000 gallons of ethanol from Korey for resale at her ethanol station. When Emma signed the contract, the ethanol was warehoused in a holding tank at Korey's production facility. The contract allowed for Emma to take delivery of the ethanol from the holding tank on August 21,2014. Emma had no storage facility, and arranged to have the ethanol picked up from the holding tank on August 25 and immediately transported to her retail ethanol station. On August 24 lightning strikes Korey's production facility and causes a major explosion that destroyed the holding tank and the ethanol. Korey later bills Emma for the 35,000 gallons of ethanol. Emma refuses to pay. Korey seeks your advice about the strength of his claim against Emma.
Explanation / Answer
Korey's claim is quite strong as it can claimed that as per the contract Emma was suppose to take the delivery on 21 August 2014, which means that when the lightning struck the Emma's ethanol was supposed to be delivered to her.
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