You are a purchasing director for a group of grocery stores in the northeastern
ID: 375249 • Letter: Y
Question
You are a purchasing director for a group of grocery stores in the northeastern United States. You have signed a contract with a farmer in Illinois to provide you with a certain amount of corn for a set price. That corn is nearly ready to be harvested and sent to your stores. Title to the corn will transfer when the corn is picked and the risk of loss will remain with the farmer until the corn is delivered to your store. The first half of the payment for the corn is due in two weeks, when the corn is to be picked. You see on the news one morning that several major storms moved through Illinois overnight, and the reporters are showing and reporting that nearly all crops in the region have been destroyed. You are worried that the corn from your contract has been destroyed and you do not want to send the payment for the corn. Explain what you will do in this situation.
Explanation / Answer
As a purchasing director i will never send the payment for the corn,because the farmer needs to handle the risks and things that happens before delivering to the requestor. The agreement on the purchase is signed and where the terms on the risk towards delivering the products would also be signed. As a director i cannot be responsible on the loss as that impact loss on my business too. In the business all the individual needs to handle the risk on their own.
The word and the agreement committed to the farmer on the purchase cannot act as a proof, where the farmer cannot provide on the requirement needed for the business.
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