Cure Joc Oil USA, Inc. (Joc Oil), contracted to purchase low-sulfur fuel oil fro

Question

Cure Joc Oil USA, Inc. (Joc Oil), contracted to purchase low-sulfur fuel oil from an Italian oil refinery. The Italian refinery issued a certificate to Joc Oil, indicating that the sulfur content of the oil was 0.50 percent. Joc Oil entered into a sales contract to sell the oil to Consolidated Edison Company of New York, Inc. (Con Ed). Con Ed agreed to pay an agreed-upon price per barrel for oil not to exceed 0.50 percent sulfur. When the ship delivering the oil arrived, it discharged the oil into three Con Ed storage tanks. A report issued by Con Ed stated that the sulfur content of the oil was 0.92 percent. In the past, Con Ed had permitted a delivery of nonconforming oil to be cured by a conforming delivery. Joc Oil made an offer to cure the defect by substituting a conforming shipment of oil that was already on a ship that was to arrive within two weeks. Con Ed rejected Joc Oil’s offer to cure. Joc Oil sued Con Ed for damages for breach of contract. Does Joc Oil have a right to cure the nonconforming delivery? * I need a thorough solution. Thank you!

Explanation / Answer

In the above case a contract was made between Cure Joc Oil USA, Inc. (Joc Oil), and Italian oil refinery where joc oil contracted to purchase a low sulphur fuel oil. The Italianrefinery in turn issued a certificate to Joc Oil, indicating that the sulfur content of the oil was 0.50 percent. Joc oil contracted with Consolidated Edison Company of New York, Inc. (ConEd) to sell the oil and as a result Con Ed agreed to pay an agreed amount for per barrel of oil which is not to exceed 0.50 percent sulphur. soon after when the oil was delivered it was stated by Con Ed that the sulphur content of the oil is 0.92 percent. In the past, Con Ed had permitted a nonconforming delivery of oil to be cured by a conforming delivery. Subsequently an offer was made by joc oil to correct the defect within two weeks but the same was rejected by Con Ed. Joc Oil sued Con Ed for damages for breach of contract.

Cure means an opportunity to cure a mistake which is done by a party to the contract, before the other party exercises some remedial action for the breach of the contract. Nobody’s Perfect, keeping this concept in mind there are many statutes and contracts which give Parties to a contract a second chance i.e. an opportunity to cure mistake before the other party to the contract a can exercise some remedial actions such as termination etc. In this case, Joc Oil has the right to cure the nonconforming delivery even if rejected by Con Ed, if the time of the delivery has not expired. They can make the conforming delivery within the deadline of delivery and cure the breach of contract and avoid paying for the damages. By doing this Joc Oil shows that it has reasonable time left for the delivery and it can cure the breach and Con Ed cannot refuse its offer.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.