Acme Mills & Elevator
Co. v. Johnson
Court of Appeals of
141
Facts: Johnson made a contract with Acme to deliver wheat for
$1.03 per bushel. Acme provided Johnson
with sacks for the wheat. Johnson failed
to deliver the wheat in time because he’d heard Acme was going out of business. When he finished threshing, the price of
wheat was under $1 per bushel, which is lower than the price agreed upon in the
contract. Acme sued Johnson for breach
of contract, and won $80, which is what the sacks were worth, plus court costs.
Procedural Posture: Acme is filing an appeal because they were
Issue: Can Johnson be found liable for breach of contract if
no harm was done?
Rule: “The vendee is entitled to damages against the vendor
for a failure to comply and the measure of damages is the difference between
the contract price and the market price of the property at the place and time
of delivery.”
Analysis: The main reasoning of the court is that the appellant
ought not be able to collect damages because the appellant actually benefited
from the contract breach.
Conclusion: The lower court’s ruling was affirmed. Johnson didn’t have to pay more than the $80
for the sacks.
Crazy terms:
estoppel: 1. A bar that prevents one from asserting a claim
or right that contradicts what one has said or done before or what has been
legally established as true. 2. A bar that prevents the relitigation of
issues. 3. An affirmative defense alleging good-faith reliance on a
misleading representation and an injury or detrimental change in position
resulting from that reliance. (Black’s 7th)
mulcted
to act to one’s prejudice
Questions: What if instead of wheat, the contract was for
something the vendee couldn’t live without, like some kind of drug? What if it was something extraordinarily
scarce? What if the interest of the
promisee is to get his hands on the thing at any price?
Note