Maple Farms Inc. v. City School Dist Case Brief

In the case of Maple Farms Inc. v. City School Dist. 76 Misc.2d 1080, 352 N.Y.S.2d 784 (N.Y.Sup. 1974), Maple Farms supplied milk to a local school district for a set price (a fixed price contract). Market factors in 1973 drove the price of milk too high and it became impractical for Maple to sell the milk without a huge loss. They sued for a declaratory judgment that performance had become impractical. The Court dismissed the claim and held Maple responsible for selling the milk. • Even if the price rise was due to unforeseen events, the seller took a risk when it entered into a fixed-price contract. • UCC § 2-615 codifies this rule. • Except for the most exceptional of circumstances, a party claiming discharge from obligation because of unexpected financial burdens caused by a shift in market conditions will still be required to perform on the contract. • This decision is the opposite of a similar case, (Mishara Constr. Co. v. Transit-Mixed Concrete Corp.) that was decided the same year Massachusetts. Project Wonderful -Your ad here, right now, for as low as $0