Banco International, Inc V. Goody's Family Clothing Essay

1102 WordsNov 28, 20125 Pages
LaToya Smith UCC and Business Organizations Robert Miller Midterm Assignment October 11, 2012 Banco International, Inc. v. Goody’s Family Clothing United States District Court, Northern Division 54 F.2d 765 In the case of Banco v. Goody’s, the courts ruled that Goody’s was not wrong for canceling the contract due to the finding of justified in reasonably concluding that Banco could not deliver the product by the date set in the first purchase order between the parties and the failure to deliver the goods by that date would have substantially impaired the value of those goods to Goody’s. Goody’s entered into a contract with Banco to purchase wind suits. On or about July 13, 1994, Goody’s agreed to change…show more content…
The contract was for a total of 62,748 jogging suits that would be custom made for girls and boys. The total contract price was for $ 749,103.60 that included the shipping of the merchandise, which would be shipped within six purchase orders. On or about August 29, 1994 they (Goody’s) terminated their contract in writing, which validates a right to cancel. The parties agreed to amend the first shipment date, Goody’s deny that all other shipment dates were to be amended as well. Goody’s feel that there was any “wrongful, unlawful, or without good cause or justification” eras on their behalf. Was there a retraction of any Anticipatory Repudiation when Banco gave Goody’s assurance shortly after Goody’s cancelled the contract? Did Goody’s have a justifiable reason to cancel the entire contract with Banco? The UCC permits the breaching party (subject to some limitations) to “retract” his or her repudiation. This can be done by any method that clearly indicates the party’s intent to perform. Once retraction is made, the rights of the repudiating party under the contract are reinstated. The breaching party cannot retract the repudiation. However, if since the time of the repudiation the other party has canceled or materially changed position or otherwise indicated that the repudiation is final. [UCC 2-611, 2A-403] According to the UCC §§ 2-609(2) and 2-609(4) Between merchants the reasonableness of grounds for insecurity and the adequacy of any assurance offered

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