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Bunge Corp. v. Recker
United States Court of Appeals for the Eighth Circuit
519 F.2d 449 (8th Cir. 1975)
Recker (defendant) contracted to deliver soybeans to Bunge Corp. (Bunge) (plaintiff) by the end of January. The contract did not require Recker to grow the beans himself. Due to severe winter weather at his farm, Recker was unable to harvest the amount of beans required in the contract. As was allowed in the contract, Bunge extended the time for Recker’s delivery to the end of March. When Recker still did not deliver, Bunch brought suit for breach of contract. In the time between January and the end of March, the market price of beans rose by about 10 percent and Bunch sought the difference between the contract price and the market price at the beginning of April. The district court found in favor of Bunge and awarded him the difference between the contract price and the market price at the end of January, finding that Bunge’s extension of the delivery time was not made in good faith, but rather to increase its recovery on account of the increased market price. Bunge appealed.
Rule of Law
Holding and Reasoning (Kilkenny, J.)
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