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Cargill, Inc. v. Stafford

553 F.2d 1222 (1977)

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Cargill, Inc. v. Stafford

United States Court of Appeals for the Tenth Circuit

553 F.2d 1222 (1977)

Facts

On July 31, 1973, Cargill, Inc. (plaintiff) sent Van Stafford (defendant) a contract accepting Stafford’s offer to sell Cargill wheat. The contract set September 30, 1973, as its performance date. On August 21, 1973, Stafford repudiated the contract because he objected to Cargill’s insertion of a right-of-cancellation clause. Cargill received the letter on August 24, 1973. Cargill urged Stafford to perform and took no steps to buy wheat from another source. On September 6, 1973, Stafford told Cargill he would not deliver wheat on September 30, at which point Cargill notified Stafford that it was cancelling the contract and filing a federal diversity suit for anticipatory repudiation. The district court ruled against Stafford and awarded damages based on the September 6 price. Both parties appealed to the Tenth Circuit. The court agreed that Stafford breached the contract. The remaining issue was which date to use for measuring Cargill’s damages.

Rule of Law

Issue

Holding and Reasoning (Breitenstein, J.)

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