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Oloffson v. Coomer

Appellate Court of Illinois, Third District
296 N.E.2d 871 (1973)


Oloffson (plaintiff) is a grain dealer who was in the business of merchandising grain. He is thus considered a “merchant” under Section 2-104 of the Uniform Commercial Code (UCC). Coomer (defendant) is a farmer who supplied corn for Oloffson’s merchandising business. On April 16, 1970, Coomer agreed to sell Oloffson 40,000 bushels of corn for approximately $1.12 per bushel, to be delivered in two installments of 20,000 bushels each in October and December of 1970. On June 3, 1970, Coomer informed Oloffson that he was not going to plant corn because the season had been too rainy. Coomer told Oloffson to arrange to obtain corn elsewhere to meet his merchandising needs. On this date, the price of corn for future delivery had risen to $1.16 per bushel. Oloffson again asked Coomer about delivering corn in September 1970, and Coomer repeated that he would not be able to deliver. Oloffson persisted, but the scheduled delivery dates passed with no delivery of corn. Oloffson covered his own obligations to third party vendees by purchasing 40,000 bushels of corn at $1.35 and $1.49 per bushel. Oloffson brought suit to recover damages from Coomer. The trial court awarded Oloffson $1,500, or the difference between the contract prices and the prices of corn on June 3, 1970 when Coomer first told Oloffson he would not deliver. Oloffson appealed and argued that the proper measure of damages was the difference between the contract price and the market prices on the October and December dates when the corn should have been delivered pursuant to the original April 16, 1970 contract.

Rule of Law


Holding and Reasoning (Alloy, P.J.)

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