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Panike & Sons Farms, Inc. v. Smith

Idaho Supreme Court
212 P.3d 992 (2009)


Facts

In January 2006, Four Rivers Packing Company (defendant) contracted to buy 25,000 hundredweight onions from Panike & Sons Farms, Inc. (plaintiff). The contract provided that Four Rivers could choose the fields in which the onions were grown. In August 2006, during onion-growing season, Four Rivers informed Panike of the fields from which it wished to receive the onions. Panike told Four Rivers that it would not deliver onions from those fields. Panike delivered to Four Rivers two truckloads of onions from different fields. Four Rivers rejected the delivery. Panike sued Four Rivers for breach of contract. Panike argued that the designation of the fields should have been made at the time Four Rivers signed the contract. The trial court found that the usage of trade in the onion industry was that the buyer chose its desired onion fields during the growing season. The trial court found that Four Rivers was entitled to reject the delivery. Panike appealed.

Rule of Law

Issue

Holding and Reasoning (Burdick, J.)

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