Commercial Law Keyed to Lopucki
A. Kemp Fisheries, Inc. v. Castle & Cooke, Inc
Plaintiff and Defendant agree that Plaintiff would charter a fishing vessel with an option to purchase. Plaintiff needed the vessel to fish for herring and salmon. After Plaintiff’s attorney reviewed the contract, Defendant sent the contract to the Plaintiff. Plaintiff then discovered that the contract differed from his understanding of the arrangement. He understood that Defendant’s machines would be in good working order and that the freezing system would meet his specific needs. However, the agreement contained no such provisions and Plaintiff signed the agreement. He then took out a vessel to sea where two of the engines that control the freezing system broke down. Plaintiff sold the herring he caught for a lower price than that for frozen herring. Plaintiff then repaired the machines but it still ruined the herring. Plaintiff then sued the Defendant for breach of the Charter Agreement, intentional misrepresentation, estoppel and rescission claiming that Defendant agreed t o provide the engines in good working order and that the system would meet his basic needs. The trial court found that the agreement was ambiguous and admitted parol evidence to clarify the parties’ intent. Thus, the court held the Defendant liable for all of the Plaintiff’s damages. Defendant appeals.
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