Contracts Keyed to Murphy
Laidlaw v. Organ
The Plaintiff/vendee, Organ (Plaintiff) and the Defendant, Laidlaw/vendor (Defendant), entered into an agreement whereby Plaintiff would buy tobacco from Defendant at an agreed upon price. Prior to completion of the sale, Plaintiff learned the War of 1812 was ending and that the value of the product would substantially increase. Defendant, at close of the sale, asked Plaintiff if he knew of any information that would affect the value of the product and Plaintiff answered in the negative, and took possession of the tobacco. The next morning, Defendant recovered the tobacco, upon learning of the change in circumstances, and Plaintiff brought suit to enforce the contract. At the trial of this matter, the Court found that Plaintiff was silent when asked directly whether the value of the goods to be purchased would change. Silence, in this case, amounted to bad faith circumvention, which caused harm to the vendor, Defendant. Plaintiff appealed.
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