Cherwell-Ralli, Inc. v. Rytman Grain Co.

Facts

The contract called for weekly shipments according to instructions from Buyer, within payment to be made within ten days after delivery. Buyer almost immediately fell behind in its payments, and Seller pointed it out but continued to make deliveries. The Buyer later became concerned that the Seller might not complete performance because the market price of the goods had risen significantly above the contract price. The Seller assured the Buyer it would continue deliveries, if the Buyer would pay the money it owed. The Buyer sent a check for $9825.60, to cover shipments it had accepted through the end of the prior month. However, several days later, Buyer stopped payment on the check because he heard from a truck driver that the shipment would be his last load. Two letters were exchanged between the parties in which Seller demanded payment, and Buyer demanded assurances. Seller stopped delivery after learning payment had been stopped on the check, and was forced to close its plant. The trial court found that Buyer did not have a valid reason for stoppage of payment, that Buyer as the breaching party, and seller was entitled to the final balance of $21, 013.60 that was due and owing.