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Contracts Keyed to Fuller
H-W-H Cattle Company, Inc. v. Schroeder
Citation:
767 F.2d 437 (8th Cir. 1985)Facts
On September 13, 1978, HWH entered into a contract with Clayton Schroeder to purchase 2,000 steers for $67.00 per hundredweight with delivery scheduled between March 1 and May 31, 1979, in Artesia, New Mexico. HWH gave Schroeder a $50,000 downpayment. HWH had a corresponding contract to sell these same cattle to Western Trio (a related company also owned by the Hitch family) for $67.35 per hundredweight, representing a $0.35 commission per hundredweight. Schroeder only delivered 1,397 cattle, leaving a shortfall of 603 head. HWH’s buyer, Gene McGlaun, testified that he contacted Schroeder’s agent about purchasing substitute cattle at a higher price, but Schroeder’s agent never followed up. By June 1, 1979, the market price of cattle had risen substantially, but later fell back to around the contract price.
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