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Commercial Law Keyed to Zierdt, 1st Ed.
Peace River Seed Co-Operative, Ltd. v. Proseeds Marketing, Inc.
Citation:
322 P.3d 531, 355 Or. 44 (2014)Facts
Peace River Seed Co-Operative and Proseeds Marketing entered into multiple contracts for Proseeds to purchase the total production of grass seed from a certain number of acres for fixed prices over a two-year period. The contracts incorporated the NORAMSEED Rules, which provided that the UCC applied to transactions within the United States. Under the contracts, Proseeds was to provide shipping and delivery instructions to Peace River. During the contract period, the price of grass seed fell dramatically. Although Proseeds initially provided shipping instructions and Peace River shipped conforming seed, Proseeds eventually refused to provide shipping instructions for delivery of additional seed under the contracts. After multiple requests for shipping instructions and Proseeds’ continued refusal, Peace River cancelled the contracts. Over the next three years, Peace River was able to sell at least some of the seed that Proseeds had agreed to purchase to other buyers, sometimes at prices above the contract price and sometimes below.
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