Thompson entered into a contract with Barnes and Tilman for the delivery of one thousand bales of hay on the first day of each month for a period of twenty-four months, payment to be made in thirty days after delivery. Within ten months after the making of the contract, Barnes and Tilman retired from business and transferred all assets, including this contract, to Hollister. Thompson, on the first day of the following month, refused to deliver to Hollister the usual one thousand bales of hay. The price of hay was then higher than the contract price, and Hollister sued Thompson. Can he recover?

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Issue

Is this a valid assignment of contract from Barnes and Tilman to Hollister? Does Hollister, the assignee, have a right to sue Thompson, the promisor, for a contract breach? Assignments and delegations are invalid when prohibited in the contract, increase the burden on the other party, or are personal in nature. Therefore, Hollister’s chances to successfully sue Thompson for a contract breach depend on the validity of the transfer.

Decision

The assignment of the contract to Hollister seems to be invalid. Given the facts presented in the case, Hollister will not be able to recover. At first glance, the situation appears quite favorable to Hollister. There is no evidence that transfer was prohibited by the original contract between Thompson and Barnes and Tilman. Furthermore, it is unlikely that contract transfer will increase the burden on the supplier.

Hollister had acquired all business assets of Barnes and Tilman, so the delivery distance and costs will likely remain unchanged. In addition, Hollister did not increase the amount of hay that Thompson must supply or did not try to negotiate a price change.

However, the contract transfer would be personal in nature since Thompson initially agreed to sell hay on credit terms. It is not stated in the case whether Hollister can reliably make payments in thirty days after delivery like Barnes and Tilman did. In addition, Barnes and Tilman had not assured Thompson that Hollister was a reliable buyer before retiring from business.

Therefore, as a lender, Thompson could not realistically assume Hollister’s creditworthiness and make informed decisions. As such, the contract assignment is invalid since it included the personal nature of credit. Due to this fact, Hollister cannot sue the promisor for the supply contract breach.

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References

Academic.Tips. (2023) 'Thompson entered into a contract with Barnes and Tilman for the delivery of one thousand bales of hay on the first day of each month for a period of twenty-four months, payment to be made in thirty days after delivery. Within ten months after the making of the contract, Barnes and Tilman retired from business and transferred all assets, including this contract, to Hollister. Thompson, on the first day of the following month, refused to deliver to Hollister the usual one thousand bales of hay. The price of hay was then higher than the contract price, and Hollister sued Thompson. Can he recover'. 7 February.

Reference

Academic.Tips. (2023, February 7). Thompson entered into a contract with Barnes and Tilman for the delivery of one thousand bales of hay on the first day of each month for a period of twenty-four months, payment to be made in thirty days after delivery. Within ten months after the making of the contract, Barnes and Tilman retired from business and transferred all assets, including this contract, to Hollister. Thompson, on the first day of the following month, refused to deliver to Hollister the usual one thousand bales of hay. The price of hay was then higher than the contract price, and Hollister sued Thompson. Can he recover? https://academic.tips/question/thompson-entered-into-a-contract-with-barnes-and-tilman-for-the-delivery-of-one-thousand-bales-of-hay-on-the-first-day-of-each-month-for-a-period-of-twenty-four-months-payment-to-be-made-in-thirty-da/

References

Academic.Tips. 2023. "Thompson entered into a contract with Barnes and Tilman for the delivery of one thousand bales of hay on the first day of each month for a period of twenty-four months, payment to be made in thirty days after delivery. Within ten months after the making of the contract, Barnes and Tilman retired from business and transferred all assets, including this contract, to Hollister. Thompson, on the first day of the following month, refused to deliver to Hollister the usual one thousand bales of hay. The price of hay was then higher than the contract price, and Hollister sued Thompson. Can he recover?" February 7, 2023. https://academic.tips/question/thompson-entered-into-a-contract-with-barnes-and-tilman-for-the-delivery-of-one-thousand-bales-of-hay-on-the-first-day-of-each-month-for-a-period-of-twenty-four-months-payment-to-be-made-in-thirty-da/.

1. Academic.Tips. "Thompson entered into a contract with Barnes and Tilman for the delivery of one thousand bales of hay on the first day of each month for a period of twenty-four months, payment to be made in thirty days after delivery. Within ten months after the making of the contract, Barnes and Tilman retired from business and transferred all assets, including this contract, to Hollister. Thompson, on the first day of the following month, refused to deliver to Hollister the usual one thousand bales of hay. The price of hay was then higher than the contract price, and Hollister sued Thompson. Can he recover?" February 7, 2023. https://academic.tips/question/thompson-entered-into-a-contract-with-barnes-and-tilman-for-the-delivery-of-one-thousand-bales-of-hay-on-the-first-day-of-each-month-for-a-period-of-twenty-four-months-payment-to-be-made-in-thirty-da/.

Bibliography

Academic.Tips. "Thompson entered into a contract with Barnes and Tilman for the delivery of one thousand bales of hay on the first day of each month for a period of twenty-four months, payment to be made in thirty days after delivery. Within ten months after the making of the contract, Barnes and Tilman retired from business and transferred all assets, including this contract, to Hollister. Thompson, on the first day of the following month, refused to deliver to Hollister the usual one thousand bales of hay. The price of hay was then higher than the contract price, and Hollister sued Thompson. Can he recover?" February 7, 2023. https://academic.tips/question/thompson-entered-into-a-contract-with-barnes-and-tilman-for-the-delivery-of-one-thousand-bales-of-hay-on-the-first-day-of-each-month-for-a-period-of-twenty-four-months-payment-to-be-made-in-thirty-da/.

Work Cited

"Thompson entered into a contract with Barnes and Tilman for the delivery of one thousand bales of hay on the first day of each month for a period of twenty-four months, payment to be made in thirty days after delivery. Within ten months after the making of the contract, Barnes and Tilman retired from business and transferred all assets, including this contract, to Hollister. Thompson, on the first day of the following month, refused to deliver to Hollister the usual one thousand bales of hay. The price of hay was then higher than the contract price, and Hollister sued Thompson. Can he recover?" Academic.Tips, 7 Feb. 2023, academic.tips/question/thompson-entered-into-a-contract-with-barnes-and-tilman-for-the-delivery-of-one-thousand-bales-of-hay-on-the-first-day-of-each-month-for-a-period-of-twenty-four-months-payment-to-be-made-in-thirty-da/.

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