Java Jay’s International has a requirements contract with Joe’s Bean Corporation

Question

Java Jay’s International has a requirements contract with Joe’s Bean Corporation that obligated Joe’s to supply Java Jay’s with all the coffee beans it needs for their seventy store locations for one year, at $2.20 per 15oz bag of coffee beans. A clause inserted in small print in the contract by Java Jay’s, and not noticed by Joe’s, states, “The buyer reserves the right to reject any shipment for any reason without liability.” For seven months, Joe’s orders and Java Jay’s delivers under the contract without any controversy. Then, because of a war break out in Brazil, the cost of a 15oz bag of coffee beans increases substantially. Joe’s tells Java Jay’s it cannot possibly fulfill their contract unless Java Jay’s agrees to pay $2.50 per 15oz bag of coffee beans. Java Jay’s, in need of the coffee beans, agrees in writing to modify the contract. Later that month, Java Jay’s learns it can buy coffee bean at $2.25 per 15oz bag from Emily’s Coffee Beans. On the next delivery from Joe’s, Java Jay’s refuses delivery claiming that the contract allows them to do so and that it is required to only pay $2.20 per 15oz bag of coffee beans if it accept delivery. Discuss Java Jay’s contentions:

Explanation / Answer

Java Jay's contentions are not wholly correct at the making of tthe first contract they had insrted the clause “The buyer reserves the right to reject any shipment for any reason without liability.”

Although, when any contract is made it has tto be understood by both the parties in this case it has been mentioned that the seller was not aware of this clause but anyways the contract was signed and Joe state was supposed to follow the contract but after the prices have increased and Joe States intimated their inability to deliver coffee beans at the agrred price Java Jay agreed in writing to change the contract and now Java Jay is bound by the written word to take the coffee beans from Joe States and can not refuse the delivery until a new contract is made underlining every aspect.

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