Ethics Case Both Allsopp Sand and Gravel (Allsopp) and Lincoln Sand and Gravel (

Question

Ethics Case Both Allsopp Sand and Gravel (Allsopp) and Lincoln Sand and Gravel (Lincoln) were in the business of supplying sand to construction companies. In March, Lincoln's sand dredge became inoperable. To continue in business, Lincoln negotiated a contract with Allsopp to purchase sand over the course of a year. The contract called for the sand to be loaded on Lincoln's trucks during Allsopp's regular operating season (March through November). Loading at other times was to be done by "special arrangement." By the following November, Lincoln had taken delivery of one-quarter of the sand it had contracted for. At that point, Lincoln requested that several trucks of sand be loaded in December. Allsopp informed Lincoln that it would have to pay extra for this special arrangement. Lincoln refused to pay extra, pointing out that the sand was already stockpiled at Allsopp's facilities. Allsopp also offered to supply an employee to supervise the loading. Negotiations between the parties broke down, and Lincoln informed Allsopp that it did not intend to honor the remainder of the contract. Allsopp sued Lincoln. Is it commercially reasonable for Lincoln to demand delivery of sand during December? Has Lincoln acted ethically in this case? Allsopp Sand and Gravel v. Lincoln Sand and Gravel, 171 III. App.3d 532, 525 N.E.2d 1185, 1988 III. App. Lexis 939 (Appellate Court of Illinois)

Explanation / Answer

Well, after going through the information given above, the contract was for the period between the months of March till November. As, mentioned, on other time special arrangements were required to meet the requirenment. So, Lincoln can demand these favours but with further negotiations.

And as per the contract, it is valid for the whole year, so Linclon is at the receiving end, in this case.

Regards.

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