Procedural Posture

Plaintiff seller sought review of an order of the Superior Court of Santa Clara County (California) that entered judgment in favor of defendant buyer in the seller’s action to recover damages for the alleged breach of two written contracts for the purchase and sale of wine.

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Overview

A buyer and a seller entered into an agreement for the sale of wine. The seller was unable to provide the buyer with wine because of an embargo and strikes, and the wine became spoiled. The buyer refused to pay and the seller commenced suit against the buyer, alleging breach of contract. The court found for the buyer and the seller sought review. On appeal, the court affirmed. The court held that: (1) when the elements spoiled, the undelivered portion of the crop became useless, and the loss fell upon the seller under the terms of the contract; (2) the interests of the seller and buyer demanded that the right of cancellation be exercised to the whole crop if the fruit did not measure up to the standard prescribed by the contract; and (3) there was nothing in the record that indicated that the buyer was not diligent in exercising its legal rights under the contract.

Outcome

The court affirmed the order of the trial court that entered judgment in favor of the buyer in the seller’s action to recover from the alleged breach of contract of two written contracts for the sale of wine.