Brief Fact Summary
The case concerned a contract for the sale of meal, where payment was due ten days after delivery and the buyer was consistently late on installment payments. Nevertheless, the seller continued to make deliveries. Eventually the buyer became concerned that the seller would continue to make deliveries because of problems with the seller's business and the significant increase in the market price of goods was such that the market price far exceeded the contract price. The seller orally promised that it would continue to make shipments if the buyer would make payments. The buyer sent seller a check in the amount of $9,825.60 to cover shipments through the following month. Several days later the buyer stopped payment on the check because he was told by a truck driver, not employed by seller, that the shipment would be his last load. The buyer made no further payments and the seller made no further deliveries.

Rule of Law and Holding
"A party to a sales contract may not suspend performance of its own for which it has 'already received the agreed return.'"

Topics
Contract Duties

Subtopics
Protecting the Exchange on Breach