Bolin Farms v. American Cotton Shippers Association
Facts
American Cotton Shippers Association (D) agreed to purchase cotton planted by Bolin Farms (P) on specific acreage at a price agreed upon between January and March of 1973. The price of cotton doubled and Bolin Farms sued to get out of the contracts. Bolin Farms sought a declaratory judgment to annul the cotton sales contracts. It alleged that the American Cotton Shippers Association had inside information and that certain factors would coincide and drive the price of cotton to an unprecedented level. The record does not hold this conclusion to be true.
Issue
- Is a contract enforceable even if the agreed upon bargain turns against a party due to fortuitous circumstances?
Holding and Rule of Law
- Yes. A contract is enforceable even if the agreed upon bargain turns against a party due to fortuitous circumstances.
In this case there were no facts that would lead the court to believe that the parties did not have a valid contract. The fact that the events turned against the plaintiff with the price of cotton doubling is no reason to negate the bargain that was made. Here, the risk of loss or gain was on the buyer by the very nature of the contracts entered into. Bolin Farms got a price guarantee that would allow it to plant and obtain a profit on expected yields. The fact that the price doubled is of no consequence as the defendant had nothing to do with that event. The contracts are affirmed.
Disposition
Judgment affirmed.