Banco International, Inc V. Goody's Family Clothing Essays

1078 Words Nov 24th, 2012 5 Pages
LaToya Smith
UCC and Business Organizations
Robert Miller
Midterm Assignment October 11, 2012

Banco International, Inc. v. Goody’s Family Clothing
United States District Court, Northern Division 54 F.2d 765

In the case of Banco v. Goody’s, the courts ruled that Goody’s was not wrong for canceling the contract due to the finding of justified in reasonably concluding that Banco could not deliver the product by the date set in the first purchase order between the parties and the failure to deliver the goods by that date would have substantially impaired the value of those goods to Goody’s. Goody’s entered into a contract with Banco to purchase wind suits. On or about July 13, 1994, Goody’s agreed to change
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Banco argues that Goody’s was the one that initiated the rescheduling of the first shipment, although they were in favor of the reschedule because at that time they was not prepared to ship the first shipment of 26,640 wind suits at that time. But Banco argues that they would have been able to reach the amended delivery date and the following delivery dates on time. That Attune Garments defamed them by calling Goody’s and stating that they did not have the material needed and would not get the material to start the project. Had Goody’s made Banco aware of the issue that was at hand; a solution could have been established. Banco also argues that Attune and Banco’s contract ended prior to the delivery date of the first shipment and that they would have worked more lines to make sure that the merchandise was prepared and ready to be ships according to the dates of the contract. With Banco and Attunes contract ended that gave them enough time to start the assignment for Goody’s and delivery the merchandise within the contract dates. Banco argues that Goody’s did not even give them a chance to perform their duties upon canceling the contract. Goody’s argued that upon amending the date of the first shipment, Banco was not prepared to follow through on the duty of performance that was

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