CHAPTER 5 OF 7 · FRIDAY

The Day Nothing Arrived

Conditions, breach, and excuse

In this chapter
  1. The Empty Dock
  2. The Demand
  3. The Shortage Defense
  4. Keep Baking
  5. Contracts study notes

SCENE 1 · PDF PAGE 30

The Empty Dock

September fifteenth ended without an oven. The loading dock held only rainwater. Atlas claimed the bakery's electrical certificate had arrived too late. Its confirmation required the certificate by September twelfth. The municipal inspector had sent it on September eleventh. Atlas's reply acknowledged receipt.

Illustration for The Empty Dock.
RAFAEL

There is nothing to unload.

NAOMI

They say we failed the condition.

MERCER

Show me the certificate and their acknowledgment.

RAFAEL

They had it four days before the delivery date.

An express condition can control whether performance becomes due. Here the record supports satisfaction; we need not ask the court to excuse an unmet condition.

SCENE 2 · PDF PAGE 31

The Demand

Before the missed delivery, Atlas's shifting explanations had created reasonable insecurity. I had sent a written demand for adequate assurance and offered evidence of Riverside's ability to pay the remaining original price. Atlas answered with an unequivocal refusal to deliver unless the surcharge was accepted as final. We treated that refusal as a disputed repudiation.

Illustration for The Demand.
MERCER

Confirm performance on the original terms and identify the scheduled unit.

ATLAS MANAGER

There will be no delivery without the extra fifteen thousand.

NAOMI

Do we simply wait a month?

MERCER

No fixed thirty-day holiday applies to an unequivocal refusal.

The reasonable assurance period depends on circumstances and cannot exceed thirty days under section 2-609. A clear repudiation raises a separate section 2-610 analysis.

SCENE 3 · PDF PAGE 32

The Shortage Defense

Atlas asked the court to excuse delivery as commercially impracticable. Its manager described uncertainty in the market. The produced inventory showed available units and deliveries to other buyers. We did not contend every shortage claim was false. We argued this seller had chosen a more profitable transaction rather than encountered an excusing contingency.

Illustration for The Shortage Defense.
ATLAS COUNSEL

The market changed unexpectedly.

MERCER

Which event made this performance impracticable?

OKAFOR

Address the contract's risk allocation, available stock, and notice.

MERCER

And explain why these units went elsewhere while our client's was withheld.

Increased expense is not automatically impracticability. Genuine shortages require examination of basic assumptions, assumed risks, fair allocation where applicable, and timely notice.

SCENE 4 · PDF PAGE 33

Keep Baking

Rafael located a temporary oven from a neighboring business. It could handle some catering but not all of it. Naomi documented the rental cost, capacity, and orders saved. Priya tracked both lost margin and avoided expenses. I warned her that mitigation would affect recovery, but the law did not require unreasonable risk or impossible heroics.

Illustration for Keep Baking.
RAFAEL

We can save Monday's order if we work in shifts.

NAOMI

And Tuesday?

PRIYA

Record what we can perform and the extra cost. Do not count saved revenue as a loss.

MERCER

Reasonable steps help the bakery now and make the later damages record honest.

Failure to cover does not eliminate all Article 2 remedies, but reasonably avoidable consequential losses ordinarily cannot be shifted to the seller.

THE LAW BEHIND THE STORY

Contracts study notes

Condition or promise

A condition is an event that must occur before a duty becomes due, unless excused. A promise is a commitment whose breach can support relief. One provision can function as both. Express conditions ordinarily require strict compliance, subject to doctrines such as waiver, prevention, and limits on disproportionate forfeiture.

Common law and sales differ

For many service contracts substantial performance may permit recovery subject to offsets; a material breach can suspend the other party's duties. Article 2's perfect-tender framework ordinarily allows rejection of nonconforming goods, but cure, installment-contract rules, agreement, acceptance, and notice requirements qualify that framework.

Insecurity versus repudiation

Section 2-609 requires reasonable insecurity and a written demand; commercially reasonable suspension may be available. Adequate assurance must arrive within a reasonable time, never more than thirty days. Under section 2-610, repudiation substantially impairing the contract's value permits specified responses. Retraction and reliance on the repudiation require further analysis.

Excuse must fit the event

Section 2-615 addresses impracticability and certain governmental constraints; where only part of capacity is affected, fair reasonable allocation and seasonable notice matter. Common-law impossibility and frustration of purpose have related but distinct elements. Foreseeability informs risk analysis, but contract language and allocated risks are central. A better offer is no excuse.

See the chapter in four panelsFour illustrated moments from The Day Nothing Arrived.