Victor Packing Co. (Victor) contracted to supply Sun Maid Raisin Growers 1,800 tons of raisins from the current year's crop. After delivering 1,190 tons of raisins by August, Victor refused to supply any more.
Although Victor had until the end of the crop season to ship the remaining 610 tons of raisins, Sun Maid treated Victor's repeated refusals to ship any more raisins as a repudiation of the contract. In order to prevent breaching its own contracts, Sun Maid went into the marketplace to ‘‘cover'' and bought the raisins needed. Unfortunately, between the time Victor refused delivery and Sun Maid entered the market, disastrous rains had caused the price of raisins to skyrocket.
May Sun Maid recover from Victor the difference between the contract price and the market price before the end of the current crop year?