20.1 Cure Joc Oil USA, Inc. (Joc Oil), contracted to purchase low-sulfur fuel oil from an Italian oil refinery.

| November 9, 2018

20.1
Cure Joc Oil USA, Inc. (Joc Oil),
contracted to purchase low-sulfur fuel oil from an Italian oil refinery. The
Italian refinery issued a certificate to Joc Oil, indicating that the sulfur
content of the oil was 0.50 percent. Joc Oil entered into a sales contract to
sell the oil to Consolidated Edison Company of New York, Inc. (Con Ed). Con Ed
agreed to pay an agreed-upon price per barrel for oil not to exceed 0.50
percent sulfur. When the ship delivering the oil arrived, it discharged the oil
into three Con Ed storage tanks. A report issued by Con Ed stated that the
sulfur content of the oil was 0.92 percent. In the past, Con Ed had permitted a
delivery of nonconforming oil to be cured by a conforming delivery. Joc Oil
made an offer to cure the defect by substituting a conforming shipment of oil
that was already on a ship that was to arrive within two weeks. Con Ed rejected
Joc Oil’s offer to cure. Joc Oil sued Con Ed for damages for breach of
contract. Does Joc Oil have a right to cure the nonconforming delivery? Joc
Oil USA, Inc. v. Consolidated Edison Company of New York, Inc., 457
N.Y.S.2d 458, 443 N.E.2d 932, Web 1982 N.Y. Lexis 3846 (Court of Appeals
of New York)
(Cheeseman 339)
Cheeseman, Henry R. Business Law, VitalSource for DeVry
University, 8th Edition. Pearson Learning Solutions, 02/2013. VitalBook
file.
The
citation provided is a guideline. Please check each citation for accuracy
before use.

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