Cure Joc Oil USA Inc Joc Oil contracted to purchase lowsulfu

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?

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Solution

As in the past, Con Ed had permitted a delivery of nonconforming oil to be cured by a conforming delivery.As per this Con Ed should be given permission to Joc Oil. But in contract they had mentioned clearly price per barrel for oil not to exceed 0.50 percent sulfur. And also conforming shipment of oil that was already on a ship that was to arrrive within two weeks. so there are two weeks to bear the loss and that conforming shipment is already on the way it clearly states that Joc Oil have alredy know the sulfur content is more than the agrred sulfur content (0.50%).By this way Joc oil have no right to cure the nonconforming delivery. As sulfur content is approximately twice compared to agreed sulfur content.

Joc oil doesn\'t have rights to cure the non confirming delivery.