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Contract Law

Questions about Acme Markets

The first case in this section, Luttinger v. Rosen, presented a very straightforward question about the operation of a condition. In Acme Markets, the lower court thought that the operation of the condition at issue was similarly straightforward, but the appellate court disagreed. Who do you think has the better of the argument?

Identify the contract provision at issue. Can you explain how it operates as a condition? 

The appellate court agrees that it is a condition, but then says that the condition might nevertheless be excused. If you represented Acme Markets, what would you argue on remand? What if you represented Federal Armored Express?

How might Federal Armored Express have drafted the agreement differently in order to avoid this result?