Rush Johnson Farms Inc. V. Missouri Farms Association, 555 S.W.2d 61

Rush Johnson Farms Inc. v. Missouri Farms Association, 555 S.W.2d 61

Facts of the Case:

In this case, Johnson was the plaintiff while the Missouri Farmers Association (MFA) was the defendant. A suit was brought against the Missouri Farmers Association by Rush Johnson for $ 4,094.60 that Johnson was claiming to be the balance, which was due for the sale of soya beans to the Missouri Farmers Association. The case became presented at the Circuit Court in the state of Missouri. The Missouri Farmers Association became the defendant on the ground that Johnson had previously entered into a contract with the Missouri Farmers Association of delivering 6,000 bushels of beans, but failed to honor the contract by not delivering the entire amount; therefore, the Missouri Farmers Association argued that the sum that was not delivered represented damages encountered by the farmers association for the shortage. However, Johnson was contending that the contract between them did not involve a distinct quantity of beans. In addition, Johnson was arguing that the contract involved was oral and could not be proven under the Uniform Commercial Code (UCC) 400.2-201 since it entailed the involvement of above $ 500 and was not in writing confirmed by him. On the other hand, the Missouri Farmers Association countered the arguments of Johnson by stating that Johnson was involved as a merchant according to the code definition and the oral contract became admissible under the subsection 2 of 400.2-201.

Issues in the Case:

In this case, there are two issues that emerge; the first entails as to whether Johnson, who is a farmer should be treated as a merchant according to the definition of the Universal Commercial Code. The other issue that emerges in the case concerns as to whether the oral contract made between the two parties of selling 600 bushels at the price of $ 4.02 should constitute a binding contract.

Holding:

The petition of Johnson had been brought in to the court in the name...