Joc Oil Inc. Case Study

Joc Oil USA, Inc. v. Consolidated Edison Company of New York, Inc.(Con Ed), is a case that involved 3 parties – Joc Oil, Inc., an American oil company who entered into a contract to supply low-sulfur fuel to Con Ed ( the second party) after Joc Oil purchased the low- sulfur fuel from an Italian refinery( the third party). This case According to Cheeseman (2013), the facts of the case indicate that on January 24, 1974 Joc Oil entered into a sales contract with Con Ed whereby it was agreed that Con Ed would pay a certain price for oil that did not exceed ).50 percent sulfur. In addition, the New York Court of Appeals (1982) stated that Con Ed had an independent test conducted and subsequently issued a report that indicated the sulfur content
The reason being is because Joc Oil acted in good faith by immediately taking action and reducing the price and they tried to do right by the buyer by offering to replace the product to meet Con Ed’s needs. I also thing that a sulfur test should have been performed by an independent company prior to the signing of any agreement and the sulfur should not have been delivered without a final test to ensure the quality of the sulfur to meet the standard of their client Con Ed. The Italian company that sold to Joc Oil should have also been held responsible in some fashion as in a separate case as well. In addition, based on the Uniform Commercial Code Law § 2-508(2) – Cure by Seller of Improper Tender or Delivery; Replacement – which states that in part one, “Where any tender or delivery by the seller is rejected because non-conforming and the time for performance has not yet expired, the seller may seasonably notify the buyer of his intention to cure and may then within the contract time make a conforming delivery (.law.cornell.edu/ucc/2/2-508). Con Ed had time to accept the cure of nonconforming delivery. It appears they just did not want to continue business with Joc