What do you tell them and why


Problem

Stella has been selling milk to Tilly for 5 years during which time the price per case of milk has always been $ 50 per case. They have never dealt with each other with any other dairy product, however. The last page of their agreement states, in part " The price per case for cheese, if the parties should ever transact in cheese, shall be $ 40 per case." Suppose that Stella and Tilly agree that Stella will sell Tilly 5 cases of milk, 3 cases of cheese, and 6 cases of yogurt. Yogurt in this area usually sells for $ 70 per case. Incredibly, Stella and Tilly completely forget to include the price per case of anything and are now arguing about what the price of each case of each item should be so they seek your legal advice. What do you tell them and why?

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Business Law and Ethics: What do you tell them and why
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