Washington State Hop Producers, Inc. v. Goschie Farms, Inc.
Supreme Court of Washington
773 P.2d 70 (1989)
A trust (plaintiff) sold federal hop-marketing allotments to Goschie Farms (defendant) at a price reflecting the value those allotments held under an active USDA marketing order, but the USDA terminated the marketing order less than two weeks after the sale, causing allotment prices to collapse by over 90 percent; Goschie and other buyers refused to perform, and the trust sued to enforce the contracts. The trial and appellate courts found Goschie's purpose frustrated and excused performance, and the trust appealed.
Whether a party's remaining contractual duties are discharged when, after contracting, its principal purpose is substantially frustrated without its fault by an event whose non-occurrence was a basic assumption of the contract.