Randy, Gus and Susan are partners conducting business under the name “Randy’s Grocery Store.” Because Randy and Susan have strong moral objections to the sale of alcoholic beverages, the partners agreed that Randy’s would not do so. For many years Randy’s never sold beer wine or liquor.
Recently, Randy’s sales have been down. One day, Gus was in the store and noticed a lot of college T-shirts and Sweat-Shirts. Gus decided that Randy’s could sell a lot of beer. Gus called up Spoetzel Brewing Co. and ordered several cases of “Shiner Bock” beer.
When the beer was delivered, Randy was on the loading dock, and refused to accept the delivery. Spoetzel Brewing Co. sued Randy’s and its partners for breach of contract. Randy’s, Randy, Susan defend on two grounds. First, they argue that the partner’s agreed that Randy’s would not sell alcoholic beverages. Second, the argue that Randy’s had never bought beer, wine, or liquor. What result? Would either of the following make any difference in your analysis?
(1) Spoetzel Brewing did not know that Gus was a partner in Randy’s.
(2) It is common (or uncommon) for groceries in the area to sell beer.
Why or why not?