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Adam operates a chain of specialty grocery stores in Califor…

Adam operates a chain of specialty grocery stores in California. Brian manufactures organic olive oil in Arizona. Adam and Brian entered into a valid written agreement under which Brian agreed to sell Adam 10,000 bottles of olive oil at $20 per bottle, delivery in three months. The contract included pricing, paid upon delivery, and a risk allocation provision stating that in the event of a breach either party would be responsible for paying three hundred thousand dollars for anticipated losses. At the time of contracting, Brian also stated, “If you promote my brand as a premium supplier in your stores, I’ll make sure you always get priority supply.” Adam agreed and began advertising Brian’s olive oil prominently in his stores. One month after they entered into the agreement, Brian informed Adam that due to unexpected increases in supply costs, he could not perform at the contract price without incurring substantial losses. Brian asked Adam to agree to increase the price to $25 per bottle. Adam initially resisted and said, “I already put out adds and I have a contract at $20— We have a deal!” Brian responded that he would be forced to breach if the price were not increased. Adam reluctantly but orally agreed to pay $25 per bottle. At that time Adam told Brian: “If you go through production at a higher cost, I promise I’ll make it worth your while and won’t hold you to the original price.” In reliance on Adam’s promises, Brian: Purchased additional raw materials at significantly higher prices, Took out a short-term loan to finance production, and Declined offers from other buyers willing to purchase the oil at $25 per bottle. Brian ultimately delivered the oil. Adam accepted delivery but paid only $20 per bottle, claiming he was honoring the original deal. Discuss all rights and remedies of the parties.