Legal Question in Business Law in Texas

Contract Regarding Purchases of Cereal

A business has a written contract with a vendor to purchase twenty cases of cereal per month. The contract does not state the type of cereal or how the cases will be divided up between locations. The vendor recently suffered the severe water damage in its warehouse due the thirty year flood that struck over the past weekend. The vendor does not have enough undamaged cereal to comply with its business contract, with the exception of Big Flakes. On the day delivery was due, the business received ten cases of Big Flakes at three locations. The business had faxed a request twelve days before the delivery was due that fifteen cases containing a variety of cereals be delivered to five stores with the balance going to the businesses warehouse. So, the business wants to reject the shipments and cancel the contract with the vendor. The vendor argues that based on the gap-filling rule they have the right to modify the terms of the contract. What rights does the business have under contract of law and what rights does the vendor have under contract law? What remedies are available to both?

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