Contracts Keyed to Farnsworth
Cosden Oil & Chemical Co. v. Karl O. Helm Aktiengesellschaft
Facts
The Plaintiff was a manufacturer of polystyrene and the Defendant an international trading company. The parties contracted for the Plaintiff to sell a set amount of polystyrene at a set price to be delivered in four orders. The Plaintiff encountered significant difficulties at its plants and was unable to complete performance. The Plaintiff began performance on the first order by sending a partial shipment, but thereafter notified the Defendant that further shipments may be delayed under this order. The Plaintiff then notified the Defendant that it was canceling the last three orders. The Plaintiff also refused to make the final delivery under the first order. The Defendant refused to pay for the product already delivered and the Plaintiff sued. The Defendant counterclaimed for the Plaintiff’s failure to deliver on the contract as agreed.
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