Contracts Keyed to Epstein
Dynamic Machine Works, Inc. v. Machine & Electrical Consultants, Inc.
In January 2003, Dynamic Machine Works, Inc. (Plaintiff), a manufacturer of precision components entered into a contract to purchase a lathe from Machine & Electrical Consultants, Inc. (Defendant). The lathe was to be manufactured by a separate company based in Taiwan. In June 2003, an outbreak of “SARS” in Taiwan delayed production of the lathe. Both parties entered into an oral agreement, confirmed in letters, to extend the deadline for the installation and commissioning of the lathe to September 19, 2003. Any further delay would result in a $500 penalty per day for Defendant. Defendant delivered the lathe to Plaintiff on October 9, 2003. Throughout October and November, the lathe was tested and readjusted. On December 9, 2003, Plaintiff’s president wrote a letter to Defendant’s president stating that Plaintiff would grant Defendant an extension for the final deadline for the lathe to be fully and unconditionally commissioned. Plaintiff stated that the final deadline would be December 19, 2003. Plaintiff later concluded that the lathe would most likely not be ready by December 11th, Plaintiff informed Defendant that it intended to retract the deadline extension and not accept delivery of the lathe at all.
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