Contracts Keyed to Farnsworth
Iron Trade Products Co. v. Wilkoff Co
Plaintiff contracted with Defendant to purchase iron rails at a specific price. Supply of this type of rails was limited. Defendant was negotiating with suppliers to buy rails for the Plaintiff, while Plaintiff purchased a similar quantity of rails directly from the same suppliers. Defendant did not deliver the rails under its contract with Plaintiff, claiming that Plaintiff’s other purchase reduced the amount of rails available, thereby significantly increasing the price Defendant would have to pay in order to perform the contract with Plaintiff. Plaintiff was forced to buy the rails at a higher price from another supplier, and sued for the difference between the contract price and the price it was forced to pay. Defendant argued that Plaintiff’s interference caused the breach. The trial court held for the Plaintiff, and the Supreme Court of Pennsylvania affirmed.
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