Contracts Keyed to Murphy
Corinthian Pharmaceutical Systems, Inc. v. Lederle Laboratories
Facts
On May 19, 1986, Defendant’s Price Manager prepared “Price Letter No. E-48”, which indicated that, effective the following day, the price of DTP Vaccine would be raised form $51.00 to $171.00 per vial, due to rising insurance premiums, resulting from product liability suits, concerning the vaccine. Plaintiff, as a customer of Defendant, was not to be notified of the price increase until May 20, 1986. However, somehow, Plaintiff found out about the impending increase on May 19, 1986. After finding out about the price increase, Plaintiff placed an order of 1000 vials, at the price of $64.32, on “Telgo”, Defendant’s telephone computer ordering system. Additionally, the same day, Plaintiff confirmed its order by writing two letters which outlined the price terms. On June 3, 1986, Defendant shipped 50 vials to Plaintiff at the price of $64.32, which were accepted. The same day, Defendant sent letters to its customers, explaining that additional shipments, including any balance on o utstanding orders, would be priced at $171.00 per vial and that any outstanding orders could be cancelled within ten days. Plaintiff brought suit for specific performance on the 950 vials it did not receive and Defendant countered with a Motion for Summary Judgment, contending that no contract for the sale of 1000 vials was formed.
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