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Contracts Keyed to Marshall
Ambassador Steel Co. v. Ewald Steel Co.
Citation:190 N.W.2d 275 (1971)
About October 4 and 5, 1966, plaintiff sold a certain amount of steel to defendant. The purchase price of the steel was $9,856.44, of which defendant paid $4,107.60, leaving an unpaid balance of $5,748.84. Plaintiff brought an action to recover the balance due. Defendant admitted the purchase price of the steel, but claimed a set-off, alleging that plaintiff breached its implied warranty of merchantability in that plaintiff failed to supply defendant with commercial quality steel, that is, steel with a carbon content of 1010 to 1020. The defect came to light when the company to whom the defendant in turn sold the steel informed defendant that the steel cracked after being welded on to railroad cars. As a result of this, defendant’s customer charged back its losses to defendant. Defendant thus claimed the set-off against plaintiff.
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