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Contracts Keyed to Jimenez
AMF, Inc. v. McDonald’s Corp.
Facts
AMF, Inc. (AMF) (plaintiff) makes electronic cash registers. McDonald's Corp. (McDonald's) (defendant) operates a national chain of restaurants. In April 1968, McDonald's paid $20,385.28 to AMF for a model modernized computerized cash register, which was introduced in McDonald's Elk Grove, Illinois restaurant. McDonald's later requested sixteen electronic money registers from AMF for its company-owned restaurants and seven extra automated money registers from AMF for restaurants owned by its licensees. AMF's model in McDonald's Elk Grove restaurant started having numerous issues and was at last expelled in April 1969. McDonald's asked for AMF build up an arrangement of execution and reliability standards for the future modernized money registers requested by McDonald's. On May 1, 1969, AMF gave unacceptable execution and reliability standards. AMF expressed that it didn't have a working machine and couldn't create one within a reasonable time since its factory employees were too inexperienced. Moreover, AMF asked for that McDonald's at first lessen its request from 23 machines to five. McDonald's did not acknowledge these terms, and both McDonald's and AMF concurred that McDonald's would wipe out its request for 23 electronic money registers since AMF was not able to play out its commitments under the agreement. On July 29, 1969, McDonald's officially repudiated its agreement with AMF. McDonald's documented suit against AMF in federal district court looking to recuperate its $20,385.28 purchase price for the AMF prototype. AMF likewise recorded suit against McDonald's in federal district court looking for damages for the alleged wrongful repudiation by McDonald’s of its contract to purchase 23 computerized cash registers from AMF. The two cases were attempted together. The district court held that McDonald’s was not qualified for recoup its $20,385.28 purchase price for the AMF prototype. The district court also held that McDonald’s did not wrongfully repudiate its contract with AMF, and denied AMF’s request for damages. AMF appealed.
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