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Sales Keyed to Keating
Firwood Manufacturing Co. v. General Tire, Inc.
Citation:
96 F.3d 163 (1996)Facts
Following lengthy negotiations, Firwood transmitted an offer letter on October 9, 1989, proposing to sell fifty-five model 1225 post-cure inflators to General Tire at a minimum quantity price of $31,216 per unit. General Tire’s Senior Buyer, James Headley, allegedly accepted orally and later confirmed acceptance through a February 1990 letter of intent stating the company’s intent to purchase approximately fifty-five units. General Tire purchased twenty-two PCIs before closing its Barrie plant and ceasing further purchases. Firwood had already begun manufacturing the remaining thirty-three units, which were in various stages of completion. After General Tire’s breach, Firwood spent three years searching for alternative buyers, eventually reselling the machines at prices below the contract price. During this period, Firwood substituted some fungible parts from the General Tire PCIs to fill spare parts orders, later replacing them with identical parts before resale.
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