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Contracts Keyed to Burton
Pittsburgh-Des Moines Steel Co. v. Brookhaven Manor Water Co.
Citation:532 F.2d 572
Pittsburgh-Des Moines Steel Company (hereinafter “Pittsburgh”) (plaintiff) submitted a proposal to Brookhaven Manor Water Company (hereinafter “Brookhaven”) (defendant) for the construction of a water tank for $175,000. The original proposal incorporated a percentage distribution as terms of payment. The payment terms were altered to provide that 100 percent of the contract price was due and payable within 30 days after the tank had been tested and accepted. Brookhaven received, but refused a loan. Pittsburgh, after learning that Brookhaven had not secured a loan, wrote to Brookhaven requesting that it personally guarantee that it had $175,000 in escrow to be paid to Pittsburgh. Brookhaven failed to provide a personal guarantee, and Pittsburgh took no further steps toward performance. Pittsburgh sued Brookhaven, claiming the latter improperly repudiated their contract.
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