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Contracts Keyed to Fuller
T. W. Oil, Inc. v. Consolidated Edison Co.
Facts
T.W. Oil, Inc. (Plaintiff) purchased a cargo of oil, the sulfur content of which was represented as no greater than 1%. While the shipment was en route, Plaintiff received a certificate from the refinery at which the oil had been processed identifying the sulfur content as 0.52%. Plaintiff then entered into a contract with Consolidated Edison Co. (Defendant) for sale of the oil. The contract listed the sulfur content at 0.5%. Plaintiff also learned that Defendant was authorized to use oil with a sulfur content of up to 1%. When the shipment arrived, testing revealed the sulfur content as 0.92%, and Defendant rejected the shipment. When negotiations to adjust the price failed, Plaintiff offered to cure the defect with a conforming shipment, but Defendant rejected the offer, and Plaintiff sued for breach of contract. The trial court ruled in favor of Plaintiff. Defendant appealed.
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