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Contracts Keyed to Templin
Turntables, Inc. v. Gestetner
Citation:
52 A.D.2d 776, 382 N.Y.S.2d 798 (N.Y. App. Div. 1976)Facts
Turntables, Inc. contracted to purchase goods from Arthur Gestetner on credit. Gestetner became concerned about Turntables’ ability to pay after discovering several troubling facts: Turntables was already in arrears on payments for previously delivered goods; its “Fifth Avenue Showroom” was merely a telephone answering service; its claimed factory in Island Park was actually someone else’s premises to which Turntables had no key and where it had no employees, equipment, or lease; another supplier reported being unpaid by Turntables; and Turntables had a poor reputation for payment. Based on these concerns, Gestetner demanded adequate assurance of performance. Turntables refused to provide any assurances and attempted to cancel the contract. Gestetner then refused to deliver additional goods.
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