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Sales Keyed to Whaley
Wilson Trading Corporation v. David Ferguson, Ltd.
Citation:
244 N.E.2d 685 (1968)Facts
Wilson Trading Corporation entered into a sales contract with David Ferguson, Ltd., for the sale of a specified quantity of yarn. The contract contained a provision stating that no claims relating to shade defects would be allowed if made after knitting or processing, or more than ten days after receipt of shipment. After the yarn was delivered, the defendant cut and knitted it into sweaters. During the washing process of the finished sweaters, it was discovered that the yarn had color shading defects, meaning there was variation in color from piece to piece and within pieces. The defendant alleged these defects rendered the sweaters unmarketable. The defendant refused payment, and the plaintiff sued for the contract price while the defendant raised the defect as a defense and counterclaim.
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