Case 4 - used showing a partial performance detrimental...

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Kelsey Jans FRL 201 2/29/08 Case 4: Problem 20-6 :Page 403 ( all questions) Open Terms IBM did not specifically state whether they were to buy the plastic film capacitators. IBM wrote to ASC “ the possibility of IBM purchasing 15,000,000 plastic capaitators per two consquetive twelve month periods…This quantity is a forecast only, and represents no commitment by IBM to purchase these quantities during or after this time period.” ASC spent about $2.6 million on the equipment to make these capacitators and in 1997 the need for capacitators was dissipated since there had been advancement in new technology. IBM announced to ASC that they would no longer need ASC’s plastic film capacitators. ASC then filed a suit against IBM to pay $8.5 million in damages. I believe that the court would rule in favor of both parties since their was an unjust enrichment. A portion of the damages that ASC filed could be paid by IBM since ASC had performed part of the duty (partial performance). A Quasi contract could be
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Unformatted text preview: used showing a partial performance, detrimental reliance or both for this case. The judge should award a reasonable amount of goods and services to the party that had performed. IBM might even state that they did not sign anything or create an actual written contract between the two companies and that IBM did not specifically state when they were to purchase the plastic capacitators or if they were ever going to purchase these plastic capacitators. ASC could also argue that the statement by IBM was not clear to ASC and that a partial performance should be awarded. It would be fair for ASC to be awarded a partial proportion of goods or services which equal to the amount of partial performance by this party. If the award is smaller than what ASC had previously asked for, it would be more negotiable with IBM than the cost of the damages beforehand....
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