Princess Cruises, Inc. v. General Electric Co.

Princess Cruises, Inc. v. General Electric Co. - Contracts...

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Contracts 9/17 Mutual Assent Princess Cruises, Inc. v. General Electric Co., 4 th Circuit Court of Appeals, 1998 Facts : Princess scheduled the SS Sky Princess for routine inspection services and repairs in December 1994 and requested that GE, the original manufacturer of the ship’s main turbines, perform services and provide parts. Princess issued a Purchase Order (offer) in October. On October 28, GE faxed a Final Price Quotation to Princess. It would provide all services, labor, and materials for $231,925. GE’s terms and conditions: (1) rejected Princess’s PO; (2) rejected liquidated damages; (3) limited GE’s liability to repair or replace any defective equipment resulting from defective service, exclusive of all warranties; (4) disclaimed any liability for consequential damages. Princess agreed and GE sent a confirmatory letter on November, 1. GE found surface rust on the rotor and recommended it be taken ashore for cleaning and balancing. During the cleaning, good metal was removed, rendering the rotor unbalanced.
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