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United States District Court for the District of Delaware - 524 F. Supp. 546
Tags: Contracts, Battle of the forms
tl;dr:
Plaintiff company brought suit against Defendant company for selling defective plywood, but the Defendant claimed that Plaintiff was bound by a clause that limited Defendant's liability for defective plywood.Video Summary
Case Summary
In the 1981 breach of contract case, Leonard Pevar Co. v. Evans Products Co., the Oregon District Court clarified the calculation of damages when a contract is broken. This case is crucial as it offers guidance on determining damages in such situations.
Leonard Pevar Co. and Evans Products Co. had a contract in which Evans was to buy a specific amount of plywood from Leonard Pevar within a set period. Evans broke the contract by not purchasing the agreed amount, so Leonard Pevar sued for damages.
The trial court referred to the Uniform Commercial Code (UCC) - which governs the sale of goods - to decide the right way to measure damages. Under the UCC, a seller can recover the difference between the contract and market price, plus incidental damages, if the buyer doesn't accept the goods.
The court applied this standard, finding the difference between the contract and market price for the un-purchased plywood. The court also factored in incidental damages, like storage costs, that Leonard Pevar faced due to the breach.
The Leonard Pevar Co. v. Evans Products Co. case is significant because it clarified how to calculate damages in contract disputes involving goods sales. It helps ensure courts and parties use the correct method, leading to fair compensation for any losses caused by a contract breach.
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The Leonard Pevar Company is suing the Evans Products Company for breach of express and implied warranties in the sale of medium density overlay plywood. The court finds that Pevar's written purchase order served as a confirmatory memorandum, and Evans' acknowledgment did not sufficiently object to Pevar's confirmation. Therefore, the statute of frauds will not prevent Pevar from proving the existence and terms of the contract. Section 2-207 of the Uniform Commercial Code applies to this case, which provides that a written confirmation with additional or different terms operates as an acceptance unless expressly made conditional on assent to the additional or different terms. The lower court's decision to deny both parties' motions for summary judgment is correct due to the material fact in dispute. The case involves the Statute of Frauds and a "battle of the forms." Section 2-207 of the Uniform Commercial Code recognizes three methods by which a buyer and seller can enter into a contract. The court will have to decide whether Evans' acknowledgment constituted a counteroffer or an acceptance with additional terms.
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