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United States Court of Appeals for the Second Circuit - 360 F.2d 674
Tags: Contracts, Impracticability
tl;dr:
Company promises to deliver a wonder computer but couldn't make it work. Not allowed an impracticability defense because they assumed the risk.Video Summary
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The Federal Reserve Board ordered components of a computer from Wegematic Corp. with a delivery date and liquidated damages for delay. Wegematic requested a postponement and later informed the Board of further delays due to a redesign. Wegematic eventually announced that it was impracticable to deliver the computer and requested cancellation of the contract without damages. The Board procured comparable equipment from another manufacturer. The United States sued Wegematic for damages due to delay and excess cost of procuring the equipment from another manufacturer. Wegematic appealed on the grounds that delivery was impossible due to basic engineering difficulties. The court found that Wegematic is not liable for damages due to the impracticability of delivering the computer, citing Section 2-615 of the Uniform Commercial Code.
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