Aircraft Engines IRAC Essay

Directions: Review the fact pattern and question and use IRAC Method to answer the question.


Michael is a Procurement Agent for ABC Corporation. On July 13th, he enters into a contract to purchase ten (10) aircraft engines from XYZ Company to incorporate into airplanes that ABC Corp. will manufacture. ABC Corp. has ordered these engines in the past, so he did not feel the need to specify a price. The last time Michael ordered these engines, the unit price was $10,000. The final contract is silent on the price and states that delivery of the engines will occur on October 15th,  with Net 30 days payment terms. 

Michael returns from a short vacation on October 16, 2018 to find that ABC Corp. has not received the aircraft engines, and he has also received an invoice charging $12,000 per engine; higher than he expected. Michael complains to XYZ Co. and is informed that the engines are ready for pickup at the XYZ Co. shipping dock. Michael is also informed that the increased price went into effect two (2) weeks ago due to increased materials costs. Michael demands that XYZ Co. deliver the product to ABC Corp.’s facility at the $10,000 unit price. XYZ Co. claims they have performed under the contract and states that payment of the $12,000 unit price is already one (1) day late. In turn, ABC Corp. refuses to make payment. 


What would a court likely hold if XYZ Co. brought suit against ABC Corp. for payment under the contract? Please set forth the applicable rules of law and explain how a court would likely apply them to the facts presented.


Textbook: Kelly, Michael B. Inside Contract Law: What Matters and Why. New York: Aspen Publishers, 2011. Print. 

Focus on the textbook Ch 6 Sections C-F. (Warranties and Breach of Contract) Mine textbook is the E-Book, use location# instead of page#. If Needed

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