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Centronics v. Genicom: Difference between revisions
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*The goods were books. Disputes were to be arbitrated by a New York accounting firm. | *The goods were books. Disputes were to be arbitrated by a New York accounting firm. | ||
The 2 parties closed the deal on February 13th 1987. | The 2 parties closed the deal on February 13th 1987 with a purchase price of $76,000,000. Genicom placed $5,000,000 in escrow (3rd party) & paid Centronics the balance of $71,000,000. | ||
In March 1987, Centronics revised the balance sheet to $83,000,000. | |||
|procedural_history=Centronics went to the arbitrator because Genicom didn't want to pay the revised & higher purchase price. | |||
|issues=What is the duty of [https://www.quimbee.com/keyterms/implied-covenant-of-good-faith-and-fair-dealing good faith] in contractual arrangements? | |issues=What is the duty of [https://www.quimbee.com/keyterms/implied-covenant-of-good-faith-and-fair-dealing good faith] in contractual arrangements? | ||
|arguments=Genicom argued that the distribution of funds could take place before the determination of the final purchase price. | |||
|case_text_links={{Infobox Case Brief/Case Text Link | |case_text_links={{Infobox Case Brief/Case Text Link | ||
|link=https://www.quimbee.com/cases/centronics-corporation-v-genicom-corporation | |link=https://www.quimbee.com/cases/centronics-corporation-v-genicom-corporation | ||
Revision as of 16:33, September 1, 2023
| Centronics v. Genicom | |
| Court | New Hampshire Supreme Court |
|---|---|
| Citation | 562 A.2d 187 |
| Date decided | August 16, 1989 |
Facts
Centronics Corporation ("Centronics") entered into a contract to sell business assets to Genicom Corporation ("Genicom").
- Centronics = seller
- Genicom = buyer
- The goods were books. Disputes were to be arbitrated by a New York accounting firm.
The 2 parties closed the deal on February 13th 1987 with a purchase price of $76,000,000. Genicom placed $5,000,000 in escrow (3rd party) & paid Centronics the balance of $71,000,000.
In March 1987, Centronics revised the balance sheet to $83,000,000.Procedural History
Centronics went to the arbitrator because Genicom didn't want to pay the revised & higher purchase price.
Issues
What is the duty of good faith in contractual arrangements?
Arguments
Genicom argued that the distribution of funds could take place before the determination of the final purchase price.
