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Austin Instrument v. Loral: Difference between revisions
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In 1965, Loral Corp. ("Loral") won a $6 million contract with the U.S. Navy to manufacture & deliver radar sets. In turn, Loral award Austin Instrument, Inc. ("Austin") a sub-contract for 23 of the 40 radar components. | In 1965, Loral Corp. ("Loral") won a $6 million contract with the U.S. Navy to manufacture & deliver radar sets. In turn, Loral award Austin Instrument, Inc. ("Austin") a sub-contract for 23 of the 40 radar components. | ||
In 1966, the next year, Loral received another contract from the Navy &, again, sought bids for the same 40 components. | |||
Austin informed Loral that it would stop the current delivery unless the new 1966 contract for all 40 components would be for a higher price. After this ultimatum, Austin stopped delivering to Loral. | |||
Facing with a dilemma of losing the Navy contract, Loral acceded to the higher demanded price by Austin for the 1965 sub-contract. However, after the delivery to the Navy, Loral sought to recover the price increases. | |||
|procedural_history=Austin sued Loral for the higher price for the 2nd (1966) contract. | |||
|case_text_links={{Infobox Case Brief/Case Text Link | |case_text_links={{Infobox Case Brief/Case Text Link | ||
|link=https://nycourts.gov/reporter/archives/austin_loral.htm | |link=https://nycourts.gov/reporter/archives/austin_loral.htm |
Revision as of 15:22, July 28, 2023
Austin Instrument v. Loral | |
Court | New York Court of Appeals |
---|---|
Citation | |
Date decided | July 6, 1971 |
Facts
A defense contractor who failed to deliver might have blown its chance of getting another contract with the U.S. military.
In 1965, Loral Corp. ("Loral") won a $6 million contract with the U.S. Navy to manufacture & deliver radar sets. In turn, Loral award Austin Instrument, Inc. ("Austin") a sub-contract for 23 of the 40 radar components.
In 1966, the next year, Loral received another contract from the Navy &, again, sought bids for the same 40 components.
Austin informed Loral that it would stop the current delivery unless the new 1966 contract for all 40 components would be for a higher price. After this ultimatum, Austin stopped delivering to Loral.
Facing with a dilemma of losing the Navy contract, Loral acceded to the higher demanded price by Austin for the 1965 sub-contract. However, after the delivery to the Navy, Loral sought to recover the price increases.