Manufactured a turkey-hatching unit

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Reference no: EM131045829

Can-Key Industries, Inc., manufactured a turkey-hatching unit, which it sold to Industrial Leasing Corporation (ILC), which leased it to Rose-A-Linda Turkey Farms. ILC conditioned its obligation to pay on Rose-A-Linda's acceptance of the equipment. Rose-A-Linda twice notified Can-Key that the equipment was unacceptable and asked that it be removed. Over a period of fifteen months Can-Key made several unsuccessful attempts to solve the problems with the equipment. During this time, Can-Key did not instruct Rose-A-Linda to refrain from using the equipment. Rose-A-Linda indicated its dissatisfaction with the equipment, and ILC refused to perform its obligations under the contract. CanKey then brought suit against ILC for breach of contract. It argued that Rose-A-Linda accepted the equipment, as it used it for fifteen months. ILC countered that the equipment was unacceptable and asked that it be removed. It claimed that Can-Key refused and failed to instruct Rose-A-Linda to refrain from using the equipment. Therefore, ILC argued, Rose-A-Linda effectively rejected the turkey-hatching unit, relieving ILC of its contractual obligations. Who is correct? Explain.

Reference no: EM131045829

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