What considerations should have been used by courts

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Reference no: EM131908435

Question: In the mid-1970s, the Westinghouse Corporation persuaded electric companies to purchase nuclear reactors, and Westinghouse agreed to supply purchasers with uranium at a fixed price of $8-10 per pound. By mid-1975 Westinghouse had commitments to supply 40,000 more tons of uranium than it held in inventory or forward contracts, and the market price of uranium had risen to more than $30 per pound. To cover its shortage, Westinghouse would have incurred losses of nearly $2 billion, which would have led to its bankruptcy.

In September 1975, the company announced that it would not honor its contracts. It sought to be excused on the ground that performance was economically impossible ("commercial impracticability"). Most of the utilities sued Westinghouse. What considerations do you think should have been used by courts to determine whether Westinghouse was excused from supplying the uranium?

Reference no: EM131908435

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