COMMERCIAL LAW (UCC ARTICLE 2) ESSAY

Afterextensive negotiations LittleCo.agreed to construct a newly designed ore vessel forBethlehem Steel Co.ata fixed price.Thereafter, theparties agreed in writingthatBethlehem should haveanoptiontorequireLittleCo.toconstruct up to five additional orevessels forthesame design at a stated basepriceof

$20,400,000 pervessel.If Bethlehem exercised an option, the basepricewas subject toescalation onterms to be agreed bytheparties.Despite Little Co. requests,Bethlehem refusedtoexercisetheoptionortonegotiatetheoption price. After Little Co.closed itsstrip yard,Bethlehem sought to exercise the option for threeadditional vessels.Both parties negotiated over the escalated price, but despite apparent good faith efforts were unable to agree.Bethlehem thensued

LittleCo.for$95,000,000indamages.Whatresult?Fullysupportyouranswer.