Brown Machine Company, a division of Kvaerner U.S., Inc., entered into a contract to supply a machine and tools to Hakim Plast, a food 614 Part 3 Sales and Leases of Goods container–producing company based in Cairo, Egypt, to enable Hakim to meet its growing demand for plastic containers. The plastic containers were for customers to use in the ice cream distribution industry. It was understood that the equipment would be ready for delivery before the busy summer ice cream season. Brown Machine was not able to meet the twice extended deadline. It attempted to obtain another extension, but Hakim Plast refused without additional consideration. Brown refused to provide the requested consideration.

Hakim Plast declared the contract breached on September 25, 1994. Brown then sold the equipment and brought suit for breach of contract, requesting damages for the loss of the sale. Hakim Plast countersued for Brown’s breach seeking outof-

pocket expenses and consequential damages for loss of business. Discuss who breached the contract and determine what possible damages might be recovered.

[Kvaerner U.S., Inc. v Hakim Plast Co., 74 F Supp 2d 709 (ED Mich)]

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