T.W. OIL, INC. V. CONSOLIDATED EDISON, INC.
57 N.Y.2d 574, 443 N.E.2d 932 (1982)
NATURE OF THE CASE: This was a dispute over the right of cure for defective goods. T.W.
(P), oil supplier, commenced a breach of contract action against Edison (D) buyer after D
rejected its offer to cure a nonconforming oil shipment. P got the judgment equal to the
difference between the contract and resale prices. This was affirmed on appeal. D appealed
again.
FACTS: P purchased a cargo of fuel oil whose sulfur content was represented as no greater
than 1%. While the oil was at sea, P got a refinery certification that the sulfur content
was .52%. P then entered into a written contract of sale to D with delivery to be
accomplished between January 24-30 and an independent testing agency to confirm the quality
and quantity. In due course, the testing revealed the oil had a .92% sulfur content. D
rejected the shipment. Negotiations for a price adjustment failed. The very next day after
the rejection, P offered to cure but D rejected that offer as it was adamant in its
intention to avail itself of the intervening drop in prices. P sold the oil to other parties
and sued D for a breach of contract. P got the verdict at $1,385,512.83. The trial court
found that D had failed to act in good faith in the negotiations for a price adjustment and
that because P had given seasonable notice of cure and that the .92% content level was
within D's range of use. The appeals court affirmed. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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