Neptune Research & Development v. Teknics Industrial Systems

235 N.J. Super. 522, 563 A.2d 465 (1989)

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Neptune Research & Development v. Teknics Industrial Systems

New Jersey Superior Court, Appellate Division
235 N.J. Super. 522, 563 A.2d 465 (1989)

Facts

Teknics Industrial Systems, Inc. (Teknics) (defendant) and Neptune Research & Development, Inc. (Neptune) (plaintiff) entered into a long-term contract for Teknics to supply and service an expensive machine that was essential to Neptune’s business. After missing the original delivery date, Teknics offered no explanation for the delay and responded noncommittally or evasively to Neptune’s repeated requests for updates on the machine’s status. Neptune subsequently learned that part of the delay was due to the unilateral decision of Teknics to change the machine’s design in a way that Neptune neither desired nor authorized. Neptune agreed to accept the redesigned machine even though the machine no longer conformed to contract specifications, provided that the machine was ready for pickup in seven days. Teknics promised to meet the new deadline. Six days later, however, Teknics informed Neptune that the machine could not possibly be ready for another week. Neptune canceled its order, explaining that it had lost confidence in Teknics. An hour later, Teknics telephoned Neptune to say the machine would be ready the next day after all. Neptune restated its cancelation and sued to recoup its deposit on the machine. The trial court applied New Jersey’s Uniform Commercial Code (UCC) and entered judgment for Neptune. Teknics appealed to the New Jersey Superior Court, Appellate Division.

Rule of Law

Issue

Holding and Reasoning (King, J.)

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