O.C.T. Equipment, Inc. v. Shepherd Machinery Co.

95 P.3d 197 (2004)

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O.C.T. Equipment, Inc. v. Shepherd Machinery Co.

Oklahoma Court of Civil Appeals
95 P.3d 197 (2004)

Facts

O.C.T. Equipment, Inc. (O.C.T.) (plaintiff) deposited a down payment to buy a tractor from Shepherd Machinery Company (Shepherd) (defendant). The parties agreed that O.C.T. would take delivery at the third-party Keen Transport (Keen) yard, where Shepherd stored the tractor. Shepherd told Keen not to release the tractor to O.C.T. until Shepherd notified Keen to do so. A few days later, Shepherd informed O.C.T. that a Keen employee had accidentally destroyed the tractor’s engine and that O.C.T. would have to work with Keen to resolve the damage. O.C.T. rejected delivery and asked for a refund of its down payment. When Shepherd refused this request, O.C.T. sued. The trial court entered summary judgment for O.C.T. Shepherd cited § 2-509(2)(b) of Oklahoma’s Uniform Commercial Code (UCC) in support of its appeal to the Oklahoma Court of Civil Appeals.

Rule of Law

Issue

Holding and Reasoning (Buettner, J.)

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