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Superfos Investments Limited v. FirstMiss Fertilizer, Inc.

821 F.Supp. 432 (1993)

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Superfos Investments Limited v. FirstMiss Fertilizer, Inc.

United States District Court for the Southern District of Mississippi

821 F.Supp. 432 (1993)

Facts

FirstMiss Fertilizer, Inc. (FirstMiss) (defendant) had a three-year contract with Superfos Investments Limited (Superfos) (plaintiff). FirstMiss agreed to purchase a minimum of 80,000 tons of anhydrous ammonia per year from Sueprfos. Superfos purchased the ammonia from Farmland Industries, Inc. (Farmland) and resold the ammonia to FirstMiss. The contract said that if FirstMiss did not order the yearly contract amount, then FirstMiss would still be responsible for paying for that minimum amount. The contract also said that if Farmland did not deliver enough ammonia to Superfos, then Superfos would be relieved of its obligation to provide ammonia to FirstMiss. FirstMiss ordered less than 80,000 tons of ammonia per year. Superfos sued to recover the purchase price of the shortfall. FirstMiss moved for partial summary judgment, arguing that the provision requiring FirstMiss to pay the full purchase price for undelivered ammonia was unenforceable.

Rule of Law

Issue

Holding and Reasoning (Lee, J.)

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