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Teradyne, Inc. v. Teledyne Industries

United States Court of Appeals for the First Circuit
676 F.2d 865 (1982)


Teradyne (plaintiff) entered into a contract with Teledyne (defendant) for the sale of a T-347A transistor test system. The price of the system was $98,400 less a discount of $984. Teledyne cancelled and offered to purchase another transistor system worth $65,000. Teradyne refused and sued for breach of contract. Teradyne was able to sell the T-347A to another purchaser. The issue of damages was referred to a special master who determined that the appropriate measure of damages was Teradyne’s profit less any costs saved as a result of the breach, which amounted to $75,392. The master did not deduct the amount Teledyne was willing to pay for the substitute transistor system and did not include the wages paid to the Teradyne employees as a cost saved by Teradyne because of the breach. The trial court adopted the master’s report, and Teledyne appealed.

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Holding and Reasoning (Wyzanski, J.)

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