Internatio-Rotterdam, Inc. v. River Brand Rice Mills, Inc.
United States Court of Appeals for the Second Circuit
259 F.2d 137 (1958)
River Brand Rice Mills (River) (defendant) agreed to deliver rice to Lake Charles and Houston ports for Internatio-Rotterdam (IRI) (plaintiff) during December 1952, with IRI required to give River specific shipment instructions two weeks before each delivery. IRI provided timely instructions for Lake Charles, which River promptly shipped, but still hadn't given Houston instructions by December 17, the last date that would allow completing those shipments within December; River rescinded the Houston portion the next day while continuing the Lake Charles shipments. Rice prices had since risen well above the contract price, and IRI sued for breach, arguing its late instructions merely extended the delivery deadline rather than voiding River's obligation. The district court dismissed IRI's complaint, and IRI appealed.
Whether, where a contract indicates time is of the essence, a short delay in performance causes a breach of the contract.