Iron Trade Products Co. v. Wilkoff Co.
Supreme Court of Pennsylvania
116 A. 150 (1922)
Iron Trade Products Co. (plaintiff) contracted to buy relaying rails from Wilkoff Co. (defendant) at $41 per ton, but Wilkoff delivered none, forcing Iron Trade to buy replacement rails elsewhere at $49 per ton; Iron Trade sued for the difference between the market price at delivery (allegedly $50 per ton) and the contract price. Wilkoff argued that Iron Trade's subsequent large purchases had driven up rail prices and depleted the available supply, making Wilkoff's own performance impossible, but the trial court ruled for Iron Trade and Wilkoff appealed.
Whether a buyer's subsequent purchases that drive up the market price of goods a seller must procure excuse the seller's own performance under the contract.