McCloskey & Co. v. Minweld Steel Co.
United States Court of Appeals for the Third Circuit
220 F.2d 101 (1955)
McCloskey & Co. (McCloskey) (plaintiff), a general contractor, hired Minweld Steel Co. (Minweld) (defendant) to supply and erect steel on a hospital construction project. When Minweld reported difficulty acquiring steel and could not guarantee delivery within 30 days, McCloskey demanded unqualified assurances of timely performance. Minweld's reply letter explained it could not give such assurances due to steel-procurement difficulties and asked McCloskey for help obtaining the material. McCloskey treated this letter as an admission that Minweld could not perform, cancelled the contracts, procured the steel itself, and hired replacement subcontractors. McCloskey then sued Minweld for anticipatory breach, and the district court dismissed the claim.
Whether renunciation equivalent to a breach of contract arises where there has been no unequivocal and absolute refusal to perform, or distinct and positive statement of inability to perform.