Orange and Rockland Utilities, Inc. v. Amerada Hess Corp.
Supreme Court of New York, Appellate Division, Second Department
59 A.D.2d 110 (1977)
Relevant factsFree
Orange's five-year fixed-price requirements contract with Hess included a clause allowing unlimited additional fuel if Orange's needs increased, but after market fuel prices nearly doubled, Orange began demanding up to 60% more fuel than its original estimates specifically to resell the excess at the higher market price, and Hess refused to supply beyond 10% above the estimated quantities.
IssueFree
Whether a buyer in a fixed price requirements contract may arbitrarily and unilaterally change certain conditions prevailing at the time of contract so as to take advantage of market conditions at the seller's expense.