Publicker Industries v. Union Carbide Corp.
United States District Court for the Eastern District of Pennsylvania
17 U.C.C. Rep. Serv. (Callaghan) 989 (1975)
Relevant factsFree
Union Carbide (defendant) agreed to sell ethanol to Publicker (plaintiff) for three years under a price formula that included a cap limiting how much Publicker would pay regardless of Union's rising costs; when the 1973 Middle East War doubled Union's costs, threatening roughly $5.8 million in losses, Union demanded contract modification or threatened to stop supplying ethanol, and Publicker sued for specific performance.
IssueFree
Whether increased cost alone excuses performance under the doctrine of impracticability when the cost increase is not due to an unforeseen contingency that alters the essential nature of performance.