United States v. Seacoast Gas Co.
United States Court of Appeals for the Fifth Circuit
204 F.2d 709 (1953)
Seacoast Gas Co. (defendant) repudiated its gas supply contract with the United States (plaintiff), and after Seacoast twice failed to retract that repudiation, including refusing when directly asked a second time by the government, the United States accepted a competing bid from Trion at a higher price. Seacoast later withdrew its cancellation notice before the government formally signed the contract with Trion, but the government proceeded with Trion anyway and sued Seacoast for the price difference, and the district court ruled Seacoast's retraction was timely.
Whether a party's retraction of its anticipatory repudiation is timely, and thus cures the breach, when it comes only after the other party has already relied on the repudiation's finality by soliciting and accepting a replacement bid, even if formal contract signing with the replacement occurs later.