United States v. Wegematic Corp.

The Federal Reserve Board sought bids for a computing system and prioritized early delivery. Wegematic Corp. (defendant) won the contract by promising a "truly revolutionary" computer within nine months, but after twice delaying shipment, it cancelled the contract entirely, citing unresolved "engineering difficulties." The Board sued, and the trial court awarded liquidated damages, the cost of procuring a replacement system, and preparatory expenses. Wegematic appealed.