Court Of Chancery Enjoins Termination Of Supply Contract

Posted on May 14, 2010 by Edward M. McNally

Arkema v The Dow Chemical Company, C.A. 5479-VCP ( May 14, 2010)

When the economy is in stress, contracts to supply materials at a fixed price seem to be broken more often. This decision explains what you have to show to get  a TRO against the breaking of such a contract by the supplier.  In short, it is not easy but can be done when the ability to "cover" is not available.

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