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CASE 8-4--AUSTIN INSTRUMENT, INC. v. LORAL CORPORATION
Summary of the Facts.
In July of 1965, Loral was awarded a $6,000,000 contract by the Navy for the production of radar sets. The contract contained a schedule of deliveries, a liquidated damages clause applying to late deliveries and a cancellation clause in case of default by Loral. The latter thereupon solicited bids for some 40 precision gear components needed to produce the radar sets, and awarded Austin a subcontract to supply 23 such parts. That party commenced delivery in early 1966.
In May 1966, Loral was awarded a second Navy contract for the production of more radar sets and a…
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