Managers and the Legal Environment 7th Edition by David Madsen, Constance Bagley

Exercise 10

Cablescope, a cable supply and installation firm, entered into a contract pursuant to which ASK Technologies agreed to sell, deliver, and install new computer hardware and software. An ASK technician began to install the ASK system at Cablescope's offices, but numerous bugs in the system were discovered during the installation. Cablescope found that the technician was either unwilling or unable to perform the work required to integrate the system with Cablescope's existing system. As a result, Cablescope informed ASK that it was dissatisfied with the technician's work and did not want him to return. In the following weeks, Cablescope informed ASK twice by letter that the installation had not been adequately performed. On the basis of ASK's nonperformance, Cablescope refused to pay for the equipment and services supplied by ASK, although it continued to use the system for the next nine months.
ASK sued to recover payments plus interest for the computer system and services provided to Cablescope, alleging breach of contract. What is Cablescope's defense? How will the court decide? Why? [ASK Technologies, Inc. v. Cablescope, Inc., 2003 WL 22400201 (S.D.N.Y. Oct. 20, 2003).]