Business Law and the Legal Environment 7th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 14

Under the terms of a long-term supply contract, Linde supplied United Aluminum Corporation (UAC) with nitrogen at $0.23 per unit. Upon expiration, that contract gave UAC the sole option to renew the agreement for five additional years at the same price. When UAC exercised the option, Linde refused, arguing that the price of nitrogen had risen by 38 percent over the life of the contract. UAC sued, seeking to enforce the $0.23 price. Linde claimed commercial impracticability. Should a court force Linde to abide by the terms of the original deal?