Plaintiff, a power company, contracted with Defenant, a coal company, to purchase a certain amount of coal each year. The Public Service Commission later directed Plaintiff to try to find and buy electricity from other utilities that will sell it at prices lower than its costs of internal generation. Power company wanted to get out of the contract with Defendnat.
Key Holidngs: If an occurrence is at all foreseeable, and promissor didn’t bother to contract around it, he bears the risk.
Fixed-price contract is an explicit assignment of the risk of market price increases to the seller and the risk of market price decreases to the buyer.