Alaska Pacific Trading Company v. Eagon Forest Products, Inc.

933 P.2d 417 (1997)

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Nature of the Case

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Facts

P and D entered into a contract where P would ship about 15,000 cubic meters of logs from Argentina to Korea between the end of July and the end of August 1993. D agreed to purchase the logs. The market for logs began to soften, making the contract less attractive to D. P became concerned that D would try to cancel the contract. D stated internally that it would attempt to avoid acceptance of the logs, but that it would be difficult and suggesting that they hold P responsible for shipment delay. On August 23, D received a faxed letter from P suggesting that the price and volume of the contract be reduced. D did not respond to the fax. P admitted to D that there was trouble getting approval. P thereafter believed D would not accept the shipment. P eventually canceled the vessel that it had reserved for the logs because it believed that D was canceling the contract. The logs were not loaded or shipped by August 31, 1993. Talks continued between the agents of each. By September 27, P had not shipped the logs. It sent a final letter to D stating that D had breached the contract because it failed to take delivery of the logs. D's president, responded to the letter, stating that there was 'no contract' because P's breach excused D's performance. P filed a complaint for breach of contract and D brought a motion for summary judgment. The trial court granted the motion and dismissed P's claims. P's motion for reconsideration was denied. This appeal resulted.