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Law School Case Briefs

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Aluminum Co. of America v. Essex Group, Inc.

District Court, W.D. Pennsylvania (1980) | 499 F. Supp. 53; 29 U.C.C. Rep. Serv. (West) 1; 1980 U.S. Dist. LEXIS 9402

4 min read

TL;DR: A long-term aluminum processing contract's price index failed due to unforeseen energy cost spikes, causing massive losses for the processor (ALCOA). The court found the contract voidable for mistake, impracticability, and frustration, but instead of rescinding, it reformed the price to ensure a minimal profit.

Legal Significance: This case is a landmark for expanding the doctrines of impracticability and frustration to cover severe price escalations and for crafting a novel equitable remedy (price reformation) to preserve a long-term contract rather than terminating it.

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