Legal Question in Business Law in Illinois

Re: Mill not Honoring Order Acknowledgements

You said "Ultimately the mill decided not to produce our material." Was that after the mill issued a mill order acknowledgement? If not, there was likely no acceptance of your offer to purchase.

If the mill did accept your offer, then it would seem that a contract was formed. You then would need to look at the terms of the contract to see if there is a provision that excuses performance. If there is no provision excusing the mill's performance of the contract, you need to check the contract to see if there is a provision limiting your damages. Even if there was a breach by the mill, the contract may prevent you from recovering your full damages.

No one can give you an answer without reviewing all of the relevant documentation.

David K. Staub, an Illinois business and tax attorney

Re: Mill not Honoring Order Acknowledgements

Unless you had some kind of agreement with the mill, the mill is not obligated to accept your orders. This is why it is usually a good idea to enter into a written contract with other such businesses in order to avoid situations like the one you're describing. If the mill did not accept your order, then there was no contract, therefore no obligation to perform on the mill's part.

Re: Mill not Honoring Order Acknowledgements

Your posting is a little unclear. Did the mill not produce material for orders that it had acknowleged and provided scheduled production/ship dates? If so, they may be liable for your losses. If they merely advised you that they were no longer takng orders from you and there were no outstanding acknowledgements, there is no liability.

Please note that the above information is based on the assumption that there are no written agreements containing disclaimers and cancellation provisions.