After the Deepwater Horizon explosion and oil spill, BP Exploration, Inc. (BP), found itself in immediate need of oil containment boom. Packgen manufactured packaging products, and began constructing boom manufacturing

After the Deepwater Horizon explosion and oil spill, BP Exploration, Inc. (BP), found itself in immediate need of oil containment boom. Packgen manufactured packaging products, and began constructing boom manufacturing equipment within days of the spill. Within a month, representatives of Packgen and BP had had several conversations, including an oral commitment from BP to purchase all of Packgen’s present and future production of boom, subject to certain quality standards and testing. BP and Packgen went through several rounds of testing, field testing, and reengineering. By the time Packgen’s final boom product was successfully field tested, the Deepwater Horizon well had been capped and BP began winding down its boom purchases. Ultimately, BP never paid Packgen for any boom, and Packgen was left with 60,000 feet of completed boom in its warehouse, which it could sell for only 10 percent of the price it had agreed to with BP. Packgen argued it was entitled to the specially manufactured goods exception to the Statute of Frauds and payment from BP for the boom. Was it?


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