Power Systems & Controls v. Keiths

FACTS. - KE contracted with Hill AFB to provide electrical equipment. KE contacted Power Systems (PSC), a manufacturer of such equipment, and they cooperated in submitting a proposal to HAFB. The proposal was rejected three times for nonconformity with specifications. KE obtained the equipment from another manufacturer, and, after some delay, notified PSC that it had purchased from another manufacturer. PSC deleted the portion of the proposal objectionable to HAFB, but HAFB refused to accept it without KEs support. As KE knew, PSC had nearly completed custom manufacturing the equipment specifically for HAFB, and was unable to resell it.