Kalil Bottling Co. V. Burroughs Corp‪.‬

Kalil is a soft drink bottler and distributor. In 1969 it decided to computerize its inventory and accounting operations. On July 16, 1969, Kalil signed an "Equipment Sale Contract", agreeing to purchase a computer and software*fn1 from Burroughs Corporation for $40,168.96 with a down payment of $1,750. The balance was to be financed by Burroughs according to terms and conditions established by Kalil. Burroughs rejected Kalil's application for credit, but not before the computer was installed. Kalil was unable to secure bank financing and on April 30, 1970, National Equipment Rental, Ltd. (National) purchased the computer and software from Burroughs and leased it to Kalil for 66 months with a monthly rental of $862.40.*fn2 The down payment which Kalil had paid Burroughs was credited by Burroughs on the purchase price paid by National.