Appeal from the United States District Court for the Northern District of Illinois, Eastern Division, No. 86 C 1184, Harry D. Leinenweber, Judge.
Posner, Easterbrook, and Manion, Circuit Judges.
Uniden Corporation of America (Uniden) appeals the district court's grant of summary judgment against it and in favor of Metalex Corporation (Metalex) in a contract dispute. We reverse and remand.
Uniden, whose businesses include selling television satellite receiver systems to consumers, agreed in December, 1984, to buy receiving antennas from International Video Communications Corporation (IVC). A few days later, on January 1, 1985, IVC agreed to buy mesh panels from Metalex to use in manufacturing the antennas IVC was to sell to Uniden. As a condition of the Purchase Agreement between IVC and Metalex, Uniden agreed to guarantee IVC's payment and performance under the Purchase Agreement with Metalex.
The Purchase Agreement between IVC and Metalex provided that between January 1, 1985 and March 31, 1986, IVC was to purchase not less than 80,000 "units" (a unit consisting of four panels) from Metalex. The Purchase Agreement further provided that concurrently with executing the agreement, IVC was to place a purchase order with Metalex for the initial 19,500 units "for delivery during the first two calendar quarter [sic] of 1985 as follows:"
January 500 units ( 9,000 panels)
February 1,200 units ( 27,000 panels)
March 2,500 units ( 45,000 panels)
April 4,000 units ( 72,000 panels)
May 5,000 units ( 90,000 panels)
June 6,000 units (108,000 panels)
IVC agreed to place additional purchase orders for delivery of the remaining units during calendar quarters beginning July 1, 1985. The Purchase Agreement further provided that Uniden was to countersign all of IVC's purchase orders. Uniden's Guaranty also provided for Uniden's countersignature on IVC's ...