Sunbury Textile Mills, Inc. v. Commissioner
United States Tax Court
In March 1969 petitioner signed a contract to purchase 72 looms in three equal shipments. The contract gave petitioner a right to cancel the order as to the second and third shipments until October 1969 without incurring cancellation charges.
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In March 1969 petitioner signed a contract to purchase 72 looms in three equal shipments. The contract gave petitioner a right to cancel the order as to the second and third shipments until October 1969 without incurring cancellation charges. Held, the contract gave petitioner a power of "termination" rather than a power of "cancellation" as those terms are defined in Uniform Commercial Code sec. 2-106. Held, further, because petitioner possessed an unqualified right to abrogate the contract as to the second and third shipments, property included in such shipments did not constitute…
1Opinion of the Court
Sunbury Textile Mills, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Sunbury Textile Mills, Inc. v. Commissioner
Docket No. 8280-74
United States Tax Court
68 T.C. 528; 1977 U.S. Tax Ct. LEXIS 82;
July 21, 1977, Filed
Decision will be entered under Rule 155.
In March 1969 petitioner signed a contract to purchase 72 looms in three equal shipments. The contract gave petitioner a right to cancel the order as to the second and third shipments until October 1969 without incurring cancellation charges. Held, the contract gave petitioner a power of "termination" rather than a power of…
2Cases cited7 opinions
- Estate of Craft v. CommissionerUnited States Tax Court · 1977
- Mamula v. McCullochCalifornia Court of Appeal · 1969
- Gainsboro v. ShafferMassachusetts Supreme Judicial Court · 1959
- Sartori v. CommissionerUnited States Tax Court · 1976
- Hampton v. Commercial Credit Corp.Montana Supreme Court · 1946
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