MEL-TEX VALVE INC. v. Rio Supply Co., Inc.

OPINION

LEVY, Justice.

This is an appeal from a take-nothing judgment awarded the defendant/appellee, Rio Supply Company (“Rio”), in a breach of contract action.

Mel-Tex Valve, Inc. (“Mel-Tex”), filed suit against Rio alleging that it had breached an oral contract to purchase from Mel-Tex certain forged steel fittings for the amount of $40,000, which was to be secured by a letter of credit. Mel-Tex asserted that it had specially purchased the materials necessary to fill Rio’s order, but Rio refused to accept delivery of the merchandise and never tendered a letter of credit. As a result, Mel-Tex…