Savage Arms Corp. v. United States,
266 U.S. 217 (1924)

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U.S. Supreme Court

Savage Arms Corp. v. United States, 266 U.S. 217 (1924)

Savage Arms Corp. v. United States

No. 13

Argued October 6, 1924

Decided November 17, 1924

266 U.S. 217


Claimant, having been requested to suspend operations as to a large number of articles it was manufacturing under contract with the government, sought to confine the suspension to a smaller number, promising, if this were done, to abandon and settle all claims and disputes growing out of the contract; and, when the suspension request was revised accordingly, accepted it, but with an attempted reservation of its right to perform the contract and especially the right to recover all the profit it would have made "if it had been permitted to complete the contract." Held that, upon acceptance by the government of the claimant's proposal, the contract was rescinded as proposed, the release by one party being sufficient consideration for release by the other, and that the attempted reservation of a right to recover anticipated profits on the articles so eliminated came too late. P. 266 U. S. 220.

57 Ct.Clms. 71 affirmed.

Appeal from a judgment of the Court of Claims rejecting a claim for anticipated profits under a contract to supply magazines for machine guns to the United States, which was in part suspended.

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