Nixdorf Computer, Inc., a Corporation v. Jet Forwarding, Inc., a Corporation

This is a contract action arising out of the sale of a computer system. The plaintiff, Nixdorf Computer, Inc., is an Illinois corporation with its principal place of business in Chicago, Illinois. The defendant, Jet Forwarding, Inc., is a California corporation with its principal place of business in Santa Ana, California. Jurisdiction is based upon diversity of citizenship under 28 U.S.C. § 1332 .

Nixdorf as seller, and Jet as buyer, executed a written contract on August 27, 1974 for the sale of a computer system, including both the hardware and the software computer programs necessary to enable the computer to meet the needs of the buyer. On November 19, 1974, the parties executed a supplementary contract for an additional piece of equipment, a ledger reader, to be utilized with the computer. The computer system with the supplemental equipment was sold for a combined price of $58,646.00. Jet paid a total of $6,214.86 as a deposit and a balance of $52,431.14 was owed to Nix-dorf. The contracts were to be performed in California and both parties have agreed that California law is applicable.

The contract of August 27, 1974 and the supplement of November 19, 1974 were written on…