This section contains the nature of the case and procedural background.

Corrugated (P) and Longview (D) are manufacturers of cardboard and other paper products. Atlas buys and sells used equipment and P notified Atlas that it was interested in purchasing a used cut-off knife. Atlas got a letter from D indicating that it had a used cut-off knife for sale. Atlas and D discussed the sale of the knife to Atlas and D wanted assurances that Atlas would buy the knife for its own account and that D was not interested in the fact that Atlas may or may not have a potential customer for the used knife. Atlas discussed the specs of the knife with P and even had an employee of P visit D to see the knife in operation. As a result of that visit, P and Atlas entered into a written contract for the purchase of the knife and a deposit of $5,000. Atlas then sent a purchase order to D for the knife with a check in the amount of $5,000 and directions to ship the knife F.O.B. to P's plant. D again asked assurances of Atlas that the knife was being purchased for Atlas' own account and that the deal was not contingent on the sale to P or anyone else. Shipping to P was delayed because of D's inability to secure satisfactory replacement machinery On September 10, 1984, Atlas sent D a modified purchase order directing the equipment be sent to a different buyer. P then learned the knife would not be shipped to P. P sued both Atlas and D for breach of contract. P got summary judgment against Atlas and the court entered summary judgment in favor of D in that P was not a third-party beneficiary. P appealed.

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