INJUNCTION-BREACH OF NEGATIVE COVENANT-ADEQUATE REMEDY AT LAW

Authors

Abstract

The defendant, an owner of a gasoline station, entered into a contract with the plaintiff whereby he agreed to buy "all motor fuels handled, sold, or required" at his station from the plaintiff. He further agreed not to "sell, or allow to be sold on his premises * * * any other brands of motor fuel than those of the seller [plaintiff]." Before the expiration of the contract the defendant notified the plaintiff that he would no longer be bound by the contract. The lower court dismissed a bill praying for an injunction restraining the defendant from violating the negative provision of the agreement. On appeal it was held, that equity had no jurisdiction unless the defendant was insolvent and that the decision of the lower court should be reversed on the grounds that it had failed to consider an allegation in the bill of complaint to the effect that the defendant was insolvent. White Star Refining Co. v. Hansen, 251 Mich. 224, 231 N.W. 577.

Recommended Citation

INJUNCTION-BREACH OF NEGATIVE COVENANT-ADEQUATE REMEDY AT LAW, 29 Mich. L. Rev. 517 (1931).
Available at: https://repository.law.umich.edu/mlr/vol29/iss4/26