CONTRACTS - MUTUALITY- CONSIDERATION IN A "REQUIREMENTS" CONTRACT

Authors

Robert W. Shadd S. Ed., University of Michigan Law SchoolFollow

Abstract

Plaintiff, a wholesale liquor distributor, and defendant entered into a contract under which plaintiff agreed to place orders with defendant from time to time for all such wines as it might require under labels bearing plaintiff's own brand or trade name. Defendant agreed to fill these orders for a period of sixteen months, as well as orders for other wines bottled under labels not the exclusive property of plaintiff. As to the latter types of wine, however, plaintiff was expressly left free to purchase from others. When defendant refused to complete orders pursuant to this agreement, plaintiff brought an action to recover for loss of profits. Held, because plaintiff was embarking on a new business venture, with very indefinite needs, the contract lacked mutuality and was unenforceable. G. Loewus & Co., Inc. v. Vischia, (N.J. 1949) 65 A. (2d) 604.

Recommended Citation

Robert W. Shadd S. Ed., CONTRACTS - MUTUALITY- CONSIDERATION IN A "REQUIREMENTS" CONTRACT, 48 Mich. L. Rev. 362 (1950).
Available at: https://repository.law.umich.edu/mlr/vol48/iss3/10