May 17, 2014

Eastern v. Gulf - 415 F. Supp. 429 (S.D. Fla. 1975)

FACTS: Gulf and Eastern have a long-standing relationship.  Gulf wants to charge a higher price or it's going to shut off Eastern's supply of jet fuel.  Eastern alleges there is a contract and Gulf says there isn't b/c of a lack of mutuality.

ISSUE: Is there a contract?

HOLDING: Yes

RATIONALE: Both parties placed themselves in the arrangement for many years.  The law developed into recognizing a requirements contract when the purchaser is operating a business.  The "lack of mutuality" and "indefiniteness" were resolved by determining the volume of the goods provided for under the contract.

"The essential test is whether the parties are acting in good faith" (130)

This case is particularly suited for specific performance.


DISPOSITION: Preliminary injunction is made permanent injunction.