Contracts Keyed to Dawson
Empro Manufacturing Co., Inc. v. Ball-Co Manufacturing, Inc.
Facts
The Defendant, Ball-Co Manufacturing, Inc. (Defendant), floated its assets on the open-market, to determine if there was interest in purchasing the company. The Plaintiff, Empro Manufacturing Co., Inc. (Plaintiff), expressed interest and formulated a letter of intent, to which Defendant responded in kind with another letter of intent, also noting that security for Plaintiff’s note would need to be agreed upon, prior to sale. After the parties could not reach an agreement as to how security would be provided for Plaintiff’s note, Defendant began to look at other prospective buyers. When Plaintiff became aware of this fact, it filed suit for performance, based on mutual intent, or alternatively, for reliance expenditures it made in anticipation of the agreement. Defendant’s suit was dismissed and it appealed.
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