Contracts Keyed to Farnsworth
Bloor v. Falstaff Brewing Corp
Plaintiff contracted with Defendant to sell the Ballantine Beer label for $4,000,000. Among other things, the contract required Defendant to use its best efforts to promote and maintain a high volume of sales. A violation of this clause would trigger a liquidated damages provision. After Defendant’s acquisition of Ballantine, it continued to spend $1 million a year on advertising. Sales declined, however, leading Defendant to claim it lost $22 million in approximately three years. Plaintiff eventually initiated this action, stating that the best efforts clause had been breached by Defendant’s mismanagement of the Ballantine brand.
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