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Contracts Keyed to Frier
Almetals, Inc. v. Wickeder Westfalenstahl, GmbH
Facts
Almetals, Inc. (plaintiff) entered into a requirements contract with Wickeder Westfalenstahl GmbH (Wickeder) (defendant) who would provide clad metal to Almetalsthat no other manufacturer was able to produce. Under the "Customer Order and Protection Clause" of the contract, Wickeder agreed that after the agreement terminated, it would continue to honor any existing commitments to supply orders or complete programs for a period of 10 years. Wickeder later insisted on a cash-on-delivery (COD) payment term from Almetals. Almetals sought an injunction against Wickeder to prevent it from imposing the COD term.The district court found that the COD term was a violation of the parties’ contract and issued a temporary restraining order, prohibiting Wickeder from imposing the COD term. Almetals then sought a permanent injunction.
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