Contracts Keyed to Fuller
Hunt Foods and Industries, Inc. v. Doliner
Hunt Foods and Industries, Inc. (Plaintiff) and Eastern Can Company of which Doliner (Defendant) was the majority shareholder, entered into negotiations for Plaintiff to purchase Eastern Can. Only the price of the acquisition was agreed upon, and the parties took a break from negotiations due to disputes over the other terms. Plaintiff was concerned that Defendant would use their offer to solicit a higher buying price from a third party and demanded an option to purchase Defendant’s stock. Plaintiff paid $1,000 for the option. Defendant claimed he understood that the option was unconditional only in the event that he solicited an outside offer, but Plaintiff denied such a condition existed. When negotiations resumed and the parties failed to reach an agreement, Plaintiff exercised the option, and Defendant refused to deliver the stock. Defendant appealed a grant of summary judgment ordering specific performance on the option.
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