Contracts Keyed to Murray
Zemco Manufacturing, Inc. v. Navistar International Transportation Corp.
Facts
In 1983, Zemco Manufacturing, Inc. (Plaintiff) entered into a written, one-year contract to sell parts to Navistar International Transportation Corp. (Defendant). The original contract was extended by written agreements until 1987, after which Plaintiff and Defendant orally agreed to extend the contracts. Defendant purchased all of its parts requirements from Plaintiff until 1995. Defendant then began buying parts from another company, and Plaintiff sued for breach of contract. Defendant argued that the oral contract extensions were unenforceable, because they violated the statute of frauds. Plaintiff argued that the time extensions did not need to be in writing, because they were modifications of a non-definite contract term. The district court granted summary judgment for Defendant, finding that the oral renewals of the contract did not comply with the statute of frauds.
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