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Contracts Keyed to Dawson
Crane Ice Cream Co. v. Terminal Freezing & Heating Co.
Citation:
128 A. 280 (1925)Facts
In April 1920, Crane Ice Cream Co. entered into a five-year contract with Terminal Freezing & Heating Co. whereby Terminal agreed to supply all of Crane’s ice requirements at a fixed price per ton. The contract specified that Crane would purchase all of its ice exclusively from Terminal. After approximately two years of performance, Terminal refused to continue supplying ice to Crane, claiming that the contract lacked mutuality and was therefore unenforceable because Crane was not obligated to purchase any specific quantity of ice. Crane had been operating in good faith and had consistently purchased ice from Terminal according to its actual business needs. When Terminal breached the contract, Crane was forced to purchase ice at higher prices from other suppliers and brought suit for damages.
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