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Contracts Keyed to Burton
Crane Ice Cream Co. v. Terminal Freezing & Heating Co.
Citation:
147 Md. 588, 128 A. 280Facts
William Frederick had a written contract with Terminal Freezing & Heating Company (“Terminal”) (defendant) for the sale and delivery of ice for Frederick’s ice cream manufacturing business. Under the contract, Frederick was to not buy or accept ice from any other business up to 250 tons per week. Frederick later executed a written assignment transferring his rights and obligations under the contract to Crane Ice Cream Company (“Crane”) (plaintiff), who also took full possession of Frederick’s ice cream business. Frederick executed the assignment without the consent or knowledge of Terminal. When Terminal learned of the assignment, it notified Frederick that it was ending their contract and that it would not deliver any ice to Crane. As a result, Crane sued Terminal for breach of contract.
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Topic Resources
Topic Outline
Third Party RightsTopic Refresher Course
Third Party Rights and Obligations