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Contracts Keyed to Dawson
Stanley Gudyka Sales v. Lacy Forest Products Co.
Citation:
686 F. Supp. 1301 (N.D. Ill. 1988)Facts
Stanley Gudyka Sales Co. (SGS) was a sales representative firm that marketed wood products for manufacturers to retail customers in the Chicago area. In 1983, SGS entered into an oral agreement with Lacy Forest Products Co. to serve as Lacy’s exclusive sales representative in the Chicago area. The parties never formalized their agreement in writing. SGS invested significant time and resources in developing a market for Lacy’s products, successfully increasing sales in the territory. After SGS had established a profitable customer base for Lacy, Lacy terminated the relationship in 1986, allegedly to avoid paying commissions on the business SGS had developed. SGS claimed that the parties had agreed to a long-term relationship that could only be terminated for cause, while Lacy contended that the agreement was terminable at will.
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