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Contracts Keyed to Frier
Sun Printing & Publishing Association v. Remington Paper & Power Co.
Citation:
235 N.Y. 338, 139 N.E. 470 (1923)Facts
The parties entered into a 16-month contract in which the plaintiff agreed to buy from the defendant 1,000 tons of paper per month at a specific price for the first four months. At the conclusion of the four months, the price of the paper and the length of time that price was to apply was to be agreed upon by the parties for the remaining 12 months on the contract. The new price was not to be higher than the price charged by Canadian Export Paper, a third party paper company. Both parties performed their parts of the contract during the first four months, however, no new price or time period for the new price was ever agreed upon. As a result, the defendant did not deliver any more paper. Plaintiff sued Defendant, alleging that Canadian Export Paper’s price automatically applied if no agreement was reached. Plaintiff moved for a judgment on the pleadings in a breach of contract action. The motion was denied but reversed on appeal. Defendant then appealed.
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