Wednesday, December 18, 2013

Miami Coca-Cola Bottling Co. v. Orange Crush Co. case brief

Miami Coca-Cola Bottling Co. v. Orange Crush Co. case brief summary
296 F. 693 (1924)


CASE SYNOPSIS
Appellant challenged an order of the District Court of the United States for the Southern District of Florida dismissing appellant's bill, which sought to enjoin appellee's cancellation of a contract and to compel specific performance.

CASE FACTS
Appellant sought specific performance of a contract with appellee. The contract was in the form of a license, whereby appellee granted to appellant the exclusive right, within a designated territory, to manufacture a certain soft drink, and to bottle and distribute it under appellee's trademark. Appellee agreed, among other things, to supply at stated prices its concentrate to be used in the manufacture of the soft drink, and to do certain advertising. Appellant agreed to purchase a specified quantity of the concentrate, to maintain a bottling plant, to solicit orders, to generally undertake to promote the sale of the soft drink, and to develop an increase in the volume of sales.

DISCUSSION

  • The court stated that the contract between the parties was unenforceable where it was void for want of mutuality, because appellee could not be bound to that portion of the contract that was executory at the time of appellee's cancellation.

CONCLUSION
The court affirmed the district court, stating that the contract between the parties was void for lack of mutuality.


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