Prie (P) was a sand salesman and McMichael (D) was a sand supplier.
P entered into contract with D which said that D agreed to supply all of the sand that P could sell.
P agreed to accept and buy from D all the sand that P could sell.
P claimed that D failed to provide sand at some points and then backed out of contract.
P sued for $7500 in damages.
Procedural History:
P won in lower court.
D appealed and loses. P's judgment affirmed.
Issues:
Is mutuality present in a bargain when one party is not obliged to take on any action but is merely forborne from creating contracts with other parties?
Holding/Rule:
Mutuality is present if the promisee is not obliged to take on any action but is merely forborne from making contracts with other parties.
Reasoning:
Via Minnesota Lumber Co v. Whitebreast Coal -- "Where defendant agreed to buy its "requirements" of coal of plaintiff, the contract is mutual, as such provision required defendant to buy all its coal from plaintiff, and was one on which plaintiff could maintain an action for breach, should defendant purchase coal elsewhere.' …It cannot be said that appellant was not bound by the contract. It had no right to purchase coal elsewhere for use in its business, unless, in case of a decline in the price, appellee should conclude to release it from further liability."
