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McMichael v. Price: Difference between revisions
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|procedural_history=Price sued McMichael for breach of contract. | |procedural_history=Price sued McMichael for breach of contract. | ||
McMichael answered that the contract lacked [https://www.quimbee.com/keyterms/mutuality-of-obligation Mutuality of Obligation]. | McMichael answered that the contract lacked [https://www.quimbee.com/keyterms/mutuality-of-obligation Mutuality of Obligation]. McMichael lost. | ||
|issues=Is a contract requiring a seller (McMichael) to provide as many goods as the buyer (Price) requires void for lack of Mutuality of Obligation? | |||
|holding=No. There is Mutuality of Obligation if the contract binds each party, making each party's performance mandatory, not discretionary. | |||
|case_text_links={{Infobox Case Brief/Case Text Link | |case_text_links={{Infobox Case Brief/Case Text Link | ||
|link=https://casetext.com/case/mcmichael-v-price | |link=https://casetext.com/case/mcmichael-v-price | ||
Revision as of 17:56, July 6, 2023
| McMichael v. Price | |
| Court | Oklahoma Supreme Court |
|---|---|
| Citation | |
| Date decided | May 5, 1936 |
Facts
McMichael (defendant) had sand mining operation in Tulsa, Oklahoma.
Mr. Price (plaintiff) bought sand locally in Tulsa & shipped it across the United States.
The 2 parties entered a requirements contract whereby McMichael would provide as much sand as Price required.
McMichael (supplier) agreed to supply all the sand that Price could sell over the next 10 years. Price would pay 60% of the market price at the sand's destination.
After 5 months, McMichael refused to began sands.Procedural History
Price sued McMichael for breach of contract.
McMichael answered that the contract lacked Mutuality of Obligation. McMichael lost.Issues
Is a contract requiring a seller (McMichael) to provide as many goods as the buyer (Price) requires void for lack of Mutuality of Obligation?
Holding
No. There is Mutuality of Obligation if the contract binds each party, making each party's performance mandatory, not discretionary.
