Eastern Air Lines, Inc. v. Gulf Oil Corp.
| Eastern Air Lines, Inc. v. Gulf Oil Corp. | |
| Court | U.S.D.C., Southern District of Florida |
|---|---|
| Citation | 415 F. Supp. 429 (1975) |
| Date decided | 1975 |
Facts
Plaintiff and defendant had enjoyed a mutually advantageous business relationship in that defendant supplied plaintiff with jet fuel. Gulf demanded that Eastern meet its demand for a price increase or else their supply of jet fuel would be shut off within fifteen days. Eastern replied that they could not break their contract, to which Gulf replied there was no contract. Defendant claims that the document lacks mutuality of obligations and is vague and indefinite when speaking of fuel “requirements.
Procedural History
Plaintiff claimed breach of contract and requested preliminary and permanent mandatory injunctions requiring defendant to perform the contract. The injunction was entered.
Issues
Whether a document that is vague and speaks of fuel “requirements” can be legally binding.
Holding
Judgment for the plaintiff that the contract is enforceable.
Reasoning
A term which measures the quantity by output of the seller or the requirements of the buyer means such actual output or requirements a may occur in good faith, as long as it is not unreasonable or disproportionate, therefore the document can be legally binding.
