Question: The Snyder Manufacturing Co . , being a large user of coal, entered into a contract with Union Coal Company to purchase coal during the
The Snyder Manufacturing Co being a large user of coal, entered into a contract with Union Coal Company to purchase coal during the year in such amounts as Snyder Manufacturing Co might desire to order at a price of $ per ton. In February, the Snyder Company ordered tons of coal from Union Coal Company. Union delivered tons of the order and then notified Snyder that no more deliveries would be made at that price and that it denied any obligation under the contract. Snyder had to acquire the tons from another source at a higher price. Snyder sues Union for breach of the contract. What result and why? Hint: Did Snyders promise to buy all it wanted really bind it to do anything?
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