Rehm-Zeiher Co. v. F.G. Walker Co. – Case Brief

Rehm-Zeiher Co. v. F.G. Walker Co., 156 Ky. 6, 160 SW 777 (Ky. 1913).

Facts: Rehm-Zeiher (P) entered into a contract to acquire from Walker (D) 2000 cases of whisky in 1909, 3000 cases in 1910, 4000 cases in 1911, and 5000 cases in 1912. The contract provided that if Walker lost its whiskey or bottling room it would be excused from performing, and that if Rehm-Zeiher required less than the full amount Walker would release it from the amount stated in the contract.

In 1911 the price of whisky rose and D shipped less than half of the order for the year. P sued for enforcement of the contract and the trial court entered a directed verdict in favor of D. P appealed.

Issue: Is a contract enforceable if its execution is within the sole discretion of one of the parties?

Holding and Rule: No. A contract is not enforceable if its execution is within the sole discretion of one of the parties.

The court looked to the language in the contract and held that the contract was not a requirements contract. The court held that the contract was unenforceable for want of mutuality of obligation and neither party was bound.

Disposition: Affirmed.


Related posts: