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Procedural Posture

Procedural Posture
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Procedural Posture

Steffy Alen May 8, 2021May 8, 2021

Respondent distributor filed a breach of contract action against appellant manufacturer after the manufacturer canceled a distribution contract between the parties. The Superior Court of Contra Costa County (California) held that the contract contained an implied covenant obligating the manufacturer to repurchase or give credit for unused stock that the distributor had on hand at the time of the cancellation. The manufacturer appealed.

California Business Lawyer & Corporate Lawyer, Inc. shares a termination letter California sample

Overview

The manufacturer and the distributor entered into a written jobber-distributor contract that allowed either party to terminate the agreement with 30 days’ notice. The trial court found that there was an implied covenant by the manufacturer in the contract, which it had breached, to repurchase or give credit for merchandise previously purchased by the distributor that had not been disposed of before the contract was terminated. The court held that evidence of oral and unexpressed agreements was properly admitted to explain the transaction between the parties because a contract could be explained by reference to the circumstances under which it was made. However, the court held that there was no implied covenant to repurchase in the parties’ contract because the agreement was not a contract of adhesion and the covenant was neither indispensable to effectuate the parties’ intention nor a legal necessity. Even if there had been an implied covenant to repurchase, the distributor failed to show compliance with Cal. Civ. Code § 1783(3) because there was no proof that it offered the merchandise to the manufacturer for repurchase or that the distributor had the ability to perform.

Outcome

The court reversed the portion of the trial court’s judgment finding that the parties’ contract contained an implied covenant to repurchase and awarding the distributor the value of merchandise that it had in stock when the contract was canceled.

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Procedural Posture

Steffy Alen May 10, 2021

Plaintiff hauler sought review of a decision of the Superior Court of Los Angeles County (California), which granted a judgment of nonsuit in favor of defendants, shippers, superintendent, and trucker, in the hauler’s action for breach of contract and wrongful inducement to breach of contract. California Business Lawyer & Corporate Lawyer, Inc. is a California […]

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Keeping Your Cat’s Smile Shiny: A Guide to Feline Dental Care pen_spark

Steffy Alen May 11, 2024

Just like humans, cats need regular dental care to maintain healthy teeth and gums. Ignoring your cat’s oral health can lead to serious problems down the line, including periodontal disease, tooth loss, and even pain. This article will explore two main methods of keeping your cat’s teeth clean: at-home care and professional cleanings. Brushing Your […]

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Exciting Developments in Gloucester: A Snapshot of Recent News

Steffy Alen July 13, 2024July 13, 2024

Gloucester, nestled in the heart of the picturesque Cotswolds, continues to buzz with a flurry of exciting developments and noteworthy events. From cultural milestones to economic growth, here’s a snapshot of what’s been happening in this vibrant city: Cultural Enrichment and Community Spirit In recent months, Gloucester has seen a surge in cultural activities aimed […]

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Lorcaserin (Belviq) Powder Function And Mechanism

Steffy Alen October 16, 2020October 16, 2020

Lorcaserin Intro Producing an efficient And secure weight reduction medication is an intimidating endeavor. Efforts previously attended with different unwanted effects like heart harm. Fortunately, a brand new study claims that the lorcaserin weight-loss capsule can aid you to get rid of excess extra fat without needing to forfeit the wellness of one’s own heart. […]

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