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Clausen & Sons v. Theo. Hamm Brewing Co.

United States Court of Appeals for the Eighth Circuit
395 F.2d 388 (1968)


Facts

Clausen & Sons (plaintiff) and Theo. Hamm Brewing Co. (defendant) orally agreed that Clausen would be Hamm’s exclusive beer distributor. In reliance on Hamm’s promise, Clausen stopped selling competitors’ products, and bought advertising, a distribution facility, and other necessities to distribute Hamm’s products exclusively. Hamm unilaterally terminated the agreement. Clausen sued Hamm for breach of contract. The district court granted Hamm summary judgment, finding that there was no genuine factual dispute that the contract lacked consideration. Clausen appealed.

Rule of Law

Issue

Holding and Reasoning (Lay, J.)

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