Continental Laboratories v. Scott Paper Co.
United States District Court for the Southern District of Iowa
759 F. Supp. 538 (S.D. Iowa 1990)
In 1987, Continental Laboratories, Inc. (Continental) (plaintiff) and Scott Paper Company (Scott) (defendant) entered into negotiations regarding a supply and distribution agreement. Throughout the summer of 1987, the parties exchanged numerous written drafts of the potential agreement. Following a telephone conference call on either August 25 or 26, 1987, Continental believed that it had entered into a binding oral contract with Scott. Following the conference call, Scott delivered a document stamped “Draft” to Continental and several meetings were held between the parties. Finally on September 16, 1987 Scott informed Continental that they were no longer interested in an agreement. Continental sued Scott for breach of contract based on the oral agreement made on August 25 or 26, 1987. Scott filed a motion for summary judgment claiming that no contract existed between the parties.
Rule of Law
Holding and Reasoning (Vietor, J.)