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Empire Gas Corp. v. American Bakeries Co.

United States Court of Appeals for the Seventh Circuit
840 F.2d 1333 (7th Cir. 1988)


Facts

American Bakeries Co. (defendant) entered into a requirements contract with Empire Gas Corp. (Empire) (plaintiff) to purchase propane conversion units for its fleet of vehicles. American Bakeries had decided to convert its gasoline powered vehicles into propane. The contract stated that American Bakeries would purchase “approximately three thousand (3,000) [conversion] units, more or less depending upon requirements of [American Bakeries].” Soon after the parties signed the contract, American Bakeries decided that it was not going to convert its vehicles to propone after all. As a result of the decision, American Bakeries did not need the propane converters and thus did not order any converters from Empire. American Bakeries did not give Empire a reason for its decision, other than a seeming unwillingness to spend the money necessary to make the transition to propane. Empire brought suit for breach of contract. The trial court found in favor of Empire. American Bakeries appealed.

Rule of Law

Issue

Holding and Reasoning (Posner, J.)

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