Illinois Appellate Court
883 N.E.2d 711 (Ill. 2008)
Gene and Martha Jannusch (plaintiffs) owned and operated Festival Foods, a concessions truck that sold food at events. The Jannusches orally contracted with Lindsey and Louann Naffziger (defendants) to sell Festival Foods for $150,000. The Naffzigers paid $10,000 immediately and planned to pay the remainder after obtaining a loan. The Naffzigers took possession but later backed out of the agreement. The Jannusches sued for breach of contract. Louann acknowledged that there was an oral agreement, but Lindsey testified that the $10,000 payment was for the option to purchase the business later. Lindsey admitted to taking possession of Festival Foods, receiving income, purchasing inventory, and paying expenses. Nevertheless, the Naffzigers returned the truck and trailer to the Jannusches, because the income was lower than expected. After a bench trial, the court applied the Uniform Commercial Code (UCC), concluding that the contract was for a sale of goods. The trial court held for the Naffzigers on the ground that, though a contract was formed, there was insufficient evidence of a meeting of the minds. The Jannusches appealed.
Rule of Law
Holding and Reasoning (Cook, J.)
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