Miami Coca-Cola Bottling Co. v. Orange Crush Co.
United States Court of Appeals for the Fifth Circuit
296 F. 693 (1924)
Miami Coca-Cola Bottling Co. (Miami Coca-Cola) (plaintiff) entered into a license agreement with Orange Crush Co. (Orange Crush) (defendant) whereby Miami Coca-Cola would purchase concentrate from Orange Crush and use it to manufacture, bottle, and distribute a drink trademarked under Orange Crush. In addition to providing its concentrate to Miami Coca-Cola at specified prices, Orange Crush was to provide some advertising support. The license term was perpetual, but the agreement provided that Miami Coca-Cola could cancel it at any time. Approximately one year into the contract term, during which Miami Coca-Cola had purchased concentrate from Orange Crush and was in the process of manufacturing the drink, Orange Crush gave notice that it would not be bound by the contract any longer. Miami Coca-Cola sued Orange Crush, seeking specific performance of the agreement. The district court ruled that the contract was void because of lack of mutuality. Miami Coca-Cola appealed.
Rule of Law
Holding and Reasoning (Bryan, J.)