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Wagner Excello Foods, Inc. v. Fearn International, Inc.

Illinois Appellate Court
601 N.E.2d 956 (Ill. App. 1992)


Wagner Excello Foods, Inc. (plaintiff) entered into an agreement with Fearn International, Inc. (defendant) to manufacture fruit drink concentrates over a period of five years. The agreement included minimum quantities of the concentrate that the defendant was required to purchase each year. The agreement also included an exclusivity clause, an indemnity clause, and an insurance clause, among other things. However, the agreement did not establish a price for the concentrate. The agreement stated that the parties would review the price every four months, at which time the plaintiff could change the price, but only if the defendant agreed to the change. The agreement provided that if the parties could not agree on a price, the agreement would terminate 30 days after the end of that particular four month period. The plaintiff brought suit for breach of contract. The defendant filed a motion to dismiss, arguing that there was no contract and that the agreement was merely an agreement to agree because it did not include a price. The trial court granted the motion. The plaintiff appealed.

Rule of Law


Holding and Reasoning (Egan, J.)

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