Plaintiff appealed the judgment of the Superior Court of Los Angeles County (California), which found in defendant’s favor in an action on a contract.
California Business Lawyer & Corporate Lawyer, Inc. explains Labor Code 970
Overview
Plaintiff entered into an agreement with defendant. As long as plaintiff purchased from defendant all of defendant’s warehouse receipts that it required and sold, exploited them in California, and refrained from selling or exploiting receipts from any other distillery, defendant would sell receipts in California to only one other person. Thereafter, plaintiff brought an action for breach of contract. A general demurrer to plaintiff’s first amended complaint was sustained without leave to amend, and judgment was entered for defendant. On appeal, the judgment was reversed. The contract did not restrain anyone from exercising a trade or business of any kind within the purview of Cal. Civ. Code § 1673. The contract was not fatally uncertain because of the omission of a price where plaintiff was required to pay a reasonable price. The contract was also not void for failing to state a duration. Its terms provided that as long as the plaintiff purchased and continued to purchase, the contract remained in effect. The contract was complete and valid.
Outcome
The trial court’s judgment was reversed.
