BRC Rubber & Plastics, Inc. v. Continental Carbon Company

Continental Carbon (defendant) agreed to supply BRC Rubber & Plastics (plaintiff) with roughly 1.8 million pounds of rubber-manufacturing material annually, and the agreement gave Continental a right of first refusal if BRC found a cheaper price elsewhere. Continental shipped 2.6 million pounds the first year but struggled to keep up the next year, leaving one of BRC's orders unfilled; Continental believed shipping roughly 1.8 million pounds satisfied its obligation, while BRC argued the 1.8-million figure was just an estimate and Continental had to fill every order. BRC sued for breach, the trial court agreed the agreement was a requirements contract obligating Continental to supply everything BRC needed, and Continental appealed.

Whether an agreement qualifies as a requirements contract when one party is not obligated to purchase all of its needs for a good exclusively from the other party.