Brooklyn Bagel Boys, Inc. v. Earthgrains Refrigerated Dough Products, Inc.
United States Court of Appeals for the Seventh Circuit
212 F.3d 373 (2000)
Earthgrains Refrigerated Dough Products, Inc. (Earthgrains) (defendant) contracted with Brooklyn Bagel Boys, Inc. (Brooklyn) (plaintiff) to manufacture bagels under the Earthgrains name at set prices, with Earthgrains providing only non-binding quarterly order forecasts and no obligation to purchase any specific quantity. The parties performed under this arrangement until Earthgrains began manufacturing its own bagels in 1997, and Brooklyn sued for breach of contract, arguing Earthgrains had a requirements-contract obligation to keep buying from Brooklyn. The district court granted Earthgrains summary judgment, and Brooklyn appealed.
Whether a buyer's option contract is a type of firm offer providing that a seller will supply the buyer's needs at a specified price, distinct from a binding requirements contract.