McMichael v. Price
Supreme Court of Oklahoma
58 P.2d 549 (Okla. 1936)
Sand dealer Price (plaintiff) contracted to buy "all the sand he could sell" from sand producer McMichael (defendant), who agreed to furnish qualifying sand while Price agreed to pay 60 percent of the market price for a ten-year term; both parties knew Price was already an experienced, successful sand salesman who had averaged over $500 in monthly profit for the nine months before the contract. When McMichael breached by failing to perform, Price sued and won a jury verdict, later reduced by remittitur to $5,012.51; McMichael appealed, arguing the contract lacked mutuality because Price was never truly bound to keep selling sand.
Whether mutuality of obligation exists when both parties to a contract have a limitation on their ability to cancel the contract solely according to their discretion.