Miami Coca-Cola Bottling Co. v. Orange Crush Co.
United States Court of Appeals for the Fifth Circuit
296 F. 693 (1924)
Miami Coca-Cola Bottling Co. (plaintiff) entered a perpetual license agreement with Orange Crush Co. (defendant) to buy concentrate from Orange Crush and use it to manufacture, bottle, and distribute a trademarked drink, with Orange Crush also providing some advertising support. The agreement let Miami Coca-Cola cancel at any time. About a year in, while Miami Coca-Cola was actively purchasing concentrate and manufacturing the drink, Orange Crush gave notice it would no longer honor the contract. Miami Coca-Cola sued for specific performance, and the district court ruled the contract void for lack of mutuality; Miami Coca-Cola appealed.
Whether a contract is unenforceable for lack of mutuality when one party retains the unrestricted power to terminate it at will.