Parev Products Co. v. I. Rokeach & Sons
United States Court of Appeals for the Second Circuit
124 F.2d 147 (1941)
Relevant factsFree
Parev licensed its secret kosher shortening formula to Rokeach for 25 years in exchange for royalties, and after new competitor shortenings Crisco and Spry entered the market, Rokeach began distributing its own lower-priced Kea shortening, prompting Parev to sue for an implied covenant against any Rokeach competition, while Rokeach argued Kea targeted Crisco and Spry's market share rather than displacing the licensed product.
IssueFree
Whether courts are limited to considering the intent of the parties when determining whether to imply a contract term in light of changed circumstances.