Pennsy Supply, Inc. v. American Ash Recycling Corp. of Pennsylvania

Under its paving contract with a local high school, Pennsy Supply (plaintiff) needed a base aggregate material and was notified that American Ash Recycling (defendant) would supply its "AggRite" product for free, which allowed American Ash to avoid its own costs of disposing of the material; Pennsy collected and used the AggRite to complete the paving project, but a year later the pavement developed defects traced to the material, and when American Ash refused Pennsy's request to remove and dispose of it, Pennsy sued. The trial court sustained American Ash's demurrer, finding the contract lacked consideration since Pennsy never understood it was helping American Ash avoid disposal costs, and Pennsy appealed.