Sun Printing & Publishing Association v. Remington Paper & Power Co., Inc.
Court of Appeals of New York
139 N.E. 470 (N.Y. 1923)
The plaintiff and defendant entered a 16-month paper-supply contract with a fixed price for the first four months, after which the price and the length of time it would apply for the remaining twelve months were to be agreed upon later, capped at the price charged by a third-party paper company, Canadian Export Paper. Both parties performed for the first four months, but no agreement on the new price or its applicable time period was ever reached, and the defendant then stopped delivering paper; the plaintiff sued, arguing Canadian Export's price automatically applied by default.
Whether a sales contract calling for the parties to agree on the price and length of time the price will apply in the future is binding if the parties never subsequently agree on those terms.