Sylvan Crest Sand & Gravel Co. v. United States
United States Court of Appeals for the Second Circuit
150 F.2d 642 (1945)
Sylvan Crest Sand & Gravel Company (plaintiff) contracted with the United States (defendant) to deliver trap rock "as required," with the government retaining an unrestricted right to cancel at any time; when the government neither accepted nor requested delivery within a reasonable time, Sylvan sued, and the government moved for summary judgment, arguing its unrestricted cancellation right made its promise illusory and thus no enforceable contract existed. The district court granted the government's motion, and Sylvan appealed.
Whether an unrestricted power of cancellation constitutes an illusory promise where a reasonable time limit is understood by the terms of the contract.