Third Circuit Strictly Interprets Requirement ContractsBy email@example.com on 07/09/2020
Cedar Grove, New Jersey – July 9, 2020
The Third Circuit Court of Appeals recently issued a precedential opinion interpreting requirements contracts under New Jersey law. In Mid-American Salt, LLC v. Morris County Cooperative Pricing Council,* the court considered a contract for bulk rock salt at negotiated prices. The contract called for Mid-American Salt (“Mid-American”) to supply rock salt to the members of Morris County Cooperative Pricing Council (“Co-op”) and included a schedule of the members’ estimated needs. Although some members purchased from Mid-American, many members bought no rock salt at all, while others bought from Mid-American’s competitors.