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23 September, 07:15

American Bakeries had a fleet of over 3,000 delivery trucks. Because of the increasing cost of gasoline, the company was interested in converting the trucks to propane fuel. It signed a requirements contract with Empire Gas, in which Empire would convert "approximately 3,000" trucks to propane fuel upon American Bakeries' potential request, and would then sell American Bakeries all required propane fuel to run the converted trucks. American Bakeries never requested a single conversion. Empire sued for lost profits. Who wins?

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  1. 23 September, 08:31
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    American bakeries will win

    Explanation:

    In the given case the American bakeries will win.

    It is given in the question that the contract between the American Bakeries and the Empire is a requirement contract.

    The requirement contract not necessarily means that the two parties will have the trade.

    Therefore,

    The American Bakeries does not require any purchase from the Empire
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