American Machinist

Contract language too vague to enforce.(Law & Liability)

Universal Scrap Metals Inc. v. J. Sandman and Sons Inc., 786 N.E. 2d 574 (III. App. 2003), Appellate Court of Illinois, February 28, 2003

UNIVERSAL SCRAP METALS INC. AND J. Sandman & Sons Inc. (S&S) were both in the business of buying and reselling nonferrous scrap metals. On July 6, 1996, Universal and S&S signed an agreement under which Universal was to provide S&S with a line of credit for use in buying scrap metal, and S&S was to sell its nonferrous scrap metal to Universal. Paragraph six of the agreement stated that if the principals of S&S decided to sell the business, Universal would have the "right of first refusal" to buy, manage, or operate S&S's business "under mutually agreed upon conditions. …

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