Opinion ID: 2994264
Heading Depth: 3
Heading Rank: 2

Heading: Did Earthgrains Breach the Termination

Text: Provision? In a separate argument, which bears more directly on its breach of contract claim, Brooklyn Bagel asserts that even if the parties did not enter a requirements contract, the Contract is ambiguous with respect to Earthgrains’ performance obligation under the termination notice provision. Brooklyn Bagel claims that the Contract obligated Earthgrains to continue ordering its bagel requirements from Brooklyn Bagel during the ninety-day termination notice period. According to Brooklyn Bagel, Earthgrains therefore breached the termination notice provision when it stopped ordering bagels for the Fort Payne facility from Brooklyn Bagel and began manufacturing its own bagels during the ninety-day notice period. The Contract, however, only required Earthgrains to provide Brooklyn Bagel with ninety-day written notice of termination. (Contract para.6.) There is no language contained within the termination notice provision itself, or the Contract as a whole, that obligated Earthgrains to order bagels from Brooklyn Bagel even during the ninety-day notice period, and Brooklyn Bagel has failed to show that the parties intended such a performance obligation in the face of the unambiguous terms of the Contract. Since Brooklyn Bagel does not dispute the adequacy or form of the notice provided, it has not established any breach of the Contract by Earthgrains and Earthgrains was entitled to summary judgment on the contract claim because there are no genuine issues of material fact for trial.