Opinion ID: 488109
Heading Depth: 2
Heading Rank: 1

Heading: Existence of a Requirements Contract.

Text: 25 Godfather's concedes that requirements contracts are valid and enforceable under Missouri law, see Mo.Ann.Stat. Sec. 400.2-306(1) (Vernon 1965), the governing law in this diversity case. Godfather's claims, however, that the alleged oral requirements contract was so lacking in its material terms that the court should have deemed the contract invalid for indefiniteness as a matter of law and granted its motion for judgment notwithstanding the verdict. Additionally, Godfather's notes that the July 14, 1983 letter allegedly memorializing the contract did not state that Universal was to be its exclusive supplier, but merely represented Godfather's intention to use Universal as a supplier for its deep dish needs. Godfather's thus asserts that exclusivity, an essential prerequisite to a valid requirements contract, is missing in this case. 26 In reviewing the district court's denial of Godfather's motions for a directed verdict and for j.n.o.v., 27 we consider the evidence in the light most favorable to [Universal], assume as true all facts that [Universal's] evidence tended to prove, and give [Universal] the benefit of all favorable inferences. We [will] not overrule the District Court if the evidence [is] susceptible of any reasonable inference sustaining [Universal's] position. See Crues v. KFC Corp., 729 F.2d 1145, 1148 (8th Cir.1984). 28 Williams v. Ryder/P.I.E. Nationwide, Inc., 786 F.2d 854, 857 (8th Cir.1986). 29 In its opinion, the district court addressed Godfather's claim that the contract must fail for indefiniteness, specifically discussing each allegedly missing term. The court concluded that under Missouri law, substantial evidence supported Universal's contention that a requirements contract existed. We agree that the evidence, viewed most favorably to Universal, supports this conclusion. 30 Moreover, although the July 14, 1983 letter did not expressly state that Universal was to be Godfather's exclusive supplier, the letter uses the words confirm and intention, indicating that Godfather's recognized that a contract had been reached between the parties. Further, even if the instant contract was somewhat ambiguous as to exclusivity, the uncontroverted prior course of dealings between Universal and Godfather's showed that Universal had been Godfather's sole and exclusive supplier of thin crust pans for three and one-half years. This evidence clearly distinguishes the case at bar from Propane Industrial, Inc. v. General Motors Corp., 429 F.Supp. 214 (W.D.Mo.1977), upon which Godfather's relies to support its claim that the contract herein must fail for lack of exclusivity. 1 31 In summary, we believe the evidence, when viewed most favorably to Universal, established the existence of an oral requirements contract. We therefore hold that the district court did not err in denying Godfather's motions for a directed verdict and for judgment notwithstanding the verdict. 32