Opinion ID: 2314437
Heading Depth: 1
Heading Rank: 8

Heading: Validity of the Contract

Text: The first inquiry is whether the Commonwealth Court erred in determining that the Empire and Danella contract is enforceable and hence protected under the Contracts Clause. DER asserts that the contract is not valid because it contains no element of mutual consideration, i.e., it is not a valid requirements contract. Here, Empire and Danella exchanged promises and have changed their position in reliance upon the contract. While Danella is not required by the contract to deliver a minimum amount of waste to Empire, one cannot, therefore, conclude that Danella, under the terms of the contract, is not required to deliver any waste. [18] Further, Empire has agreed to leave a certain amount of landfill space available for Danella's disposal needs. Accordingly, the Commonwealth Court did not err in concluding that the contract is valid.