Opinion ID: 1709084
Heading Depth: 1
Heading Rank: 16

Heading: Mutuality of Service Requirements Agreement

Text: Contention is made that the service requirements agreement is lacking in mutuality. The point is not well taken. The service requirements agreement clearly has mutuality of consideration and, since the contract is executory on both sides, mutuality of obligation. It contains several agreements on the part of each of the parties thereto. The primary obligation of the Department is to process for Henderson at the plant facilities all sugar that Henderson submits for processing, not exceeding the capacity of the plant facilities. Henderson's principal obligations under the agreement are the obligation to present its requirements of sugar for processing at the plant facilities and the obligation to pay the Department substantial cash sums, including certain amounts that will be payable whether or not Henderson continues to have sugar processing requirements, and certain additional amounts measured by the quantity of sugar processed for Henderson. A binding contract arises from those obligations. See: Hill v. Rice, 259 Ala. 587, 67 So.2d 789; Sherrill v. Alabama Appliance Co., 240 Ala. 46, 191 So. 1; Alabama City G. & A. R. Co. v. Kyle, 202 Ala. 552, 81 So. 54; Evans v. Cincinnati, Selma & Mobile Railway Company, 78 Ala. 341.