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It is not required that all terms of the agreement be precisely specified, and the presence of undefined or unspecified terms will not necessarily preclude the formation of a binding contract. The parties must, however, have progressed beyond the stage of "imperfect negotiation."
Plaintiff company sued defendant company, following the dissolution of a 17-year business relationship. In response, defendant counterclaimed, alleging a breach of contract claim based on an oral agreement between the parties. The jury returned a verdict in favor of defendant and awarded damages of $ 3.8 million. Plaintiff appealed alleging there was insufficient evidence from which a jury reasonably could have found the existence of an enforceable agreement.
Was there sufficient evidence from which a jury reasonably could have found the existence of an enforceable agreement?
On appeal, the court rejected plaintiff's arguments and affirmed. The parties had three agency contracts over the years which became renewable provided that defendant met its sales goal. Defendant always met its assigned goals. The court found an enforceable contract on the same or substantially similar terms as their three prior agreements.