Ard Dr. Pepper Bottling Co. v. Dr. Pepper Co.

202 F.2d 372

 

RULE:

A provision for termination of a contract is valid, unless there is an absence of good faith in the exercise of the judgment. Such a stipulation may be a harsh one, or an unwise one, but it is valid and binding if entered into.

FACTS:

Appellant licensee brought an action against appellee licensor for the alleged wrongful, willful, and malicious breach of a bottler's license agreement. Appellee contended that it terminated the agreement in good faith based upon appellant's breach of terms and provisions of the agreement. The district court directed a verdict in favor of appellee.

ISSUE:

Was appellee licensor entitled to a directed verdict where there was substantial evidence that appellant violated the bottling agreement and appellee was justified in terminating the contract?

ANSWER:

Yes.

CONCLUSION:

The court affirmed the order. The court found that the district court exercised a reasonable discretion in excluding evidence on the ground that it was cumulative, repetitious and remote. The court also found that there was substantial evidence of breaches of the agreement by appellant where it failed to spend the required amounts for advertising.

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