Macke Co. v. Pizza of Gaithersburg, Inc.
259 Md. 479, 270 A.2d 645 (Md. 1970)
Gaithersburg
had contracted with Virginia Coffee Service to provide their restaurants
with beverage machines for five years.A year later, Virginia was bought out by Macke.
Gaithersburg canceled the contract.Macke sued.
The
Trial Court found for Gaithersburg, Macke appealed.
The
Trial Court found that Virginia's reputation was a key reason
Gaithersburg contracted with them.Macke did not have that reputation, so the contract had
fundamentally changed.
Gaithersburg
had considered Macke for the initial contract, but chose to contract
with Virginia instead.
The
Court also found that damages could not be estimated since this was
a requirements contract.
The
Appellate Court reversed and remanded for trial.
The
Appellate Court found that in the absence of a contrary provision, rights
and duties under and executory bilateral contract may be assigned and
delegated, with two exceptions:
Contracts
to provide personal services.
Contracts
where delectus personae is an
element.
Literally
"choice of partners".
The
case was remanded for trial to determine damages.
In
order for Gaithersburg to prevail, they would need to show that there is a
material difference in the
contract.It's a very
objective test.
Compare
to Fursmidt v. Hotel Abbey Holding Corp., which talks about objective vs. subjective standards.
You
can theoretically put a provision into a contract saying that the rights
are not assignable.But it's
generally not a good idea to sign away that right, so it's pretty rare.