Lunar Inc. had developed a mechanism that harnessed heat from the sun.
What the company lacked, however, was a method for storing the heat until it was needed. Trays-R-Us had developed a unique tray that appeared to solve this problem, so the parties entered into negotiations. It was agreed that Trays would sell the trays to Lunar at a set unit price per tray, for a term of one year. No particular sales volume for the year was agreed upon or guaranteed. After the trays were produced, however, Trays discovered that they leaked and were unable to hold any solar heat, owing to a design flaw that could not be fixed. As a result, Trays refused to fill any orders for the trays placed by Lunar. Lunar sued for breach of contract, alleging that there was an implied term in the contract that Trays would make trays available to Lunar as required. Does the business efficacy rule require that such a term be implied in the contract between Trays and Lunar? Do you think that such a term might have been left out on purpose? How can a business avoid having terms implied into a contract?