Question
A homebuilder entered into an agreement with a lumberyard, whereby the homebuilder agreed to purchase from the lumberyard all of the framing lumber and plywood
A homebuilder entered into an agreement with a lumberyard, whereby the homebuilder agreed to purchase from the lumberyard all of the framing lumber and plywood necessary to construct 25 single-family homes over a period of 12 months. The homebuilder's daughter is in the business of renting trucks. The homebuilder therefore included in the contract a clause by which the lumberyard promised, during the term of the contract, to rent all of the trucks needed for its lumberyard operations from the daughter. During the construction of the first 10 houses, the homebuilder purchased the required lumber from the lumberyard and the lumberyard rented all of the trucks that it used from the daughter. Because the daughter owns a limited number of trucks, she turned away several potential customers so that she would have enough trucks available to meet the lumberyard's needs. When the homebuilder began construction of the next five houses, she learned that a rival supplier had a special price on plywood, so she purchased the plywood for construction of those houses from the rival. When the lumberyard learned of the homebuilder's purchase from its rival, it returned all of the rented trucks to the daughter and rented a new group of trucks from another truck rental company. If the daughter brings suit against the lumberyard for its failure to continue renting trucks from her, will she prevail?
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