contracts.......

Barclay and Company, retail merchants of soap, had, for several years, sold the product of the Bubble Soap Company in large quantities. On January 4, 1940, they received from the Bubble Soap Company the following letter: "We appreciate your large orders of Bubble Soap. As long as you continue to order from us an average of 500 cases monthly, we will grant you the exclusive right to distribute our soap in Kansas City. This exclusive agency is to continue for five years, subject to renewal." Barclay and Company continues to order Bubble Soap in lots averaging more than 500 cases, but on May 19, 1940, the Soap Company informed them that they intended to transfer the agency rights to the Phoenix Department Store. Barclay and Company sued for breach of contract. The Soap Company maintained that there was no consideration for their agreement. What is your opinion? Why