Legal Question in Business Law in Pennsylvania
Law
Monsanto manufactured S-54 Astro Turf used on playing fields. It often had annual remnants of 100,000-300,000 square feet, which it sold to others. The Major Mat(MM) Company was formed to make golf tee mats out of it. When MM placed several orders, Monsanto called to find out what the company was doing. MM refused to say, but did inquire whether Monsanto would enter into a contract for the purchase of all of its remnants. MM was told it would have an unending supply. MM said that it hoped Monsanto would not make its own mats; Monsanto said not to worry, that it was a supplier of products, not a fabricator. Three years later Monsanto formed a subsidiary which produced artificial turf products including golf tee mats. Monsanto greatly increased the price of the turf to MM, so that Monsanto's mats would be much cheaper. MM sued Monsanto for breach of contract. Was there a contract? Why?
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Re: Law
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