Terry Barr Sales Agency, Inc. v. All-Lock Company, Inc.

Citation. 96 F.3d 174 (6th Cir. Mich. 1996)

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Citation96 F.3d 174 (6th Cir. Mich. 1996)

Brief Fact Summary.

Terry Barr Sales Agency, Inc. (Barr) sued All-Lock Company, Inc. (All-Lock) when All-Lock terminated an oral agreement and refused to pay post-termination commissions after 90 days.

Synopsis of Rule of Law.

A court should consider employment contracts and the intention of the parties to determine whether a party is entitled to sales commissions made by anyone other than the agent.

Points of Law - Legal Principles in this Case for Law Students.

Where the parties have an enforceable contract and merely dispute its terms, scope, or effect, one party cannot recover for promissory estoppel and unjust enrichment.

View Full Point of Law

All-Lock Company, Inc. (All-Lock) entered into an oral agreement with Terry Barr Sales Agency, Inc. (Barr) where Bar would sell All-Lock’s products to automobile manufacturers in exchange for commission. 21 years later, All-Lock terminated the oral agreement with Barr and refused to pay post-termination commissions after 90 days and Barr sued for breach of contract.

Issue.

Whether a court should consider employment contracts and the intention of the parties to determine whether a party is entitled to sales commissions made by anyone other than the agent?

Held.

Yes. The district court’s judgment is reversed. Barr’s claims are reinstated because Barr and All-Lock did not expressly agree to and the facts do not stipulate whether Barr would be entitled to post-termination commissions.

Discussion.

An agent is entitled to sales commissions for any sale where the agent was the cause of purchase.