Brief Fact Summary. An individual was granted the right to provide all concessions to a sporting arena. At the time of the contract, the arena did not allow the sale of alcohol, but the contract provided the individual with the right to sell alcohol if the ban was ever lifted. The ban was lifted, but the individual refused to sell alcohol.
Synopsis of Rule of Law. Language can be construed as a condition if the parties' "intent and object" requires such treatment.
Issue. Was there an implied condition in the contract requiring the Plaintiff to obtain a license to sell alcoholic beverages?
Held. Yes, "[t]he reasonable efforts and diligence required of plaintiff to bring profits and revenues into existence imposed upon him the duty to apply for a license to sell beer and ale." The court observed that the contractual language required the Plaintiff to perform all services provided for in the contract, including the sale of alcoholic beverages if and when the ban was lifted. This is manifest by the by "[t]he intent and object of the parties and the result which they intended to accomplish by its performance." The court observed "[the Plaintiff's] promise to pay defendant commission a percentage of the gross receipts resulting from the exclusive agency was a promise to use reasonable efforts to bring profits and revenues into existence." Further, "[i]t was indispensable to defendant commission that plaintiff having the exclusive right to sell should use all diligence to the end that sales be made of the specified items including beer and ale."
The promise to pay the defendant one-half of the profits and revenues resulting from the exclusive agency and to render accounts monthly was a promise to use reasonable efforts to bring profits and revenues into existence.View Full Point of Law