D & N Boening, Inc., Appellant, v. Kirsch Beverages, Inc., et al., Respondents, 63 N.Y.2d 449

Summary

A beverage subdistributor obtained a contract with a beverage company to be the sole distributor of a particular beverage in a certain geographical area. The agreement between the subdistributor and the company was an oral agreement, and when the company was subsequently purchased by another corporation, the successor company unilaterally terminated the subdistributorship. The subdistributor filed suit, alleging breach of contract. The trial court denied the company's motion to dismiss the subdistributor's complaint, but the appellate division reversed, holding that the oral agreement was barred by the statute of frauds, N.Y. Gen. Oblig. Law § 5-701. The court held that the agreement was barred by the statute of frauds because the agreement could not be performed within one year of the date of its making, specifically because it could not be terminated without the breach of one of the parties. The court found the agreement was void because it was unwritten.