Otis F. Wood, Appellant, v. Lucy, Lady Duff-Gordon, Respondent, 222 N.Y. 88

Summary

An agreement existed between the fashion designer and the marketer, which gave the marketer authority to make sales and advertising decisions. Essentially, the marketer had the power to license the fashion designer's products to other marketers. The fashion designer subsequently marketed her own products but did not share in the obtained revenue. The marketer filed a lawsuit for breach of contract and damages resulting from the lost profits. The trial court denied the fashion designer's motion for judgment on the pleadings, which was reversed on appeal. On final appeal, the court affirmed the ruling of the trial court, holding that an implied contract existed between the parties. Specifically, the marketer's implied promise to faithfully market the designer's products amounted to fair consideration creating performance obligations by both parties.