
In Kiekert de Mexico S.A. de CV v. Brose Jefferson, Inc., another federal court in Michigan relied on the 2023 Airboss ruling regarding “release-by-release” agreements in an order allowing an auto parts supplier in Mexico to reject order-by-order purchase releases from a Michigan purchaser, finding that the “needs” of the buyer under the parties’ agreement were too vague to meet the statute of frauds.
At the heart of this issue is what amount of specificity exactly is required to spell out a “requirements contract,” which is enforceable under the statute of frauds and cannot be terminated on an order-by-order basis. In the absence of sufficient specificity, a release-by-release agreement allows either party to walk away from the “blanket” or “umbrella” supply agreement except as to specific release orders that are issued and accepted.
Continue Reading Another Michigan Auto Parts Agreement Terminated Under Release-By-Release Doctrine