DuPont Loses Bid to Enforce Supply Contract

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A state judge denied E.I. du Pont de Nemours & Co.'s request to enforce a supply contract that Bayer CropScience canceled, threatening DuPont's supply of chemicals used in its Require and Resolve corn herbicides.

Vice Chancellor Stephen Lamb of the Delaware Chancery Court refused to grant an injunction requiring Bayer to carry through on its shipping commitment. Bayer claimed du Pont breached the contract by introducing a new product line that exceeds the scope of its license and violates the terms of the supply agreement.

But DuPont maintained that it never breached the contract, and asked the court to prevent Bayer from cutting off its chemical supply.

Concluding that the wording of the contract favors Bayer's interpretation, Vice Chancellor Lamb refused to issue the injunction.

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