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Rehm-Zeiher Co. v. F. G. Walker Co.
Court of Appeals of Kentucky (1913) | 156 Ky. 6; 1913 Ky. LEXIS 380; 160 S.W. 777
TL;DR: A whiskey buyer sued a distiller for non-delivery. The court found their agreement unenforceable because a clause allowing the buyer to cancel for any "unforseen reason" made its promise to buy illusory, thus the contract lacked mutuality of obligation.
Legal Significance: This case establishes that a contract is unenforceable for lack of mutuality when one party's promise is illusory, giving that party unfettered discretion to perform. Such an agreement does not create a binding obligation on either party.