A dairy farm operated a small processing plant that supplied premium ice cream to nearby specialty shops and ice cream parlors.
It entered into a written agreement with a local ice cream parlor to sell "all output" of its Extra Rich ice cream to the ice cream parlor, and the ice cream parlor agreed to sell exclusively the dairy farm's Extra Rich frozen desserts. The agreement stated that the ice cream parlor would pay $25 for each five-gallon container of Extra Rich ice cream that it ordered from the dairy farm. Several months after the parties entered into this contract, demand for high-fat ice creams dropped sharply among the health-conscious consumers who had formerly patronized the ice cream parlor, and the proprietor had to throw out some of its product because the reduced demand meant that opened containers were not used up before the taste of the ice cream became affected. The ice cream parlor wanted to stop selling the dairy farm's Extra Rich ice cream and instead sell a frozen yogurt product produced by another dairy.Can the dairy farm enforce its agreement against the ice cream parlor?
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