Toll Processing Services Llc V. Kastalon Inc Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Toll Processing Services Llc V. Kastalon Inc Case Solution

Facts:

Toll processing was planning to reinstall the second-hand pickle line to another place but it did not have a facility. Until Toll processing didn’t issue a purchase order to Kastalon; ithad agreed to transfer the pickle rolls to its facility and stock them without charging any price. It transferred pickle rolls to its place over a period of 3-months, but then didn’t have any further contact with Toll processing for two years. Kastalon believed that Toll processing was not interested in business, Kastalon eventually scrapped the rolls and $6,300 from the recycler. The agreement on the basis of oral conversation came under Illinois law.(Find law for legal professionals, 2018)

Issues:

Is it legal to start operation on other’s property without having a written contract?
Does an individual have permission to sell another’s a property without having the consent of the owner?

Rule (Statement of Law):

As per Illinois law, oral agreements are enforceable “so long there is an offer, an acceptance and a meeting of the minds as to the terms of agreement”. To be enforceable, such an oral agreement must be definite to its material terms.
To claim for conversion under Illinois law: a plaintiff must allege:

An unofficial and wrongful assumption of the controller by the respondent over the complainant’s personality.
Complainant’s right on the stuff.
Complainant’s right to the ownership of the stuff.

Application:

The parties do not dispute over the matter that the duration of Kastalon’s obligation to store the rolls was a material term of their agreement; their dispute relates to the length of the duration.This shows that both parties do not have a mutual understanding regarding the duration of the storage movement.

The evidence was not sufficient to allow the court to decide that Toll processing was intended on abandoning the roll. The fact that Toll processing did not make any contact with the Kastalon about the roll did not reflect abandonment as a matter of law.

Conclusion:

Yes, for question 1, because it is clearly stated in the law that oral agreements are enforceable,but it must have a specific duration and consideration from both the sides.

No, for question 2 because unless there is an indication from the owner regarding the abandonment of property; no person is allowed to sell or misuse their property...........................

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