Spitz v. Lesser

Plaintiff, inventor of a toy carrousel, entered into a contract with defendant on October 27,1948, whereby the latter, “Under an exclusive arrangement” with plaintiff, agreed to “ produce ” and make the toy “ for mass production *492sales to “ promote, market and ship same, under our own expense and by January 2, 1949, “ to have production samples * * * ready for market, complete with printed containers.” Defendant also agreed to pay plaintiff a royalty of 5% on the first $100,000 of net sales, 3% thereafter, and “ a Minimum for the first year —1949 — of. not less than ’ ’ $2,500; subject,…