Hughes Tool Co. v. United Artists Corp.

Plaintiff is a motion picture producer, and defendant a distributor. Defendant contracted to distribute a motion picture for plaintiff in various foreign countries. Defendant attempted to offset its collections for plaintiff’s account against the liability to defendant of another corporation. Special Term correctly held this to have been an unauthorized offset, and defendant to be chargeable with a breach of contract. The agreement required defendant either to hold plaintiff’s share in the box office receipts for plaintiff’s account in the currencies of twelve different countries where this…