Liscomb v. Twinwood, Inc.

Plaintiff and defendant entered into an agreement for the sale of plaintiff’s patent rights in a catch-basin cleaner. Among other considerations, defendant agreed to pay plaintiff in the event of a Canadian sale of the rights, 12-1/2% of the net proceeds up to the amount of $12,500. A supplemental agreement provided that plaintiff was to receive $10,000 at the rate of $150 per month in the event that no Canadian sale was consummated. Upon such a sale, however, the parties would resort to the original formula clause.

When the basin cleaner proved less productive than originally anticipated,…