2.99 See Answer

Question: A restaurant, Pizza of Gaithersburg Inc. (PG),

A restaurant, Pizza of Gaithersburg Inc. (PG), agreed with Virginia Coffee Service (VCS) to have vending machines installed in PG’s restaurants. The contract was to run for one year and was automatically renewable unless PG gave 30 days’ notice. One year later, VCS was sold to Macke Company, including the contract with PG. PG canceled the contract because of the change of ownership. Macke sued PG, claiming that VCS had delegated the duties to Macke and it was performing the duties previously done by VCS. PG claimed that the contract it had with VCS was a personal-service contract and was therefore not assignable. Does Macke Company have a valid argument? [Macke Co. v. Pizza of Gaithersburg, Inc., 270 A.2d 645 (Maryland)]
Principle of Law:


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