Pizza of Gaithersburg and The Pizza Shops contracted with Virginia Coffee Service to have vending machines installed in each of their pizza establishments. One year later, the Macke Company purchased Virginia's assets, and the vending machine contracts were assigned to Macke.
When The Pizza Shops attempted to terminate their contracts for vending services, Macke brought suit for damages for breach of contract. The Pizza Shops argued that they had dealt with Macke before but had chosen Virginia because they preferred the way it conducted its business.
They contended that because there was a material difference between the performance of Virginia and that of Macke, they were justified in refusing to recognize Virginia's delegation of its duties to Macke. Who should prevail?