This section contains the nature of the case and procedural background.

Sharman (D) had a contract to coach the Los Angeles Stars. The contract included a provision for a pension and gave D an option to purchase a percentage of the team. No specifics were ever reached regarding the option and the pension plan. The team was sold to Mountain States Sports. Mountain States was not obligated to assume the Sharman contract unless he agreed to move with the team. D did move to Utah and won the ABA championship in 1971. D resigned as coach of the Stars and contracted to coach the Los Angeles Lakers. Mountain States declared bankruptcy, and Eckles (P), the trustee, sued D and the Lakers (D1) for breach of contract and for inducing a breach. D claimed that the Stars contract was invalid because of the lack of agreement on the pension and option clauses. A directed verdict was given to P; those provisions were not material and did not invalidate the contract. Both defendants appealed.

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