Contracts Keyed to Dawson
Laclede Gas Co. v. Amoco Oil Co.
Plaintiff and Defendant formed a contract that Plaintiff agreed to buy and Defendant agreed to sell all the propane it needed to supply certain subdivisions in Jefferson County, Missouri. The price was to be the Wood River Area Posted Price. The contract also contained a clause allowing Plaintiff to terminate the contract after one year if Plaintiff so desired, and leaving that option open in the future. There was no such clause for Defendant. After some disagreements and problems, Defendant informed Plaintiff that Defendant would not supply propane for Plaintiff any more. Plaintiff sued Defendant. The trial judge ruled in favor of Defendant on the basis of lack of mutuality (consideration). The court claimed that since Plaintiff could rescind the contract at will, but Defendant could not, the contract was not binding. `
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