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Contracts Keyed to Summers
Baehr v. Penn-O-Tex Oil Corp.
Citation:
258 Minn. 533, 104 N.W.2d 661Facts
Baehr (plaintiff) leased several gas stations to Kemp pursuant to written leases. Kemp later became indebted to Penn-O-Tex Oil Corporation (“Penn-O-Tex”) (defendant) and assigned his accounts receivable (including the gas stations) to Penn-O-Tex. Kemp informed Baehr that Penn-O-Tex had his assets tied up. Baehr wrote to Penn-O-Tex to inquire about what he had to do to get his rent checks. Penn-O-Tex replied stating that it was assisting Kemp in keeping the business going, but was not responsible for the operation of the gas stations. Baehr reached out again to Penn-O-Tex, who replied that they would see to it that Baehr received his rents. Baehr never received any rents from Penn-O-Tex. Baehr sued Penn-O-Tex to recover the rents.
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Topic Resources
Topic Outline
Formation of ContractsTopic Refresher Course
Consideration and Promissory Estoppel