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Contracts Keyed to Whaley
Laclede Gas Co. v. Amoco Oil Co.
Citation:
United States Court of Appeals, Eighth Circuit, 1975. 522 F.2d 33.Facts
The Laclede Gas Company (Plaintiff) entered into a natural gas distribution agreement with Amoco Oil Company (Defendant). The agreement was designed to provide propane gas distribution systems to various residential developments, and individuals or developers would apply to plaintiff for the system, and defendant would supply the gas. The contract automatically renewed for one-year periods unless plaintiff provided defendant with 30 days of written notice before the expiration of a one-year period. The contract did not grant defendant a right of termination under the contract. Defendant later notified plaintiff that the price of its propane had increased by three cents per gallon, and upon plaintiff’s rejection of such increase, defendant terminated the agreement due to lack of mutuality.
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