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Remedies Keyed to Kovacic-Fleischer, 8th
P.F.I., Inc. v. Kulis
Citation:
363 N.J. Super. 292, 832 A.2d 931 (2003)Facts
On October 1, 1991, defendant Nadezda Kulis and her husband Danilo executed a product sales agreement with plaintiff P.F.I., Inc., whereby plaintiff would supply Texaco gasoline to defendant’s service station for a five-year period. The contract required defendant to purchase a minimum of 2,000,000 gallons in substantially equal monthly quantities during that period. The agreement also provided for interest-free financing of $40,000 for station improvements, to be repaid at two cents per gallon from gasoline sales, and plaintiff later advanced an emergency loan of approximately $26,000 for environmental clean-up. Danilo died in 1994, and defendant closed the automobile repair portion of the business, causing gasoline sales to decline substantially. Defendant could no longer purchase the required quantities of gasoline and was unable to make anticipated loan payments. Defendant made partial payments through May 23, 1999, including a $20,000 payment. In January 2000, defendant purchased another brand of gasoline and commingled it with Texaco fuel, prompting plaintiff to cease delivery and demand full payment of the outstanding balance.
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