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Contracts Keyed to Calamari
Western Oil Sales Corp. v. Bliss & Wetherbee
Facts
The Plaintiff in error, Western Oil Sales Corp. (the "Plaintiff in error"), entered into a contract on March 7, 1923 with McCamey, Sheerin & Dumas (the "Partnership"), to sell and deliver the oil covered by certain leases. The Partnership agreed to gather its lines and connect certain oil tanks with the Plaintiff's tanks and pay the market price for oil plus a 25 cent premium per barrel. The Plaintiff in error then assigned the parties' contract to American Oil Company ("American"). American assumed all of the Plaintiff in error's obligations and rights. The Plaintiff in error notified the Partnership of the assignment and insisted that the partnership look to American "for their pay for all future deliveries of oil under the contract of sale". Additionally, the Plaintiff in error "disclaim[ed] and renounc[ed] all liability on the part of said corporation for any future deliveries of oil under the contract." American demanded the Partnership to continue making deliveries of oil under the contract to it. The Partnership refused to continue making deliveries unless the Plaintiff in error recognized its liability under the contract, which it refused to do. The Partnership conveyed – treating the initial March 7, 1923 contract as terminated – its leaseholds to the Defendants in error, Bliss & Wetherbee (the "Defendants in error"), and "assigned to them all their rights and claims against the Western Corporation growing out of the contract of sale in question." The Defendant in error then brought suit against the Plaintiff and error "for damages resulting from its alleged breach of said contract of sale in repudiating its liability under the contract". The trial court granted the Defendants in error $4,420.25.
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