Question: Senna Hills, Ltd., granted Southern Union Co. the right to distribute propane in a residential subdivision developed by Senna in exchange for a fee. Under

Senna Hills, Ltd., granted Southern Union Co. the right to distribute propane in a residential subdivision developed by Senna in exchange for a fee. Under their agreement, Senna’s “ right to receive a Fee shall continue for so long as the Propane System is owned by Southern Union.” The agreement also allowed Southern Union to assign the distribution right. Later, Sonterra Energy Corp. bought the distribution system and was assigned the distribution right, but did not pay the fee to Senna. Did Sonterra breach the propane service agreement? Why or why not?

Step by Step Solution

3.45 Rating (145 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

No When the rights under a contract are assigned unconditionally the rights of the assignor are exti... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

311-L-B-L-C (1197).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!