Question
NationPoints Trucking, Inc., has a requirements contract with Oil & Gas Corporation that obligates Oil & Gas to supply NationPoints with all the gasoline it
NationPoints Trucking, Inc., has a requirements contract with Oil & Gas Corporation that obligates Oil & Gas to supply NationPoints with all the gasoline it needs for its vehicles for one year at $2.30 per gallon. A clause inserted in small print in the contract by NationPoints, and not noticed by Oil & Gas, states, "The buyer reserves the right to reject any shipment for any reason without liability." For six months, NationPoints orders and Oil & Gas delivers under the contract without any controversy. Then, because of a war in the Middle East, the price of gasoline to Oil & Gas increases substantially. Oil & Gas tells NationPoints it cannot possibly fulfill their contract unless NationPoints agrees to pay $2.50 per gallon. NationPoints, in need of the gasoline, agrees in writing to modify the contract. Later that month, NationPoints learns it can buy gasoline at $2.40 per gallon from Purified Fuel Company. NationPoints refuses delivery of its most recent order from Oil & Gas, claiming, first that the contract allows it to do so without liability, and second, that it is required to pay only $2.30 per gallon if it accepts the delivery. Discuss NationPointss contentions.
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