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Laclede Gas Co. v. Amoco Oil Co.

United States Court of Appeals for the Eighth Circuit
522 F.2d 33 (8th Cir. 1975)

Facts

Laclede (plaintiff) and Amoco (defendant) entered into a natural gas distribution agreement. Individuals or developers would apply to Laclede for gas systems, which would request Amoco to supply the gas. The contract automatically renewed for one-year periods unless Laclede gave Amoco 30 days of written notice before the expiration of a one-year period. The contract did not grant Amocco a right of cancellation under the contract. Amoco later notified Laclede that its price of propane had been increased by three cents per gallon. Laclede objected to this increase and demanded a full explanation. Instead, Amoco sent a letter informing Laclede that it was terminating the agreement because the agreement lacked mutuality. The district court found that the contract was void for lack of mutuality because Amoco did not have a right to cancel. Laclede appealed.

Rule of Law

Issue

Holding and Reasoning (Ross, J.)

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