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Petroleum Refractionating Corp. v. Kendrick Oil Co.

United States Circuit Court of Appeals for the Tenth Circuit
65 F.2d 997 (1933)


Kendrick Oil Company (Kendrick) (defendant) agreed to purchase a certain amount of oil from Petroleum Corporation (plaintiff). Under the terms of the contract, Petroleum could cancel any unshipped portion of the oil order if it stopped making that particular grade of oil. After receiving a portion of its order, Kendrick notified Petroleum it would not accept any further deliveries. Petroleum sold the remaining undelivered oil to another party. Petroleum sued Kendrick for breach of contract, seeking the difference between the contract price and the resale price of that oil. The trial court found that there was no consideration for Kendrick’s promise to purchase the oil and entered a demurrer in favor of Kendrick. Petroleum appealed.

Rule of Law


Holding and Reasoning (Phillips, C.J.)

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