Shaw v. Mobil Oil Corp.

535 P.2d 756 (1975)

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Shaw v. Mobil Oil Corp.

Oregon Supreme Court
535 P.2d 756 (1975)

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Facts

In 1972, Shaw (plaintiff) and Mobil Oil Corporation (Mobil) (defendant) entered into a contract. The contract stipulated that Mobil must provide the amount of gasoline requested by Shaw up to 500,000 gallons per year. Additionally, Shaw was to pay rent at a rate of 1.4 cents per gallon with a minimum rental of $470 a month. The contract also provided that Mobil would be excused from performance because of compliance with the request of a governmental agency. In 1973, Shaw ordered 34,000 gallons of gasoline. At the same time, the Federal Energy office requested that Mobil allocate Mobil’s existing gasoline supply among all of Mobil’s dealers and Mobil was only able to deliver 25,678 gallons to Shaw. Shaw filed a motion seeking a declaratory judgment that under the circumstances Shaw was not obligated to pay the minimum monthly rental. The trial court held that Shaw was required to pay rent in part because Mobil’s performance was excused. Shaw appealed.

Rule of Law

Issue

Holding and Reasoning (Denecke, J.)

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