Logourl black
From our private database of 14,000+ case briefs...

Texaco, Inc. v. Pennzoil, Co.

Court of Appeals of Texas
729 S.W.2d 768 (1987)


Facts

The board of the Getty Oil Company (Getty) determined that it would sell three-sevenths of Getty stock to Pennzoil Company (Pennzoil) (plaintiff). The board members signed a memorandum of agreement with respect to the transaction. There was also a transaction agreement in progress that would formally memorialize the agreement. The parties had agreed to all essential terms of the contract, leaving only details and mechanics of the transaction to be formally drafted. Texaco became aware that Getty was unhappy with the terms of its agreement with Pennzoil. Texaco offered Getty a deal with better terms. Getty accepted the offer, thus breaching its agreement with Pennzoil. Pennzoil brought suit against Texaco for intentional interference with a contractual relationship. The jury found in favor of Pennzoil, finding specifically that there was a binding agreement between Getty and Pennzoil and that Texaco had induced Getty’s breach, causing Pennzoil substantial damages. Texaco appealed, arguing that a binding contract did not exist and that, even if it did, Texaco was unaware of the binding nature of the agreement and did not induce Getty’s breach.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision.

To access this section, please start your free trial or log in.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question.

To access this section, please start your free trial or log in.

Holding and Reasoning (Warren, J.)

The holding and reasoning section includes:

  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, please start your free trial or log in.

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 173,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.