Thursday, December 26, 2013

Shaw v. Mobil Oil Corp. case brief

Shaw v. Mobil Oil Corp. case brief summary
535 P.2d 756 (1975)

Plaintiff lessee sought review of the decision of the Circuit Court, Multnomah County (Oregon), which decided that the lessee had to pay to defendant lessor the minimum rental due under a retail dealer contract even though the lessor did not have to deliver the required gallons of gasoline.

On appeal the lessee contended that his promise to pay the minimum rental was a dependent promise and was conditioned upon the lessor's performance of it's obligation to deliver the quantities of gasoline ordered by the lessee.


  • The court agreed and reversed. 
  • The court held that it was apparent that the lessee undertook his obligation to pay a minimum rental in reliance on the lessor's fulfillment of its obligation to deliver the quantity of gasoline ordered. 
  • Therefore, the lessee's promise to pay was conditioned or dependent upon the lessor's delivery of the gasoline and when the lessor failed to deliver the gasoline ordered the lessee was not required to pay the minimum rental.
The court reversed the trial court's judgment that determined that the lessee had to have paid to the lessor the minimum rental.

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