TEXAS GAS UTILITIES CO. V. S.A. BARRETT
460 S.W. 2d 409 (1970)
NATURE OF THE CASE: This was an appeal from a denial of damages for a breach of contract.
Texas (P) sought review of the judgment which held in Barrett's (D) favor in P's suit for
minimum payments due under a contract between the parties.
FACTS: Barrett (D) contracted in writing to purchase natural gas from Texas Gas (P) to
run its water wells. The contract required P to pay annual fees based on the horsepower of
each engine at the water wells. A pipeline was built to service the engines. It cost
$100,000. D was evicted from the properties. P was obligated under the written contract to
supply gas unless one of the causes in the agreement came to pass. In this section of the
contract under the list of causes there was a statement that P had to 'endeavor to supply'
the natural gas, but P expressly disclaimed any obligations regarding quantity, quality, or
continuity of the service. D failed to make timely payments and P sued. The jury gave the
verdict to P but the trial court found that the contract was unenforceable; it lacked
mutuality of obligation. The court of appeals affirmed this ruling and P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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