Texas Gas Utilities Co. v. S.A. Barrett

460 S.W. 2d 409 (1970)

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Nature of the Case

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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.