Standard Oil Co. v. Petroleum Products Storage Co.

Defendant is a local distributor of gasoline at Memphis. It contracted, in May, 1927, with complainant for gasoline over a one year period, the amount of 300,000 gallons originally named, being later increased to 1,000',000'. The price was thus fixed by the contract:

“For the Navy Gasoline delivered hereunder, the ‘Purchaser’ shall pay the ‘Seller’ on the basis of the ‘Seller’s’ tankwagon price (exclusive of tax) for ‘Standard’ Gasoline in effect at Memphis, Tenn., on the date of each shipment, less a discount of three decimal sixty cents (3.60c) per gallon; except that it is understood that…