Smith Service Oil Co., Inc. v. Parker

Phipps, Judge.

Smith Service Oil Company, Inc. sold a service station to Gregory Parker for $1,000,000. The real estate sales contract contained a clause providing that, at the closing, the parties would enter into a supply contract whereby Parker would purchase gasoline for the station from Smith for ten years at a cost of one cent per gallon above Smith’s cost. Approximately two months after the closing, Parker’s attorney sent a proposed supply contract to Smith, but it was never executed. Nonetheless, Parker purchased gasoline for the station from Smith for approximately 18 months. When…