SPECIFIC PERFORMANCE-UNCERTAINTY OF CONTRACT

Authors

Abstract

Bill for specific performance of a contract made with defendant's assignor. Defendant was the assignee of some leases, and took with notice of the contract with his assignor. By the contract the owner of the leases "sold, and does sell" to plaintiff all the natural gas that he might produce under them. Either party was given the right to terminate if production fell below a certain point, and it was also provided that unless terminated under this provision, the contract was to remain in force during the entire time that gas was produced "in paying or marketable quantities." Defendant showed that the contract was not "paying" for him, but plaintiff contended the clause gave only him the right to terminate. Held, that plaintiff was not entitled to specific performance (1) because the word "paying" was so ambiguous that it made the term of the contract uncertain, and (2) because of the difficulty of supervision, but that plaintiff was nevertheless entitled to an injunction against the sale of the gas elsewhere, or its use by defendant. United Fuel Gas Co. v. Swiss Oil Corp. (C. C. A. 6, 1930) 41 F.(2d) 4.

Recommended Citation

SPECIFIC PERFORMANCE-UNCERTAINTY OF CONTRACT, 29 Mich. L. Rev. 528 (1931).
Available at: https://repository.law.umich.edu/mlr/vol29/iss4/38