Laclede Gas Co. v. Amoco
Oil Co.
522 F.2d 33.
Facts: Laclede, a distributor, contracted with Amoco, a
supplier, to provide propane for its commercial customers. In the face of an oil shortage, Amoco told
Laclede that it was going to ration its supply to 80% of the previous supply,
then raised the price and finally terminated the agreement. The plaintiff sued for an injunction against
termination.
Issue: May the plaintiff be granted specific performance of
its agreement with the defendant?
Rule: When there is a contract for a good that is in short
supply, the contract is “unique” and specific performance may be ordered.
Analysis:
Conclusion: