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Baehr v. Penn-O-Tex Oil Corp.

Minnesota Supreme Court

104 N.W.2d 661 (1960)

Relevant factsFree

Baehr (plaintiff) leased gas stations to Kemp, who assigned the stations' receivables to Penn-O-Tex Oil Corp. (defendant), which took over managing the stations' finances. After learning Penn-O-Tex controlled Kemp's assets, Baehr wrote demanding rent and implying he would sue; Penn-O-Tex then told him by phone it would pay the rent owed, but never did. Baehr eventually sued Penn-O-Tex for the unpaid rent on a contract theory. A jury found for Baehr, but the trial court granted judgment notwithstanding the verdict for Penn-O-Tex, and Baehr appealed.

IssueFree

Whether a promise to pay is legally enforceable as a contract when it is not supported by consideration in the form of a genuine bargained-for exchange.

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