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Ruble Forest Products, Inc. v. Lancer Mobile Homes of Oregon

Oregon Supreme Court

524 P.2d 1204 (1974)

Relevant factsFree

After Lancer (defendant) failed to pay for lumber it bought from Ruble (plaintiff), Lancer claimed some of it was defective and refused to pay until the parties resolved that dispute; Ruble then offered a $2,500 credit in exchange for a reduced payment, and Lancer paid the discounted amount. Ruble sued for the remaining $2,500, and Lancer argued the discount was a valid settlement of a genuine dispute over the defective lumber; the trial court ruled for Lancer, and Ruble appealed.

IssueFree

Whether the settlement of a valid controversy between two parties may constitute sufficient consideration to create a new, binding agreement between them.

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