Shaw v. Mobil Oil Corp.
Oregon Supreme Court
535 P.2d 756 (1975)
Shaw's (plaintiff) contract required Mobil (defendant) to deliver up to 500,000 gallons of gasoline yearly in exchange for Shaw's rent payments, with a clause excusing Mobil's performance if a government agency required allocation; when a federal energy shortage forced Mobil to deliver less gasoline than Shaw requested, Shaw sought a declaration he was not obligated to pay the resulting minimum rent, but the trial court held he still owed rent since Mobil's shortfall was excused rather than a breach.
Whether a party has an obligation to perform a promise that is conditioned upon the other party's performance when the other party failed to perform even though the other party's failure to perform is excused and is not a breach of contract.