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Sunflower Electric Cooperative, Inc. v. Tomlinson Oil Company, Inc.

Kansas Court of Appeals

7 Kan. App. 2d 131 (1981)

Relevant factsFree

Tomlinson Oil Company (Tomlinson) (defendant) held gas rights to a field where exploratory tests were promising but reserves remained unproven, and Tomlinson agreed to supply Sunflower Electric Cooperative (Sunflower) (plaintiff) a minimum daily quantity of natural gas from that field. The field's reserves proved far smaller than estimated, and Tomlinson could not deliver the contracted minimum; Sunflower bought the shortfall from another supplier at a higher price and sued for the cover costs, while the trial court held Tomlinson was excused under the doctrine of impossibility because the field's reserves were inadequate.

IssueFree

Whether a party who contracts to supply a required amount of a good from an unproven source may be excused from performance when that source fails to produce the required amount.

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