Texas Gas Utilities Co. v. Barrett
Supreme Court of Texas
460 S.W.2d 409 (1970)
Under a five-year agreement, farmers Barrett and Beavers (defendants) agreed to make annual minimum payments to Gas Co. (plaintiff) in exchange for natural gas for irrigation, with the contract disclaiming any guarantee of quantity or quality and exempting Gas Co. from liability for delivery failures due to events outside its control, while still obligating Gas Co. to endeavor to supply the requested gas; after gas was reliably delivered throughout the contract term, the defendants stopped making minimum payments, and when Gas Co. sued, the trial and appellate courts found the contract unenforceable for lack of mutuality of obligation.
Whether a contract is supported by consideration and mutuality of obligation where one party's performance obligation is qualified by disclaimers and exculpatory provisions for events outside that party's control.