Cengage Advantage Books: Business Law 13th Edition by Roger LeRoy Miller

Exercise 8

Assignment. Senna Hills, Ltd., granted Southern Union Co. the right to distribute propane in a residential subdivision developed by Senna in exchange for a fee. Under their agreement, Senna's "right to receive a Fee shall continue for so long as the Propane System is owned by Southern Union." The agreement also allowed Southern Union to assign the distribution right. Later, Sonterra Energy Corp. bought the distribution system and was assigned the distribution right, but did not pay the fee to Senna. Did Sonterra breach the propane service agreement? Why or why not? [Senna Hills, Ltd. v. Sonterra Energy Corp., __ S.W.3d __ (Tex.App.-Austin 2010)]