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NationPoints Trucking,Inc

Question 41

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NationPoints Trucking,Inc.,has a requirements contract with Oil & Gas Corporation that obligates Oil & Gas to supply NationPoints with all the gasoline it needs for its vehicles for one year at $2.30 per gallon.A clause inserted in small print in the contract by NationPoints,and not noticed by Oil & Gas,states,"The buyer reserves the right to reject any shipment for any reason without liability."
For six months,NationPoints orders and Oil & Gas delivers under the contract without any controversy.Then,because of a war in the Middle East,the price of gasoline to Oil & Gas increases substantially.Oil & Gas tells NationPoints it cannot possibly fulfill their contract unless NationPoints agrees to pay $2.50 per gallon.NationPoints,in need of the gasoline,agrees in writing to modify the contract.
Later that month,NationPoints learns it can buy gasoline at $2.40 per gallon from Purified Fuel Company.NationPoints refuses delivery of its most recent order from Oil & Gas,claiming,first that the contract allows it to do so without liability,and second,that it is required to pay only $2.30 per gallon if it accepts the delivery.Discuss NationPoints's contentions.

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The contract clause in very small print ...

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