Seller agreed to sell and Buyer to buy gasoline at $3.95 per gallon, 1000 gallons a month, for four years. Two years in, the price of gasoline increased to $4.80 a gallon. Seller refused to perform further unless Buyer agreed to pay $4.50 per gallon.

Question

Quizplus · Accepted Answer

The original contract was for a fixed price, and Seller's demand for a higher price without a valid legal basis (like a new agreement or a clause in the contract allowing for price adjustments) could be seen as a breach of contract. If Buyer paid the higher price under protest, they could potentially sue for a refund, arguing that Seller's demand was not made in good faith.

Seller Agreed to Sell and Buyer to Buy Gasoline at $3.95