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Keywords

contractplaintiffdefendanttrialtestimonymotionlease

contractplaintiffdefendantappealmotionlease

Related Cases

Horton v. Humble Oil & Refining Co., 255 N.C. 675, 122 S.E.2d 716

Facts

The plaintiff alleged that Humble Oil & Refining Company agreed to lease him a service station and guarantee certain income levels for the first two years. The plaintiff complied with various terms, including attending a training school and investing his savings, but upon returning, found the station unprepared and ultimately closed it due to lack of profitability. The defendant denied the allegations and the case proceeded to trial.

Plaintiff alleged in the complaint, among other things, that defendant Oil Company agreed: (1) To lease to him the aforementioned service station, and to guarantee him an income of at least $100 per week for the first year of operation and at least $10,000 for the second year; (2) to fully equip and stock said station; (3) to arrange for plaintiff to attend a training school for service station operators in Charlotte, N. C.; (4) to finance plaintiff in equipping and stocking said station to the extent of $4,000, in addition to the $2,500 which plaintiff agreed to invest for said purposes; (5) to assist and supervise plaintiff in the operation of the station for two weeks; and (6) to acquaint, aid, and assist plaintiff in the operation of the business.

Issue

Is there sufficient evidence, when viewed in the light most favorable to plaintiff, to establish the existence of a contract between plaintiff and the defendant Oil Company?

The pivotal question presented on this appeal is this: Is there sufficient evidence, when viewed in the light most favorable to plaintiff, to establish the existence of a contract between plaintiff and the defendant Oil Company? The answer is No.

Rule

To be binding, the terms of a contract must be definite and certain or capable of being made so.

Analysis

The court found that there was insufficient evidence to demonstrate that the parties had reached a meeting of the minds on the essential terms of the contract. The plaintiff's testimony revealed uncertainty regarding the obligations of the parties, particularly concerning the equipment and financial arrangements. Additionally, the court noted that the parties contemplated a written contract, which had not been executed.

However, there is evidence that the parties contemplated entering into a written contract. Plaintiff testified that a written lease for the filling station was given to him; that he kept it and read part of it; but that he did not sign it because ‘I was afraid to bind myself by signing a lease then.’

Conclusion

The court held that the evidence failed to establish an enforceable contract and affirmed the lower court's decision to grant the motion for judgment as of nonsuit.

Thus it appears that the court below was correct in allowing defendant's motion for judgment as of nonsuit.

Who won?

Humble Oil & Refining Company prevailed because the court determined that there was no enforceable contract due to the lack of definite terms.

The court held that the evidence failed to establish an enforceable contract, in view of uncertainty as to the terms of the contract.

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