Texaco Vs. Pennzoil Case
Samuel Goldwyn said, "An oral contract is as good as the paper it's written on," but this is not always the case. Oral contracts, when done correctly before witnesses, can be enforced. For example, In 1984, after Getty Oil was sold to Pennzoil in a handshake deal, which is legally binding under New York law. (Even though the case was tried in Texas, New York law applied.) Texaco made a higher offer, and the company was sold to Texaco. Pennzoil filed a lawsuit alleging tortious interference with this oral contract, which the court upheld and awarded $11.1 billion in damages, later reduced to $9.1 billion, but increased again by interest and penalties.
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“In sane moments we regard only the facts, the case that is.”
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