Question

Mid-American Oil had a contract with NSB Co. to supply 1,000 gallons of oil by September 1. The contract contained a provision that requires all modifications to be written and signed by the company presidents. In early August, an executive of Mid-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil, one in September and a second one in December. By September 30, when only 500 gallons had been delivered, NSB sued. The likely outcome of this lawsuit is:

Answer 1

NSB Co. won the case against Mid-American oil/Mid-American oil lost the case

Step-by-step explanation:

The original contract clearly stipulated that any modifications to the contract were to be written and signed by the company's presidents, therefor the decision by the Mid-American executive to talk with the purchasing agent of NSB Co. was in breach of the contract in two aspects;

1. The parties that made the modifications were not the ones agreed to in the contract
2. They made the modifications verbally while the contract stated that the changes were to be written and signed