Did he have a contract with the beroths at rack price

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Reference no: EM131471409

Question: Gary Neugent leased a gas station and purchased gas from Amoco Oil Co. Walter and Vernice Beroth met with Neugent to discuss buying gasoline from them instead of directly from Amoco. One of the Beroths mentioned a price of "6¢ over Beroth's cost." Neugent thought "cost" meant the "rack price" or the price at which the Beroths bought the fuel, and the Beroths meant rack price plus tax and freight.

Three months later, the Beroths took over Amoco's lease, and Neugent starting getting gas from them. He later discovered that they had been charging him rack price plus freight plus 6¢ a gallon and sued for breach of an oral contract. Did he have a contract with the Beroths at rack price?

Reference no: EM131471409

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