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United States Leading Case inducing breach of contract

Texaco Inc v Pennzoil Co

729 S.W.2d 768 (Tex. 1987)
JurisdictionUnited States
CourtTexas Court of Appeals
Year1987
StatusBinding authority

Summary

Texaco liable for tortious interference with Pennzoil's contract to acquire Getty Oil, resulting in the largest tortious interference verdict in US history at the time.

Key Principle

tortious interference with contract; the largest tortious interference verdict in US history at the time; widely cited on the elements

Area of Law

Contract

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An agent's ostensible authority is determined by what the principal communicated to the third party, not by private arrangements between principal and agent.

Equuscorp Pty Ltd v Glengallan Investments Pty Ltd (2004) 218 CLR 471

Entire agreement clauses and the parol evidence rule preclude reliance on extrinsic implied terms inconsistent with a written contract.

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