Opinion ID: 1721325
Heading Depth: 1
Heading Rank: 2

Heading: negotiations between spin-line and united

Text: Zimmerman initially contacted George Curtiss, President of United, by phone, and he eventually went to California to discuss the assumption of the contract by United. On December 30, Spin-Line by Zimmerman sent a Memorandum of Understanding to Curtiss. The pertinent portions are as follows: In consideration of United agreeing to be substituted in the place    of Spin-Line, Spin-Line agrees to pay to United the sum of $214,350 for the performance [of the Shell-Spin-Line contract]. Such sum or sums shall be established by a promissory note payable on or before July 1, 1964, to be executed by Spin-Line and all of the persons who have individually entered into the Indemnity Agreement provided to Shell as required in the aforesaid contract dated November 22, 1963.       It is the intent of Spin-Line to dispose of its concrete pipe fabricating facilities located at Odessa, Texas, for use in a foreign country. (Emphasis added.) This memorandum was executed by Curtiss, who sent a letter in reply that United was in agreement with the proposed terms. On January 9, Russell Bergman, House Counsel for United, and Mr. Young came to Dallas and met with Messrs. Zimmerman, French and Marsh, Zimmerman's attorney. The purpose of the meeting was to enter into negotiations looking toward the consummation of an agreement whereby United would take over the Shell contract from Spin-Line. Mr. Young participated in the meeting on the 9th, but had to return to Houston where he proceeded with the purchase order contract with Shell on Bergman's instruction telephoned from Dallas. At the termination of the Dallas negotiations Bergman returned to California with an instrument denominated Agreement signed Spin-Line Company Inc., by Lloyd French. This Agreement is set out in its entirety at 420 S.W.2d 747. We quote the pertinent provisions: WHEREAS, Spin-Line has heretofore entered into a contract dated November 22, 1963 with Shell Pipe Line Company   ; and WHEREAS, the parties hereto are in mutual agreement that United should be substituted for Spin-Line in aforesaid agreement; and WHEREAS, Spin-Line desires to obtain the assistance of United in completing its concrete pipe fabricating facilities located at Odessa, Texas, primarily for the purpose of selling the same for use in a foreign county; and WHEREAS, it is deemed in the best interest of United to cause the completion of these facilities in order that they shall be sold out of the United States; (Emphasis added.) NOW THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,