Texaco v. Pennzoil II

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Texaco v. Pennzoil II
Court Court of Appeals of Texas, Houston, (1st Dist.)
Citation 729 S.W.2d 768 (1987)
Date decided 1987
Related Texaco v. Pennzoil
Texaco v. Pennzoil III

Facts

Issues

Whether the parties intended to be bound or not.

Reasons

If there is no understanding that a signed writing is necessary before the parties will be bound, and the parties have agreed upon all substantial terms, then an informal agreement can be binding, even though the parties contemplate evidencing their agreement in a formal document later.