propane contract

[mrgramps]

What is the name of your state (only U.S. law)? Ohio

Hello- We signed a locked in fixed price propane contract @ 2.49/gal. from 10-08 to 3-09. The propane co. would be installing the tank and we would be on courtesy fill. Two weeks before the co. was to install the tank, we received a offer of 1.99/gal. from our current propane co.
We called the other propane co. to try and renegociate the price in good faith. After a slightly heated discussion by both parties, the co. said we signed a contract for that price and to bad. They also told us there was a cancellation fee of 360$ for propane they ordered. We told them verbally to cancel the contract and not install the tank.
We never told the co. how much propane to order, as we also burn wood so our usage varies . In the contract there is no mention of a cancellation fee, and no Gal. amount , it's just for the contract price, tank installation and courtesy fill. We never received the tank. We have now received an outrageous bill for 360$. What recourse do we have? What to do next? Thank you

[Some Random Guy]

You signed a contract. You were told there was a $360 cancellation fee. You told them to cancel. They billed you $360. What was your question again? If you didn't want to pay the fee, you shouldn't have cancelled the contract.