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Propane Supply Agreement-PA

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B

busterm

Guest
I signed a Propane Supply Agreement 13 yrs ago in PA with company A. Company A owns the tank on my property and I agreed to let them by my sole supplier. Approx 5 years later company A became company B. I assume company A was acquired by company B, but don't recall exactly what happened. Company B began supplying propane even though I didn't amend the original agreement. Two questions:

1. Is the supply agreement with company B valid? The last term of the agreement with company A says "This agreement contains the entire understand of the parties and shall not be assignable".

2. The agreement stated the initial cost of propane and stipulated that " It is understood and agreed the Seller shall have the right to revise the [cost] schedule hereinabove set forth from time to time". Does the phrase "from time to time" imply any quantitative limit on how fast the Seller can increase the cost? The cost of my last delivery was 50% higher than the previous one 5 weeks earlier.
 


JETX

Senior Member
"Is the supply agreement with company B valid? The last term of the agreement with company A says "This agreement contains the entire understand of the parties and shall not be assignable"."
*** Without a review of the actual document, no one (on this forum) can answer whether it is a valid agreement or not. However, I can say that IF the agreement IS valid, then when Company "B" acquired Company "A", your agreement went with the purchase. Simply, it was an asset that was purchased, it was not assigned.

"The agreement stated the initial cost of propane and stipulated that " It is understood and agreed the Seller shall have the right to revise the [cost] schedule hereinabove set forth from time to time". Does the phrase "from time to time" imply any quantitative limit on how fast the Seller can increase the cost? The cost of my last delivery was 50% higher than the previous one 5 weeks earlier."
*** Based solely on the information provided in your post, there isn't any limitation to the raise in price. However, most of these 'essential bills' (even for LPG) are regulated by a state commission.
You might consider contacting:
http://puc.paonline.com/util_types.asp
 

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