The owner of a fleet of taxis contracted with a dealer in petroleum products for the purchase and sale of the taxi fleet owner's total requirements of gasoline and oil for one year. As part of that agreement, the petroleum dealer also agreed with the taxi fleet owner that for one year the petroleum dealer would place all his advertising with the taxi fleet owner's wife who owned her own small advertising agency. The wife at the time had just been offered another advertising contract with a soap company. When the wife was informed of the owner-dealer contract, she declined to accept the account from the soap company because she could not handle both the petroleum dealer and the soap company accounts during the same year. The wife was an intended beneficiary under the owner-dealer contract. The taxi fleet owner performed his contract with the petroleum dealer for six months, and during that time the petroleum dealer placed his advertising with the wife. At the end of the six months, the taxi fleet owner and the wife were divorced, and the taxi fleet owner then told the petroleum dealer that he had no further obligation to place his advertising with the wife. The petroleum dealer thereupon notified the wife that he would no longer place his advertising with her.

In an action against the petroleum dealer for breach of contract, the wife will probably: _____________

In an action against breach of contract this woman is going to succeed. Breach of contract means going against the terms of a contract. A breach of this nature could be in the form of late payment or it could be failure to deliver. The reason that this wife would succeed is given the facts that we have available on this case. the taxi dealer as well as the owner of the fleet had no rights to do any modifications to the existing contract without first notifying the wife, who hen has to give her consent. Discharging the duties that are owed to the wife is a violation here and the will would succeed if acction is taken against this dealer.