Flameout, a parts supplier, sued Pennzoil Caspian for breach of contract over a three-year parts supply deal. The court ruled against Flameout because the company failed to prove there was a signed written contract meeting legal requirements. The court found that three separate documents (a memo, letter of intent, and quotation) together did not constitute one enforceable three-year agreement. This case shows that subcontractors must have a single, clearly signed written contract—not scattered documents—to enforce long-term deals.
Get one signed written contract for any deal lasting more than one year. Multiple documents (memos, letters of intent, quotes) won't protect you if they don't clearly show agreement on all key terms.