Beruflich Dokumente
Kultur Dokumente
PARTIES: Plaintiff:
International Filter Co
Defendant: Conroe Gin, Ice & Light Co
CAUSE OF ACTION: breach of contract
DEFENSE(s): No contract was made b/c (1) OK did not amount to approval or acceptance (2)
notification of such approval, or acceptance, by IF was required to be communicated to Conroe
Gin (D)
PROCEDURAL HISTORY:
FACTS: The proposal document stated that it becomes a contract when accepted by the
purchaser and approved by an executive officer.
Defendant wrote accepted Feb. 10, 1920 and the notation make shipment for Mar. 10 and
sent the proposal back to plaintiff.
Plaintiff President wrote O.K. and the date and. his name on the document.
ISSUE(s):
Whether the endorsement O.K. written on the paper by the President of the company was an
approval by an executive officer as described in the proposal.
Whether Plaintiff was required to give notice to Defendant of the approval of the executive
officer in order to form the contract as contemplated.
RULES OF LAW: Form of the offer may require some final approval; however, it does not
require notice to the other party of that approval unless the form expressly dictates that
requirement. Court will construe meaning from the obvious meaning.
HOLDING: The OK was an approval by the executive and that the paper then became a
contract.
The Court did not think it was essential that the approval by the executive be communicated to
the defendant. The form of the offer did not show this was a requirement and to require it would
be to change the obvious meaning of the language and change the locus and time prescribed for
meeting of the minds contained in the offer. In any event, the subsequent confirmation letter
would have sufficed as notice of the approval even though it was not expressly required.
REASONING: The offeror has the power to express the terms and determine the acts which will
constitute acceptance. Courts will construe those terms according to their plain meaning. Here,
the terms required executive approval but did not require the offered to give notice of the
acceptance.
DISPOSITION:
COMMENTS:
2/10 - proposal from IF "for prompt acc"
2/10 - Con "accepted" - make shipment by Mar 10 <-- this is the offer
2/13 - IF endorsed "OK"
2/14 - IF writes "this will acknowledge & thank you"
2/28 - Conroe "Countermands"
Conroe arguments:
1. IF didn't notify Conroe of its acceptance
2. No approval by exec. officer of IF
Argument #2 - the person who "ok"'d it was Pres & VP - so it was approved by an exec officer - ridiculous
argument that the court really doesn't address
Argument #1 - IF didn't notify Conroe of its acceptance
Conroe tried to establish that they were the offeror b/c IF reserved a say for themselves for being bound
Words don't matter - the test of whose court the ball is in does
Conroe pointed to two places where this notification could have come from
->TERMS [court rejects this]
->Nature of the transaction
The proposal was drafted by IF but became the offer of Conroe - there was nothing in there that
said you had to notify of acceptance.
Nature of transaction - Conroe is stating they were not notified that the offer was accepted - that yes IF
wrote it in his office, but he didn't share the information - the acceptance has to make its way back to
them
Wondertwin - the form of
The ultimate step in the creation of a contract - ACCEPTANCE 50, and Corbin on p.156
The Offeror is the master of the offer - the Offeror has the power to determine how the offer is
accepted.
I offer you $500 to wash my car - if you want to accept - stand on your head for 5 second
Offeror can alter all the default rules, but if you don't say then default rules kick in
The offeror is the master of the offer - so the offeror gets to decide what the offeree has to do in order
to get the contract:
1. Was he explicit in what he wanted him to do
a. Can ask that offer be accepted by a promise - Bilateral
i.
Mow yard on Wed - pay you $50
ii.
Refer back to when contract came into existence
iii.
Two legal duties remaining - duty to pay & perform
b. Can ask that offer be accepted by performance - Unilateral
i.
Isn't going to be obliged to anyone until the cat is returned
ii.
Not bound until the cat is returned
iii.
One legal duty remaining - duty to pay
Hypo:
Ill pay you $30 to mow my yard on Thursday - if you want to accept come over and get the key
There is still obligation on each other's parts - pay and perform
This is bilateral!!!
Many times will people will say bilateral - promise and unilateral - performance but that is not true!