Tuesday, October 25, 2011

Fairmount Glass Works v. Crunden-Martin Woodenware Co. case brief

Fairmount Glass Works v. Crunden-Martin Woodenware Co.
-Appellee wrote the following letter: “lowest price for 10 car loads of mason jars, state terms and cash discount.”
-Appellant replied: “Prices quoted, for immediate acceptance, shipment not later than May 15, 1965; 60 days acceptance, or 2 off, cash in ten days.” [disclaimer].
-Appellee reply: ”Enter order 10 car loads as per your quotation.” April 24, 1895.
-Appellant’s reply: “Impossible to book order, output all sold.”
Appellee insists: Contract was closed for purchase.
Appellant insists: Contract not closed, had right to decline to fill order at the time of April 24th.
HOLDING: Judgment affirmed, Judgment for Plaintiff (appellee).
“Appellee’s letter was plainly an inquiry for the price and terms on which appellant would sell it the goods, and appellant’s answer to it was not a quotation of prices, but a definate offer to sell on the terms indicated and could not be withdrawn after the terms had been accepted.”
R2K § 17, Requirement of a Bargain
(1) Except as stated in subsection (2), the formation of a contract requires a bargain in which there is a manifestation of mutual assent to the exchange and a consideration.
(2) Whether or not there is a bargain a contract may be formed under special rules applicable to formal contracts or under the rules stated in §§ 82-94.
R2K § 20, Effect of Misunderstanding
(1) There is no manifestation of mutual assent to an exchange if the parties attach materially different meanings to their manifestations and
(a) neither party knows or has reason to know the meaning attached by the other; or
(b) each party knows or each party has reason to know the meaning attached by the other.
(2) The manifestations of the parties are operative in accordance with the meaning attached to them by one of the parties if
(a) that party does not know of any different meaning attached by the other, and the other knows the meaning attached by the first party; or
(b) that party has no reason to know of any different meaning attached by the other, and the other has reason to know the meaning attached by the first party.

R2K § 24, Offer defined
An offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.

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