Allied Steel & Conveyors, Inc. v. Ford Motor Co. case brief summary
277 F.2d 907
SYNOPSIS: Appellant contested order of the district court (Michigan) which entered judgment in appellee's favor in an action alleging that certain written agreements between the parties, purporting to indemnify appellee against damages resulting from its own acts of negligence, were binding upon the parties at the time appellant's employee suffered injury.
OVERVIEW: Appellee automobile manufacturer brought an action against appellant machinery and equipment manufacturer, seeking indemnification under a contract clause that purported to hold appellant responsible for an injury sustained by appellant's employee, even though caused by appellee's negligence. The district court found that a binding contract was formed at the time appellant began performance by delivery and installation of machinery upon appellee's premises.
HOLDING:
The court applied the rule that, in the absence of fraud or wilful deceit, a party signing a contract after having an opportunity to read and understand it was bound by its provisions.
ANALYSIS:
Amendments to the parties' agreement, with all of their provisions and conditions, constituted a binding bilateral contract at the time appellant, with appellee's knowledge and consent, began performance by delivery and installation of the machinery upon appellee's premises.
OUTCOME: Judgment finding that appellant was required to indemnify appellee for injury resulting from appellee's negligence was upheld, because a binding contract was formed at the time appellant began performance by delivery and installation of machinery upon appellee's premises.
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277 F.2d 907
SYNOPSIS: Appellant contested order of the district court (Michigan) which entered judgment in appellee's favor in an action alleging that certain written agreements between the parties, purporting to indemnify appellee against damages resulting from its own acts of negligence, were binding upon the parties at the time appellant's employee suffered injury.
OVERVIEW: Appellee automobile manufacturer brought an action against appellant machinery and equipment manufacturer, seeking indemnification under a contract clause that purported to hold appellant responsible for an injury sustained by appellant's employee, even though caused by appellee's negligence. The district court found that a binding contract was formed at the time appellant began performance by delivery and installation of machinery upon appellee's premises.
HOLDING:
The court applied the rule that, in the absence of fraud or wilful deceit, a party signing a contract after having an opportunity to read and understand it was bound by its provisions.
ANALYSIS:
Amendments to the parties' agreement, with all of their provisions and conditions, constituted a binding bilateral contract at the time appellant, with appellee's knowledge and consent, began performance by delivery and installation of the machinery upon appellee's premises.
OUTCOME: Judgment finding that appellant was required to indemnify appellee for injury resulting from appellee's negligence was upheld, because a binding contract was formed at the time appellant began performance by delivery and installation of machinery upon appellee's premises.
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