Quick Summary
Ever-Tite Roofing Corporation (plaintiff) claimed that the defendants breached the contract, while the Green (defendants) denied entering into a valid signed contract to re-roof the defendant’s residence.
The trial court ruled in favor of the defendants, finding no valid contract. The plaintiff appealed.
Facts of the Case
Ever-Tite Roofing Corporation (plaintiff) entered into a written contract with G. T. Green and Mrs. Jessie Fay Green (defendants) for the re-roofing of their residence. The contract outlined the work to be completed as well as the price to be paid in monthly installments.
It also stated that the agreement would only become binding upon written acceptance by the plaintiff’s authorized officer or upon the commencement of the work.
The defendants signed the contract on June 10, 1953, and the plaintiff’s representative also signed it, although he did not have the authority to accept contracts on behalf of the plaintiff. The next day, the plaintiff received the contract in its office and requested a credit report to finance the job through a lending institution.
On arrival of workers and trucks at the defendants’ residence, however, the plaintiff’s workers found others already performing the roofing work that had been contracted to the plaintiff.
Defendants informed the plaintiff’s workers that they had engaged other workers and forbade them from commencing the intended work.
Procedural History
- Plaintiff filed a lawsuit seeking damages for breach of contract.
- The trial court found in favor of the defendants, determining that there was no valid contract and dismissing the plaintiff’s suit.
- Plaintiff appealed the decision to a higher court.
I.R.A.C. Format
Issue
Whether a valid contract was formed between the parties and whether the defendants breached the contract.
Rule of Law
An offer may be withdrawn before its acceptance unless it is proven that there was an intention to give the other party the right to conclude the contract by their assent within a reasonable time.
Reasoning and Analysis
The court found that while the defendants had signed a written contract proposing the re-roofing work, they argued that their offer was never accepted by the plaintiff as required under the terms of the contract.
The court determined that the plaintiff intended to accept the contract by commencing work as allowed under its terms. The defendants did not notify or attempt to notify the plaintiff of their intention to cancel or terminate the contract before the plaintiff’s workers arrived for the job.
Therefore, the court concluded that the defendant’s actions constituted a breach of contract.
Conclusion
The court reversed the trial court’s decision and ruled in favor of the plaintiff, holding that the defendants breached the contract. The court ordered the defendants to pay damages to the plaintiff for $311.37, plus interest and costs.
Key Takeaways
- An offer may be withdrawn before its acceptance, but if there is an intention to allow the other party to conclude the contract within a reasonable time, the offeror may be bound by their offer.
- If allowed under its terms, acceptance can occur through performance, which can form a valid contract.
- Failure to notify the other party of intent to cancel or terminate a contract can constitute a breach.
Relevant FAQs of this case
What factors does the court consider in determining the validity of a contract?
The court considers elements like offer, acceptance, consideration, and the parties’ intent to assess the validity of a contract.
When is an offer allowed to be withdrawn?
An offer can be withdrawn before acceptance unless the offeror intends to give the other party the right to conclude the contract within a reasonable time.
- For example: If a person offers to sell their bicycle and states that the offer is open until the end of the day, they can withdraw it before the day ends unless someone has already accepted it.
References
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