Fairmount Glass Works v. Crunden-Martin Wooden Ware Co.

106 Ky. 659, 51 S.W. 196 (1899)

 

RULE:

When purchaser's letter inquired the price and terms on which the seller would sell the purchaser the goods, the seller's answer to it was not a quotation of prices, but a definite offer to sell on the terms indicated, and could not be withdrawn after the terms had been accepted. 

FACTS:

The purchaser sent a letter to the seller seeking its lowest price on ten carloads of mason jars. The seller sent a letter to the purchaser quoting prices for various sized jars. The purchaser responded with a direction to send ten carloads of jars. The seller responded that it had sold all of its jars. The purchaser filed a breach of contract action. The trial court found in favor of the purchaser. The seller appealed.

ISSUE:

Can the exchange between the buyer and seller be construed as an offer to sell and an acceptance of that offer, therefore creating a contract?

ANSWER:

Yes

CONCLUSION:

The court affirmed the trial court, holding that the seller made an offer to sell by way of the letter, and using those prices, especially since it contained the statement "for immediate acceptance." This was consummated by the purchaser's acceptance. The same was not merely a quotation of prices. Moreover, the quantity of ten carloads was not too indefinite to create a contract because the term was used in the trade to mean 1,000 gross.

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