October 27, 2013

Allied Steel and Conveyors, Inc. v. Ford Motor Co. | Case Brief - 277 F.2d 907 (1960) - 6th Circuit

FACTS: Ford ordered machinery from Allied on Ford's printed form which provided that if Allied had to perform any work of installation on Ford's premises Allied would be responsible for all damages caused by negligence of its own employees.  Attached to that was another form that was a broader indemnity provision also applying to any Ford employees working on the Allied project.  It was marked VOID.

Subsequently Ford submitted a proposal but this time the attached sheet was not marked VOID.  Hankins an employee of Allied was injured, sued Ford, and Ford sought to implead Allied.

HISTORY: Trial resulted in verdict to Hankins against Ford and for Ford against Allied.  Allied's motion for judgment notwithstanding the verdict was denied and judgment entered against it.

ISSUE: Was the contract accepted?

HOLDING: Yes

RATIONALE: If the offeree sets conditions of acceptance the offeree cannot accept the offer in a different manner and expect the offeror to be bound.  The copy No. 2 was merely a suggestion of acceptance with actual acceptance taking place when Allied began work.

DISPOSITION: Affirmed.