May 17, 2014

International Filter Co. v. Conroe Gin, Ice & Light Co. - 277 S.W. 63 - Texas Commission App. (1925)

FACTS: International Filter wrote a letter describing the price of what it was offering with the stipulation that it would become valid upon being accepted not only by the purchaser (Conroe) but also approved by an executive officer of International Filter in Chicago.  Conroe wrote "Accepted Feb. 10, 1920" on a paper which made it to the Chicago office of the plaintiff and was approved.  International Filter then sent a notice to get a water sample to test and at that point Conroe tried to countermand the offer.

HISTORY: Judgment for the defendant. 

ISSUE: Was a contract made?


RATIONALE: Defense claims that:

1) the endorsement of OK by the officer in Chicago does not amount to approval "by an executive officer of the International Filter Company, at its office in Chicago."

2) notification of such approval was required to be sent to Conroe and was part of the proposal

Court agrees that endorsement of OK is an approval by an executive officer.  The offer of International Filter simply required prompt approval and did not indicate a requirement for notification.  The court would have to restate the original offer if it was to have such a clause in the contract.

DISPOSITION: Court of Appeals reversed and cause remanded to the Court of Civil Appeals for further consideration by that court as recommended by the commission of appeals.