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Oregon Supreme Court - 275 P. 684, 129 Or. 427, 275 Pac. 684
Tags: Contracts, Acceptance, Offer
In Courteen Seed Co. v. Abraham (1929), the Oregon Supreme Court considered a case about a contract for selling clover seed.
Abraham, a grain dealer, sent a telegram on October 8, 1927 to Courteen Seed Co., a wholesale seed business. The telegram read, “I am asking 23 cents per pound for the car of red clover seed from which your sample was taken,” referring to a seed sample that Abraham sent to Courteen weeks prior. The telegram later mentioned that Abraham had “an offer 22 ¾ per pound” from another customer. Courteen Seed Co. responded, “Telegram received. We accept your offer.” However, Abraham contracted to sell the seed to others and refused to complete the sale to Courteen.
Courteen brought suit for $2,750 in damages. Abraham said his telegram was not intended to be an offer and moved for a nonsuit. The trial court ruled for Courteen, and Abraham appealed.
The main question was whether the defendant's telegram to the plaintiff was an offer or just an invitation to discuss a deal. The appealed court decided it was an invitation to negotiate, not an offer. They said the telegram did not show a clear intention to sell but only asked for a price per pound. Also, it did not show the defendant was ready to be bound by the plaintiff's acceptance but only mentioned another offer from someone else.
This case highlights the concept of offer and acceptance, a key part of contract law. Offers must be clearly defined and certain, while acceptances must clearly and unconditionally agree to the offer's terms. Courts look at the objective meaning, intention, context, and customs when interpreting communications between parties. They also differentiate offers from invitations to negotiate, which do not create legal obligations.
The defendant argues that the court erred in denying their motion for nonsuit as there is no evidence of a binding offer to sell clover seed to the plaintiff. The court must determine if the defendant made a valid offer and intended to enter into a contract upon the plaintiff's acceptance. The plaintiff relies on a telegram from the defendant offering to sell the seed at 23 cents per pound, and the plaintiff's acceptance of the offer. However, the court cannot conclude that the defendant's telegram constituted an express offer to sell as it only stated the price the defendant was asking for the clover seed. The court must consider the context in which the words were used. The defendant had sent samples of clover seed to various people in September 1927. The court cites eminent authority that information or invitation to negotiate does not constitute an offer.
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