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Louisiana Court of Appeal - 83 So. 2d 449
tl;dr:
Homeowners asked a roofing company to do work on their roof. But when the roofing company arrived at the home with all their equipment at the ready, they found out that the homeowners hired someone else to do the job.Video Summary
Case Summary
In the 1955 case Ever-Tite Roofing Corp. vs. Green, a Louisiana appeals court overturned a decision in favor of a homeowner who had signed an agreement with a roofing company and then hired another company before the original company started the work. This case is significant because it demonstrates how acceptance by performance works in contract creation.
The Greens entered into a contract with Ever-Tite Roofing (“ETR”) to do work on their roof. ETR conducted a credit report and then loaded up equipment and workers into its trucks and went to the Greens’ home. When they got there, they were informed that the Greens had engaged different workers for the job and that they had terminated the contract before they believed work had commenced.
The trial court sustained the Greens' defenses that a contract did not exist and dismissed the lawsuit filed by ETR. ETR appealed.
On appeal, the court decided that the homeowner's signed document was an offer that could be accepted by the roofing company starting the work. The company accepted the offer when they loaded materials onto trucks and brought them to the homeowner's property. The court said that the homeowner's offer wasn't revoked by hiring a different company before the original company knew they had accepted, since the homeowner didn't tell the original company before they began the work. The court also dismissed the homeowner's argument that there was no consideration for his offer.
This case shows that an offer can be accepted by starting the requested task without specifically telling the person who made the offer. The acceptance is valid when the task begins.
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The plaintiff appealed the trial court's decision that no contract was formed for re-roofing a residence because the plaintiff's sales representative did not have the authority to accept the contract. The Louisiana Court of Appeal ruled that the defendants breached the contract by employing others to do the work and forbidding the plaintiff's workmen from engaging in the undertaking. Therefore, the defendants are legally obligated to pay damages to the plaintiff. The plaintiff is entitled to damages of $311.37, with 5% per annum interest from judicial demand until paid, and for all costs. The judgment of the lower court is annulled, avoided, reversed, and set aside, and a new judgment is entered in favor of the plaintiff, Ever-Tite Roofing Corporation, against the defendants, G. T. Green and Mrs. Jessie Fay Green, for the full sum of $311.37, with 5% per annum interest from judicial demand until paid, and for all costs.
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