"Industrial America", Inc. v. Fulton Industries, Inc.

285 A.2d 412, 1971 Del. LEXIS 269
CourtSupreme Court of Delaware
DecidedOctober 21, 1971
StatusPublished
Cited by36 cases

This text of 285 A.2d 412 ("Industrial America", Inc. v. Fulton Industries, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
"Industrial America", Inc. v. Fulton Industries, Inc., 285 A.2d 412, 1971 Del. LEXIS 269 (Del. 1971).

Opinion

HERRMANN, Justice.

These appeals arise in aft action for a broker’s commission.

A prior opinion of this Court in the cause appears at 253 A.2d 209 to which reference is made for a statement of the basic facts. Upon remand under that opinion, the plaintiff moved to amend its complaint as to the defendant Fulton. See 253 A.2d at 215. The Trial Court denied the motion to amend and the plaintiff again appealed. Thereupon, we reversed and remanded to permit the plaintiff to amend its complaint to assert against Fulton and its successor, Allied Products Corporation (hereinafter “Allied”), 1 a cause of action based upon an alleged guaranty of Fulton to pay any broker’s commission owed by B-H to the plaintiff. The guaranty was asserted upon the basis of the “Brokers fully protected” language of Fulton’s Wall Street Journal advertisement here in controversy. See 253 A.2d at 211, fn. 1. Thereafter, trial was had before a jury upon the issues of procuring cause and the guaranty. Upon special interrogatories and special verdict, judgment was entered against B-H in favor of the plaintiff in the amount of $125,000., the issue of procuring cause having been decided by the jury against B-H; upon the basis of the jury’s response to Interrogatory No. 4, however, judgment was entered in favor of the defendants Fulton and Allied. The plaintiff appeals from the judgment in favor of Fulton and Allied; and the defendant’s cross appeal from the judgment against B-H.

I.

There were three especially pertinent special interrogatories and verdicts:

Special Interrogatory No. 2 dealt with the question of whether the “Brokers fully *414 protected” language of the advertisement connoted a guarantee by Fulton of the plaintiff’s commission:

“Did Fulton Industries, Inc., by the use of the phrase ‘brokers fully protected’ convey to one knowledgeable in the industrial brokerage business an offer to guarantee to pay any broker’s commission which might be owed to plaintiff by Bush Hog, Inc. if plaintiff made a submission to Fulton in accordance with the terms of the advertisement and a transaction was ultimately consummated?”

To that question the jury responded in the affirmative.

Special Interrogatory No. 3 dealt with the pendency of the offer in the advertisement:

“Was the offer of guarantee of a broker’s fee which by answer to Question No. 2 you found was stated in Fulton’s May 1964 advertisement still in effect at the time the initial letters of Mr. Deutsch and Mr. Barkan were sent in October 1965?”

To that question, the jury likewise responded in the affirmative.

Special Interrogatory No. 4 dealt with the issue of whether Deutsch, acting for the plaintiff, relied upon the advertisement in acting as broker between B-H and Fulton:

“Did plaintiff, in fact rely on Fulton’s advertisement of May, 1964, in submitting the name of Bush-Hog to Fulton in October 1965?”

In this connection, the following uncontro-verted, facts are added to the basic facts set forth in our earlier opinion: Deutsch was given the name of Fulton as a prospect by an accountant friend at a luncheon meeting. Deutsch forthwith took from his own office files a copy of the Wall Street Journal advertisement here in controversy; then Deutsch wrote the letter to Fulton which initiated the chain of events culminating in the merger of B-H into Fulton.

To Interrogatory No. 4, the jury responded in the negative upon the following instruction:

“Any action by the plaintiff which is asserted to have been an acceptance of an offer must be found by the jury to have been intended as an acceptance in order for it to be effective in creating a contract between the plaintiff and Fulton Industries, Inc. In other words, the creation of a contract and the resulting obligations flowing therefrom depends upon action by the plaintiff which was consciously and intentionally taken for the purpose of fulfilling the terms of the advertisement at a time when the plaintiff could reasonably believe that Fulton intended and still intended that the terms of the ad would apply if plaintiff took the action invited in the advertisement.
“If, after consideration of all the evidence, you find by a preponderance of the evidence that the plaintiff had knowledge of Fulton’s advertisement in October, 1965, when the first two letters were written, and that the plaintiff relied thereon and intended to respond thereto in submitting the name of Bush Hog to Fulton, you should answer Special Interrogatory No. 4 in the affirmative with the word ‘yes’.”

The principal question presented upon this appeal arises from Interrogatory No. 4 and the Court’s instruction thereon.

II.

The basic question for decision in this appeal, in our view, is whether the plaintiff had the burden of proving a subjective intent on the part of Deutsch to accept the offer of guaranty which had been made in the advertisement by Fulton under the jury’s findings.

We are of the opinion that Deutsch’s subjective intent was not a relevant issue; that, rather, the relevant issues were (1) whether Fulton’s offer of guaranty invited acceptance by performance; *415 (2) whether Deutsch knew of the offer; and (3) whether Deutsch’s course of action constituted a performance amounting to an acceptance.

It is basic that overt manifestation of assent — not subjective intent — controls the formation of a contract; that the “only-intent of the parties to a contract which is essential is an intent to say the words or do the acts which constitute their manifestation of assent”; that “the intention to accept is unimportant except as manifested.” Restatement of Contracts, § 20; 1 Williston on Contracts (3d Ed.) § 21, p. 39, § 66, p. 213; compare Western Natural Gas v. Cities Service Gas Co., Del.Supr., 223 A.2d 379, 383 (1966); Canister Co. v. National Can Corp. (D.Del.) 63 F.Supp. 361, 365 (1945).

Where an offeror requests an act in return for his promise and the act is performed, the act performed becomes the requisite overt manifestation of assent if the act is done intentionally; i. e., if there is a “conscious will” to do it. Restatement of Contracts, § 20; 1 Williston on Contracts (3d Ed.) § 68. But “it is not material what induces the will,” Restatement of the Law of Contracts, § 20, Comment (a). Otherwise stated, motive in the manifestation of assent is immaterial. There may be primary and secondary reasons or motives for a performance constituting manifestation of assent to an offer inviting acceptance by performance; and the “chief reason” or the prevailing motive need not necessarily be the offer itself. A unilateral contract may be enforceable when the promisor has received the desired service even though the service was primarily motivated by a reason other than the offer. The “motivating causes of human action are always complex and are frequently not clearly thought out or expressed by the actor himself.

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285 A.2d 412, 1971 Del. LEXIS 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-america-inc-v-fulton-industries-inc-del-1971.