National Advertising Co. v. Herold

735 S.W.2d 74, 1987 Mo. App. LEXIS 4246
CourtMissouri Court of Appeals
DecidedJune 23, 1987
Docket51523
StatusPublished
Cited by11 cases

This text of 735 S.W.2d 74 (National Advertising Co. v. Herold) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Advertising Co. v. Herold, 735 S.W.2d 74, 1987 Mo. App. LEXIS 4246 (Mo. Ct. App. 1987).

Opinion

CRANDALL, Judge.

Plaintiff, National Advertising Company (National), appeals from the judgment of the trial court in favor of defendants, Robert Herold, J.D. Mead, Steve Pranka and Eugene Doerr d/b/a The Realty Company (Realty Co.) and City of Berkeley (Berkeley); and in favor of defendant-intervenor, Gannett Outdoor Company of Kansas City d/b/a Gannett Outdoor Company of St. Louis (Gannett), permanently enjoining National from impeding Realty Co.’s and Gan-nett’s use of certain real estate and ordering National to remove an outdoor advertising sign from the property. We affirm.

Our standard of review is that of a court-tried case. The evidence at trial established that National and Gannett were in the business of renting outdoor space on which to place advertising signs. Realty Co. owned real estate in St. Louis County which was uniquely situated between the north and south bound lanes of an interstate highway, 1-170. The parcel immediately adjacent to Realty Co.’s property was owned by a railroad. Both parcels were subject to the Missouri Highway Beautification Act, particularly those sections regulating billboards. See Sections 226.500-226.600 RSMo (1986).

Realty Co. initially contacted Gannett about renting the property. A rental price of $6,000 was discussed. On February 1, 1984, Realty Co. also initiated negotiations with National for the purpose of leasing that same parcel of land. On February 2, Realty Co. and a representative of National signed a lease agreement on a standard form furnished by National. National paid no money to Realty Co. at this time.

Paragraph 4 of the agreement provided in pertinent part:

In consideration of the foregoing and the mutual promises herein contained and other good and valuable consideration, the Lessee agrees to pay the Lessor at the rate of $1000.00 for 90 days. Lease will commence at $500/mo at end of 90 days at the rate of $6000.00. 1st 5 years and then escalate to $7200 for 2nd 5 year period....

Paragraph 8 of the agreement read: “This lease shall be deemed to have been accepted and its terms enforceable only upon acceptance hereof by lessee in the space provided.” The bottom of the front side of the document contained the following:

Accepted:
NATIONAL ADVERTISING COMPANY, LESSEE By-

Realty Co. did not designate a time period during which the lease had to be accepted. Realty Co. informed National that it was also meeting with Gannett regarding a lease on the property.

On February 3, 1984, National applied for and was issued a permit by Berkeley to erect a sign on Realty Co.’s property. The basis for the issuance of the permit was the agreement signed by Realty Co. as the owner of the property.

That same day, Realty Co. met with Gan-nett to discuss the possibility of leasing the property. At the same time, Gannett was applying to the railroad for a lease on the adjacent property.

On February 9, 1984, after receiving authorization from the State Highway Department, National erected a temporary sign on Realty Co.’s land. Realty Co. did not request that National put up this sign and was surprised when it saw the sign in place. National intended this sign to preserve its priority to erect a sign in that *77 particular location in conformity with Section 226.540(3)(a)a, which provides that “[n]o sign structure shall be hereafter erected within five hundred feet of an existing sign on the same side of the highway. ...”

On February 10,1984, National informed Realty Co. that a decision would be reached by February 15. Realty Co. replied that it needed an answer by February 10. Realty Co. did not, however, revoke its offer at that time.

That same day, Gannett obtained a building permit from Berkeley and put up a temporary sign on the railroad real estate. At this point in time, Gannett had no lease with the railroad for that parcel. The newly erected sign was within 500 feet of National’s sign. On February 10, Gannett increased its offer to $8,000 per year to lease the property and informed Realty Co. that, if Gannett built a permanent sign on the railroad’s property, it would then be impossible for a sign to be erected on Realty Co.’s property.

On the morning of February 13, 1984, in Dallas, Texas, National signed the agreement, accepting the lease with Realty Co. It did not, however, communicate its acceptance to Realty Co. That same morning, unaware of National’s acceptance, Realty Co. entered into a lease with Gannett. Realty Co. sent written revocations of its offer to National, initially by mailgram and then by hand delivery to National’s home office in Hamel, Illinois. No one at the home office informed Realty Co. that the lease had been executed in Dallas.

On February 14,1984, National delivered its acceptance and a check for $1,000 to Realty Co.’s office. The check was returned to National. On February 29, National received notice from Berkeley revoking its permit for the temporary sign. On March 1, the State Highway Department sent notices to Gannett to remove the sign on the railroad's property and to National to remove the sign on Realty Co.’s property for violation of the 500 foot spacing requirement. On March 7, National requested administrative review of the highway department’s decision which resulted in the subsequent withdrawal of the removal order on June 6. On March 9, Berkeley reissued a building permit to National for a permanent sign which had to be in place by March 23. On March 17, National commenced construction of an advertising sign. That same day, Berkeley’s police department requested that National’s work crew suspend work on the sign. The trial court subsequently issued an injunction against National and ordered the removal of the sign from Realty Co.’s land.

Preliminarily, we note that the lease agreement was executed in Texas and the contract contained no choice of law provision. Several contractual contacts indicate that Missouri law is the applicable law in this case: the lease agreement was for real property located in Missouri; the agreement was negotiated in Missouri; performance was to occur in Missouri; and Realty Co.’s place of business was Missouri. See, e.g., Nakao v. Nakao, 602 S.W.2d 223, 226 (Mo.App.1980); Restatement (Second) of Conflicts of Law Section 188 (1971). We conclude that the interpretation of the contract rights and duties of the respective parties is governed by the law of the state of Missouri.

In its first point, National contends that the trial court erred in deciding that the Realty Co.’s offer was effectively revoked. National argues that it accepted Realty Co.’s offer by signing the agreement, as specified in the contract; and that such acceptance occurred prior to revocation of the offer by Realty Co.

There must be both a definite offer and an unequivocal acceptance for the formation of a contract. Thacker v. Massman Const. Co., 247 S.W.2d 623, 629 (Mo.1952). Where an offer calls for a promise from the offeree, notice to the offeror of acceptance on the offeree’s part is essential to the formation of a contract. Id.

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Bluebook (online)
735 S.W.2d 74, 1987 Mo. App. LEXIS 4246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-advertising-co-v-herold-moctapp-1987.