Phœnix Iron & Steel Co. v. Wilkoff Co.

253 F. 165, 1 A.L.R. 1497, 1918 U.S. App. LEXIS 1533
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 5, 1918
DocketNo. 3122
StatusPublished
Cited by10 cases

This text of 253 F. 165 (Phœnix Iron & Steel Co. v. Wilkoff Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phœnix Iron & Steel Co. v. Wilkoff Co., 253 F. 165, 1 A.L.R. 1497, 1918 U.S. App. LEXIS 1533 (6th Cir. 1918).

Opinion

COCHRAN, District Judge.

The plaintiff in error' was plaintiff and the defendant in error defendant below. The action was to recover $202,500 as damages for breach of contract. The defendant denied the existence of the contract,- and this was the sole issue in the case apart from that as to amount of damages. On trial .before a jury verdict was rendered for defendant, pursuant to peremptory instruction given,' after plaintiff had introduced the evidence on which it relied to establish the contract," and upon the ground that such evidence did not establish it. Judgment dismissing the petition was entered thereon, and it is therefrom that this writ has been sued out. Seven errors are assigned, but each in a different way raises the single question as to the correctness of the peremptory instruction.

The alleged contract related to one of two kinds of discard billets, made in the manufacture of high explosive shells. Such billets are cut-offs from billets rolled from ingots. Two- are made from the top of each billet. The first is imperfect, in that it contains pipes and seams caused by the passage from the top of the ingot of gases formed by the hot steel. Tire second is apparently perfect, i. e., free from pipes and seams, and is made to insure that all imperfect steel has been eliminated. The remaining part of the billet is alone used in the manufacture of the shells. It was the latter kind of discard billets which was the subject-matter of the alleged contract.

The plaintiff and defendant are each engaged in buying and selling iron and steel products, the one in New York City and the other at Youngstown, Ohio. Plaintiff’s claim was that the contract sued on arose from a telegram and confirming letter sent Monday evening, August 14, 1916, by defendant to it, granting an option, and a counter telegram sent Wednesday morning, August 16th, by it to defendant, accepting the option. It is not' necessary to quote the confirming letter, as it contains nothing additional except a specification of the sizes of the billets, nor the formal parts of the telegrams. Defendant’s telegram was as follows:

“For consideration of one dollar, receipt of which is hereby acknowledged, we hereby give you option, providing we receive your acceptance not later than Wednesday evening next, to purchase from us 15,000 tons discard billets free of pipes and seams, price $26.50 gross ton f. o. b. cars Youngstown, size of billets as confirmed by letter this evening.”

Plaintiff’s counter telegram was as follows:

“We accept option, and hereby purchase from you fifteen thousand tons billets on basis of terms and specifications of option given us, it being understood tiiat we have the right to have our inspector at loading point as material is shipped. Acknowledge receipt of this message.”

[167]*167These two telegrams and defendant’s confirming letter were filed as exhibits with the plaintiff’s petition, and no reason occurs why the question as to whether a contract was thereby constituted might not have been raised by, and determined upon, demurrer to the petition. Subsequent telegrams, which passed between the parties down to August 22d, were introduced in evidence by plaintiff. They had no tendency to help out. its case. Nor does it claim that they did. On the contrary, defendant claims that they show that the plaintiff as well as defendant did not regard that a contract had resulted from the previous communications. As it is not necessary to determine this, those telegrams, except one sent by defendant to plaintiff Wednesday evening the 16th upon receipt of plaintiff’s telegram, are not quoted. That telegram was as follows:

“Billets on hand ready to ship. Your message satisfactory provided you make inspections Thursday or Friday this week. If billets satisfactory will then sign contract. Wire when your inspector will be here.”

Inspection was made on Friday of the billets thus referred to and they were rejected.

The question as to the correctness of plaintiff’s claim depends on whether its counter telegram was an absolute acceptance of the offer made by defendant’s telegram and confirming letter. If it was not — if it was only a qualified acceptance thereof — no contract arose therefrom; for it is trite in the law that, in order for a contract to arise from the acceptance of an offer, the acceptance must he absolute and unqualified. The reason for this is thus stated in Wald’s Pollock on Contract (3d Ed., by Williston) p. 43:

“For unless and until there is such an acceptance on the one part of the terms proposed on the other part there is no expression of one and the same common intention of the parties, but at most expression of the more or less different intentions of each party separately; in other words, proposals and counter proposals.”

The question, therefore, whether, in any given case, an acceptance of an offer constitutes a contract may he viewed as one of identity. Do the offer and the acceptance each express one and the same intention, i. e., an assent to one and. the same thing?

[1] Without doubt plaintiff’s telegram on its face was a qualified, and not an absolute, acceptance of defendant’s offer. It contained two sentences. The second called for an. acknowledgment of its .receipt. The first begins, it is true, by stating unqualifiedly that plaintiff accepted the option, and thereby purchased 15,000 tons billets “on the basis of terms and specifications of option”; but this statement was immediately followed by the words “it being understood that we have the right to have our inspectors at loading point as material is shipped,” a matter of which defendant’s communications made no mention. The word “understood” is synonymous with “agreed.” 39 Cyc. 672, n. 90. And the words “it being understood” mean provided or on condition it is so agreed. The plaintiff in error practically concedes this. Its contention is that, even though this is so, yet the acceptance was in reality, an absolute and unqual[168]*168ified acceptance. It attempts to make this out in this way. It mantains that had its telegram said nothing as to the right of inspection therein specified as defendant’s communications did, and hence its telegram been really as well as on its face an absolute acceptance, it would, under the contract thus formed by law, have had such right of inspection. This being so, notwithstanding its acceptance was expressly made conditional on its being so agreed, it was in reality an absolute and unqualified acceptance. It bases its position that in that contingency it would have had such right on subdivision 2 of section 8427 of the General Code of Ohio, a part of which is known as the Williston Sales Act, in force also in New York, which provides as follows, to wit:

“Unless otherwise agreed, when the seller tenders delivery of goods to the buyer he is bound, on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether they are in conformity .with the contract.”

It cites and relies on the cases of Turner v. McCormick, 56 W. Va. 161, 49 S. E. 28, 67 L. R. A. 853, 107 Am, St. Rep. 904, and Horgan v. Russell, 24 N. D. 490, 40 N. W. 99, 43 L. R. A. (N. S.) 1150, in support of its contention that on the basis that in such contingency it would have had such right, its acceptance was in reality absolute and unqualified. These two cases were both option cases. In each the option and the acceptance was in writing.

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Bluebook (online)
253 F. 165, 1 A.L.R. 1497, 1918 U.S. App. LEXIS 1533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phnix-iron-steel-co-v-wilkoff-co-ca6-1918.