Story Case

David Humphry offered his Jersey cow to Mr. Rowan for $85 and stipulated that the offer was to be open for only three days. On the very next day, Mr. Rowan stated to Humphry that he accepted the offer and tendered the price. Humphry refused to accept the money and said:

"The offer was to remain open for three days.

Now in that space of time you could buy or not buy and I had the like privilege. I have decided not to sell the Jersey".

Mr Rowan immediately brought suit on the breach of promise, and Humphry defended on the above ground. Is the defense valid.

Ruling Court Case. Prescott Vs. Jones, Volume 69 New Hampshire Reports, Page 305; Volume 41 Atlantic Reporter, Page 352

Jones was an insurance agent; in the course of his business he insured Prescott's buildings in the Manchester Fire Insurance Company until February 1, 1897. On January 23, 1897, Jones notified Prescott that he would renew the policy, and insure his buildings for a further term of one year, from February 1, 1897, in the sum of $500, unless notified to the contrary. Prescott made no reply whatsoever to this offer. On the 1st of March, 1897, the buildings in question were destroyed by fire. Prescott demanded payment of his loss from the agent, Jones. Jones refused to make good the loss; Prescott, thereupon, brought this action.

Jones contended that no contract was ever made between them, because Prescott did not accept his offer.

Decision

When a person communicates his willingness to contract, in order to make of this willingness a legal obligation, the offeree, or the person to whom the offer is made, must in some way communicate to that person his willingness and desire to accept an obligation from him. An acceptance is necessary in order to create a binding obligation or contract between the offeror and offeree. In this case, Prescott did not endeavor in any way to indicate his willingness and desire to accept the obligation of Jones. It follows, therefore, that no contract was ever made between them.

Therefore, judgment was given for Jones, the defendant.

Ruling Law. Story Case Answer

Acceptance is an expression on the part of the second person of his willingness to be bound to the first party. Until the second party has done this, he gets no contractual rights against the other. As soon as an acceptance is made, the offer ceases and the contract begins. In the Story Case, Humphry made an offer; he expressed a willingness to sell his cow for a certain sum; before he had withdrawn that offer, the person to whom it was made, expressed his willingness to buy the cow at that price; thereupon, the offer ceased and from the offer and acceptance a contract resulted. Therefore, the defense of Mr. Humphry is not good.