International Filter v. Conroe Gin, Ice, & Light – Case Brief
International Filter Co. v. Conroe Gin, Ice, & Light Co., 277 S.W. 631 (Tex. 1925).
Facts: International Filter Co. (P) offered to provide a water softener and filter to Conroe Gin, Ice, & Light (D) for $1,230. The offer called for prompt acceptance and would become a binding contract upon acceptance by Conroe Gin and subsequent approval by an executive of International Filter.
D accepted the offer and Engle, P’s president, approved and signed the proposal. P then acknowledged the order but did not specifically inform D that Engel had approved of the agreement and given his endorsement.
D rescinded its acceptance two weeks later and P sued to compel performance of the contract. D asserted that a binding contract had not formed because it had not been informed of Engel’s approval. The trial court entered judgment for D and P appealed. The court of appeals affirmed.
Issue: 1) Is notice of acceptance or approval of an offer necessary to create a valid contract if the offer indicates that notification is not required? 2) Can the offeror control the manner of acceptance of an offer?
Holding and Rule: 1) No. Notice of acceptance or approval of an offer is not necessary to create a valid contract if the offer indicates that notification is not required. 2) Yes. The offeror can control the manner of acceptance of an offer.
An offeror can dispense with the requirement of notification of acceptance or approval by the other party. The offeror will be deemed to have dispensed with the requirement of notification if the form of the offer shows that notice is not required. It is then necessary for the offeree merely to act according to the indicated method of acceptance.
The terms expressly stated that there would be a contract upon an approval by International Filter’s executive officer. Engle’s endorsement satisfied that requirement. At that moment a binding contract was formed with Conroe Gin according to its definitely expressed terms.
Disposition: Reversed – judgment for International Filter.