Scott v. Moragues Lumber Co. – Case Brief
Scott v. Moragues Lumber Co., 202 Ala. 312, 80 So. 394 (1918).
Case Summary
Facts: Scott (D) offered to charter a boat to Moragues Lumber Co. (P) for transporting a cargo of lumber. The offer was contingent on Scott buying a particular American vessel in Chile. Moragues accepted the offer and Scott purchased the vessel. Before the vessel was delivered to Scott, and without notifying Moragues that he had purchased it, Scott chartered the vessel to a third party.
P sued D for breach of the agreement and sought damages of $13,000. The trial court entered a judgment in favor of P and D appealed.
Issue: Can a contract be conditioned upon the happening of a future event under the control of one of the parties to the contract?
Holding and Rule: Yes. A contract can be conditioned upon the happening of a future event under the control of one of the parties to the contract. Such a contract is not void for lack of consideration or mutuality of obligation.
D was not bound to purchase the vessel and if D had never purchased it there would be no contract. However, if he did, then the condition is extinguished as though it had never been stipulated and the contract provisions that remain if they constitute a contract can be enforced. From the facts, P accepted D’s offer of charter before the purchase.
Disposition: Affirmed.