Ammons v. Wilson & Co.
Facts
Ammons (P) sued Wilson & Co. (D) to recover $658.74 in damages resulting from Wilson’s breach of a contract to ship Ammons 942 cases of shortening. Ammons testified on his own behalf and the court excluded that testimony and directed a verdict in favor of Wilson.
Wilson’s salesman took a booking from Ammons for 60,000 pounds of shortening at 7.5 cents per pound tierce basis. The booking neither constituted a contract nor an absolute offer to contract. On August 23-24, Ammons ordered for prompt shipment 942 cases of shortening through Wilson’s salesman. Ammons heard nothing until September 4 when he was advised by Wilson that the order was declined. Shortening was now 9 cents per pound. Wilson waited 12 days to decline the order when its salesman was had taken several orders from Ammons for other items in the past that had always been accepted and shipped not later than one week after they were given. Ammons appealed.
Issue
- May an offeree’s silence act as an implied acceptance based on prior course of dealing between the parties?
Holding and Rule of Law
- Yes. An offeree’s silence may act as an implied acceptance based on prior course of business between the parties.
The question for the jury whether or not Wilson’s delay of twelve days before rejecting the orders constituted an implied acceptance of the orders based on prior course of business between the parties. It was error to direct the verdict. If there was a breach, Ammons is entitled to at least nominal damages.
Disposition
Reversed and remanded.