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Contracts Keyed to Murray
Farley v. Champs Fine Foods, Inc.
Facts
Dennis Farley (Plaintiff) negotiated with Champs Fine Foods, Inc. (Defendant) for the purchase of common stock from its parent corporation, Champs Food Systems, Ltd. Plaintiff submitted multiple offers to buy, which were rejected by Oscar Grubert, Defendant’s president and chairman of the board. Grubert then sent a letter to Plaintiff offering to sell under certain terms and imposing a deadline for acceptance. Before that deadline, Plaintiff telephoned Grubert. During the phone call, Grubert told Plaintiff he was not going to enter into an agreement with him. That same day, Plaintiff sent Grubert a letter stating that he was prepared to accept the offer to sell outlined in Grubert’s letter. When Grubert refused to sell, Plaintiff sued Defendant for specific performance. The trial court dismissed the action, finding that: (1) Plaintiff mailed his acceptance letter after his phone conversation with Grubert and (2) the offer to sell was therefore withdrawn before it was accepted. Plaintiff appealed.
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