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Contracts Keyed to Summers
Standard Box Co. v. Mutual Biscuit Co.
Facts
On September 1, 1905, Standard Box Co. (Plaintiff) offered an option contract to Mutual Biscuit Co. (Defendant). The option would have allowed Defendant, beginning on July 25, 1906, to purchase boxes from Plaintiff for one year at the 1905 price. On April 18, 1906, a serious earthquake caused a shortage of boxes. On July 25, 1906, Defendant sought to exercise the option. Plaintiff refused to sell its boxes at the 1905 price but was willing to sell to Defendant at market price. Plaintiff was aware that Defendant would go out of business if it could not purchase the boxes. Defendant agreed to purchase the boxes at market price, but later refused to pay for all of them. Plaintiff sued to recover the outstanding balance. Defendant counterclaimed, arguing that Plaintiff was required to sell at the 1905 price, and claiming that Defendant had agreed to purchase the boxes at market price under duress. The jury found that no option contract had been formed because Defendant had failed to accept the option within a reasonable time. The jury found in favor of Plaintiff. Defendant appealed.
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