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Contracts Keyed to Fuller
Cole-McIntyre-Norfleet Co. v. Holloway
Facts
On March 26, 1917, a salesman employed by Cole-McIntyre-Norfleet Co. (Defendant) visited Holloway’s (Plaintiff) store and successfully solicited an order from Plaintiff for fifty barrels of meal, a perishable good. Defendant provided that Plaintiff had until July 31, 1917 to request delivery of the meal, and would be charged for storage of any barrels not requested by this time. Defendant’s salesman visited Plaintiff’s store once a week every week following Plaintiff’s order but never mentioned the order during these visits. On May 26, 1917, Plaintiff requested delivery of the barrels from Defendant. However, Defendant informed Plaintiff that it had never accepted his order and thus no contract existed. Between March 26,when the order was placed, and May 26, when Plaintiff requested delivery, the prices for meal significantly increased. Plaintiff sued to recover the excess in price in Tennessee state court. The circuit court and court of appeals both held that Defendant’s unreasonable delay in informing Plaintiff that it did not accept the order actually amounted to acceptance itself, and thus a valid contract was formed. Defendant appealed.
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