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Contracts Keyed to Fuller
Interform Co. v. Mitchell Construction Co.
Citation:
575 F.2d 1270 (9th Cir. 1978)Facts
Mitchell Construction Company, as prime contractor for the State of Idaho, used concrete forms belonging to Interform Company on two construction jobs. The parties disputed whether their agreement was for purchase or rental of the forms. Initial negotiations centered entirely on rental, but Mitchell later expressed interest in purchasing. Mitchell sent a “Purchase Order” document requesting Interform to “furnish” forms according to specifications, while Interform’s subsequent invoices and bills of lading specifically referred to “rental” of the forms. Mitchell paid $32,000, which it claimed was the purchase price, but Interform maintained this was only rental payment for the first job. When Mitchell used the forms on a second job without further payment, Interform sued for additional rental fees and return of its forms. The district court found that the parties had entered into a rental contract for the first job, that no agreement existed for the second job, and that Mitchell had been unjustly enriched by its continued use of the forms.
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