HOUSTON DAIRY, INC. V. JOHN HANCOCK MUTUAL LIFE INSURANCE CO.
643 F.2d 1185 (5th Cir. 1981)
NATURE OF THE CASE: This was a dispute about a good faith loan deposit. Houston (P),
challenged an order, which found Hancock (D) had both waived a seven-day limitation and
validly accepted P's counter offer and that the parties had entered into a binding contract
and awarded D the $16,000 deposit as valid, liquidated damages for breach of the loan
agreement.
FACTS: John Hancock (D) mailed a commitment letter to Houston Dairy (P) to lend it $800k
if P would return the commitment letter with a written acceptance and enclose a letter of
credit or a cashier's check for $16k within 7 days. The commitment letter stated that the
$16k was a good faith deposit and the appropriate measure of liquidated damages in case of
default by P. P complied with D's terms and but mailed the commitment and check 11 days
after the expiration of the term provision. P then found it could obtain a loan for less at
a state bank. P requested that its monies be refunded. At trial, it was determined that D
had waived the seven-day limitation and that there was a contract. P appealed; the letter
was a counteroffer that was never accepted by D.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
Get
free access to the entire content for Mac, PC or Online
for 2-3 days and free samples
of all kinds of products.
for 2-3 days and free samples of all kinds of products.
https://bsmsphd.com
© 2007-2016 Abn Study Partner
No comments:
Post a Comment