Lonergan v. Scolnick

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Lonergan v. Scolnick
Court California Court of Appeal
Citation 276 P.2d 8
Date decided November 23, 1954
Case Opinions
majority written by Charles R. Barnard
joined by Griffin, Mussell

Facts

  • "Scolnick" = defendant = owner of a 40-acre plot of land = seller
  • "Lonergan" = potential buyer
  • In March 1952, Scolnick put an ad in the paper offering to sell a plot of land. The ad didn't list a price.
  • Lonergan responded to the ad, and a series of letters between the two regarding the property and the sale thereof took place.
  • Scolnick told Lonergan that his minimum price was $2,500.
  • On April 8th 1952, the Defendant (Scolnick) wrote to the Plaintiff and said that he better hurry and make an offer, because he was expecting to sell the land shortly.
  • Scolnick then sold the land to someone else on April 12.
  • A couple of days later, the Lonergan wrote to the Scolnick & offered to buy the land.
April 8th 1952
Scolnick writes to Lonergan
April 12th 1952
Scolnick sells the land to someone else for $2,500
April 15th 1952
Lonergan agrees to buy the land at $2,500
April 17th 1952
Lonergan opens an escrow account




Procedural History

Trial court found for the defendant.

Issues

Was there a contract?

Arguments

Plaintiff said that a contract already existed.

Holding

The April 8th 1952 letter of Scolnick didn't constitute an offer.

Judge Barnard: Contract formation requires a meeting of the minds upon mutually agreeable terms.

No contract had been formed.

Judgment

Affirmed.

Reasons

  • Judging from the Scolnick's language, he intended to sell the land to the first-comer. The ad in the paper was only a request for an offer.
  • The lack of specificity in the ad and the "over subscription problem" (elevated interest for a newly available offering causes demand to outstrip supply).

Resources