Ellefson v. Megadeth

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Ellefson v. Megadeth
Court United States District Court for the Southern District of New York
Citation
Date decided 2005-1-12

Facts

David Ellefson & Dave Mustaine formed the thrash metal musical band known as Megadeth in 1983. A few years later, they created Megadeth, incorporated to manage the business of their band.

In 2003, Ellefson claimed that Mustaine & the Megadeth corporation ("Megadeth") defrauded Ellefson of his profit share.

Mustaine specified that absent a settlement between the opposing parties by 5 pm Friday, May 14th 2004, he would withdraw from all negotiations.

Procedural History

Ellefson sued Megadeth in the Southern District of New York (federal) court.

Issues

May an offer be accepted using any reasonable & usual mode of communication?

Holding

A defective acceptance may be considered a counter-offer for the initial offerer to accept or reject.

The initial offer in this case had a deadline. However, the counter-offer didn't have a deadline.

Mustaine's mail-in on May 20th 2004 constituted acceptance of Ellefson's counter-offer.

Rule

E-mail & fax are okay as methods of contract offer, acceptance, & counter-offer.

Resources