Humble v. Westside

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Humble v. Westside
Court Texas Supreme Court
Citation 428 S.W.2d 92
Date decided May 1, 1968

Facts

  • Humble Oil & Refining Co. = "Humble" = plaintiff = buyer
  • Westside Investment Corp. = "Westside" = defendant = property seller
  • On April 5, 1963, Westside (defendant) gave Humble (plaintiff) entered into an option contract to purchase land for $35,000.
  • Humble paid $50 as consideration for this land outside San Antonio, Texas.
  • Westside refused to follow through to sell the property when Humble provided the $1,750 of earnest money.

Procedural History

Humble sued Westside seeking specific performance of the contract.

The trial court ruled that because Humble had demanded utilities to purchase the land, Humble's request was a rejection of the option contract.

Humble lost. Westside won.

Issues

May an option contract be rejected by a proposed amendment to the contract of sale?

Holding

No. As long as consideration is given for an option, the option contract is irrevocable as long as the option remains available.

Judgment

Reversed

Reasons

Justice Smith: A conditional acceptance of an offer is considered a rejection. A conditional acceptance doesn't create a contract, because there's no agreement on terms.

Nevertheless, an option is already a contract. The parties have already come to an agreement.

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