Industrial v. Fulton (Delaware)

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Industrial v. Fulton (Delaware)
Court Delaware Supreme Court
Citation 285 A.2d 412
Date decided October 21, 1971

Facts

  • Bush Hog, Inc. = "B-H" = a farm machinery company
  • Industrial America, Inc. = "Industrial" = plaintiff = a broker specializing in the merger of businesses = middleman
  • Fulton Industries, Inc. = "Fulton" = defendant = a company ready to merge
  • Industrial connected B-H & Fulton
  • B-H & Fulton sidestepped Industrial (middleman).
  • B-H & Fulton merged with each other without further assistance from Industrial.

Procedural History

Industrial sued both B-H & Fulton to recover a broker's commission

The trial court in Delaware awarded a $150,000 commission against B-H

However, the trial court decided that Fulton didn't have to pay a commission

Issues

Does a rebuttable presumption of acceptance by performance exist if an offer invites acceptance by performance?

Holding

Yes. A rebuttable presumption of acceptance by performance exists if an offer invites acceptance by performance.

Industrial is entitled to a $150,000 broker's commission from Fulton, too.

Judgment

Reversed.

Reasons

Justice Herrmann: Industrial & Fulton created a unilateral contract.

Rule

Resources