Standard Box Co. v. Mutual Biscuit Co

103 P. 938 (1909)

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Nature of the Case

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Facts

D had been purchasing certain boxes, cases, and trays from P during the year 1905, under a written agreement dated July 25, 1905. On September 1, 1905, P addressed a letter to D and offered an option from one year from July 25, 1906, to furnish boxes at the same price as agreed upon their current contract. P further agree to allow discount of 19 1/2% off said prices, as present in said contract.

D replied, 'We are in receipt of your communication of this inst., containing option for the continuation of contract for one year from July 25, 1906, with same conditions, prices, and discounts as at present.' As luck would have it, the big one (earthquake) hit on April 18, 1906. D's plant was destroyed and was not rebuilt until the latter part of August of that year. On July 25th D mailed an acceptance of the Sept. 1, 1905 offer. P refused to sell at a discount but offered product at market price. D agreed to purchase the boxes at market and then refused to pay for all of them. P sued for the outstanding balance. D defended by stating it was under duress as P knew D would go out of business if it did not purchase the boxes. The jury verdict went to P because D did not accept the option within a reasonable period of time. D appealed.