CONTRACTS - OFFER AND ACCEPTANCE -TERMINATION OF OFFER BY SUBSEQUENT HIGHER BID OF ANOTHER

Authors

Abstract

The receiver of an insolvent bank received from one Lorensen bids of $4,500 for the building and $500 for the fixtures of the bank, the bid for the fixtures being conditioned on acceptance of the bid for the building. He received a subsequent bid of $4,600 for the building alone, no mention being made of the fixtures. Lorensen's bid for the fixtures was made on separate paper and was considered as distinct from his bid for the building. The receiver called on Lorensen, notified him of the higher bid {indicating that it had been received without qualification) and tried to induce him to raise his bid. This Lorensen refused to do; he at no time renewed or raised his bid. Some time later the receiver accepted Lorensen's bid as the best under the circumstances, there being no other market for the fixtures. Upon the receiver's application to the court for confirmation of the contract Lorensen objected that there was no contract, and his objection was sustained. The receiver appealed. The supreme court of the State in affirming the decision of the lower court held that the receipt of the higher bid and the receiver's statement to Lorensen to that effect operated to terminate Lorensen's offer before the receiver had accepted it, and consequently there was no contract. State ex rel. Sorensen, Att'y Gen. v. Wisner State Bank et al., (Neb. 1933) 250 N. W. 89.

Recommended Citation

CONTRACTS - OFFER AND ACCEPTANCE -TERMINATION OF OFFER BY SUBSEQUENT HIGHER BID OF ANOTHER, 32 Mich. L. Rev. 697 (1934).
Available at: https://repository.law.umich.edu/mlr/vol32/iss5/13