Cook's Pest Control, Inc. v. Rebar
Supreme Court of Alabama
852 So.2d 730 (2002)
Cook's Pest Control (Cook's) (defendant) sent the Rebars (plaintiffs) a renewal offer under their original termite-treatment agreement, which included an arbitration clause; instead of accepting as offered, the Rebars submitted their renewal check along with an addendum eliminating the arbitration requirement and specifying that Cook's continuation of service or acceptance of payment would constitute acceptance of the new terms. Cook's deposited the check and kept servicing the property, and when the Rebars later sued for various claims, Cook's moved to compel arbitration under the original agreement's clause; the circuit court denied the motion.
Whether an offeror's acceptance of a counteroffer from the offeree terminates the original offer and creates a binding contract under the terms of the counteroffer.