Farley v. Champs Fine Foods, Inc.
Supreme Court of North Dakota
404 N.W.2d 493 (1987)
Dennis Farley (plaintiff) negotiated to buy stock from Champs Fine Foods' parent company; after rejecting several of Farley's offers, company chairman Oscar Grubert sent a letter offering to sell on certain terms with an acceptance deadline. Before that deadline, Grubert called Farley and told him he would not enter into an agreement; that same day, Farley separately mailed a letter purporting to accept Grubert's offer. Farley sued for specific performance, and the trial court found Farley mailed his acceptance letter after the phone call (crediting Grubert's testimony that Farley never mentioned an acceptance letter during the call over Farley's own contrary testimony), meaning the offer was withdrawn before it was accepted.
Whether, under the mailbox rule, an acceptance of an offer sent by mail is effective as soon as it is mailed, such that a prior oral revocation communicated to the offeree does not defeat it.