Houston Dairy, Inc. v. John Hancock Mutual Life Insurance Co.

John Hancock (defendant) offered Houston Dairy (plaintiff) an $800,000 loan at 9.25% interest, conditioned on Houston Dairy returning a signed commitment letter with a $16,000 deposit within seven days, but Houston Dairy didn't send its acceptance and deposit until eighteen days later; John Hancock deposited the check and its attorneys met with Houston Dairy's to discuss closing, but sent no explicit communication accepting Houston Dairy's late response. After Houston Dairy secured a cheaper 9.0% loan elsewhere and notified John Hancock it wanted its deposit back, John Hancock refused, and the district court found a binding contract existed and ruled for John Hancock.