Kabil Developments Corp. v. Mignot
Supreme Court of Oregon
566 P.2d 505 (Or. 1977)
Kabil Developments Corp. (plaintiff) claimed it had an oral contract with Inland Helicopters (defendant) to supply helicopter services for a construction job. Inland denied any contract was formed and never performed, forcing Kabil to hire a replacement at a higher price and sue for the difference. At trial, Kabil's vice president, Munroe, wanted to testify that after talking with an Inland agent, he personally believed Kabil was bound to buy from Inland. The trial court admitted this testimony, but only to show how Munroe then acted, not as direct proof a contract existed. Inland appealed, arguing the testimony about Munroe's subjective belief should never have come in.
Whether evidence of a party's subjective belief that a contract was formed is admissible when that belief is shown through the party's own subsequent actions.