Obering v. Swain-Roach Lumber Co.
Appellate Court of Indiana
155 N.E. 712 (Ind.App. 1927)
Swain-Roach Lumber Co. (plaintiff) agreed with the Oberings, relatives of a deceased landowner (defendants), that if Swain-Roach bought the deceased's farmland from the estate, it would resell the land to the Oberings after removing the valuable timber for itself. Swain-Roach did buy the farmland and tendered a deed to the Oberings reserving the timber, but the Oberings refused the deed, arguing the contract lacked mutuality since it was not binding until Swain-Roach actually purchased the land; the trial court ruled for Swain-Roach, and the Oberings appealed.
Whether a contract lacks mutuality of obligation, and is therefore invalid, if it does not become binding until one party performs an act that itself constitutes both acceptance and consideration.