Russell v. Texas Co.
Ninth Circuit
238 F.2d 636 (1956)
Russell (plaintiff) owned section 23, over which Northern Pacific Railway Company (Northern Pacific) (defendant) had reserved mineral rights and granted a gas lease to the Texas Co. (Texas) (defendant). Texas used the surface of section 23 beyond its rights under the gas lease, in connection with operations on adjacent lands, without Russell's permission. Russell offered Texas a revocable license to use the surface for $150 per day, stating that continued use of the surface would constitute acceptance; Texas kept using the surface until late November 1952, then formally rejected the offer in December. Russell sued for damages tied to Texas's surface use, and the trial court awarded $3,600 under the revocable license plus $237.60 under the original gas lease; Texas appealed the $3,600 award, denying it ever accepted the offer, and Russell appealed the smaller award as based on the wrong damages rule.
Whether, when an offer provides that acceptance may be given by the offeree's exercise of dominion over things offered, and the offeree exercises such dominion, the offeree's act constitutes acceptance even if the offeree did not intend to accept the offer.