Standard Box Co. v. Mutual Biscuit Co.

After a post-earthquake box shortage, Standard Box (plaintiff) refused Mutual Biscuit's (defendant) attempt to exercise a prior option to buy boxes at the older, lower 1905 price, instead offering only market price while aware Mutual Biscuit needed the boxes to stay in business; Mutual Biscuit agreed to the market price but later refused to pay in full, and when Standard Box sued for the balance, Mutual Biscuit counterclaimed that it had agreed under duress and that the original 1905-price option remained binding. The jury found no option contract had ever formed because Mutual Biscuit failed to accept it within a reasonable time, ruling for Standard Box.