Empire Machinery Co. v. Litton Business Telephone Systems

566 P.2d 1044 (Ariz. 1977)

Free access to 20,000 Casebriefs

Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

Empire (P) became interested in acquiring an interconnect telephone system. P contacted Litton (D), a manufacturer and seller of interconnect systems. During the visit by the salesman, P was told about the new Superplex switching system which would be available in about a year. On June 5, 1973, D submitted a proposal to P, which was rejected. Negotiations continued until July 30, 1973, when D’s salesman sent a letter to P which stated that if P sent a signed order and deposit, D would install a Common Control Crossbar Telephone System and that system would be replaced with the Superplex system at P’s request and at no further cost. P then entered into a contract with Litton (D) to install a new 'Superplex' interconnect telephone system. In June, P sent a check of $8,546.00 for the down payment on the system along with a signed 'Equipment Sales Agreement' in which there was a home office acceptance clause in D's favor. It is acknowledged that D’s salesman did not sign this portion of the contract. It is also acknowledged that P read and understood the home office acceptance clause. The estimated date for installation was set for November 15, 1973. On August 9th, P was then requested by D’s salesman to send a form letter to Mountain Bell in order to install the interconnect system so that D could act as P’s representative. That form letter indicated that D had entered into a contract with P for the installation of an interconnect telephone system. On August 30th D wrote Mountain Bell again indicating that D had entered into a contract with P. At D's request P purchased $12,000 in equipment. On December 3, 1973, the service manager of D requested Mountain Bell to supply a new telephone number for D to be put in service as of December 21, 1973. Nothing further was done by either party after that date. D never installed the system because it was never completed. D informed P of this. P bought another interconnect system and then P sued D for damages. P contends that the letter of July 30th signed by D’s salesman constituted an offer to sell. D moved for a summary judgment based on the fact that it had not accepted the contract with P as specified in the sales agreement. The trial court granted judgment for D and P appealed.

Issues

The legal issues presented in this case will be displayed here.

Holding & Decision

The court's holding and decision will be displayed here.

Legal Analysis

Legal analysis from Dean's Law Dictionary will be displayed here.

© 2007-2025 ABN Study Partner

© 2025 Casebriefsco.com. All Rights Reserved.