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Cook's v. Rebar(2)

Cook's v. Rebar(2) - Page Class Notes Cook's Pest Control v...

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Page: Class Notes Case: Court / Date: Judge: Facts: Cook’s Pest Control v. Rebar (cont.) The Ala. Sup. Ct. rejected Cook's Pest Control's argument that the Rebars were attempting unilaterally to modify an existing contract, noting that the parties' original agreement was due to expire on August 28, 2001; Cook's Pest Control had already sent the Rebars a notice of this expiration and had requested that the Rebars renew the agreement by submitting the annual renewal fee. Upon receiving notice that the agreement was up for renewal, the Rebars responded to Cook's Pest Control's offer to renew that contract with an offer of their own to renew the contract but on substantially different terms. The Rebars did not accept the arbitration provision proposed by Cook's Pest Control; they countered with an arbitration provision of their own. The Ct. said that upon reciept of the Rebar’s counter-offer, Cook's Pest Control had three options: (1) reject the Rebars' counteroffer and treat the agreement as terminated on August 28, 2001; (2) respond to the Rebars' counteroffer with a counteroffer of its own. (3) accept the Rebars' counteroffer. Cook's Pest Control did not reject the counteroffer and treat the agreement as terminated; nor did it respond with its own counteroffer; rather, it deposited the Rebars' check and continued to inspect and treat the Rebars' home--the exact method specified by the Rebars for acceptance of the proposed modifications to the agreement. Those actions constituted acceptance of the Rebars' counteroffer. Cook's Pest Control also argues that the addendum had no effect upon the renewal of the agreement because none of the employees in the office where the Rebars' payment was processed had the authority to enter into a contract on behalf of Cook's Pest Control.
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