Petterson v. Pattberg

Petterson v. Pattberg
New York Court of Appeals
248 N.Y. 86, 161 N.E. 428

Facts: "I hereby agree to accept cash for the mortgage which I hold... I will allow you $780 providing said mortgage is paid on or before May 31, 1924, and the regular quarterly payment due April... is paid when due." Defendant sent this letter to the plaintiff. After the April bill was paid but before the rest of the mortgage was paid off, defendant sold the mortgage. Since plaintiff had entered into a contract to sell the land free and clear of the mortgage, he had to pay the $780 to the new mortgage owner. Plaintiff claims the loss against the defendant.

Procedure: Trial court awarded the recovery of the sum plus interest. An Appellate court affirmed.

Issue: Can the offerer in a unilateral contract change his mind while the offeree is midway through the requested action (fulfilling the condition)?

Ruling: Yes (a reversal of the trial and appellate decisions)

Reasoning: The offerer can revoke their offer at any time before the acceptance of the offer- so say otherwise violates the nature of a uni contract. (Dissent- "The question in this case is not whether payment of the mortgage is a condition precedent to the performance of a promise made by the defendant, but, rather, whether at the time the defendant refused the offer of payment, he had assumed any binding obligation, even though subject to condition." Since the only reason the plaintiff couldn't complete the uni contract was that the defendant stopped him, she shouldn't be allowed to take advantage of it).