Opinion ID: 4018847
Heading Depth: 2
Heading Rank: 2

Heading: Grant of Partial Summary Judgment

Text: USG argues that the district court erred in granting partial summary judgment to Trans-Western because the lease failed for want of mutuality and consideration. Aplee. Br. at 38. “The formation of a contract requires a bargain -10- in which there is a manifestation of mutual assent to the exchange and a consideration. Consideration sufficient to support the formation of a contract requires that a performance or a return promise must be bargained for.” Aquagen Int’l, Inc. v. Calrae Trust, 972 P.2d 411, 413 (Utah 1998) (internal citations and quotations omitted). “For the mutual promises of the parties to a bilateral contract to constitute the consideration for each other, the promises must be binding on both parties.” Res. Mgmt. Co. v. Weston Ranch & Livestock Co., 706 P.2d 1028, 1036 (Utah 1985). We review the district court’s grant of summary judgement de novo, applying the same standard as the district court. Hobbs ex rel. Hobbs v. Zenderman, 579 F.3d 1171, 1179 (10th Cir. 2009). Nothing in the record supports USG’s assertion that the contract fails for lack of consideration. Consideration does not require an actual payment, only a promise to pay. Copper State Leasing Co. v. Blacker Appliance, 770 P.2d 88, 91 (Utah 1988). We cannot say it better than the district court: “Trans-Western tendered a Key Bank draft payable to the order of USG in the amount of $32,680.00,” and “USG had the ability to negotiate the draft from the moment of delivery.” Trans-Western Petroleum, Inc., 2011 WL 223734 at . In an email, later discovered by USG, Trans-Western’s owner and sole officer, Isern, indicated he intended to obtain a legal opinion about the status of the Trans-Western lease before he paid the draft. Aplt. App. 1371. This email does not change the draft’s validity or obviate Trans-Western’s promise to pay. -11- See e.g., Stillmas v. Teachers Inc., 343 F.3d 1311, 1317 (10th Cir. 2003) (“[C]onstruction of contracts is generally guided by the ‘objective theory’ of contracts—what is important is what the language of the document conveys to reasonable people in the circumstances, not what a party to the agreement privately intended.”); Ford v. Am. Express Fin. Advisors, 98 P.3d 15 (Utah 2004). There is no indication that Isern took any affirmative steps to prevent the draft from being paid. In fact, to the contrary, Trans-Western expressly requested that USG present the draft for payment, which USG never did. Aplt. App. 1390. The lease stated it was supported by valid consideration. Aplt. App. 1042. This consideration was not conditioned on USG presenting the draft for payment. Trans-Western and USG exchanged promises, providing adequate consideration and therefore, the district court did not err in granting summary judgment.