Opinion ID: 1431706
Heading Depth: 1
Heading Rank: 1

Heading: did the parties contract?

Text: Anderson's first issue questions whether the written lease agreement evidenced a valid contract between Anderson and Certified. A contract comes into being when there is a meeting of the minds concerning the terms of the agreement. Jackson Hole Builders v. Piros, 654 P.2d 120, 122 (Wyo. 1982). The existence of a contract depends upon the intent of the parties and presents the trial court with a question of fact. United States ex rel. Farmers Home Administration v. Redland, 695 P.2d 1031, 1036 (Wyo. 1985). On appellate review we defer to a trial court's findings of fact unless they are shown to be an abuse of trial court discretion. Kennedy v. Kennedy, 761 P.2d 995, 998 (Wyo. 1988). See also Martin v. State, 720 P.2d 894, 897 (Wyo. 1986) (defining judicial discretion). Anderson argues that LaVelle's alterations of the original written lease agreement were not an acceptance of that offer, but instead created a counter offer that was never accepted by Certified in writing. We agree that no contract was formed when Lavelle signed the lease agreement after he altered two of its terms. A party who will not accept an offer without a material alteration to its terms rejects the offer. Panhandle Eastern Pipe Line Company v. Smith, 637 P.2d 1020, 1023 (Wyo. 1981). A material alteration of a contractual term is one that cannot be implied in the original offer. Id. If the party who modifies the original offer returns it to the original offeror for his acceptance, the modified offer becomes a counter offer that must be accepted unconditionally by the original offeror to create a contract. [1] It is undisputed that Chick sent the lease agreement to LaVelle and that LaVelle reviewed it. LaVelle then telephoned Chick and they negotiated two changes in its terms. After this negotiation LaVelle altered the document to reflect those changes, initialed the alterations, signed the lease agreement, and returned it to Chick. Since the two alterations could not have been implied in the original offer, they were material and modified the original offer. This modified offer became a counter offer by Anderson to Certified. Anderson uses this conclusion to argue that Certified could accept the counter offer only if it did so in writing. Anderson urges that Chick's failure to initial both of LaVelle's alterations was a failure to accept in this alleged exclusive mode of acceptance and amounted to no acceptance at all. This is where we part company with Anderson. In Panhandle, 637 P.2d at 1022, we made the following statement concerning the application of the exclusive mode of acceptance rule: The offeror is the master of the offer, but we think fairness demands that when there is a dispute concerning mode of acceptance, the offer itself must clearly and definitely express an exclusive mode of acceptance. There must be no question that the offeror would accept the prescribed mode and only the prescribed mode.    The requirement [that offeree just sign the offer and not add anything] strikes us as unreasonable, and strikes out as a prescribed mode of acceptance unless the offeror's intention is explicitly set out. We agree that the mode of acceptance rule `   has been enforced with a rigor worthy of a better cause.' Calamari & Perillo, Contracts, § 2-22 (2d ed. 1977). We are not eager to enforce it if there is any question about the mode of acceptance or about the clarity with which the demand was made. The written agreement in this case did not require acceptance exclusively in writing. It already had Chick's signature on the only other signature line on the document as a result of the initial offer. No evidence exists in the record that LaVelle told Chick he must notify Anderson of Certified's return promise to perform, initial the alterations to the document, or sign it again. The document does not contain any express terms, or additional terms added by LaVelle, which explicitly require Chick to accept by return promise in writing. Cf. Wheeler v. Woods, 723 P.2d 1224, 1227 (Wyo. 1986) (express requirement for acceptance in writing). Under our reasoning in Panhandle these facts create sufficient uncertainty about the proper mode of acceptance to compel us to hold that Certified was not bound to accept Anderson's counter offer in writing. An offer which does not specify a mode of acceptance invites acceptance in any manner reasonable under the circumstances. United Concrete Pipe Corporation v. Spin-Line Company, 430 S.W.2d 360, 363-364 (Tex. 1968) cited in Thomas v. Reliance Insurance Co., 617 F.2d 122, 128 (5th Cir.1980); Restatement (Second) of Contracts § 32 at 89 (1981). Cf. Spatz v. Mile-Hi Realty, 589 P.2d 849, 852 (Wyo. 1979). The acceptance may be a return promise to perform or an actual performance; an acceptance by actual performance operates as a promise to render complete performance under the stated terms and forms a contract. Pangarova v. Nichols, 419 P.2d 688, 697 (Wyo. 1966); United Concrete, 430 S.W.2d at 363-364; Restatement (Second) of Contracts § 62 at 149 (1981). In this case, pursuant to a general telephone conversation the original written offer containing Chick's signature was delivered to LaVelle in Laramie on April 18, 1985. That offer was delivered to LaVelle by Chick's crane operator who had come to Laramie to deliver the crane and begin demolition work on Anderson's project. After reading Chick's written offer, LaVelle telephoned Chick during the evening of April 18, 1985, suggesting changes to the writing. The two men discussed the contract and LaVelle made two minor changes to the writing, signed and initialed the writing, and returned it to Chick as a counteroffer. Chick read the altered agreement, initialed one of the changes and apparently filed it. The crane began working when it arrived on April 18, 1985, and both parties performed under the terms of the written contract as evidenced by the altered writing LaVelle returned to Chick until the crane was damaged on April 22, 1985. Nothing in the record shows a rejection by Certified or a withdrawal of the counter offer by Anderson. Giving deference to the trial court's findings, we hold that Certified accepted the counter offer by performing under the terms of the lease agreement from April 18 through April 22, 1985. A contract was formed between the parties under these facts and its terms are evidenced by the written lease agreement, as altered, initialed, and signed by LaVelle. See Farr v. Link, 746 P.2d 431, 433 (Wyo. 1987).