Opinion ID: 1174822
Heading Depth: 4
Heading Rank: 2

Heading: material terms.

Text: Lufthansa attacks the possibility of an oral contract contemplating a future written lease by contending that the parties did not agree to all material terms. An oral agreement to lease which contemplates a later writing is legally enforceable only if the parties agree on the terms to be incorporated in the later writing. Thrift Shop v. Alaska Mutual Savings Bank, 398 P.2d 657, 658-59 (Alaska 1965). Although the trial judge made no mention of material terms in his order, the judgment can be affirmed if the record reveals no issues of fact regarding the failure to assent to all material terms. There is evidence in the record that after the dinner in January 1979 the parties had reached an understanding regarding rental costs, the number of units needed, the length of the lease and various special details requested by Lufthansa. Lufthansa places particular emphasis on the indefiniteness of the number of units to be rented, and of the completion and occupancy dates. There is evidence in the record that Lufthansa would yield on its request for April 1 occupancy, and that an exact date would not be crucial because Lufthansa could move out of its other accommodations on short notice. There is also evidence in the record that once Zeman could satisfy Lufthansa's minimal requirement of 28 units the extra units Zeman planned to build were not material to the parties' agreement. Lufthansa argues vigorously that as a matter of law the negotiations between the parties constituted no more than an unenforceable agreement to agree. Lufthansa points to several cases to bolster its position. Western Airlines v. Lathrop Co., 499 P.2d 1013 (Alaska 1972), involved a lease extension allegedly agreed to by the parties. Correspondence between the parties indicated that the land on which the leased building sat might be claimed by the state for an airport improvement plan. If the state did use the area, the parties allegedly agreed to move the building to a suitable area. The court held the agreement to find a suitable area did not contain a sufficiently definite offer to create a contract upon its acceptance... . Id. at 1020. Instead, the parties merely agreed to agree. Western Airlines did not involve an appeal from a summary judgment. In Malone Construction v. Westbrook, 127 Ga. App. 709, 194 S.E.2d 619 (1972), the court affirmed a grant of summary judgment dismissing a claim for breach of contract to build a shopping center. At one point, the parties both signed a letter of intent which stated, inter alia, If a lease can be consummated at this above referenced price, then we will enter into a contract with above referenced price as the guaranteed maximum... . Id. 194 S.E.2d at 620. Explaining its affirmance, the court stated that [t]hese letters all show nothing more than a continuing negotiation process with at most an agreement to contract in the future when and if all terms and conditions have been assented to by the parties. Id. 194 S.E.2d at 621. The last case cited by Lufthansa relative to agreements to agree is Opdyke Investment v. Norris Grain, 94 Mich. App. 770, 288 N.W.2d 362 (1979). Opdyke was reversed on appeal to the Michigan Supreme Court. Opdyke Investment v. Norris Grain, 413 Mich. 354, 320 N.W.2d 836 (1982). In Opdyke, plaintiff alleged breach of a contract to build a sports arena. The trial court granted defendants' motion for summary judgment, holding that a key letter indicated no more than an unenforceable agreement to agree. [2] The court of appeals affirmed, finding that a number of essential terms were expressly left to future agreement, or were simply lacking. 288 N.W.2d at 363. The supreme court reversed, noting that [w]hether the parties intend to be bound only by a formally written and executed final document is a question of fact... . 320 N.W.2d at 838. The court acknowledged the letter's tentative language, but indulged reasonable inferences favorable to the non-moving party and suggested that perhaps the parties had intended a series of increasingly detailed contracts... . Id. Additionally, the court referred to evidence extrinsic to the letter to help justify its interpretation in the plaintiff's favor. Id. 320 N.W.2d at 839. Finally, the court criticized the trial and appellate courts' careful scrutiny of the letter to discern the parties' intent, emphasizing that such a factual inquiry should have been made only by a trial court fact-finder after consideration of all of the relevant evidence to be produced at trial on the point. Id. The case before this court more closely resembles Opdyke than Western Airlines or Malone. The record in this case contains evidence which can reasonably be interpreted to indicate definiteness as to mutual assent and material terms. We reverse the grant of summary judgment as to these issues and remand for trial.