The contracts were formed when Plaintiffs accepted Defendants offer and tendered their consideration. Therefore, the SBL agreement and addendum were unilateral, and therefore unenforceable, changes to the contract.
2) The Plaintiffs' breach of contract claim was not necessarily barred by the parole evidence rule.
3) The trial court should not have sustained Defendants' demurrer to Plaintiffs' case because a demurrer is not proper unless no recovery is possible on the facts alleged in the complaint.
Rationale:
1) A contract is formed when there is an offer, an acceptance of that offer, and an exchange of consideration. After a contract is formed, the contract cannot be modified unless both parties agree to the modification and the modification is founded upon valid consideration. Because Plaintiffs were required to submit non-refundable deposits, the contract was complete at that point. The SBL brochure was the offer, the mailing of the application was acceptance of the offer, and the non-refundable exchange of money for the SBLS was the consideration.
2) Under the parole evidence rule, when parties to a contract have embodied their agreement in a single memorial, which they regard as a final expression of their agreement, all prior utterances are immaterial for the purposes of determining the terms of the contract. Because Plaintiffs' contracts with Defendants were formed well before Defendants mailed out the SBL agreements, the SBL agreements did not constitute the final expression of their agreement. Therefore, the utterances prior to the SBL agreement may have been admissible.
3) It was possible for Plaintiffs to recover if the court determined that Plaintiffs' payments after receiving the SBL agreement and integration clause did not constitute acceptance of Defendants' modifications to the parties' contract. Furthermore, any doubts were to be resolved in favor of overruling the demurrer.
Castorino v. Unifast Bldg. Products Facts:
Plaintiff Castorino's decedent was allegedly assaulted and murdered by someone who gained entry into her apartment either through a window which did not have locking devices or did not have locking devices in proper working condition. Defendant Unifast Bldg. Products had contracted with defendant DCI Contracting Corp. To supply and install windows in the decedent's apartment building. Castorino filed suit a wrongful death lawsuit against Defendants. Unifast's liability was based on the theory that the locks were defective, and the windows could not be closed or locked.
Unifast filed a motion for summary judgment. Unifast maintained that Castorino could not recover under a contract theory because Unifast had not contracted with the decedent and the decedent was not an intended beneficiary of the contract between Unifast and the decedent's landlord. Unifast also maintained that Castorino could not recover in tort because it had not undertaken a duty to the decedent when it installed the window locks.
The trial court denied Unifast's motion for summary judgment, finding a question of whether Unifast owed a duty to the decedent. Unifast sought review of the trial court's decision.
Issues Presented or Questions of Law:
1) Did Unifast have a contractual duty to the decedent?
2) Did Unifast have a duty under tort law to the decedent?
Holding / Rule of Law:
1) Unifast did not have a contractual duty to the decedent, because Unifast did not enter into a contract with the decedent and the decedent was not an intended beneficiary of Unifast's contract with the landlord.
2) Unifast did not have a duty under tort law to the decedent. The installers/suppliers of windows cannot be held responsible for the alleged consequences of allegedly defective window locking mechanisms.
Rationale:
1) In order to establish third-party liability, a litigant must show: (1) the existence of a valid and binding contract between the parties; (2) that the contract was intended for his benefit, and (3) that the benefit to the litigant was not incidental to the contract. There was nothing in the subcontract between Unifast and DCI evidencing a discernable intent to allow recovery by a third party.
2) The court will not impose a duty on a defendant to prevent a third party from causing harm to another.
Debra McCann v. Wal-Mart Stores, Inc.
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