CW ROSENSTOCK (as admin of estate of HW ELSER) v EDWIN BURKE, THE COOPER COMPANY 1924 Ponente: Avancena, J. FACTS 1. Burke owned a yacht called Bronzewing purchased in Australia for sale 2. Burke mortgaged it for a loan of 100k from Mr Avery (manager of Asia Banking Corp), which he was unable to pay 3. Elser wanted organize a yacht club and sell the yacht to members of the club for 120k 4. Elser would keep 20k as commission and 100k would go to Burke 5. Burke acquired a written option saying that Elser confirmed his verbal offer of 120k for the yacht, with the offer open for 30 days from 12 Feb 1922 6. Elser proposed conducting a pleasure cruise the south, with prominent businessmen aboard the yacht as a means to advertise the yacht 7. To fix the yacht, Elser incurred expenses of 6k because Burke had no money 8. Elser attempted to loan 20k from Mr Avery but the latter refused, in view of the subsisting debt 9. Elser notified Burke that he was now unwilling to purchase the yacht for more than 70k and that he should talk to Mr Avery 10. Elser wrote a letter (3 April 1922) stating that he would pay 80k for the yacht, with 10k downpayment and 5k monthly installments, and would use 80k worth of stocks from Pickering Inc as security, signed by Burke, Elser, Avery 11. Current action is for Elser’s recovery of 6k used to fix the yacht ARGUMENTS
CW ROSENSTOCK (as admin of estate of HW ELSER) vEDWIN BURKE, THE
COOPER COP!N"1924Ponente: Avancena, J.#!CTS1. Burkeowneda
yachtcalled BronzewingpurchaedinAutralia!or ale2. Burke "ortgaged
it !or a loan o! 1##k !ro" $r Avery %"anager o!Aia Banking
&orp', which he wa una(le to pay). *ler wanted organize a yacht
clu( and ell the yacht to"e"(er o! the clu( !or 12#k 4. *ler would
keep 2#k a co""iion and 1##k would go to Burke+. Burke ac,uired a
written option aying that *ler con-r"ed hiver(al o.er o! 12#k !or
the yacht, with the o.er open !or )# day!ro" 12 /e( 19220. *ler
propoedconductinga pleaurecruie the outh, withpro"inent (uine"en
a(oard the yacht a a "ean toadvertie the yacht1. 2o -3 the yacht,
*ler incurred e3pene o! 0k (ecaue Burke hadno "oney4. *ler
atte"pted to loan 2#k !ro" $r Avery (ut the latter re!ued,in view
o! the u(iting de(t9. *ler noti-ed Burke that he wa now unwilling
to purchae theyacht !or "ore than 1#k and that he hould talk to $r
Avery1#. *ler wrote a letter %) April 1922' tating that he would
pay4#k !or the yacht, with 1#k downpay"ent and +k
"onthlyintall"ent, and would ue 4#k worth o! tock !ro" Pickering5nc
a ecurity, igned (y Burke, *ler, Avery11. &urrent action i !or
*ler6 recovery o! 0k ued to -3 theyacht!R$UENTS1. Burkea. Agree"ent
wa that Burke would pay !or repair ine3change !or gratuitou ue o!
the yacht(. &ro7co"plaint: co"ply with letter tating ale, and
givedownpay"ent o! 1#kTRI!L COURT1. 8ith repect to Burke: Pay 0k to
*ler, pay 1k to &ooper&o"pany !or unpaid repair2. 8ith
repect to *ler: Purchae the yacht %appealed (y *ler
to9&'ISSUE8:; letter written on ) April 1922 wa a valid
contract o! ale (indingon *lerRULIN$1. ;oa. A co""on "an would
ue
