Story Case

Mr. Jacob Filimore of South Bend, Indiana, intending to go to Pittsburg, purchased a ticket from the Lake Central Railway Company, on the 15th of June, 1914. At the last moment, because of business matters, he was unable to go. Three days later, however, he boarded the train, with the ticket he had previously purchased. When he presented it to the conductor he refused to accept it, because it was three days old. On the back of the ticket there was the following condition: "This ticket is good only on the day of issuance."Below this was stamped the date: "June 15, 1914." The face of the ticket contained no words, nor any indication that there was any writing on the reverse side thereof. Mr. Filmore stated that he was not aware, moreover, that there was any such condition thereon.

Is this condition a part of their contract?

Ruling Court Case. Tichnor Vs. Hart, Volume 52 Minnesota Reports, Page 407; Volume 54 North Western Reporter, Page 369

Tichnor was preparing to publish a book of "American Biography of Representative Men." Hart became a subscriber therefor, by a written contract. Hart promised that he would pay a certain price therefor when it was published and delivered to him. In the course of time the book was published, but Hart refused to accept or pay for his copy of the book. Tichnor, thereupon, brought this action for the recovery of the price agreed upon.

In defense to the action, Hart contended that the prospectus issued by Tichnor contained a promise that this work would contain able contributions of local interest by distinguished local scholars and scientists, and that, as a matter of fact, the work as published contained no such contributions. It was shown, on the other hand, that Hart did not know about this proposal at the time he made the contract, although he had a copy of the prospectus, and knew that it contained a full detailed description of the work; and it was there that the proposal was contained upon which Hart relies as a defense.

Decision

The Court held that this was no part of the contract because he knew nothing of it when he accepted the offer. Only those terms of an offer, which are known to the party accepting the contract, become a part of the contract. Terms of the offer which are unknown to him are as if they never existed.

Accordingly, judgment was given for Ticlmor.

Ruling Law. Story Case Answer

We have just seen that if a party knows that a given document contains terms and conditions, whether on the back or face, he will be bound by those conditions, even though he may not know the contents of the conditions, and consequently has not expressly agreed to them. But it would be manifestly unfair to a person to hold him to conditions upon a document if he were unaware of their existence, and were not negligent in not ascertaining them. Thus, when a person takes a document, which contains a complete contract on its face, he is not bound by conditions on the back thereof, unless in some manner it is made evident to him that such conditions exist, and are intended to be and become part of their contract.

In the Story Case, Filimore was not aware that the reverse side of his ticket contained any condition which was intended to be a part of the contract; therefore he is not bound by the same. It is interesting to note that railroads now are careful to point out all terms on the reverse side of a ticket or document.