In the Matter of the Arbitration between HELEN WHITING, INC., Appellant, and TROJAN TEXTILE CORP., Respondent., 307 N.Y. 360

Summary

On the same day that the parties orally agreed to a contract for sale of textiles, three written contracts were delivered by hand to the garment manufacturer. Later, the textile manufacturer sent invoices for parts of each lot of goods but the garment manufacturer notified the textile manufacturer orally and by letter, that it could use only one kind of the merchandise, and signed and sent back one only of the three contracts. The textile manufacturer, considering this an effort by to cancel two of three contracts already made, refused to agree to it. On the back of each of the three original writings, there was a general arbitration clause, and the textile manufacturer demanded arbitration thereunder. The garment manufacturer alleged that the negotiations between the parties never reached the stage of contract. The court held that there was sufficient evidence to show that the garment manufacturer made a binding agreement to purchase the three lots and bound itself to arbitrate any ...