Case 14-3: Osprey LLC v. Kelly-Moore Paint Co.

Group: Amy Liao, Megan Lockbaum, Tiffany Owen, Leanne Pratt, Nils Schive

Facts: Kelly-Moore faxed a renewal letter for a lease to Osprey LLC on the last day of their six-month notification period. Osprey refused to renew the lease, stating that they did not receive it and that regardless of receipt, use of facsimile was not an approved method of delivery.

Issue: Whether deviating from the approved means of delivery of a document is acceptable for renewal of a contract.

Rationale: Because use of a facsimile served the same function and purpose as the approved methods of delivery, it was sufficient to renew the lease.

Conclusion: If an unapproved means of delivery of a contract is functionally equivalent to an approved method, it may be acceptable.

We (more or less) agree that delivery by facsimile may be admissible if Kelly-Moore had notified Osprey that the fax would be sent; otherwise, the renewal period should have been long enough for them to submit the renewal via approved means.