Contracts Chaplain v. Consolidated Edison Co. of New York Court: Supp. N.Y. Names: Facts: Action was brought against company and certain of its officials and physicians alleging that company discriminated against epileptics in violation of the Rehabilitation Act of 1973. On plaintiffs' motion to enjoin company to execute earlier proposed settlement agreement and, if agreement was approved, to abide by it, the District Court, Lasker, J., held that where settlement agreement was tendered on a take-it or leave-it basis, and reply to proposed settlement agreement was that proffered terms could not be accepted, reply was a rejection of offer to settle on terms proposed, so that change of heart following such rejection did not constitute acceptance of offer; thus, plaintiffs were not entitled to specific performance of settlement agreement. Motion denied.
Rules: An offer is extinguished upon rejection. Where settlement agreement was tendered on a take-it or leave-it basis, and reply to proposed settlement agreement was that proffered terms could not be accepted, reply was a rejection of offer to settle on terms proposed, so that change of heart following such rejection did not constitute acceptance of offer.
Issues: Did the offer terminate upon denial or renegotiation? Holding: Contract is denied Reasoning: once there is an offer and that offer is turned down, the contract becomes null in void.