Barges Cycle Co. v. Schofield

1. An instrument in the form of a contract between two parties, signed by one of them and by an agent of the other, with a clause reciting that “this contract shall not be considered as binding upon the first party until, approved in writing by” the second party, is only a proposal to contract, submitted by the party of the first part to the party of the second part.

2. When, before approval of the proposed contract by the latter, a third person for a valid consideration paid by the party of the first part enters in writing upon such proposal a stipulation that he will “guarantee all sums…