RIVES, Circuit Judge:
The appellant, Warrior, seeks specific enforcement of an arbitration clause contained in an alleged collective bargaining contract between it and the appellee Union. At the beginning of the trial, the Union conceded that if the Court found that there was a contract it would have to follow its terms and provisions, including the grievance and arbitration clause, and further that the disagreement between Warrior and the Union would be subject to arbitration.1 The alleged contract had been reduced to writing but had not been signed by either of the parties. The sole issue is whether the contract had become legally binding upon the Union. The district court in a full and able unreported opinion (R. pp. 239-254) held that there was no binding contract. We agree.2
The following findings of fact by the district court are virtually undisputed:
"Findings of Fact.
"Warrior is a union organized Texas construction firm which successfully bid on a number of projects in Georgia, among them the construction of the Atlanta Auditorium. Since it is union organized Warrior notified the local union that it would meet the existing union area standards as to wages and working conditions.
"The Atlanta Building Trades Council is a loose, apparently informal organization of a number of local unions involved in the construction industry. According to its business representative, George Caudelle, main functions of the Council are to provide an instrument for the trading and gathering of information important to member unions and a platform for collective action in areas of common interest, such as the negotiation of contracts with management. The Council apparently operates through its business representative, Caudelle. He in turn is loosely directed by a weekly morning meeting of the business agents and presidents of the member unions (including Ben Suddeth, President and Assistant Business Agent of defendant Local), with whom he discusses council business. Some matters are taken back to the unions for approval or disapproval, while other matters receive informal approval or disapproval at the meetings. No minutes are kept of these meetings, and no records are kept of which member unions are represented at the meetings. The whole system operates through each union representative's intimate knowledge of desires of his own union members and what measures by the Council they will or will not support.
"In the present case the twelve member unions which were to represent Warrior's employees decided to hire an attorney to work out a collective bargaining contract which would effectively deal with two points of common concern to them: the elimination of a `dummy corporation' set up by a general contractor to avoid a Union contract on other jobs; and gaining the assurance of the general contractor that all sub-contractors would abide by the area standards. As a result, Caudelle retained Carter, who attended one of the Council meetings and was informed of the Council's desire for a contract including a dummy corporation and a subcontractor clause. The twelve Unions stated that they wanted twelve separate contracts, one to be executed by each of the twelve Unions involved. Carter drew up a proposed contract including these two clauses, along with others. Carter did not get approval from the Council or from any of the individual unions as to the other portions of this proposed contract.
"Warrior was sent the proposed contract with a cover letter.1 An attach-
"1. The cover letter reads as follows:
`Date April 15, 1965
`Mr. R. E. Griffin — Proj. Manager
Warrior Const. Co.
Box 6342
Atlanta, Georgia
`Re: Proposed sub-contracting and "dummy corporation" provisions.
`Mr. Griffin, Sir:
`This is to apprise you that the Atlanta Building and Construction Trades Council has been appointed and authorized by a number of local unions, individually, to conduct negotiations, in behalf of each of these authorizing unions, severally and individually; toward the end of obtaining respective sub-contracting and "dummy corporation" provisions to govern future job letting, to the extent permitted by law. A blank, standard copy of each of their said, several, appointments is attached hereto as Attachment #1, and each of these said authorizing unions is listed on the addendum to attachment #1.
`As to each of these aforesaid authorizing unions, respectively, we request that these negotiations commence immediately pursuant to their said independent authorizations. While these proposed negotiations for each of these unions are several and independent from the proposed negotiations as to each of the other said authorizing unions, it is our thought that all of these negotiations can perhaps be carried on concurrently with the greatest convenience to both parties.
`These proposed contractual provisions, upon their execution, will apply only to the letting of future jobs, to the extent permitted by law, and are not intended to apply to any existing contract relationship.
`It is our desire to receive this said information and to begin these proposed negotiations, in behalf of each of these said unions, severally, within the period of three work-days after your receipt of this letter. Thus, we shall await your prompt reply to the undersigned, designating a convenient time and place for these negotiations to commence.
`Respectfully
(S.) George B. Caudelle
Title: Business Manager
Atlanta Building and Construction
Trades Council
Phone: 874-7041'
ment to that letter was a statement executed by each of the twelve interested member unions limiting the authority of Carter and Caudelle to negotiation on the two points only — dummy corporations and sub-contractor clauses.2
"2. The letter of authorization reads as follows:
`Date .............
`Dear Mr. ........
`I, the undersigned, hereby appoint and authorize the Atlanta Building Trades Council, through its representatives, to, in a lawful manner, initiate and conduct in behalf of my union, individually and independently, all necessary, appropriate, and lawful collective bargaining negotiations, for the purpose of obtaining lawful sub-contracting and "dummy corporation" contract provisions; said provisions to insure that all employees, performing the usual work of our craft and in our area shall, on future jobs, receive the wages and economic benefits ordinarily required by our union.
`This authorization to the Atlanta Building Trades Council is limited to the aforesaid objectives, and, the undersigned reserves the right, individually, in his sole discretion, to terminate this authorization during the course of these proposed bargaining negotiations and prior to execution of the proposed contract.
`Further, this authorization authorizes these said negotiations only in behalf of the undersigned\'s union, individually and independently; and the proposed sub-contracting negotiations in behalf of the undersigned\'s union, shall remain subject solely to the undersigned\'s individual approval, and to no other.
`Respectfully
Title
Name of Union: ..............'
"Three meetings relevant to this issue took place in Atlanta between Warrior and various Union and Council officials, including Carter. The first meeting took place on May 25, 1965. Carter and Caudelle attended for the twelve Unions. The Unions' expectation of twelve separate contracts was made known to Warrior. Warrior stated it wanted to bargain as to a complete contract and asked Caudelle and Carter to bring written authorization to negotiate a complete contract. Carter, apparently without any grounds for doing so, assured Warrior that he would have no trouble getting authority to negotiate a full contract at the next meeting.
"The second meeting took place on June 7, 1965. Instead of written authorization, Carter brought the business agents of the twelve interested unions, including Ben F. Suddeth, assistant business agent of the defendant Union. The defendant's regular business agent, Archer, was in the hospital. Carter told Warrior that he had brought all his clients to prove his authority, and stated that he was spokesman for all twelve. The representatives present made no objections to Carter's statements and when Warrior asked for suggestions from others, Carter reiterated that he was the spokesman and all questions should be directed to him.
"In spite of this there appeared to be no further granting of authority to Carter in the form of a vote of the Union or the Atlanta Building Trades Council. As clearly reflected by the testimony of Union men Caudelle and Suddeth, attorney Carter apparently decided to take it upon himself to assume as much authority and importance in the negotiations as possible, without regard to the wishes of the Union representatives. After Carter took over, the Union laymen had little, if any, chance to control the direction of the negotiations.
"At this second session, Warrior presented various written proposals to be added to the original contract, directed primarily toward a `no strike' provision and the use of arbitration for company grievances as well as minor complaints. Considerable progress was made between Carter and Clinton regarding language.3
"3. For example, the language proposed by Warrior at the beginning of the second session (typewritten part of Plaintiff's Exhibit No. 2) was discussed, and Carter agreed on certain wording (written by...
