64 W. Va. 255 | W. Va. | 1908
The Acme Food Company obtained a judgment against J. B. Older, in the circuit court of Putnam county, for $425.45, the amount of a verdict rendered by a jury by direction of the court, and of-this judgment Older complains, assigning a number of errors.
The court overruled his demurrer to the declaration and each count thereof. The sufficiency in law of the common counts is admitted, but there is a special count on a promissory note which the attorneys for the plaintiff in error say was clearly bad. It alleges that the defendant “made, executed and delivered to the plaintiff a certain promissory note * * * whereby he promised and agreed, for value received, as acknowledged and set out on the face of said note, to pay to plaintiff” fee., and then avers - non-payment thereof after the day when the same became due. Upon the authority of Cooke v. Simms, 2 Call. 35, Woody v. Flournoy, 6 Munf. 506, and Burton v. Hansford, 10 W. Va. 470, it is charged that this count does not allege a promise or undertaking to pay the amount named in the note. The clause
Two of the common counts are for goods bargained and sold, not sold and delivered, and there is rather a query as to whether there can be a common indebitatus count for goods sold but not delivered. Chitty’s Pleading, 11th Am. Ed. 340, says: “In general the consideration must have been executed, not executory.” Vol. II of the same work, at page“57, prescribes a form of common count for goods bargained and sold. Lord Eldon indicated the distinction be.tween the two forms of declaring in Ex Parte Mc Gae, 19 Ves. 607, 609. There may be an executed contract, passing title, without delivery of possession, as in the case of retention of a seller’s lien. There, a count for goods sold and delivered could not be maintained, but one for goods bargained and sold could be, for the contract is complete and the
Most of the other errors assigned involve consideration of the evidence, and the attorneys for the defendant in error strenuously insist that it is neither incorporated into, nor identified by, the bills of exception. Bill of exception No. 1, taken for the purpose of making the evidence a part of the record, is a skeleton bill. In this, under the heading, “Plaintiff’s Evidence,” there are six numbered paragraphs, purporting to identify the documentary and oral evidence introduced by the plaintiff. The first clause calls for “Exhibit J. B. O. Ex. — 1,” describing it as a paper writing called “Order Blank and Note” and marked as aforesaid, and directs insertion thereof. No paper so marked is found in the record, but a paper called an order blank and note by the attorney in the examination of the witness for the plaintiff, but which is, in fact, an order and a note, the note sued on, is found, and a witness for the plaintiff says it is marked “J. B. O. Ex. 1.” The second calls for a paper writing marked “G. S. Ex. A,” with the evidence of George H. Simpson and directs insertion thereof. A paper is found marked as indicated and the testimony of Simpson refers to it. The third calls for a paper writing marked “Ex. Z,” with the evidence of George H. Simpson and a paper so marked is found in the record. The fourth calls for a paper writing called “Ex. E,” letter of J. B. Older, Aug. 20th, addressed to Acme Food Co. Just such a letter, so marked, is fóund. No. 5 directs the insertion of the deposition of J. W. Calland with the exhibits filed therewith and such a deposition is found in the certificate of the stenographer. No. 6 directs the insertion of the testimony of J. B. Older and George H. Simpson, taken by the stenographer in shorthand and written out in long hand by her, and her certificate shows such testimony. Under the heading, “Defendant’s Evidence,” similar directions are given and all the papers and evidence directed to be inserted are found in the certificate of Ethel L. Vicroy, Stenographer. She is named in the bill of exceptions as the stenographer. The indeiitification of the
The defendant plead non-assumpsit and filed two special pleas. By the first special plea he averred fraud in the procurement of the note, and, by the second, denied execution thereof. The material facts shown by the evidence are as follows: The plaintiff was a manufacturer and dealer in poultry and animal food at Chicago, Illinois. On the 8th day of August, 1904, their salesman, J. W. Calland, obtained from Older, at the city of Charleston, his written order on a printed form for their products, amounting to $4-02.50. At the bottom of the order, and above his signature, there was the following memorandum and note:
“To be shipped Sept. 1st. 4 per cent discount if paid by Aug. 23. 120 days after date, for value received, I, we, or either of us, promise to pay to Acme Food Co., or order, Four Hundred and Two .50-100 Dollars, at Acme Food Co.’s office, Chicago, Ill., with "interest after maturity until paid.”
Below the note there was a printed guarantee of the goods sold by the plaintiff. At the same time, Calland gave to Older a paper called “Shipping Directions,” at the heading of which there was written or printed this direction: “These shipping instructions must be filled out complete and attached to all orders and notes.” It was directed to the Acme Food Co. and contained blanks for the name of the consignee, his address and sizes of packages of the different kinds of^food with blanks for numbers of packages and prices. Calland filled in Older’s name and his address and inserted some of the quantities to be shipped, and then wrote below the order the following: “Terms 90 days. An extension of^time^will be given until sold.” Calland admits the execution and de
“August 16, ’04. J. B. Older, Esq., Confidence, W. Va. Dear Sir: — We are in receipt of your order of August 8th, for one case of ACME POULTRY FOOD, 100 lbs. in 10 lb. pails, and 6000 lbs. of ACME FOOD, which you request us to ship to Seed House, West Virginia, under date of Sept. 1st. Wish to advise we hn\ e manufactured, marked and set aside these goods in our warehouse, and the same will be shipped you on the date specified, and we have accepted of your note bearing date of Aug. 8, ’04, for the amount of $402.50, due 120 days after date. Thanking you for the order, and with kind regards, we are, Yours Very truly, Acme Food Company.”
On the 20th of August, Older replied as follows:
“Confidence, W. Va., Aug. 20, 1904. Acme Food Co., Chicago, Ill. Dear Sir: — I have reconsidered the matter in regard to the amt. of stock food to be shipped to me. I think (1000) one thousand pounds will be all that lean handle at first. I live 7 miles from the R. R. and have no storage room and cannot get any. Also I think that is too large a quantity to be be disposed of in this locality. That is the packages are too large to introduce this' food at first to each individual. If you wish you can send me one thousand pounds on the same terms as the agreement with agent. If you prefer not to send this amount you need not send any, as I do not deem it prudent to send me as much as 3 tons for I do not believe that I can dispose of that amt. this fall. J. B. Older.
On the|26th of August, 1904, the goods were shipped, and, with the bill of lading, the consignor enclosed the following printed notice:
*261 “We desire to call your attention to the liberal discount which is offered for cash, and we know that you will find it to your advantage to avail yourself of this discount as it will, in the majority of cases, equal the freight. In other words, it is equal to an annual interest of from 10 to 15 'per cent.
“In extending this credit, unusual time has been given, and this credit has been granted with the understanding that the obligation will be met promptly at maturity. Therefore, NO EXTENSION will be granted, but on the other hand, the amount is to be met upon the date specified. Please DO NOT write for extension, but if you are unable to avail yourself of the cash discount, arrange your business whereby this bill shall be paid upon maturity.” After the receipt of this, Older wrote the following letters:
“Winfield, Putnam Co., West Va., Sept. 8, 1904. Acme Food Co., Chicago, Ill. Gentlemen: Your letter of Aug. 16th informing me of the receipt of my order of Poultry Food was received. I replied to that letter telling you not to send so much, and to not send over a 1000 lbs. You now send me 6000 lbs. I positively refuse to accept the goods, as you have utterly failed to comply with your contract with me, as made by your agent J. W. Calland. The Agent agreed that goods were not to be -paid for until sold. Very truly, J. B. Older, (Pr. Dudding.)”
“Winfield, Putnam Co., W. Va., Sept. 19, 1904. Acme Food Co., Chicago, Ill. Gentlemen: I have your letter of the 15th, inst., relating to ‘Acme Food.’ I am willing to comply with my contract with your salesman, J. W. Calland, which contract was the goods should be paid for when sold, and he to.assist me in selling, that is he, Calland, to come here to the county travel with me and appoint agents to sell the stuff, I to do the collecting. As soon as this is done, or your Company makes this part of the agreement good, I. will receive the goods; but not otherwise. Very truly yours, J. B..Older, pr. Dudding.”
The inquiry as to whether, in this state of the case,- the court could properly direct a verdict for the plaintiff, renders necessary the ascertainment of certain legal principles, relating to the remedies and measure of relief for breach of a contract of sale of personal property. - The trial court- must have assumed either that the note sued on was a contract,
It is important also to observe and remember that an exec-utory contract, under which the title does not pass until the seller has done certain things, by way of preparation of the subject matter of the contract for delivery, or the identification thereof, or the performance of a condition precedent, such as putting it on board the cars for shipment or depositing it in a specified place from which the purchaser is to take it, may become executed by the performance of all these things before the purchaser has dissented from or renounced or repudiated his contract, or given notice that he will not accept. In cases of this kind, the measure of relief ought to be, and is, the same as in the case of an executed contract of sale. This conclusion is reconcilable to legal principles. By the executory contract of purchase, the buyer agrees to take the property. By this agreement, he makes himself liable in damages in the event he fails to perform. From this liabil
The authorities all agree that the purchase price of goods sold may be recovered, if the contract has beén executed. As to the measure of damages, when the contract is execu-tory and the buyer has refused to accept the goods, there seems to be a conflict of authority. One question, then, to be determined, is whether the contract was executory, and, if so, and there has been a refusal to accept, whether the measure of damages is the purchase price .or only damages for the breach of the agreement to accept. Actual delivery to the vendee is not always necessary to the passing of title. Whether the title has passed depends upon the intention of the parties, to be ascertained from the terms of the contract, when they are clear and unambiguous, and from the terms and admissible extranéous evidence, when they are not so. Buskirk Bros. v. Peck, 57 W. Va. 360; Morgan v. King, 28 W. Va. 1; Hood v. Block, 29 W. Va. 244; Haxall v. Willis, 15
It is sometimes said that the vendor in an executory contract of sale has, on the refusal of the vendee to accept the property, an election as to whether he will treat it as his own and sue for damages for the breach, or treat it as that of the purchaser and sue for the price, and that, in the latter case, he may sell the property and recover the difference between the contract price and the price obtained on such sale, or store it for the vendee and recover the whole purchase price. Sedgwick on Damages, sec. 753; Benjamin on Sales, p. 794, note 3; Tiedeman on Sales, sec. 333; 24 Am. & Eng. Ency. Law 1118. In the first three of these authorities it is said this is the prevailing American rule. The last work cited indicates that it is not. It states the general rule as follows: “Where the title has not passed and the contract is still exec-utory, it is usually held that the remedy by an action for damages is exclusive, and that an action for the agreed price cannot be maintained.” Sutherland on Damages (3 Ed.), Vol. 3, sec. 644, says: “To entitle the seller to recover the full value — either the contract or the market price — the sale must be executed so as to pass the title to the purchaser; the property must be at his risk, and he thus qualified to bring trover for it. Then, and not till then, an action either for goods sold and delivered, or bargained and sold, may be maintained; the former if there 'has been delivery,' and' the latter if there has not. The sale of a specific chattel x>asses
The classification of the cases, made by the text-writers, is, in some instances, inaccurate. The writers seem not to have ■observed in all instances the distinctions and tests above mentioned. In other words, they have frequently classed cases in which the title had passed or in which there was evidence from which the jury might have found the fact, as cases in which it had not passed. In other instances, they have failed to observe that the executory contract had become executed so as to pass the title before any renunciation ivas made by the vendee. Indeed, there are very few cases in which the seller has been allowed to recover the purchase price when the title to the property had not passed to the buyer.’ The doctrine of election, when the title has not passed, seems to have grown out of an unfortunate and inaccurate interpretation of certain cases made by Mr. Sedgwick in his work on Damages. He having stated the proposition a good many years ago, certain courts cited his work as authority for it, ¡and, later, the editors of that work, have cited these’cases to
Schwarzer v. Harsch Brewing Co., 74 N. Y. App. Div. 383, seems to assort a right of action for the price before the passage of title. In the opinion it is said: “The contract being valid and enforcible, the brewing company was bound to perform it or to pay such damage as could be legally enforced by reason of a breach. It was, therefore, powerless to prevent completion of the contract by the Brunswick Company. The latter completed its contract and tendered performance.” In another place it says: “The brewing company could not prevent the Brunswick Company from performing its contract and recovering the' purchase price of the articles, whether the brewing company gave notice that they would not fulfill the terms of their contract or not.” No authority is cited for that proposition. The cases mentioned in the reference immediately preceding the statement are Dustan v. McAndrew, 44 N. Y. 72, Hayden v. Demets, 53 N. Y. 426, both of which we have here analyzed and ascertained to have involved executed contracts, and Quick v. Wheeler, 78 N. Y. 300. This last case expressly decided that there had been no revocation of the order under which the delivery had been made and the court settled this question, in order that it might say an action for the pi’ice was maintainable. In the last clause of the syllabus, it is said: ‘ ‘Also held, that on delivery of the timber at the place specified, plaintiff could treat it as belonging to defendant and sue for the purchase-price; that he was not confined to an action for damages.” In this way, the court marked the distinction. Impliedly it said if the title had not passed, the plaintiff would have been confined to his action for damages. Higgins v. Murray, 73 N. Y. 252, on hasty examination, might be regarded as giving a right of action for the price, when
Having seen how little authority there is for the supposed rule, we turn to those decisions which assert the contrary, and they are numerous. In White v. Solomon, 164 Mass. 516, 519, Fields, C. J., said: “Where the title does not pass to the vendee by the contract, and he declines to receive and accept the goods sold, the damages are the injury suffered from the breach, which usually is the difference between the price agreed upon and the market value of the goods at the time and place of delivery.” For this proposition, he cites Collins v. Delaporte, 115 Mass. 159; Whitney v. Thatcher, 117 Mass. 523; Schramm v. Suger Refining Co., 146 Mass. 211; Tufts v. Bennett, 163 Mass. 398; Laird v. Pim, 7 M. & W. 474, all of which sustain him. In Tufts v. Bennett, Morton, Judge, said: “The rule seems to be pretty clearly established that the measure of damages in such a case is the difference between the market value of the goods at the time and place of delivery and the contract price;” for which he cites Barry v. Cavanaugh, 127 Mass. 394; Whitney v. Boardman, 118 Mass. 242; Clement &c. Co. v. Meserole, 107 Mass. 362; Cutting v. Railway Co., 13 Allen 381; Valpy v. Oakeley, 16 Q. B. 941, found in 21 Eng. Ruling Cases 39. Gordon v. Norris, 49 N. H. 376, ably and exhaustively reviews the cases on the subject and states the conclusion as follows: “When the vendee refuses to receive and pay for ordinary goods, wares and merchandise, which he has contracted to purchase, the measure of damages which the vendor is entitled to recover, is not ordinarily the contract price of the goods, but the difference between the contract price and the market price or value of the same goods at the time when the contract was broken.” In Laird v. Pim, cited, an action for the purchase price of land, the vendee having refused to accept a deed and pay the purchase price, Baron Parke said: “The measure of damages, in an action of this nature, is the injury sustained by the plaintiff by reason of the defendants not having performed their contract. * * * * It is clear he cannot have the land and its value too. A party cannot recover the full value of a chattel, unless under circumstances.
If the binding offer to accept be not withdrawn, or the agreement to take the goods not broken, delivery is made with the assent of the purchaser and under a “meeting of the minds of the parties,” and accords with a basic principle of the law of contracts. But, if the contract be broken and the consent of the purchaser withdrawn,- before delivery, the title does not pass by the assent of the parties, and there is no power in a court of law to compel specific performance of any kind of a contract. It has no remedy appropriate to, nor capable of administering, such relief. As the damages are deemed full and adequate compensation even by courts of equity, they ordinarily refuse specific performance of contracts of sale of personal property. Both courts recognized
There is evidence tending to show that, before the goods contracted for by Older had been delivered to the railway company in Chicago for shipment, he modified the order and conditionally canceled or countermanded it, thereby giving notice that he would not receive the goods. This consituted a breach of the contract before the title passed, if the letter was received before delivery was made. The declaration contained no special count for damages for breach of the contract, and, if the jury had found that the note was not executed by the defendant, they would necessarily have found, but for the instruction given by the court, that the plaintiff could not recover on this declaration, for it must be presumed that they would have applied the law to the facts found. However, if the defendant executed the note, a contract to pay money, sufficiently declared upon, there might have been a recovery on the count based on it, notwithstanding the non-execution of the contract of sale, non-transfer of title. In this view, it is a case of failure of consideration in whole or in part, unless, by executing the note, the defendant precluded himself from the right to break his contract and put the plaintiff to the proof of damages for the breach instead of an action for the price. The note was a mere promise to pay money. It was not given without consideration, for the executory contract of sale was a sufficient consideration at the time it was given. It was a valid note, resting upon a valuable consideration. Therefore, an action could be maintained upon it. In the absence of proof of failure of consideration, fraud in the procurement thereof, payment or set-off, the whole thereof would be recoverable. But, if the thing for which the note was in reality given failed, this could be shown by way of defense in whole or in part, as the case happend to be. Paige on Contracts, sec. 1474, et. seq., citing numerous cases. In some respects, the note is .one thing and the executory contract upon which it was based another. As to right of action,
The error of the court in directing a verdict is made obvious by the principles and conclusions above stated. Therefore, the judgment will be reversed, the verdict set aside and the case remanded for a new trial.
Reversed. Remcmded.