112 Ga. 199 | Ga. | 1900
Castlen brought suit against the Forsyth Manufacturing Company upon a contract of which the following is a copy: “ This agreement made and entered into this the 25th day of April, 1898, by and between the Forsyth Manufacturing Company of the first part, and A. W. Castlen of the second part, both of the county of Monroe and the State of Georgia, witnesseth: that the party of the first part hereby agrees to pay the party of the second part six cents per pound for one hundred and fifty bales of lint-cotton to be delivered at the warehouse of said Forsyth Manufacturing Company on the Central Railroad just above Forsyth, in good merchantable order, at times below set forth. The party of the second part hereby agrees to deliver at the place above designated one hundred and fifty bales of lint-cotton, said cotton to be delivered to the Forsyth Manufacturing Company as follows: fifty bales in September, fifty bales in October, and fifty bales in November, 1898, at the place above set forth, and in good merchantable order, all bales to weigh more than 450 pounds each; and should the party of the second part fail or refuse to furnish the full amount of fifty bales each month as above set forth, then the second party forfeits one half cent per pound for each pound not delivered at end of each month of the fifty bales.” This contract was signed by both parties
The right of a person to enter into a contract to deliver property not in his possession, relying upon making a future purchase in time to fulfill his undertaking, was doubted by Lord Tenterden (then Chief Justice Abbott) in, Lorymer v. Smith, 8 E. C. L. 1, where he took occasion to say that it was a mode, of dealing not to' be encouraged. That case involved a contract for the sale of wheat..
The decisions just referred to adhered to the rule which was recognized in England, that there could be a valid executory agreement for the future delivery of an article which the seller expected to procure in time to fulfill his undertaking — -a rule probably derived from the civil law, and which has not been departed from in England, so far as we have been able to ascertain after a diligent investigation, except in the two instances above referred to. This rule has been generally recognized by the American courts. Mr. Tiedeman says that “It may be stated, as the American rule, that bona fide contracts for future delivery of goods are not invalid because at the time of the sale the vendor has not in his actual or potential possession the goods which he has agreed to sell.” Tied. Sales, § 302, p. 486. “A person may make a contract for the sale of personal property for future delivery which is not his at the time. Merchants and traders often do this. A contract for the sale of personal property which the vendor does not own or possess, but expects to obtain by purchase or otherwise, is binding if an actual transfer of propertyis contemplated.” Beach, Mod. Law Con. § 1468. See also 14 Am.& Eng. Enc. Law (2d ed.), pp. 606, 607, and notes. In Hawley v. Bibb, 69 Ala. 52, 55, Mr. Chief Justice Brickell says: “The effect and validity of contracts for the sale and future delivery of personal property, of which the seller has not possession or ownership at the time of the sale, has been the subject of much contestation and litigation in the courts of this country and of England, of recent years. Since the decision of the Court of Exchequer in Hibblewhite v. M’Morine, 5 Mees. & Wels. 462, departing from and overruling the opinion expressed by Lord Tenterden in Lorymer v. Smith, B. & C. (8 E. C. L.) 1, and in Bryan v. Lewis, Ryan & Moody (21 E. C. L.), 386, the authorities generally have concurred that a contract for the sale of goods to be delivered at a future day is valid, though at the time the vendor has not the goods in his possession, has not contracted to purchase them, and has no expectation of acquiring, them otherwise than by a purchase at some time before the day of delivery.” In Conner v. Robertson, 37 La. Ann. 814, s. c. 55 Am. Rep. 521, Mr. Justice Fenner, after an exhaustive examination of the English and American cases in reference to this
Section 3537 of the Civil Code declares: “A bare contingency . or possibility can not be the subject of sale, unless there exists a present right in the person selling, to a future benefit; so a contract for the sale of goods to be delivered at a future day, where both parties are aware that the seller expects to purchase himself to fulfill his contract, and no skill and labor or expense enters into the consideration, but the same is a pure speculation upon chances, is contrary to the policy of the law, and can be enforced by neither party.” Was this section intended simply as a declaration of the existing law at the time the code was adopted, or was it the intention of the General Assembly to alter the rule which at that time was well settled in regard to contracts for the sale of goods for future delivery ? In arriving at the meaning of a section of the code, the rule to be followed is well settled, and declares that a section of the code shall not be so construed as to alter the law as it existed at the date of the adoption of the code, unless such a construction is demanded by the terms of the section, and in cases
The rule of the common law in regard to contracts of this character was founded in wisdom, and commercial transactions which are permitted under it are of daily occurrence; and this is an additional ■reason why, in a case where the intention of the lawmakers is doubt■ful, a construction should be placed upon the law which would not ■replace a wise and salutary rule of law with one which in its operation would be harmful and disastrous. In Swift v. Powell, 44 Ga. 123, it appeared that A agreed with B to deliver one hundred bales rof cotton at twenty-one cents per pound to him, at any time within ■sixty days, and that B knew that A expected to purchase to fulfill his contract, which was reduced to writing and recited that it was for value received, and the parties further agreed to put up $1,000 each, which they did, to cover the losses of such contract. It was-held that, inasmuch as the original contract was reduced to writing, ¡.and recited a consideration, there was sufficient under the facts to take the contract out of the operation of the section of the code above quoted. Mr. Chief Justice Loehrane in the opinion said: “ The written instrument entered into between the parties, reciting .a consideration for the agreements entered into,- lifted the case, in the opinion of the court, out of the operation of the code, section 2956 [Civil Code, § 3537], and gave to it the effect of a legal and binding contract, which courts would recognize and enforce.” The effect of this ruling seems to be, that if there is a consideration for the contract, the section under discussion does not apply. In Branch v. Palmer, 65 Ga. 210, it was held that a sale of cotton for future delivery, where both parties knew that the vendor expected ¡to purchase to fulfill his contract, and to put no skill; labor, or ex
It follows from what is above said, that the court did not err in refusing to allow the defendant to prove, as a collateral agreement between himself and the plaintiff, that the cotton specified in the contract was to be raised on the lands of the plaintiff. The contract between the parties evidenced by the writing calls for a certain number of bales of cotton of a certain description, and for no particular cotton. It is clear that, so far as the terms of the contract are concerned, the parties did not intend that the plaintiff should be limited to cotton raised by him. It was a plain and unambiguous contract for the delivery of any cotton, answering to the description specified in the contract, which the plaintiff might see fit to offer to-the defendant at the times specified in the contract. Such being the legal effect of the paper, parol evidence tending to show that the real contract was that the cotton was to be raised on the land of the plaintiff contradicted and varied and altered the very terms of the written instrument. There being no patent ambiguity in the contract, of course parol evidence was not admissible on the ground that such an ambiguity might be explained. Evidence showing that it was the intention of the parties to make a contract whereby plaintiff should be confined to cotton raised on his own lands did not raise a latent ambiguity, but directly impeached an unambiguous instrument. If such evidence could be held to raise a latent ambiguity,, then the rule prohibiting the introduction of parol evidence would be, in effect, abrogated. If such was the intention of the parties,, and this was omitted from the contract by fraud, accident, or mistake, of course the defendant would have a right in a court of equity to reform the contract, but he can not in a court of law be allowed in tiffs manner to contradict the terms of a plain, unambiguous paper by parol evidence. Many cases were cited by counsel for plaintiff in error from the courts of this country and of England, but-
Judgment affirmed.