46 Ark. 132 | Ark. | 1885
The Allendale Trust Company was carrying on a saw mill business in Clay county, and b¿came indebted to the mercantile firm of Hecht & Imboden in the sum of $1,500. Wishing to secure this amount and advances thereafter, to be made in money or merchandise by Hecht & Imboden, an agreement was entered into between the parties by which the company transferred all of its stock of saw logs and timber, and certain accounts due them, to the merchants, and agreed to carry on the saw mill business for the sole benefit, and in the name of the merchants, until the amount secured should be liquidated; the merchants upon their part agreeing to furnish the mill with logs, and to pay the wages of the employes, and other expenses of the business. The agreement was duly •executed, acknowledged and filed for record as a chattel mortgage, and the business was conducted under it. It was the custom of the company to issue due bills to the ■employes at the mill for their wages, payable at Hecht & Imboden’s store on the 15th of each month.
The appellee was an employe at the mill and purchased d.ue bills for wages from other employes payable at Hecht & Imboden’s place of business, which the firm paid. Subsequently the appellee presented a time check due him for wages, and several others which he had purchased as before, but payment was refused, the merchants claiming that the company had no money in their hands, but was indebted to them in the sum of $1,100. The appellee sued them to recover the aggregate amount of the several due bills, obtained judgment, and the merchants appealed.
It is obvious that the appellee could not have understood that the execution of the instrument sued on was denied,, and he was, therefore, not called upon to prove its execution. Martin v. Tucker, 35 Ark., 279; Tyner v. Hays, supra; Gwynne v. McCauley, 32 ib., 97.
But it is said the appellee was not a party to this contract and had no legal interest in it. The right of a party to maintain an action on a promise made to another for his benefit, although much controverted, is now the prevailing rule in this country, and has received the sanction-of this court. Chamblee v. McKenzie, 31 Ark., 155; Talbot v. Wilkins, ib., 411; 2 Whart. Cont., sec. 785, et seq.
One of two constructions must be placed upon the contract.. Hecht & Imboden either undertake to pay the wages and supply demands of the business,in consideration of the benefit to be derived by them from the company, or they constitute-the company their agent with power to bind them for the payment of these demands. In either event they are liable. In this view the instructions were not erroneous and the judgment must be affirmed.