OPINION
Appellants, Hycarbex, Inc. (“Hyearbex”), Moin Hussain (“Hussain”), and Kumar Bhat-tacharjee (“Kumar”) sued appellees, Anglo-Suisse, Inc. and Anglo-Suisse Pakistan (collectively referred to as “Anglo-Suisse”), for breach of an agreement to pay commissions. 1 At the close of Hycarbex’s evidence, Anglo-Suisse moved for directed verdict on the following grounds: (1) Hycarbex failed to prove that Anglo-Suisse breached the agreement by failing to pay all the commissions owed; and (2) Anglo-Suisse proved accord and satisfaction as a matter of law. During Anglo-Suisse’s case-in-chief, the court granted Anglo-Suisse’s motion but did not state the basis for its ruling in the final judgment. Raising five points of error, Hyearbex appeals from that judgment. We find the directed verdict was proper and affirm the trial court’s judgment.
In August 1984, Gilíes Labbe formed Anglo-Suisse as an oil exploration and development company. In April 1985, Anglo-Suisse hired Hycarbex to apply to the Pakistan government on behalf of Anglo-Suisse for an oil concession located in southeast Pakistan. The one-thousand acre oil concession is known as the “Thatta concession.” Hycar-bex’s president and sole shareholder, Moin Hussain, enlisted his colleague, Kumar, to help with the application. Labbe knew Hus-sain and Kumar when they were all previously employed with the same oil company. Hy-carbex subsequently filed the application on Anglo-Suisse’s behalf and participated in negotiations with the Pakistan government. For Hycarbex’s efforts, Anglo-Suisse agreed, by letter dated April 10, 1985, to pay Hycar-bex a commission based on “ten percent (10%) of the net cash received by Anglo-Suisse from third parties at the time Anglo Suisse sells a working interest in the concession.”
In June 1985, Labbe formed another related company to operate the concession. While the application was pending, Anglo-Suisse sought partners in the oil industry to provide the substantial capital needed to operate the Thatta concession. Although it did not participate in Anglo-Suisse’s negotiations with prospective partners, Hycarbex helped obtain the data used to prepare the geological and engineering package for the Thatta concession and attended some of the early presentations to prospective partners. In the fall of 1985, Anglo-Suisse unsuccessfully attempted to sell its entire working interest to Amoco for $2 million plus costs. At the time, Labbe told Hussain about the deal,. which, according to Labbe, would have paid Hycarbex a $200,000 commission. By September 1986, Anglo-Suisse finally acquired a 95% working interest in the concession and the government-owned oil company retained a 5% working interest.
In early 1987, Anglo-Suisse sold 75% of its working interest to Phillips Petroleum Co. (“Phillips”) and International Finance Corporation (“IFC”), a division of the World Bank.
Re: Our Agreement of April 10,1985
Dear Moin:
Enclosed is our check no. 1111 in the amount of $30,000 which represents 50% of the settlement for the commission owed to Hycarbex regarding the Thatta Concession. We anticipate settling the remaining $30,000 payment prior to the end of March 1987.
Please acknowledge by signing a duplicate original of this letter as your receipt of the 50% and your agreement that these payments shall constitute complete fulfillment of our obligation to Hycarbex.
The letter is signed by Labbe, as president of Anglo-Suisse. At the bottom is the legend: “Accepted and agreed to this 23rd day of January, 1987,” and a signature line containing Hussain’s signature. A notation on the check states: “one half of 10% commission as per Agrmt. of 4/10/85.” In March 1987, Hussain received the second $30,000 check in the mail. The check contains the notation: “Balance due as per letter agreement of 4/10/85.”
A year after Hycarbex received the second check, Hycarbex’s attorney sent Anglo-Suisse a letter demanding “a full accounting” of the amounts owed under the April 10, 1985, agreement and threatening legal action. Nine months after that, Anglo-Suisse sold its remaining 20% working interest to Union Pacific for $4.1 million. The parties agree that Anglo-Suisse did not pay Hycarbex a commission on this sale but disagree on whether a commission was owed.
In April 1989, Hycarbex filed suit against Anglo-Suisse alleging contract and tort causes of action based on Anglo-Suisse’s alleged failure to pay commissions. Anglo-Suisse counterclaimed for damages, including “costs, fees, and expenses ... due to plaintiffs’ repudiation of the January 22, 1987 agreement....” The trial court granted summary judgment on Hycarbex’s breach of fiduciary duty claim and Hycarbex abandoned its remaining tort claims. Thus, the ease was tried solely on Hycarbex’s contract claim. At trial, the parties disputed whether the April 10, 1985, agreement required Anglo-Suisse to pay Hycarbex a commission on each sale of a working interest or on a single sale of a working interest. The parties also disputed whether the January 22, 1987, agreement and Hycarbex’s receipt of the two checks constituted an accord and satisfaction of Anglo-Suisse’s obligation under the April 10, 1985, agreement. The trial court’s final judgment ordered that Hycarbex “take nothing” and dismissed Anglo-Suisse’s counterclaim without prejudice.
By its points of error, Hycarbex contends the directed verdict was improper. Generally, in reviewing the trial court’s granting of a directed verdict, an appellate court must consider the evidence in the light most favorable to the party against whom the verdict was directed, disregarding all contrary evidence and inferences.
Qantel Business Sys. v. Custom Controls Co.,
Although Anglo-Suisse moved for a directed verdict on two grounds, the trial court’s judgment does not specify the ground(s) upon which it is based. Therefore, the burden is on Hycarbex to challenge both grounds asserted in Anglo-Suisse’s motion.
See McKelvy v. Barber,
In points of error one and two, Hycarbex contends there is some evidence that Anglo-Suisse breached the agreement according to its unambiguous terms, or alternatively, the agreement is ambiguous and the ambiguity should have been resolved by the jury. In point of error three, Hycarbex contends Anglo-Suisse failed to prove accord and satisfaction as a matter of law. Because accord and satisfaction is an affirmative defense to a breach of contract, we address that issue first.
See
Tex.R.Civ.P. 94;
see also Harris v. Rowe,
The affirmative defense of accord and satisfaction rests upon a new contract, express or implied, in which the parties agree to the discharge of the existing obligation by means of the lesser payment tendered and accepted.
Jenkins v. Henry C. Beck Co.,
In the instant case, the “accord” was not “resting in implication,” but was by a written agreement.
See id.
Because an “accord” is in essence a contract or agreement, the rules of construction applicable to contracts apply.
See Harris,
The court must keep in mind that the parties to an instrument intend every clause to have some effect or in some measure to evidence their agreement and that a reasonable interpretation of an agreement is preferred to one which is unreasonable.
See Westwind Exploration, Inc. v. Homestate Sav. Ass’n,
Hycarbex contends the January 22, 1987, agreement is not an accord and satis
The initial sentence of the January 22, 1987, agreement states the first $30,000 “represents 50% of the settlement for the commission owed to. Hycarbex regarding the Thatta concession,” not merely the Phillips/IFC sale. “The commission owed regarding the Thatta concession” is not limited to the Phillips/IFC sale, but refers to the entire commission, thus encompassing any future sales. Any doubt about that interpretation of the January 22, 1987, agreement is resolved by the last sentence, which states explicitly “that these payments shall constitute complete fulfillment of our obligation to Hycarbex.” Anglo-Suisse’s only obligation to Hycarbex was to pay a commission as specified by the April 10, 1985, agreement. That agreement is referenced in the January 22, 1987, agreement signed by Hussain on behalf of Hycarbex and noted on the two $30,000 checks accepted and negotiated by Hussain. We conclude the $60,000 paid to Hycarbex was in “settlement of the commission owed [on] the Thatta concession” and “complete fulfillment of [Anglo-Suisse’s] obligation to Hycarbex.”
Citing a litany of eases, Hycarbex next argues there was no meeting of the minds because Hussain testified he did not understand the agreement to be an accord and satisfaction of his claim for future commissions. Hycarbex is incorrect for two reasons. First, as Anglo-Suisse meticulously points out, the cases cited by Hycarbex either deal with whether there was an “accord” or simply bear little resemblance to the facts of this case. 3 The “accord” cases generally involved merely tendered checks with various notations. 4 Here, there can be no dispute that there was an accord.
As we observed, Hycarbex not only accepted and negotiated two checks for “one-half of the 10% commission” and for the “balance due” under the April 10,1985 agreement, but signed a separate written agreement expressly acknowledging “that these payments shall constitute complete fulfillment of [Anglo-Suisse’s] obligation” under the underlying agreement.
See e.g., Industrial Life Ins. Co. v. Finley,
Hycarbex also argues that one of the cases cited in its original brief,
Call of Houston, Inc. v. Mulvey,
Second, Hussain’s testimony about his understanding of the January 22, 1987, agreement is immaterial. Only where the contract is first found to be ambiguous may the court consider the parties’ interpretation.
Sun Oil Co. v. Madeley,
Finally, Hycarbex argues the parties’ agreement as to future commissions is not supported by consideration. A good faith dispute as to liability on either a liquidated or unliquidated claim furnishes sufficient consideration for an accord and satisfaction.
Industrial Life,
Of course, it is not necessary to resolve the parties’ underlying dispute to determine whether the accord and satisfaction is supported by consideration. Rather, consideration for an accord and satisfaction is found in the resolution of the uncertainty which exists as to the validity or the amount of a claim.
See Dickson,
Because Anglo-Suisse established accord and satisfaction as a matter of law, the trial court properly granted a directed verdict. Accordingly, point of error three is overruled. Having determined that Anglo-Suisse was entitled to a directed verdict on grounds of accord and satisfaction, we need not address Hycarbex’s first and second points of error challenging the directed verdict on breach of contract grounds.
According to Hycarbex’s motion for continuance, Summa testified by deposition “that the alleged costs of the Pakistan concession used by the Defendants in denying a commission to the Plaintiffs were either inflated, did not occur, or were reimbursed by third parties who had shares in ... [Anglo-Suisse].” That testimony neither mentions nor concerns accord and satisfaction which, as we have held, was established as a matter of law. In fact, the record reflects that Summa left Anglo-Suisse sometime in late 1986, before the January 22, 1987, agreement. Thus, Summa’s deposition testimony while relevant to the breach of contract claim, is immaterial to the issue of whether there was an accord and satisfaction. Accordingly, any error by the trial court in excluding Summa’s deposition testimony was harmless. Tex.R.App.P. 81(b)(1);
see McCraw v. Maris,
Even if Summa’s testimony is somehow relevant, the trial court did not err in quashing the deposition or denying a continuance. The determination of whether a deposition should be taken is within the sound discretion of the trial court.
Thompson v. Dart,
The record reflects that Hycarbex’s attorney knew at least five months before trial that Summa’s deposition was necessary because Summa frequently traveled overseas on business. However, counsel deliberately chose not to depose Summa during this five-month period because Summa assured counsel that he would be available for trial. Approximately two weeks before trial, Hycar-bex’s attorney learned, as he had all along feared, that Summa would be overseas during the trial. He immediately contacted Anglo-Suisse’s attorney, who due to scheduling conflicts, was unable to attend any deposition scheduled prior to Summa’s departure date. Unable to reach an agreement with Anglo-Suisse’s attorney on a date, Hycarbex noticed Summa’s deposition for a Saturday, four days later. Anglo-Suisse filed a motion to quash one day after receiving the notiee and set it for the earliest possible hearing date. Hy-carbex’s attorney proceeded to take Summa’s deposition on four days notiee, one week before trial. Unable to prepare for the deposition or secure the attendance of his client on such short notice, Anglo-Suisse’s attorney did not attend the deposition.
At the pretrial hearing on Anglo-Suisse’s motion to quash, the trial court found that Hycarbex’s attorney could have taken Sum-ma’s deposition without such short notiee and granted Anglo-Suisse’s motion. The court’s ruling was reasonable under the circumstances and not an abuse of discretion.
See id.
Relying on
Bohmfalk,
Hycarbex argues that four days notice is not unreasonable
per se.
Likewise, the trial court did not abuse its discretion by denying Hycarbex’s motion for continuance. The granting or denial of a continuance rests within the sound discretion of the trial court.
State v. Crank,
Notes
. Hussain and Kumar asserted claims below only as third-party beneficiaries to the contract at issue. However, at a pre-trial hearing, the trial court struck these claims from Plaintiffs’ Second Amended Petition. Although parties to this appeal, Hussain and Kumar do not complain about his ruling. Thus, this appeal involves only the contract dispute between Hycarbex and Anglo-Suisse.
. Contrary to Anglo-Suisse's assertion, Hycarbex does not so much argue the January 22, 1987 agreement is ambiguous as it argues the agreement is not an accord and satisfaction of its entire claim for commissions.
.
See e.g., White v. Southwestern Beil Tel. Co.,
. See footnote 3.
. Hycarbex suggested below that 'good cause” existed for "getting out the deposition notice at the late time in the case." Hycarbex does not raise this issue on appeal and therefore it is waived. Tex.R.App.P. 74;
see e.g., Emery
v.
Rollins,
