92 Iowa 585 | Iowa | 1894
I. Plaintiff, as assignee of one Anderson, an insolvent, sold to defendants a stock of goods, formerly the property of Anderson, the price at which the goods were sold being stated in the memorandum of sale as follows: ‘ ‘For the consideration of sixty-four cents on the dollar on cost price of said property; said inventory to be taken as soon as possible. ” An inventory of the property was taken, in which the price of the several items of goods was the regular invoice price. In making this invoice, no account was taken of freight paid on the goods, and no allowance was made to cover any discounts. Defendants contend that they should have been allowed the discounts stated on the bills, and it seems to be conceded that if these had been deducted from the bill price there would be noth
II. From the statement above it will be seen that the only matter in controversy in this suit is the meaning of the words “cost price,” as used in the contract of sale of the goods. It appears without conflict that the goods were in fact inventoried at what they cost in Chicago, without considering either freight or discounts; that it is usual with wholesale men to bill goods as due in a certain number of days, as in sixty days, ninety days, or four months, and that a certain discount from the bill price is allowed if payment is made prior to the date when the bill becomes due. The amount of such discount depends upon the kind of goods, and the time within which they are paid for, prior to the time when the bill becomes due. The cost price is said to be what is actually paid for an article. And. Law Diet.; Black, Law Diet.; Buck v. Burk, 38 N. Y. 337. “Cost” is defined by Webster as “the amount paid, charged, or engaged to be paid for anything bought.” Anderson never paid for these goods. When the contract of sale was made to defendants, the time had passed within which payments might be made so as to obtain the benefit of the wholesale merchant’s discounts. The goods were sold to Anderson, and presumably charged to him at a certain sum; but he might, by paying at certain times in advance of the time when the bills became due, obtain certain discounts. Not having done so, it is manifest that the cost price to him was the price at which the goods were billed. If he had paid for the goods, then the cost price would be the amount in fact paid. As Anderson
Other matters are discussed by counsel, in connection with the determination of the question presented, which we do not deem it necessary to consider. The judgment below was proper, and is affirmed.