70 Iowa 573 | Iowa | 1887
I. The petition alleges that the plaintiff, a corporation, entered into a written contract with defendant to
The defendant in its answer alleges that the furnaces did not comply with the warranty of the contract, and avers
“HaMptoN, Iowa, May 19, 1883.
“ To the Board, of Directors of the Independent District of Hampton, la. — G-ents: We propose to take for the furnaces placed in your school building, as they now are, the sum of seven hundred and fifty dollars ($750) in full, reserving the privilege of showing to your satisfaction, during the coming winter, that they will warm the building according to the terms of our original contract, in which case you are to pay us, in addition to the seven hundred and fifty dollars, ($750,) a sufficient amount to make the whole payment equal to the original contract price, with interest as stated therein.”
“ RichaedsoN & BoyNtoN Co.
“ Per J. H. MaNNEy.”
This proposition was on the day of its date accepted by formal action of defendant’s board of directors, and on the same day plaintiff was paid by defendant the amount óf $750. It is alleged that plaintiff did not, in performance of its proposition, show to defendant that the furnaces would warm the building according to the terms of the original Contract, although plaintiff’ had ample opportunity to do so. Plaintiff, in a reply, denies the allegations of defendant’s
II. Counsel for plaintiff insist that the compromise contract was void for want of consideration, and the district court therefore erred in admitting that instrument in evidence, and in admitting evidence showing the condition of the weather prior to January 1, 1882, and the failure of the furnaces after that day. It will be understood from the pleadings that there was a difference between the parties as to the construction of the first contract, and a consequent dispute as to the rights, obligations and liabilities of the respective parties under it; the plaintiff in effect insisting that defendant was cut off from all ground of complaint by its failure to test the furnaces prior to Jan nary 1, 1882, and defendant maintaining that it was excused from making such test prior to that time, for the reason that there was no weather sufficiently cold to render the test possible; that the stipulation as to the test prior to that 'day by its very language is intended to secure the right of defendant to demand and enforce the removal of the furnaces if they proved insufficient by tests made prior to January 1, 1882, and that, in the absence of such test, the defendant retained the right, under the covenants of the contract warranting the furnaces, to recover damages by reason of their insufficiency, and recoup it against the plaintiff’s claim for their purchase.price. We need not consider the questions of law and fact thus raised, and determine which party is. right. All that we need know is that there was a controversy between the parties, each claiming in good faith rights in itself, and liabilities against the other, wherefrom arose a subject of dispute capable of being settled and compromised. This was done by the second contract made by plaintiff’s proposition and defendant’s acceptance thereof. The law favors such settlements of controversies, and finds a consideration for the contract
III. The evidence as to the conditions of the weather priorto January 1,1882, being such that no test could have been
The evidence relating to the sufficiency of the furnaces to comply with plaintiff’s warranty is conflicting. Surely it is sufficient to establish the fact that defendant in good faith and for cause withheld its approval of the furnaces, which it was authorized to do tinder the second contract. Indeed, we think the evidence justifies the conclusion that the furnaces did in fact fail to comply with the conditions of the warranty. "While the district court hardly bases its decision on that ground, it is nevertheless supported thereon, which is a cogent reason for affirming the judgment, even though we should hold that the refusal of defendant to approve the furnaces would alone give it the right to recover under the second contract.
The foregoing discussion disposes of all questions in the case. We reach the conclusion that the judgment of the district court ought to be
Affirmed.