264 N.W. 207 | S.D. | 1935
This action was brought to recover an amount which is alleged to be the rental of a caterpillar tractor and a fresno. The trial of the action to the court resulted in findings and judgment in favor of the plaintiff. Defendants Western Surety Company and the county of Hughes have appealed from such judgment and order overruling motion for new trial.
On July 7, 1932, defendant county entered into a contract with the state of South Dakota for gravel surfacing of a certain portion of the state trunk highway known as the Pierre-Ft. Thompson road. The county subsequently entered into a contract with defendant A.C. Deltener whereby the work described in the contract with the state was sublet to Deltener. The contractor agreed "to pay all just claims for materials, supplies, food, tools, appliances and labor and all other just claims incurred by him or any of his subcontractors in carrying out the provisions of this contract and * * * that the contract bond shall be held to cover all such claims." The contractor gave a bond with the Western Surety Company as surety conditioned for the faithful performance of the contract.
Deltener and the Central Tractor Equipment Company on August 13, 1932, entered into a written agreement by the terms of which the contractor agreed to pay the sum of $400 for the use of a caterpillar tractor and fresno from the date of the contract to the 12th day of September, 1932. Deltener, the so-called lessee in this contract, was given the option to renew or extend the alleged lease at any time during the term thereof or within six days *64 thereafter upon the same terms and conditions. The agreement contained the further provision: "The lessor hereby gives the lessee the option to purchase said `Caterpillar' Tractor and Atlas Fresno in its then condition, at any time during the term of this lease (or within any extension or renewal thereof) or within six days thereafter, for the purchase price of $1,500.00 plus interest at 8 per cent per annum from date hereof until said purchase price is paid, said purchase price to be payable in cash or legally issued warrants upon the exercise of the option. In the event that said option is exercised the purchase price shall be reduced by the amount of rentals theretofore paid, and interest shall be computed on the amount of the purchase price, less rentals theretofore paid."
On September 21, 1932, the work still being in progress, the parties entered into another written agreement by the terms of which the contractor agreed to pay the further sum of $200 for the use of the tractor from September 21 to October 7, 1932. The same option provision was included in this agreement to purchase the tractor for $1,250. When the second lease terminated, it was agreed that it be extended at an agreed rental of $400 a month for the tractor. A claim for rentals amounting to $1,200 was filed in the office of the county auditor of Hughes county for allowance and payment and the same was rejected by the board of county commissioners. Thereafter plaintiff, assignee of the Central Tractor Equipment Company, commenced this action.
The trial court found that the agreement was a lease and not a conditional sale contract; that the tractor was reasonably necessary in the work performed; and that the reasonable value for the use of the tractor for 66 days was $528.
[1] In Dennis v. Enke,
It is urged, however, that the agreement between the contractor and the Central Tractor Equipment Company was a conditional sale contract and not a lease, and that the tractor and fresno became a part of the general plant and equipment of the contractor.
[2, 4] In determining whether a contract is one of conditional sale or a lease, we are not bound by the mere form or the name which the parties may have given it, but its legal aspect is dependent upon the intent of the parties as evidenced by the entire contract. Pringle v. Canfield,
[5] It is also urged that plaintiff's exclusive remedy was an appeal from the order of the board of county commissioners rejecting its claim for rentals. This action was brought upon the *67
theory that appellants were liable for a definitely stipulated amount for rental. But the trial court was of the view that as to the appellants the right of recovery was measured by a different rule; that they were obligated to pay the reasonable rental value. In the case of Roberts v. Lawrence County,
The judgment and order appealed from are affirmed.
All the Judges concur.