Addressograph Co. v. Office Appliance Co.

153 S.W. 804, 106 Ark. 536, 1913 Ark. LEXIS 246
CourtSupreme Court of Arkansas
DecidedFebruary 10, 1913
StatusPublished
Cited by8 cases

This text of 153 S.W. 804 (Addressograph Co. v. Office Appliance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Addressograph Co. v. Office Appliance Co., 153 S.W. 804, 106 Ark. 536, 1913 Ark. LEXIS 246 (Ark. 1913).

Opinion

McCulloch, C. J.

Appellant is engaged in the City of Chicago in the business of manufacturing and selling a machine called an “Addressograph” and other office supplies, furniture and appliances. Appellee is engaged in the City of Little Rock in the business of selling office appliances and fixtures, and instituted this action in the Circuit Court of Pulaski County to recover the sum of $145.45 alleged to be due as commission on a sale made by it for appellant to the Little Rock Railway & Electric Company of an addressograph, graphotype and supplies, at the price of $727.25.

It is alleged in the complaint that there was a contract whereby appellee was entitled to a commission of twenty per cent on sales made for appellant, and that it negotiated a sale to the Electric Company, which, was duly accepted and consummated by appellant.

Appellant, in its answer, admitted that it had authorized appellee to make Sales • on commission, but that the authority was withdrawn before any sale was made. It is also alleged that the authority was limited to sales to new customers and that the Electric Company was not a new customer but was an old one to which appellant had made previous sales.

The transactions between the parties were covered entirely by written correspondence, which constituted the contract. The contract as originally entered into is evidenced by a letter dated November 19,1909, addressed to appellee by appellant, which reads as follows:

“We have your esteemed favor of the 17th and take pleasure in sending under separate cover our latest catalog. If you can-take and send in any order to use from firms in Little Rock, we will allow you a commission of fifteen per cent on the original order, payable when we receive remittance from the customer. Commission applies- on original order only. We give no commission for subsequent orders for addresses or supplies of any kind. We reserve the right to withdraw this proposition at any time.”

Another letter was written by appellant to appellee on April 26,1910, which reads as follows:

“Replying to your letter of the 23d, would say that' we made you a proposition November 19, offering you fifteen per cent commission on original orders to new customers, payable when we receive remittances, commission to apply on original orders only and we reserved the right to withdraw the proposition at any time. We could not consider giving you commission on supplies, or exclusive territory unless you would put in a complete stock of machines and supplies.”

Subsequently correspondence passed between the parties which increased the commission to twenty per cent.

Appellee solicited orders and negotiated several sales. The evidence tends to show that for about a year prior to February, 1911, appellee’s manager was soliciting one of the employees of the Electric Company to buy an addressograph, there being repeated interviews and negotiations during that time. The Electric Company had in use an old machine furnished by appellant, and the negotiations were looking to an exchange of the old for a new machine, paying the difference in price. Appellee’s manager testified that appellant allowed him to take old machines in exchange for new ones.

On January 14, 1911, appellant addressed the following letter to appellee:

“As we have arranged with one of our regular agents to cover Little Rock, we therefore withdraw the proposition we made you some time ago for selling addressographs. Kindly acknowledge and oblege.”

Appellee replied under date of January 16, acknowledging the receipt of the letter, but notifying appellant that it (appellee) had been soliciting several customers, including the Electric Company, and that if a sale resulted commission would be claimed. The evidence shows that negotiations were still pending at that time between appellee and the Electric Company for a sale, and notwithstanding the revocation of authority appellee’s manager continued to solicit the Electric Company to purchase, but gave instructions that the order be sent in direct to appellant. The agent of the Electric Company after being notified of the revocation of appellee’s authority to make sale, negotiated directly with appellant at its home office in Chicago and a purchase of the addressograph, etc., resulted on February 8, 1911.

The court, over appellant’s objection, gave the following instruction, which was all that was given, namely:

“You are instructed if you find from the evidence that the plaintiff was employed by the defendant to procure purchasers for addressograph machines, graphotype and supplies manufactured by the defendant, and that the defendant agreed to pay the plaintiff a commission of twenty per cent of the sale price thereof if the plaintiff procured a purchaser; and you further find that the plaintiff procured the Little Rock Railway Company as a purchaser of the defendant’s machine, graphotype and supplies at the price of $727.85 net, and that the defendant accepted it as a purchaser and sold and delivered the products at such price, then your verdict should be for plaintiff for twenty per cent of the sale price of said products, notwithstanding you further find from the evidence that the defendant cancelled the plaintiff’s authority as its agent before the sale to the Little Rock Railway & Electric Company was consummated by the delivery of the machine to it by the defendant. ’ ’

The contract evidenced by the letters did not cover any specified period of time, but on the contrary, appellant expressly reserved the right to withdraw the authority at any time. This was reiterated in the letter of April 26, 1910, in which certain changes were made in the original agreement or, at least, in which language was used which might be construed as a modification of the terms of the original agreement with respect to sales to new customers.

The appellant had the right, therefore, to cancel the contract at any time, and the only limitation which the court can read into that power is that appellant was not to exercise the right of withdrawal in such a manner or at such time as to show bad faith and operate as a fraud upon the rights of appellee.

The case of Sibbald v. Bethlehem, Iron Company, 83 N. Y. 378, is a leading case on this subject. In that case the Court said:

' “The broker may devote his time and labor, and expend his money with ever so much of devotion to the interests of his employer, and yet if he fails, if, without effecting an agreement or accomplishing a bargain, he abandons the effort, or his authority is fairly and in good faith terminated, he gains no right to commission. He loses the labor and effort which was staked upon success. And in such event it matters not that after his failure, and the termination of his agency, what he has done proves of use and benefit to the principal. In a multitude of cases that must necessarily result. He may have introduced to each other parties who otherwise would have never met; he may have created impressions which, under later and more favorable circumstances, naturally lead to and materially assist in the consummation of a sale; he may have planted the very seeds from which others reap the harvest; blit all that gives him no claim.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Harrison v. United Farm Agency
262 S.W.2d 293 (Supreme Court of Arkansas, 1953)
Spur Bottling Co. v. Canada Dry Ginger Ale, Inc.
98 F. Supp. 972 (W.D. Arkansas, 1951)
Barton v. Jordan
221 S.W.2d 21 (Supreme Court of Arkansas, 1949)
Ullman v. May
70 N.E.2d 507 (Ohio Court of Appeals, 1946)
Silbernagel v. Hirsch Distilling Co.
99 F.2d 829 (Eighth Circuit, 1938)
Bodine v. Penn Lumber Co.
194 S.W. 226 (Supreme Court of Arkansas, 1917)
Murray v. Miller
166 S.W. 536 (Supreme Court of Arkansas, 1914)
Greenspan v. Miller
163 S.W. 776 (Supreme Court of Arkansas, 1914)

Cite This Page — Counsel Stack

Bluebook (online)
153 S.W. 804, 106 Ark. 536, 1913 Ark. LEXIS 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/addressograph-co-v-office-appliance-co-ark-1913.