Bagot v. Inter-Mountain Milling Co.

196 P. 824, 100 Or. 127, 1921 Ore. LEXIS 102
CourtOregon Supreme Court
DecidedApril 5, 1921
StatusPublished
Cited by5 cases

This text of 196 P. 824 (Bagot v. Inter-Mountain Milling Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bagot v. Inter-Mountain Milling Co., 196 P. 824, 100 Or. 127, 1921 Ore. LEXIS 102 (Or. 1921).

Opinion

JOHNS, J.

It is admitted that McKinnon was the salesman of the defendant. The plaintiff claims that he had general powers and full authority to fix the price and to take, accept and confirm orders for flour, and that through him the plaintiff entered into a contract with the defendant for the purchase and sale of 800 barrels of flour to be delivered at Portland, at the agreed price of $9.50 per barrel; that later it entered into another and different contract for the same amount of flour and at the same price. Plaintiff also claims that the defendant held out and represented to the plaintiff that McKinnon had general authority, and that by its actions and conduct it induced and led the plaintiff to believe that he was authorized to make and carry out such contracts, and that relying thereon, plaintiff entered into such contracts, and that by reason of its actions and conduct, the defendant is now estopped to deny the authority of its agent.

1, 2. The defendant admits that McKinnon was its agent but claims that his authority was limited; that he did not have the power to bind the company and that any orders which he took were taken subject to its approval and did not become valid or binding as a contract without its approval, and that it declined to accept or confirm such orders and promptly notified the plaintiff of its refusal; in other words, that there never was any valid or binding contract between the plaintiff and the defendant for the sale and purchase of the flour in question. The defendant is a corporation and can act only through its agents or officers and the burden of proof was upon the plaintiff to show that McKinnon was authorized to make such contracts, or that by its conduct the defendant is estopped to deny his authority. It is a Montana [132]*132corporation and its principal office and place of business was at Townsend, in that state, and the alleged contracts were made in Portland, Oregon. In Baker v. Seaweard, 63 Or. 350 (127 Pac. 961), this court held:

“A principal is not bound by the acts of his agent, unless within the real or apparent scope of such agent’s authority.
“One dealing with an agent is bound at his peril to ascertain the extent of the agent’s authority, and is chargeable with knowledge thereof. * *
“Where an agency is proved or admitted, it is the duty of the court to determine whether or not a particular act was within the agent’s authority.
“Where plaintiff’s testimony that a person left in charge of sheep owned by him was authorized to sign his name to checks only for the purpose of paying herders, for provisions, and ordinary expenses for the care of the sheep, was uncontradicted, and a person from whom such ag’ent purchased horses had no knowledge or information as to his authority, except the agent’s representations, the court should have held that the agent had no authority to purchase such horses, instead of submitting that question to the jury.
“For a principal to be bound by the acts of his agent in excess of his authority, it must appear that he held the agent out to the public in other instances as possessing authority embracing the act in question, or that he knowingly acquiesced in the agent’s assertion of the requisite authority, and that the party dealing with the agent had reason to believe, and did believe, that the agent had the necessary authority.”

3. The existence of an agent’s authority is a question of fact; what he may do by virtue of it is a question of law: Glenn v. Savage, 14 Or. 567 (13 Pac. 324).

[133]*1334. Section 808, subdivision 5, L. Or., says:

“The agreement is void unless the same or some note or memorandum thereof expressing the consideration be in writing and subscribed by the party to be charged, or by his lawfully authorized agent,” where it is “an agreement for the sale of personal property at a price not less than $50 unless the buyer accept and receive some part of such personal property, or pay at the time some part of the purchase money; * * ”

It is not claimed that any money was ever paid or that there was any specific written contract or that any portion of the flour in question was ever delivered. In the absence of such payment, written evidence or partial performance, the contracts would be void under the statute.

On January 30, 1919, at Townsend, Montana, the defendant mailed a letter to the plaintiff about some previous business dealings, in which among other things it said:

“We are taking the matter up with our salesman who makes the western towns and any information we get, will surely advise you. No doubt our Mr. McKinnon will call on you in the near future. You will find him a splendid fellow, * * ”

On February 20th, the defendant wired the plaintiff:

“Nine seventy-five best we can do on Mountain Pride quality.”

On February 22d, the plaintiff wrote the defendant:

“We are in receipt of your wire of yesterday stating that $9.75 was the best you could do on Mountain Pride Flour, the which we regret as we were compelled to pass the business we had in hand, but suppose we must expect these things from time to time.”

[134]*134McKinnon called upon the plaintiff, “Monday morning, the 24th of February.” While there during the week together they visited prospective purchasers of defendant’s flour, in the City of Portland, but no business was transacted and no orders were placed. On Friday night of that week, and while McKinnon was there at his father’s house, the plaintiff testifies:

“I rang him up on the telephone and he said he was going out that night, I think at 11 o’clock. * * I says, ‘You can book us two cars of flour at nine and a half.’ He was very much pleased and he said, ‘I will confirm this but, if you don’t mind, I would like you to wait until I go on the train or get along; I am going to Seattle and to-morrow I will confirm this.’ Owing to the fact that McKinnon was then at home and at dinner with his family, I said that was perfectly satisfactory.”

On March 8th, the plaintiff wrote the defendant:

“We enjoyed your Mr. McKinnon’s visit and have been expecting a line from you confirming the business given him and also your expressions regarding the conditions he found here.”

On March 15th, from Townsend, Montana, Mc-Kinnon wrote the plaintiff:

“Mr.. Thorson and I have figured out the price proposition on the Flour and have booked the two cars at $9.50, but we can’t shave this; in fact, can’t accept any more at this price; it is too close.”

March 20th, for the attention of Mr. McKinnon, the plaintiff wrote the defendant:

“We also note that you say you have booked us two cars at $9.50, which we take as an acknowledgment of the order wired you a few days ago. This, of course, is in addition to the order for two cars we gave you when you were here.”

[135]*135March 28th, the defendant by its manager acknowledged the receipt of plaintiff’s letter of March 20th, saying:

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Cite This Page — Counsel Stack

Bluebook (online)
196 P. 824, 100 Or. 127, 1921 Ore. LEXIS 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bagot-v-inter-mountain-milling-co-or-1921.