Beard Implement Co., Inc. v. Krusa

567 N.E.2d 345, 208 Ill. App. 3d 953, 153 Ill. Dec. 387, 15 U.C.C. Rep. Serv. 2d (West) 750, 1991 Ill. App. LEXIS 229
CourtAppellate Court of Illinois
DecidedFebruary 21, 1991
Docket4-90-0487
StatusPublished
Cited by2 cases

This text of 567 N.E.2d 345 (Beard Implement Co., Inc. v. Krusa) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beard Implement Co., Inc. v. Krusa, 567 N.E.2d 345, 208 Ill. App. 3d 953, 153 Ill. Dec. 387, 15 U.C.C. Rep. Serv. 2d (West) 750, 1991 Ill. App. LEXIS 229 (Ill. Ct. App. 1991).

Opinion

JUSTICE STEIGMANN

delivered the opinion of the court:

This action involves an alleged breach of contract between plaintiff seller, Beard Implement Company, Inc., a farm implement dealership, and defendant buyer, Carl Krusa, a farmer, for the purchase of a 1985 Deutz-Allis N-5 combine. The dispositive issue on appeal is whether the trial court in a bench trial erred in finding a contract existed between the parties. Specifically, defendant contends that plaintiff never accepted defendant’s offer to purchase the combine. We agree and reverse.

At trial, defendant testified that between December 20 and December 23, 1985, he had several conversations with plaintiff’s representatives concerning the purchase of a new combine. Defendant owned a 1980 Deutz-Allis N-5 combine at that time. In fall 1985, both spindles on his combine had broken and defendant spoke with plaintiff’s representatives about repairing them.

On December 23, 1985, defendant met with plaintiff’s representatives at plaintiff’s office in Arenzville, Illinois. Defendant testified that one of plaintiff’s representatives, either Jim Beard or Gerry Beard, filled out a purchase order for a new combine for the price of $52,800 cash and the trade-in of the combine defendant then owned. (See appendix for a copy of this order.) Defendant signed the Allis-Chalmers purchase order, which was dated December 23, 1985. None of plaintiff’s representatives signed that order on December 23, 1985, or at any time thereafter. The bottom left corner of this order reads as follows:

DEALER’S SALESMAN
This order subject to acceptance by dealer.
Accepted by: _
DEALER”

At the same time defendant signed the purchase order, he also signed a counter check drawn on a local bank in the amount of $5,200. Defendant testified that because he did not have his checkbook, plaintiff provided him with the counter check. The check was undated and intended to represent a down payment on the combine. Defendant testified that the check was not dated because he was to call plaintiff later and let plaintiff know if he wanted to proceed with the transaction. At that time, plaintiff would put a date on the check.

Defendant testified that he had misgivings over the Christmas weekend and, after discussing the situation with his wife, telephoned plaintiff’s manager, Duane Hess, on December 26, 1985, and told Hess that he did not wish to proceed with the transaction. Defendant explained to Hess that defendant and his wife had determined that “the price was too high” and they “did not want to go further into debt to finance the transaction.” Defendant testified that Hess told him that if defendant thought the combine was too expensive, Hess would let defendant out of the deal. Hess did not indicate whether he had signed the order.

Earlier on December 26, 1985, defendant had met with a representative of Cox Implement Company. Defendant identified a copy of the order form that one of Cox’s salesman had filled out. This order was dated December 26, 1985, but was signed on December 27. Defendant testified that he told Cox’s salesman that his price was too high and that defendant could not go through with either that bid or plaintiff’s bid. However, after Cox’s quoted price was reduced and the figures on the purchase order were scratched out, defendant signed the purchase order with Cox on December 27, 1985. Defendant stated the agreement with Cox was for the same model combine he was negotiating for with plaintiff but at a lower price. He wanted to consummate the transaction by December 31, 1985, in order to take advantage of the investment tax credit.

Defendant wrote a letter to plaintiff that was dated December 26, 1985, but sent on December 27, 1985. That letter read as follows:

“Dec. 26, ’85
Dear Sirs:
As I told you by phone on Dec. 26, ’85, I do not wish to purchase the 1985 N-5 combine we talked about so please send me the uncashed counter check on the Bank of Bluffs for the amount of $5,200. Since my ‘Purchase Order Sheet’ had not yet been signed by the dealer rep, the check wasn’t cashed before notification, & the combine wasn’t picked up, the [inconvenience] should have been slight.
Feel free to consult my attorney, John D. Coonrod, for details. Again, excuse these changes of events.
Sincerely,
Carl W. Krusa
(FOR ‘K’ FARMS)”

Defendant testified that Jim Beard visited defendant at his farm around lunchtime on December 27, 1985. During this visit, Jim told defendant, “There’s no problem, Carl, just please send a check to Tony Thomas for his time explaining the differences between models and options.” Defendant recalled that their conversation was friendly and that Jim told him something to the effect that, “Carl, we maybe lost a little bit of commission on this, but don’t worry about it. I’ll make it up on the next sales.” Defendant signed the contract with Cox later that afternoon.

Defendant testified that when he spoke with Hess on the evening of December 26, Hess did not indicate that he had signed the order that had been signed earlier by defendant. Defendant testified that in his letter to plaintiff, he enclosed a check for $100 made payable to Thomas for Thomas’ time. Defendant believed that once this sum was paid, he was released from any obligation to plaintiff seller.

Jim Beard testified that in fall 1985, he approached defendant several times about purchasing a new combine. Jim testified that he again spoke with defendant about purchasing a new combine at plaintiff’s Arenzville office at 3:30 or 4 p.m. on December 23, 1985. Gerry Beard was also present. Jim stated that he did not have the authority to sell the combine at a given price; only Gerry and Hess had that authority. The price quoted by Gerry to defendant was $52,800 and the trade-in of defendant’s existing combine. Jim identified the purchase order bearing defendant’s signature. Jim filled in all the other information on that order.

Jim testified that defendant did not make any statements that he was going to consider the purchase further after signing the purchase order. Jim also stated that defendant did not make any statements to the effect that the purchase order was not to be considered a completed contract.

Jim identified the counter check payable to plaintiff for $5,200. He stated that he filled out the check and defendant signed it, but that he forgot to fill in the date on the check. Jim did not recall any statement made by defendant that the check should be held. Jim recalled that the purchase order and check were signed at approximately 5:30 p.m. He stated that defendant was not threatened or told that he could not leave the office until he signed the order. Jim stated that he would not have signed the order if defendant had said anything about reserving the right to call back later and cancel the deal.

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

Related

Echo, Inc. v. Whitson Co.
121 F.3d 1099 (Seventh Circuit, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
567 N.E.2d 345, 208 Ill. App. 3d 953, 153 Ill. Dec. 387, 15 U.C.C. Rep. Serv. 2d (West) 750, 1991 Ill. App. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beard-implement-co-inc-v-krusa-illappct-1991.