Bechtold v. Lyon

29 N.E. 912, 130 Ind. 194, 1892 Ind. LEXIS 318
Indiana Supreme Court·Decided January 15, 1892·No. No. 15,374·Published·Cited by 5 cases

Opinion

Olds, J.

The appellee, Michael Lyon, was a clothing [195] merchant, in the city of Evansville, Indiana, and on the 8th day of July, 1886, he and one R. Ferriman entered into an agreement, of which the following is a copy :

l “ EvaNSVille, July 8, 1886.

M. Lyon agrees to furnish R. Ferriman with a stock of clothing and furnishing goods, to be sold in Shawneetown, Illinois. The goods all to be sold strictly for cash — credit is not to be given any one under any circumstances. Whenever the business fails to pay a profit each month above current expenses, the business to be discontinued at the option of M. Lyon. Each and every article sold is to be entered in a cash book, and the lot-number and cost of each article, and the price sold for, are to appear in the daily sales. If any goods are missing whenever an account of stock is taken, the cost of any goods missing is to be paid by R. Ferriman, as M. Lyon is to suffer no loss on account of any goods not accounted for in the sales.

“R. Ferriman is to give close and careful attention to the business, and in consideration of his services he is to receive one-half of the net profits after all the necessary expenses of running the business are deducted.

“ M. Lyon is to furnish the goods, and the profits and losses are to be equally divided. R. Ferriman is to receive no salary, as one-half of- the profits is to be his compensation for his services.

The stock is to be kept constantly insured for its full value.

“R. Ferriman is to forward to M. Lyon, every Monday during the year, a statement giving the article, lot-number, cost and price sold for, of all his sales during the week. He is also to remit to M. Lyon, on each Monday, a check for the full amount of the week’s sales, less the expenses and his half of the profits.

“ The business is to be under the control of M. Lyon, and he is to be consulted in reference to advertising and all other matters connected with the business.

[196] “When the business is discontinued, the goods which are the property of M. Lyon are to be returned to him at Evansville.

If R. Ferriman adds any other goods on his own account to the stock, he is to pay part of the expenses in proportion to the amount sold. R. Ferriman is to keep the clothing and furnishing goods, all goods furnished by M. Lyon, insured in the name of M. Lyon, for the full value of the goods; and goods owned by R. Ferriman or others in same store house, to be insured separately.’

R. Ferriman.

“-M. Lyon.”

On the same paper as the foregoing agreement is the following :

“ Shawneetown, Illinois, July 9th, 1886.

We have carefully examined the contract between M. Lyon of Evansville, and R. Ferriman of Shawneetown, hereto attached, and give this my bond to guarantee to M. Lyon, that we will be responsible for the fulfilment of the aforesaid contract. In case R. Ferriman should fail to comply with this contract fully, we pledge ourselves to fulfil the contract in his stead. We guarantee to stand good to M. Lyon for any loss he may sustain in case R. Ferriman fails to comply with his contract.

“ Martha H. Ferriman.

“ Marshall M. Pool.

Jacob Bechtold.”

Appellee, furnished the goods under the contract to Ferri-man, and a store was opened by him at Shawneetown, and conducted under their said contract until about the 20th of April, 1887. By the direction of the appellee the business was then discontinued, and the goods returned to the appel-lee at Evansville. When received by the appellee, the goods were wet and damaged, and this action was brought against Ferriman and the appellant Bechtold on the written contracts above set out, to recover damages for injury to the [197] goods by reason of being wet and injured, and for other alleged breaches of his contract by Ferriman. The action was subsequently dismissed as to Ferriman, and was prosecuted as an action against the appellant, as guarantor, for breach of the contract by Ferriman.

Issue was joined and the case tried by the court, and special findings of facts were made and conclusions of law stated in favor of appellee.

The finding of fact which fixes the liability of the appellant for damages to the goods in returning them to the ap-pellee at Evansville is numbered eight, and is as follows:

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Bechtold v. Lyon, 29 N.E. 912, 130 Ind. 194, 1892 Ind. LEXIS 318 (Ind. 1892).

29 N.E. 912 (Bechtold v. Lyon) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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