Birum-Olson Co. v. Johnson

239 N.W. 123, 213 Iowa 439
CourtSupreme Court of Iowa
DecidedNovember 24, 1931
DocketNo. 41076.
StatusPublished

This text of 239 N.W. 123 (Birum-Olson Co. v. Johnson) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Birum-Olson Co. v. Johnson, 239 N.W. 123, 213 Iowa 439 (iowa 1931).

Opinion

Kindig, J.

The plaintiff-appellant, the Birum-Olson Company, is a corporation with a branch office at Mason City. F. J. Olson is the corporation’s vice-president and general manager.

This corporation is engaged in selling Buick automobiles in Cerro Gordo, Franklin, and Worth counties. Dr. H. F. Johnson, the defendant-appellee, is a practicing physician at Northwood. On August 8, 1930, the appellee after negotiations with appellant’s agents, signed a written order for a Buick automobile. According to the written order, the purchase price was $1175.00. As part of that consideration, the appellant agreed to accept from the appellee a second hand Pontiac car valued at $640.00. Appellee assigned to appellant a transfer certificate ón the Pontiac ear.

It seems that appellee desired a blue colored Buick, but appellant had on hand only a tan colored car. So, it is claimed that the appellee authorized the appellant to wire Chicago, Illinois, for a blue car. If one could be obtained within a reasonable time, the appellee would wait, otherwise he would accept the tan colored automobile.

Early on the morning of August 9, after the order was placed, the appellee called the appellant’s place of business and notified them of his intention to cancel the order, and refused to taire the Buick automobile. Soon thereafter appellant sent a "representative to the court house at Northwood for the purpose of completing the transfer of the Pontiac car. When such representative arrived at the treasurer’s office in the court house, however, the county treasurer refused to make the transfer because of previous notification from the appellee not to do so. Hence, because the appellee refused to accept the Buick car, the appellant commenced this action to recover damages in the amount of $255.

After the appellant’s evidence- was introduced, the appellee made a motion for a directed verdict in his favor. That motion contained several grounds, one of which is that there was no binding contract wherein the appellee agreed to buy the automobile. This motion was sustained by the district court. *441 Complaint of the court’s action in so doing is made on this appeal. Generally speaking, appellant’s argument is: First, that the evidence presented was sufficient to take the case to the jury; and, second, that assuming it is not, certain rejected evidence added to the present record would have been enough to make a jury question.

I. "Was the evidence submitted sufficient to present a jury question? After carefully considering that record, it is apparent that the district court properly directed a verdict in appellee’s favor. Underlying the record is the weakness that the appellant failed to prove a contract whereby appellee agreed to buy the automobile.

In order to more clearly understand the situation, it is necessary to know appellant’s theory of the case. The alleged contract sued upon, it is claimed, consists of appellee’s written order aforesaid addressed to the appellant as a corporation, but with written acceptance thereon signed only by said F. J. Olson, individually, instead of the corporation itself. Manifestly the contract’ upon its face does not purport to be that of the corporation because not signed by it. Neither does that alleged agreement seem to be that of the purported agent, because while signed by him it is addressed to the corporation. Evidence appears, appellant contends, to reconcile this apparent inconsistency.

Reference is made by appellant to the appellee’s answer wherein it is said that the aforesaid order for the car was procured by the said F. J. Olson for the corporation. While it is true that appellee did so plead, yet there is no concession in the answer that a contract arose. Throughout the trial, appellee conceded that the aforesaid Olson procured the order for the Buick automobile; but continually the appellee asserted that a contract between him and the appellant did not arise therefrom. According to the written order, it was necessary that the same be accepted by the appellant corporation before a contract arose. Nowhere in the instrument does it expressly appear that the appellant corporation did accept the order. F. J. Olson personally, rather than the corporation, signed the contract at the place where the written acceptance was to have been made. There is nothing in the record to show that the personal signature of F. J. Olson constitutes the signature of the corporation. Olson in *442 signing his name did not indicate that he thereby signed for and on behalf of the corporation. Nor is there anything in the body of the instrument itself suggesting that Olson should sign as an agent or that his signature would constitute that of the corporation. When speaking upon the general subject, this court said in Consumers Twine & Machinery Co. v. Mount Pleasant Thermo Tank Co., 196 Iowa 64, reading on page 70:

“Although variously stated by the court, it has always been the law of this state that, if the name of the principal and the relation of agency or other representative capacity be stated or indicated in a writing executed by an agent or other person in a representative capacity by and with the authority of the principal, the obligation is that of the principal, which alone is bound thereby.”

If, on the other hand, the signature does not indicate the agency and there is nothing in the body of the instrument to show the representative capacity, then the person signing the instrument and not the alleged principal is bound. See the case above cited, and the cases therein set forth. No agency appears in the case at bar, either in the alleged order or the purported acceptance thereof. Neither is it indicated in the instrument anywhere that the individual signature of the said Olson constitutes that of the corporation. Without extraneous evidence, then, showing that the individual signature of Olson was that of the corporation, it cannot be said that a contract arose out of the transaction. By thus referring to extraneous evidence, we do not decide or even hint that such evidence would be admissible for the purpose suggested. Mention, however, has been made of extraneous evidence to indicate that the use thereof'is the only possible method by which appellant could show the instrument in question to be a contract of the corporation, without reformation, when now it appears to be that of Olson only.

II. Oral testimony, according to the record, was offered by appellant, to supply the extraneous evidence. Therefore, appellant declares that a jury question would have been presented had it not been for the district court’s error in excluding the testimony thus offered.

Two theories are advanced by appellant for the admission of this oral evidence. One is that it tended to show the said *443 F. J. Olson to be an undisclosed agent for appellant, the undisclosed principal. The other argument for the evidence is that it tended to prove the signature of Olson placed upon the order, in the manner and way aforesaid, in fact constituted that of the corporation.

Consideration will first be given to the appellant’s proposition that the evidence should have been admitted to show the relationship of undisclosed principal and undisclosed agent. Appellant maintains that had the evidence been admitted such relationship would have appeared.

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239 N.W. 123, 213 Iowa 439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/birum-olson-co-v-johnson-iowa-1931.