Bonner & Marshall Co. v. Hansell

189 Ill. App. 474, 1914 Ill. App. LEXIS 386
CourtAppellate Court of Illinois
DecidedNovember 19, 1914
DocketGen. No. 19,945
StatusPublished
Cited by8 cases

This text of 189 Ill. App. 474 (Bonner & Marshall Co. v. Hansell) 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
Bonner & Marshall Co. v. Hansell, 189 Ill. App. 474, 1914 Ill. App. LEXIS 386 (Ill. Ct. App. 1914).

Opinion

Mr. Presiding Justice Fitch

delivered the opinion of the court.

The main contentions of appellant upon this appeal may be stated as follows: Appellee’s statement of claim sets up an original undertaking, while the evidence shows only a collateral promise on the part of appellant, through his agent Pray, to answer for the debt of Cox Brothers; that appellant is not liable in this action upon the promise of Pray, first, because there is a variance between the allegations and the proofs; second, because Pray had no authority to make such a promise on behalf of appellant; and third, because the promise of Pray, even if made by him and authorized by appellant, was but an oral promise to answer for the debt of Cox Brothers, and therefore void, under the statute of frauds.

It is well settled that the portion of the statute of frauds which is relied on by appellant has reference only to collateral undertakings to answer for the debt or default of another. “Where the agreement is original and independent, it is not within the statute; if collateral, it is.” Resseter v. Waterman, 151 Ill. 169; Lusk v. Throop, 189 Ill. 127. The terms “original promise” and “collateral promise” are not used in the statute, but have been adopted by the courts as a convenient method of expressing the distinction between cases in which the direct and leading object of the promise is to promote some interest or purpose of the promisor, and cases in which the main purpose of the promise is to assume or guaranty the debt of another. Smith on the Law of Fraud, sec. 317. In any case within the former class, the promise is original and is good whether oral or in writing, even though the effect may be to. release or suspend the debt of another. In any case within the latter class, the promise is collateral to the obligation of another, and is void by the terms of the statute unless it, or some note or memorandum of it, is in writing and signed by the party to be charged therewith. In Stone v. Walker, 79 Mass. 613, Mr. Chief Justice Shaw illustrates this distinction as follows: “If the promise is made by one in his own name to pay for goods or money delivered to, or services done for another, that is original; it is his own contract on good consideration, and is called original, and is binding on him without writing. But if the language is ‘Let him have money or goods, or do service for him, and I will see you paid,’ or ‘I promise you that he will pay,’ or ‘If he do not pay, I will,’ this is collateral, and, though made on good consideration, it is void by the statute of frauds.” This statement of general principles is subject, however, to the qualification that the use of any particular set of words is not, of itself, necessarily controlling. “Whether an undertaking is original or collateral merely, is to be determined, not from the particular words used, but from all the circumstances attending the transaction.” Blank v. Dreher, 25 Ill. 331. In determining this question, one of the recognized tests is whether the credit is given to the person sought to be charged, or to someone else. Geary v. O’Neil, 73 Ill. 593; Schoenfeld v. Brown, 78 Ill. 487. Where the price of goods sold and delivered is charged upon the seller’s books to the person to whom they are delivered, that fact, if unexplained by other circumstances, is generally considered as strong evidence going to show that credit was given to such person; Lusk v. Throop, supra. “If one has a claim against another, and keeps books, it will so appear on the .books, and it will require very strong evidence to show the entry was made by mistake.” Hardman v. Bradley, 85 Ill. 162. Such evidence is not conclusive, however. It may be rebutted or explained, and therefore the whole question becomes a question of fact to be determined by the jury from all the circumstances, under proper instructions. Lusk v. Throop, supra; Ruggles v. Gatton, 50 Ill. 412.

In this case, it was admitted that appellee did not enter upon its books of account any charge against appellant for the price of the brick that were delivered. It charged the price of the brick directly to Cox Brothers. A copy of appellee’s ledger account was offered in evidence and shows that the items charged for brick furnished to appellant were charged to the account of Cox Brothers in precisely the same manner as other sales, previously made by appellee to Cox Brothers, were charged. • No attempt was made to rebut the inference naturally arising from this .fact, ' and this evidence, unexplained, tends strongly to prove that at the time of the delivery of the brick, appellee did not consider appellant as primarily its debtor, but intended to collect its claim from Cox Brothers if it could, and regarded the promise of Pray as a guaranty only. The special findings of the jury show that the jury took this view of the matter, and in our opinion, this is the only- reasonable conclusion from all the facts and circumstances in evidence. This being so, it must be held that the promise of Pray, on behalf of appellant, “to see that the account was paid,” or “to guarantee the account,” was a collateral undertaking to answer for the debt or default of Cox Brothers. It was not essential, however, to the validity of this promise, that the promise itself should be in writing. It was sufficient, under the statute, that the promise be evidenced by “some note or memorandum thereof” in writing, signed by appellant. We think that appellant’s letter of November 13, 1911, was a sufficient “note or memorandum” in writing to meet this requirement of the statute. We are also of the opinion that the same letter, when read in connection with the letter of November 11, 1911, clearly shows that Pray had full authority to make the promise in question for and on behalf of appellant. Appellant’s letter of November 13, 1911, refers specifically to appellee’s claim “against Cox Brothers for material delivered to them for my building.” It is addressed to appellee and states that, “your claim will be fully protected,” that Pray “has full charge and is paying out all the bills,” and that “he will take care of and protect you.” Bearing in mind that this letter was written in reply to a letter from appellee in which, notwithstanding the promise of Pray, which is mentioned in the letter, appellee insists upon some assurance from appellant himself regarding the matter, and asks for his personal guaranty, there does not seem to be any reasonable doubt that appellant, with full knowledge of all the facts, intended by his letter to ratify, approve and confirm all that Pray had done and promised to do on his behalf.

These conclusions bring us naturally to the only part of appellant’s contention that, in our judgment, presents any serious difficulty, viz.: Is there a variance between the plaintiff’s statement of claim and the proofs, and is appellant in a position to urge that objection? It will be noticed that the statement of claim says, in effect, that when Cox Brothers first ordered appellee to deliver the brick in question to appellant (which was “on or about August 1, 1911”) appellee “then and there refused to deliver the said brick on the credit of said Cox Brothers.” The statement of claim does not, however, allege that appellee persisted in its refusal after the promise of Pray was made. On the contrary, the next averment of the statement of claim is that “on or about August 7, 1911” (seven days later), Frank M.

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Bluebook (online)
189 Ill. App. 474, 1914 Ill. App. LEXIS 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bonner-marshall-co-v-hansell-illappct-1914.