Canton Cotton Mills v. Southwest Overall Co.

8 F.2d 807, 1925 U.S. App. LEXIS 3371
Court of Appeals for the Eighth Circuit·Decided October 7, 1925·No. No. 6864·Published·Cited by 8 cases

Opinion

SANBORN, Circuit Judge.

This is an action of the Canton Cotton Mills, a corporation, against the Southwest Overall Company, a corporation, for damages for the breach by the latter oE its alleged contract to purchase “50 bales 2.20 Canton denims, equal weekly deliveries March, April, May, June,” 1919, at 35 cents a yard, and the error in the trial assigned is that the court below, at the close of the evidence for the plaintiff, sustained a demurrer thereto and directed a judgment for the defendant, [808] 'because in its opinion the evidence failed to prove tbe meeting of tbe minds of tbe parties, indispensable to a valid contract, upon (1) the times of delivery of the goods and (2) the times and terms of the payment therefor.

The Mills was a manufacturer of cotton denims at Canton, Ga. The Farish Company was a corporation, a broker, whose principal place of business was in New York City. It was in 1918 the exclusive agent of the Mills for the sale on commission of its entire production. It submitted the orders it obtained from prospective purchasers to the Mills and the latter accepted or declined them. The Overall Company was a wholesale merchant doing business in Kansas' City, Mo. The evidence pertinent to ' the issue, contract or no contract, was in writing and consisted of letters and tele* grams, the relevant parts of which are these:

On December 19, 1918, the Farish Company telegraphed the Overall Company: “We offer subject mills acceptance Canton denims equal weekly deliveries March April May June two twenty thirty-five cents. * * *«

The Overall Company answered on December 20, 1918: “Book us fifty bales two twenty Canton as per your telegram nineteenth delayed.”

On December 21, 1918, the Farish Company replied, “We confirm fifty bales Canton two twenty per your wire,” and on December 23, 1918, wrote, “In accordance with your telegram, we are entering your order for 50 hales Canton 2.20 denims, as per duplicate herewith inclosed. * * * ”

The duplicate inclosed contained the terms which raise the first question in this case, the question whether or not there ever was the essential meeting of the minds of the parties upon the times of the delivery of the goods. It was dated December 23, 1918, entitled “Order for Southwest Overall Company,” and- contained these -terms: “When ship equal weekly dely March to June; inclusive. Terms 2% — 70-day acceptance at mill door with freight allee. to at mill.”

Then followed the description of the goods, the price and other matter not pertinent here and these words and figures: “16 hales April, 17 bales May, 17 bales June (as per Mills’ letter 12r-23-18) (subject to Mills’ acceptance).”

On January 6, 1919, the Farish Company wrote the Overall Company: “We are pleased to inform you of the acceptance by Canton Cotton Mills of your valued order of 23rd ultimo for the following: 50 bales Canton 2.20, W. B. indigo denim @ .35. * * * Shipments 16 bales April — 17 bales May — 17 bales June — equal weekly delivery March to June, inclusive.”

On tbe same day the Farish Company wrote another letter to the defendant, which raised the second question, whether or not the minds of the parties ever met upon the times or terms of payment. That letter was dated January 6,1919, was addressed to the Overall Company and contained these words:

“Gentlemen: Your order of the 23d ult. for 50 bales Canton denims, approximate value $19,000, has come to the writer for his attention. We are accepting this order with the understanding that it will be subject to a line of credit which will be hereafter assigned to your firm.' This line of credit, of course, will be determined largely by tbe showing made in your latest financial statement, which we presume will be as of the 1st inst., and, this being the case, we are writing to request that you favor us with a copy of this financial statement as soon as it is ready.”

There was no farther correspondence between tbe Farish Company or the Mills and the Overall Company until January 28, 1919, when the latter wrote the former as follows:

“We are in receipt of your letter of recent date, in which you accept onr order for 50 bales Canton denim conditionally. We also notice that, instead of commencing shipments in March as per your offer, you are now offering shipments commencing April 1st, extending to July 1st. This is not satisfactory to us, and since you have seen fit to accept the order conditionally and on different terms of delivery from yoiir offer, we will cancel the same, and trust to good fortune in being able to buy as we need the denims.”

There was other evidence in the ease, but none competent substantially to affect the conclusion that must be deduced from' that which has now been recited. For example, there was evidence that on December 27, 1918, the Mills wrote the Farish Company, its agent, that some of its orders seemed to he mixed up as to dates of shipments and specified: “Order 5736, Southwest Overall Company, fifty bales of 2.20; you wired this in, April, May, and June. Your former order calls for equal weekly delivery, March to June, inclusive.”

And the Farish Company, on December [809]*80931, 1918, wrote the Mills: “We have to advise that you will kindly disregard the telegraphic instructions and enter these orders for shipment as per notations appearing on the contract.”

There was also evidence to the effect that Miss Emerson, a clerk in the office of the Earish Company, wrote the words and figures “16 hales April, 17 bales May, 17 bales June, as per Mills letter 12-23-18,” on the order of December 23, 1918. All this evidence, however, was irrelevant and immaterial, because neither it nor the facts other than those disclosed without it were communicated or known to tho Overall Company before it declined to make and to perform the proposed contract.

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

Canton Cotton Mills v. Southwest Overall Co., 8 F.2d 807, 1925 U.S. App. LEXIS 3371 (8th Cir. 1925).

8 F.2d 807 (Canton Cotton Mills v. Southwest Overall Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Neff v. World Publishing Co.
349 F.2d 235 (Eighth Circuit, 1965)
Neff v. World Publishing Company
349 F.2d 235 (Eighth Circuit, 1965)
In re Marcalus Mfg. Co.
120 F. Supp. 784 (D. New Jersey, 1954)
F.A.R. Liquidating Corp. v. Brownell, Atty. Gen
209 F.2d 375 (Third Circuit, 1954)
A. E. Staley Mfg. Co. v. Northern Cooperatives, Inc.
168 F.2d 892 (Eighth Circuit, 1948)
Polhamus v. Roberts
175 P.2d 196 (New Mexico Supreme Court, 1946)