Computer Network, Ltd. v. Purcell Tire & Rubber Co.

747 S.W.2d 669, 6 U.C.C. Rep. Serv. 2d (West) 642, 1988 Mo. App. LEXIS 356, 1988 WL 16165
CourtMissouri Court of Appeals
DecidedMarch 1, 1988
Docket53152
StatusPublished
Cited by45 cases

This text of 747 S.W.2d 669 (Computer Network, Ltd. v. Purcell Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Computer Network, Ltd. v. Purcell Tire & Rubber Co., 747 S.W.2d 669, 6 U.C.C. Rep. Serv. 2d (West) 642, 1988 Mo. App. LEXIS 356, 1988 WL 16165 (Mo. Ct. App. 1988).

Opinion

*671 SIMEONE, Senior Judge.

I.

This is an appeal by defendant-appellant, Purcell Tire & Rubber Company from a judgment entered by the circuit court of St. Francois County which awarded damages to plaintiff-respondent, Computer Network, Ltd., for breach of contract involving the sale of personal computers by Computer Network to defendant, Purcell. Purcell denies that a “contract” was ever intended or entered into by the parties for a definite, certain number of computers, contrary to the findings and judgment of the trial court.

The sole issues on this appeal are whether there was a contract for the sale to Purcell of twenty-one IBM personal computers and whether the contract was sufficiently definite so as to be legally enforceable so as to afford a reasonably certain basis for awarding damages. We hold, as did the trial court, that there was a definite contract entered into by the parties and affirm.

II.

Appellant, Purcell Tire & Rubber Company is engaged in the business of the sale and distribution of motor vehicle tires. In early 1984, it had 14 or 15 stores located in Missouri and several other states. There were four located in Missouri. Robert G. Purcell is the president and chief executive officer of the company. Harry F. Chapman is its comptroller.

In 1983 and 1984, Computer Network, Ltd. engaged in the general business of selling and developing computer hardware and software. It obtained hardware from “several sources,” including IBM. In this regard, Computer acted as a broker in purchasing from IBM and other companies. Curtis Lloyd Brown was the president of Computer Network. In the fall of 1983 and early 1984, Brown and certain personnel of Purcell, including Chapman, entered into discussions concerning the possibility of selling and purchasing personal computers. In December, 1983, Brown entered into discussions with the data processing manager for Purcell and “helped them develop a configuration of IBM Personal Computers to go to their retail stores.” Thereafter Brown “entered into discussions with Harry Chapman to arrive at the exact price and number of computers to be sold to them.”

After these discussions were held and on February 23, 1984, Brown prepared a letter, took it to Chapman at Purcell and Chapman signed it. Brown gave him a copy. The letter read as follows:

February 23, 1984
Mr. Harry Chapman
Purcell Tire Company
P.O. Box 100
Potosi, Missouri 63664
Dear Harry,
Please let this letter serve as written confirmation of our previous conversations regarding the purchase by Purcell Tire of twenty-one (21) IBM PC’s over the next twelve (12) months.
The configuration of the systems you are to purchase are as follows:
[[Image here]]
Monochrome Display & 335.00 Printer Adapter
Monochrome Display 345.00 10 MG Disk Drive 1,450.00
Hayes Smart Modem 599.00 1200B w/SmartCom II
Okidata Printer 92P w/Ca- 649.00 ble
IBM D.O.S. 2.1 65.00
$5,897.00 Less 10% Discount (589.70)
$5,307.30
As per our understanding, we have placed two machines on order for immediate delivery.
If this is in accordance with your understanding, please sign the enclosed copy of this letter and return. If this is not in accordance with your understanding, please let me know as soon as possible. Sincerely,
/s/ Curtis L. Brown
Curtis L. Brown, Signature /s/ Harry Chapman President Date 2/24/84
*672 CLB:skj

In March, 1984, two units were delivered to Purcell and paid for promptly. Over the next few months, seven other units were delivered and paid for. The prices of these seven differed from the price in the letter and did not conform exactly to the price stated in the letter for each unit. The prices ranged from $4,705.20 to $5,667.30. The differences, as explained by Brown, were that prices of printers differed, and the prices “dropped” so Computer decreased the price so as to maintain approximately a $2,000 profit. The last of the nine units was delivered and paid for in December, 1984. No further deliveries were made and no further units were paid for.

Sometime after February, 1985, after the expiration of the “agreement,” Brown telephoned Chapman concerning the delivery of the remaining twelve computers and “he said that we had no such agreement, so we sent him a copy of the agreement [letter], showing him.”

On September 27, 1985, Computer Network filed its petition for damages for breach of contract. It alleged that the parties “entered into a written contract regarding the sale of twenty-one (21) IBM Personal Computers” and that Purcell “breached the Agreement by not purchasing the additional twelve (12) units.” Computer prayed for $25,515.60 in damages.

Purcell answered denying that it had entered into a contract to purchase the twenty-one computers, and asserted that “there never was a contract, as indicated by the letter,” but “there had only been conversations regarding the possible transaction.”

On January 30, 1987, the cause was heard by the trial court on a change of venue. At the hearing, Brown testified as to the facts stated above and testified that the letter was the “final and complete expression of [the] agreement.” He testified that Purcell did not request the additional twelve units, that Computer Network was making a profit of $2,008.30 per unit and that it lost profits of $24,099.60.

On cross-examination, Brown was asked whether he had indicated to Chapman that “you [Brown] needed some sort of indication from him [Chapman] on how many they [Purcell] might consider purchasing.” Objection was made by Computer's counsel on the ground of the parol evidence rule, but the court overruled the objection and permitted Brown to testify as to previous conversations that he did not indicate to Chapman that he needed such an indication to assist Computer in “getting” a “relationship with IBM.” When questioned as to whether he knew how many stores Purcell had, Brown answered “I assumed they had 20, but I’m not truly aware of that.” Brown clearly remembered a conversation with Chapman that the purchase of the computers would be based on “one at the home office and one for stores that they had at that time” and that the purchase was “directly related to the number of stores they had.” As to the time of delivery, Brown testified that it was “our” understanding that Purcell “would let us know when they wanted the machines.”

Mr. Chapman testified that he had had conversations with Brown about the “need for some personal computers,” that Purcell had 14 or 15 stores and he admitted that he signed the February 23 letter.

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747 S.W.2d 669, 6 U.C.C. Rep. Serv. 2d (West) 642, 1988 Mo. App. LEXIS 356, 1988 WL 16165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/computer-network-ltd-v-purcell-tire-rubber-co-moctapp-1988.