Crown Carpet Mills, Inc. v. C. E. Goodroe Co.

132 S.E.2d 824, 108 Ga. App. 327, 1963 Ga. App. LEXIS 631
CourtCourt of Appeals of Georgia
DecidedSeptember 4, 1963
Docket40079
StatusPublished
Cited by11 cases

This text of 132 S.E.2d 824 (Crown Carpet Mills, Inc. v. C. E. Goodroe Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crown Carpet Mills, Inc. v. C. E. Goodroe Co., 132 S.E.2d 824, 108 Ga. App. 327, 1963 Ga. App. LEXIS 631 (Ga. Ct. App. 1963).

Opinion

Bell, Judge.

Defendant Crown Carpet Mills’ motion for a directed verdict, made at the conclusion of all of the evidence, was limited to the specific contention that Sobel had no authority as agent to contract to sell jute and “there is absolutely no proof here that there is any authority and this agreement not only says that but says that definitely he shall not have the authority.” The trial court denied this motion, and after a jury verdict for plaintiff, the defendant filed an amended motion for judgment notwithstanding the verdict which attempted to broaden the grounds beyond that relied upon in the motion for directed verdict.

It would be improper for this court to consider the possibility of error in the trial court’s overruling of the motion for judgment n.o.v. on any ground other than that urged in the motion for directed verdict. “In this state the sole purpose of a motion for judgment notwithstanding the verdict is to- permit the court to review and reconsider his ruling on the antecedent motion for a directed verdict.” Shetzen v. C. G. Aycock Realty Co., 93 Ga. App. 477, 479 (92 SE2d 114). For this reason we feel constrained to suggest that restraint be exercised by counsel when urging a motion for judgment n.o.v. so as to limit the argument to those grounds properly before the court for review. However, to avoid creation of another needless technicality in appellate procedure, we shall not refuse to consider the motion for judgment n.o.v. in its entirety, but we shall limit consideration to the ground which is the same as that urged on motion for directed verdict.

On motion for directed verdict and in its motion for judgment n.o.v., defendant alleges that there is no evidence that Sobel, general manager of Crown’s local plants, had the authority to sell a surplus of jute, one of the raw materials used by Crown in manufacturing carpet. Grown, however, introduced in *331 evidence the written employment agreement between Sobel and Crown which was in effect at the time of the transaction involved in this case. By the terms of this document it cannot be disputed that Sobel had authority to purchase jute as it expressly provides that “Sobel shall have the right to purchase materials needed for production.”

Included in Sobel’s general authority is that of supervising the production operations of the plant at Dalton, Ga., and to do so “in a careful and competent manner” to the end that they be performed “economically and efficiently.” It necessarily follows that it cannot be said as a matter of agency law that Sobel had no authority to sell surplus jute for the obvious reason that a situation might arise where the careful and competent performance of his duties might require him to sell a surplus which he may have purchased in order to accomplish his ultimate duty of securing economic and efficient production. A mere erroneous judgment in this area would not have the effect of occasioning a limitation on his authority. “The agent’s authority shall be construed to include all necessary and usual means for effectually executing it.” Code § 4-301. See Oconee County v. Rowland, 107 Ga. App. 108 (129 SE2d 373); and Restatement of Agency 2d, 26, § 35.

In interpreting this employment contract, we find no support for defendant’s contention that the written expression conferring authority denies Sobel the authority to contract to dispose of a surplus of raw material which he has the specific power to contract to purchase.

The trial court did not err in refusing to grant the defendant’s motion for judgment notwithstanding the verdict.

Apart from the question of the general manager’s authority to contract to sell jute, there is no evidence to support a jury finding that Sobel, as Crown’s general manager, attempted in any manner to obligate his company in this matter. Counsel for plaintiff contend that bilateral contracts were formed, as the letters which Goodroe signed were acceptances of Sobel’s offer to sell. Though Sobel may have dictated the terms of the letters by telephone to Griffin, the manufacturer’s sales agent, the letters were addressed to Sobel as an officer of Crown and con *332 stituted nothing more than a mere offer to Crown by Goodroe to purchase the jute on the terms specified in the letter. For this offer to have ripened into a contract, it is essential for it to have been accepted in some fashion.

As the Supreme Court held in Mallet & Nutt v. Watkins, 132 Ga. 700, 701 (64 SE 999, 131 ASR 226): “The written promise by Watkins to sell Mallet the cotton, standing alone, is an executory contract and without a consideration. The writing is not signed by Mallet. It shows no promise by Mallet to buy the cotton, or other consideration, to support the promise of Watkins to sell the cotton. Being an executory contract without a consideration, it is nudum pactum and without any binding-force. Civil Code, §§ 3656, 3637. In order to make an executory contract binding, there must be a consideration to support the same. Mutual promises constitute a good consideration for each other. Civil Code, § 3661. In the absence of any promise by Mallet to take and pay for the cotton, or other consideration to support the promise of Watkins to sell the cotton, or anything done by Mallet whereby he became bound to take and pay for the cotton, Watkins was not bound to sell the cotton, nor was Mallet bound to buy it. [Citing cases.] The fact that Mallet wrote the written promise signed by Watkins, wherein the name of Mallet appeared, and the fact that the writing, after being-signed by Watkins, was delivered to and accepted by Mallet would not bind Mallet to buy the cotton if tendered to him by Watkins.”

Sobel’s suggestion of terms was but a part of the process of negotiation and constituted no more than an invitation to submit an offer. Chunn v. Evans, 15 Ga. App. 57, 61 (82 SE 631). Griffin testified that when he delivered the letter to Sobel he “accepted the letter.” This testimony could mean nothing more than that Sobel accepted the delivery of the offer as embraced in the letter. There is no showing that the bid was subsequently accepted by Crown or on its behalf by Sobel either orally, in writing, by delivery of the goods, by acceptance of part payment for the goods, or by another method, nor did any conduct of Crown or of Sobel mislead Goodroe into the belief that his orders had been accepted, within the rule of Pitcher & Manda v. Lowe, 95 Ga. 423, 427 (22 SE 678).

*333 Counsel for plaintiff contend that Quitman, the president of Crown, admitted ratification' of Sobel’s actions because in his testimony he referred to one of the letters as an “agreement with Goodroe” and, in discussing jute shipments made by his company to Goodroe after the date of the first letter, he testified that he did not know “whether or not it was on this contract or a prior contract.” However, since the plaintiff did not show that Sobel even purported to accept Goodroe’s offers to purchase jute, there was no action, either authorized or unauthorized, for the president of Crown to ratify.

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Bluebook (online)
132 S.E.2d 824, 108 Ga. App. 327, 1963 Ga. App. LEXIS 631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crown-carpet-mills-inc-v-c-e-goodroe-co-gactapp-1963.