Darling & Co. v. Frank Carter Co.

242 N.W. 519, 208 Wis. 222, 1932 Wisc. LEXIS 342
CourtWisconsin Supreme Court
DecidedMay 10, 1932
StatusPublished
Cited by5 cases

This text of 242 N.W. 519 (Darling & Co. v. Frank Carter Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Darling & Co. v. Frank Carter Co., 242 N.W. 519, 208 Wis. 222, 1932 Wisc. LEXIS 342 (Wis. 1932).

Opinion

Nelson, J.

From the decision of the trial court on the motions after verdict, it appears that the court concluded that there was nothing in the original writing which obligated the defendant to indorse farmers’ notes; that the written contract was not ambiguous in that respect; that, because the contract provided that “verbal promises or agreements of any kind are unauthorized and will not be recognized by Darling & Company,” it must be conclusively presumed to contain the entire agreement between the parties; that parol evidence was improperly admitted to contradict the terms of the written contract, and finally that the oral agreement to indorse farmers’ notes was in effect an agreement to answer for the debt and default of another and therefore void under the statute of frauds. Sec. 241.02 (2), [228]*228Stats. Throughout the trial the court was evidently of the opinion that the contract was ambiguous and subject to explanation by parol evidence, and permitted both parties to introduce such evidence not only as to the surrounding circumstances but also as to conversations had contemporaneously with the making of the contract, for the purpose of explaining the intended meaning of its ambiguous provisions.

The original contract entered into on the 16th day of January, 1928, and approved by the plaintiff on the 19th day of January, was obviously an incomplete contract, in that it did not contain the entire agreement between the parties but specifically provided that the prices, terms, and discounts “shall be as per list furnished by Darling & Company each season; subject to change upon written notice.” The list was therefore, by specific reference, made a part of the contract. That this is true cannot be doubted. That writings may be made a part of a contract by reference is unquestioned. 13 Corp. Jur. p. 530, § 488. See, also, Seitz v. Zukowski, 194 Wis. 78, 215 N. W. 939. Clearly parol evidence was admissible to identify the “list referred to,” and, when identified, the list became a part of the contract to all intents and purposes as though originally and specifically recited therein. All of its provisions relating to prices, terms, discounts, payment of freight, and settlement by farmers’ notes became a part of the contract.

The language “if settlement by farmer note is desired, write for ‘Special Note Agreement,’ ” is unquestionably ambiguous, in that the provisions of the Special Note Agreement were not disclosed, and was subject to explanation or identification by parol evidence, not for the purpose of varying or contradicting the contract but for the purpose of explaining the sense in which its language was used. The court permitted both parties to introduce testimony tending fully to explain the meaning of such language. In so doing we think that the court did not violate the parol-evidence rule or commit error. While parol evidence will not be admitted [229]*229to contradict or vary the terms of a written instrument, it is always admissible in case of ambiguity for the purpose of ascertaining the sense in which the parties intended to use the ambiguous term or terms, and the rule is sufficiently broad to permit the introduction of evidence of antecedent ■ or contemporaneous oral agreements or conversations for purposes of interpretation. Firestone Tire & Rubber Co. v. Werner, 204 Wis. 306, 236 N. W. 118. The following additional authorities show how firmly such rule is established by the decisions of this court: Burton v. Douglass, 141 Wis. 110, 123 N. W. 631; Klueter v. Joseph Schlitz B. Co. 143 Wis. 347, 128 N. W. 43; Hammond v. Capital City Mut. Fire Ins. Co. 151 Wis. 62, 138 N. W. 92; Jones v. Holland Furnace Co. 188 Wis. 394, 206 N. W. 57; and Seitz v. Zukowski, supra, all of which follow the rule enunciated in Ganson v. Madigan, 15 Wis. *144.

As pointed out in Boden v. Maher, 105 Wis. 539, 81 N. W. 661, failure to keep in mind the wide distinction between varying a contract by parol evidence and resorting to such evidence in aid of its construction often leads to error. Parol testimony, including conversations between the parties to a contract, is admitted for the purpose of making certain that which, without it, would be uncertain. “Such conversations or negotiations, therefore, become in a sense characterizing circumstances surrounding the execution of the writing.” Hammond v. Capital City Mut. Fire Ins. Co., supra.

We think that the trial court failed to give proper consideration to the rather broad and well established exceptions to the parol-evidence rule and that under all the circumstances it was not justified in, deducting from plaintiff’s claim the amount of the two unindorsed notes.

Giving consideration to the plaintiff’s parol evidence the verdict of the jury is well supported. It appears from plaintiff’s evidence that, at the time its agent procured the signature of the defendant to the contract, a prior list in all [230]*230respects similar to the one mailed to the defendant was exhibited; that the “settlement by farmer note” provision was discussed and the conditions of such settlement explained. It further appears that, although the provision relating to “settlement by farmer note” was ribt contained in the writing of January 28th, it was contained in the list thereafter submitted and that it was duly considered by defendant’s manager at Campia, as revealed by his letter of March 5th, in which he wrote:

“I noticed, in looking over some of your literature, about ‘Special Note Agreement’ when fertilizer is to be settled for by farmer’s personal note. Kindly send me some of these ‘Special Note Agreements.’ ”

Although the defendant claims not to have received plaintiff’s reply thereto, in which it was stated: “We do not have any of the Special Note Agreements made up, but if you have to settle for some of the fertilizer this way, you should take notes from your customers dated June 1, 1928, and due on or before December 1, 1928. These notes bear interest at the rate of six per cent, per annum. After taking, the notes, you indorse them and send them in to us and we credit your account,” the jury, under all of the circumstances, might justly have inferred that that letter was received by the defendant at Campia.

It appears that, during the absence of the manager from Campia for about a month, fertilizer of the value of $587 was delivered to Harry Weddes without his paying therefor. When the manager returned and checked up on sales made during his absence he lost little time in obtaining a note from Weddes. It appeared upon the trial that the farm occupied by Weddes was in his wife’s name and that he was financially irresponsible. The jury may well have concluded that the claimed right of the defendant to turn over unindorsed farmer notes in settlement of its fertilizer account was an afterthought occasioned by its desire to be relieved from the [231]*231predicament in which it found itself due to its having permitted Weddes to obtain fertilizer worth $587 when he was not entitled to credit.

But one other contention requires consideration.

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Cite This Page — Counsel Stack

Bluebook (online)
242 N.W. 519, 208 Wis. 222, 1932 Wisc. LEXIS 342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darling-co-v-frank-carter-co-wis-1932.