Dowagiac Manufacturing Co. v. Thurston

56 N.E. 684, 24 Ind. App. 264, 1900 Ind. App. LEXIS 192
CourtIndiana Court of Appeals
DecidedMarch 7, 1900
DocketNo. 3,048
StatusPublished
Cited by1 cases

This text of 56 N.E. 684 (Dowagiac Manufacturing Co. v. Thurston) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dowagiac Manufacturing Co. v. Thurston, 56 N.E. 684, 24 Ind. App. 264, 1900 Ind. App. LEXIS 192 (Ind. Ct. App. 1900).

Opinion

Black, J.

The court below sustained a demurrer for want of sufficient facts to the complaint of the appellant against the appellee, based upon a written contract exhibited, by the terms of which it was agreed between the parties that the appellee was thereby authorized to sell the grain-seeding machinery manufactured by the appellant in certain territory, namely, Shelby county, Indiana; and, in consideration of this authorization, the appellee agreed to purchase of the appellant all grain drills and seeders of appellant’s manufacture to supply his trade in that territory, at prices shown by printed list on the reverse side of the contract, and to settle for the same October 1st following the date of invoice, in good farmers’ notes given for the same, with a discount of twenty-five and ten per cent., or in cash, with a discount of twenty-five and ten and ten per cent.; said notes to be drawn on blanks furnished by the appellant, due on or before October 1st of the following year, bearing interest from date of sale, seven per cent., and indorsed by the appellee; and unless shown good by “common authority”, and in all cases of doubt as to the responsibility of the maker, to be secured by a mortgage on property real or personal amply sufficient to cover payment of the note in full. The appellant, on its part, agreed to deliver said goods to the appellee f. o. b. cars at Dowagiac, in carload lots, and at transfer point in less than carload lots, with advance transfer charge of $1 for each drill, and twenty-five cents per set for press wheels, also freight to transfer point, and to fill further orders promptly so long as appellant had such machines on hand and transportation could be procured, “and to appoint no other agent for said territory”, provided the appellee fully performed the foregoing stipulations and agreements. The appellee agreed to look to carriers for loss or damages to goods shipped and receipted for in good order, and that shortages, errors, or other claims should be reported within ten days from receipt of goods. It Avas further proAdded that it was understood the goods [266]*266were warranted only against breakage caused by manifest defect in material, for the year in which they were sold, and no goods returned to the appellee under warranty to be credited to account, but to be made good or replaced by new goods, as appellant might elect; that “in all cases the title and ownership of goods covered by this contract shall remain and be vested in” the appellant “until sold by” the appellee “in the regular course of business, or settled for as above; and all receipts arising from the sale of these goods shall belong exclusively and absolutely to the” appellant “until settlement is completed according to the terms of this contract.” Repairs for drills made since 1890 “to be commissioned and remain the property of the” appellant “until sold by the” appellee “in the regular course of business, for cash only, at printed list prices,” the appellee to pay freight, express, and insurance on repairs received, and keep them in good condition, subject to order of the appellant, without charges whatsoever; cash received for sale of repairs to be subject to demand of the appellant; the appellee to receive as commission 25 per cent, of list price, payable at settlement of repair account; all repairs on hand for drills made prior to 1891 to be paid for in cash at settlement time at 25 per cent, off from list. It was provided that the terms of this contract should apply to all goods purchased of the appellant during the continuance of the contract, and that the appellant had the right to cancel the contract at any time when it should become dissatisfied with the appellee. The contract was made on the 21st of January, 1897.

It was alleged in the complaint that, under and in pursuance of this contract, the appellee purchased of the appellant certain drills and grass boxes described, at prices specified, amounting to designated sums, and also, one “steel age on hands” for a stated price, — “said articles, with the price thereof, being stipulated and indorsed on the reverse side of said contract”; that in pursuance of said agreement the ap[267]*267pellant shipped said grain-seeding machines to the appellee in August, 1897, and the invoice thereof, dated August 1, 1897, and they were received and accepted by the appellee under said contract, and not otherwise; that by the terms of the contract appellee was to settle for said grain-seeding machines on the 1st of October next following the date of the invoice, in farmers’ notes, with discount therein set out, or in cash, with discount therein mentioned, except the last mentioned item, which was to be settled for in cash October 1, 1897; that the appellee refused on the 1st of October, 1897, to settle with the appellant by delivering to it the farmers’ notes as so stipulated, and by the terms of the agreement the appellee became liable to the appellant for the amount thereof in cash, less the discount as set out in the agreement, which amounted to $120, and that on the 1st of October, 1897, there was due the appellant under said contract the sum of $269.75, which was still due and wholly unpaid; wherefore, etc. The complaint was filed on the 30th of December, 1897.

It is not shown by the complaint whether the goods, for the price of which the action was brought, had been sold by the appellee, or were still in his possession, nor is anything said about the location, possession, or condition of any of the goods at the commencement of the action, or on the 1st of October, 1897. It is claimed, on the one hand, that the complaint shows a sale and delivery of the goods to the appellee, and, on the other hand, that under the contract the appellee was merely an agent. The complaint alleges the purchase of the goods by the appellee, but it avers that the appellee purchased them of the appellant under and in pursuance of the contract, and that the appellant shipped the grain-seeding machines to the appellee in pursuance of the agreement, and that they were received and accepted by the appellee under the contract, and not otherwise.

In the contract the appellee was authorized to sell the machinery manufactured by the appellant within a desig[268]*268nated territory, and he was referred to as an agent in the provision that the appellant would appoint no other agent in that territory if the appellee should fully perform the agreement. He agreed to purchase of the appellant all drills and seeders to supply his trade in that territory, and it was provided that the terms of the contract should apply to all goods purchased of the appellant during the continuance of the contract. The real character of the contract is to he determined by ascertaining the actual rights and obligations of the parties, rather than from appellations or nominal designations of the parties or their acts.

By the terms of the contract the appellee was to look to carriers for loss or damages in transportation, and was to settle for the drills and seeders on the 1st of October following the date of the invoice thereof, in good farmers’ notes given for them (which supposes the sale of the goods by the appellee), with a specified discount, or in cash, with a specified discount, which does not necessarily imply a sale of the goods by the appellee. To settle in cash involves payment in money, and settlement was to be made on the 1st of October after the date of the invoice, either in notes given for sold machines or in cash.

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Cite This Page — Counsel Stack

Bluebook (online)
56 N.E. 684, 24 Ind. App. 264, 1900 Ind. App. LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dowagiac-manufacturing-co-v-thurston-indctapp-1900.