Eastern Paper & Box Co. v. Herz Manufacturing Corp.

80 N.E.2d 484, 323 Mass. 138, 1948 Mass. LEXIS 574
CourtMassachusetts Supreme Judicial Court
DecidedJune 30, 1948
StatusPublished
Cited by31 cases

This text of 80 N.E.2d 484 (Eastern Paper & Box Co. v. Herz Manufacturing Corp.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eastern Paper & Box Co. v. Herz Manufacturing Corp., 80 N.E.2d 484, 323 Mass. 138, 1948 Mass. LEXIS 574 (Mass. 1948).

Opinion

Ronan, J.

These are exceptions taken at the trial of an action of contract to rulings excluding certain evidence offered by the plaintiff, and to the direction of a verdict for the defendant.

There seems to be but little dispute that one Raymond, the assistant sales manager of the defendant, a manufacturer of paper products, including soda straws, was anxious to secure the soda straw business of the United Drug Company and its subsidiary the Liggett Drug Stores, and in January, 1938, promised the plaintiff, a manufacturer and jobber of paper goods, that, if the plaintiff would secure this business, the defendant would pay the plaintiff a commission on all orders accepted by the defendant. The plaintiff then secured orders for soda straws from the United Drug Company (hereinafter called the United) which were accepted by the defendant. The goods were shipped by the defendant and billed to the plaintiff. The plaintiff paid these bijls after deducting its commission. This method of handling the business continued from 1938 to 1944 when Raymond, acting for the defendant, contracted directly with the United for the sale of the straws, and the defendant has since continued to sell straws to the United but has refused to pay the plaintiff any commission on these sales. The plaintiff also secured orders for the defendant’s straws through a milk company for the Liggett Drug Stores (hereinafter called Liggett) which were forwarded to and accepted by the defendant. These goods were billed to and paid for by the plaintiff after deducting its commission from [140]*140the invoice price. The plaintiff secured these Liggett orders from 1941 to 1944. There was no evidence as to the reason why no orders for Liggett were received after February, 1944. The plaintiff makes no contention of any breach of contract so far as it concerned Liggett.

The contract which the parties made depended principally upon the conversations between Raymond and the officers of the plaintiff, and rested ultimately upon the credibility of witnesses whose testimony was conflicting in many material aspects. A jury could adopt Raymond’s version of what was said between the parties and find that he did no more than offer to pay a commission on such orders as the plaintiff might choose to secure — but was not required to secure — from the United upon their acceptance by the defendant, which was free to accept or reject any or all of the said orders, and that no time was mentioned or specified within which such orders might be submitted by the plaintiff. Such an arrangement, if we assume it was not lacking in mutuality and consideration from the very beginning, Bernstein v. W. B. Manuf. Co. 238 Mass. 589; Gill v. Richmond Co-operative Association, Inc. 309 Mass. 73, would amount to no more than an offer to enter into a unilateral contract as to each particular order which would ripen into such a contract upon the obtaining of an order by the plaintiff and its acceptance by the defendant but which would not prevent the defendant from withdrawing the offer as to future orders which the plaintiff might secure after notice of such withdrawal nor fasten any liability upon the defendant if it saw fit to sell directly to the United without paying the plaintiff any commission on the sales thereafter to the United. Jordan v. Dobbins, 122 Mass. 168. Des Rivieres v. Sullivan, 247 Mass. 443, 446. Elliott v. Kazajian, 255 Mass. 459, 461, 462. Globe Paper Co. Inc. v. Russell Box Co. 291 Mass. 1, 9. Maher v. Haycock, 301 Mass. 594, 596. Cramer v. Wood, 302 Mass. 161, 164. Corleto v. Prudential Ins. Co. 320 Mass. 612, 616.

The plaintiff, however, contends that the defendant promised to pay a commission on all orders secured by the plaintiff from the United and Liggett and accepted by the de[141]*141fendant and, if the defendant contracted directly with these concerns, then to pay commissions on all sales made to them; that the plaintiff promised to secure orders from these concerns; and that therefore the parties entered into a bilateral contract which was repudiated by refusing to pay the commissions to the plaintiff on the sales of soda straws to the United after the defendant began to deal directly with the United.

There was evidence that when Raymond requested Dooley, the president of the plaintiff, to secure the soda straw business of the United and of Liggett, he discussed with Dooley the manner in which the plaintiff should handle the business; and that in reply to a question of Dooley as to what would happen to the plaintiff if the defendant should sell directly to the United or Liggett, Raymond stated, “You will have this business as long as Herz straws are shipped to the United Drug or Liggett. It is your account,”; that so long as these two companies purchased the defendant’s straws, “it is your business, and you will have the credit and the commission,”; and that so long as the United bought Herz straws it was the plaintiff’s account. Thereafter for the next six years the business was conducted by the plaintiff alone dealing with the United, securing the orders, and ordering the goods from the defendant. All of these orders were accepted by the defendant, and upon all of them the plaintiff received a commission which it deducted from the invoices. It could be found that the parties contemplated that sales were to be made upon the orders which the plaintiff was to secure from the United, and that the success of the undertaking depended upon the ability of the plaintiff to obtain these orders for the defendant’s goods. We think that it could be found that in making the contract the plaintiff impliedly promised to use reasonable diligence to secure the orders from the United,1 that it was performing [142]*142its part of the contract and would have continued to do so when the defendant took over the soda straw business of the United, and that the defendant had no right to sell straws to the United without paying the promised commission to the plaintiff, even though the defendant had a right to terminate the contract by refusing to sell to the United, an event which did not occur. Revere v. Boston Copper Co. 15 Pick. 351, 361. Orbach v. Paramount Pictures Corp. 233 Mass. 281, 286. Vitagraph, Inc. v. Park Theatre Co. of Boston, 249 Mass. 25. Williston, Contracts (Rev. ed.) § 1027A.

Contracts are to be construed as bilateral rather than as unilateral where it is reasonably possible to do so. Restatement: Contracts, § 31. Bridges-Wilson Corp. v. University Contracting Co. 314 Mass. 257, 259. The consideration for the promise to pay a commission so long as the United purchased the defendant’s straws could be found to be the promise of the plaintiff to secure this business for the defendant; in other words, there was a bilateral contract upon a present consideration. Edmund D. Hewins, Inc. v. Marlboro Cotton Mills, 242 Mass. 282. Wilson v. Harper, [1908] 2 Ch. 370. Levy v. Goldhill, [1917] 2 Ch. 297.

The plaintiff was entitled to have the evidence viewed in its aspect most favorable to it, and the question whether the contract was made as contended by the plaintiff should have been submitted to the jury, if Raymond had authority to make it. Hammond Coal Co. Inc. v. Lewis, 248 Mass. 499, 501. Rizzo v. Cunningham, 303 Mass. 16, 20, 21. Murphy v. Nelson, 306 Mass. 49, 50, 51. Gleason v.

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Bluebook (online)
80 N.E.2d 484, 323 Mass. 138, 1948 Mass. LEXIS 574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eastern-paper-box-co-v-herz-manufacturing-corp-mass-1948.