Ercanbrack v. Crandall-Walker Motor Company

550 P.2d 723, 1976 Utah LEXIS 850
CourtUtah Supreme Court
DecidedMay 26, 1976
Docket14298
StatusPublished
Cited by8 cases

This text of 550 P.2d 723 (Ercanbrack v. Crandall-Walker Motor Company) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ercanbrack v. Crandall-Walker Motor Company, 550 P.2d 723, 1976 Utah LEXIS 850 (Utah 1976).

Opinions

TAYLOR, District Judge:

Plaintiff appeals from an order of the trial court granting defendant’s motion to dismiss the complaint and dismissing plaintiff’s complaint.

Plaintiff initially filed a complaint for specific performance of an alleged contract for the purchase of a Ford pickup truck. After it became apparent that specific performance was impossible because the defendant had sold the truck, the plaintiff filed an amended complaint wherein he sought to recover damages for th'e difference between the alleged contract price and the price he was required to pay for another truck.

On the 25th day of October, 1973, plaintiff signed a “Vehicle Buyer’s Order” which was also signed by a salesman for the defendant company. The salesman advised the plaintiff that the truck would have to be ordered from the factory. From time to time the plaintiff contacted the salesman as to when the new truck would arrive. In March of 1974 the plaintiff met an officer of the company off the premises and casually asked him if his black truck had gotten there yet. The officer responded “No, we haven’t heard on it yet.” There was no further conversation. The record indicates that no further contact was made by the plaintiff with any officer of the defendant company until May of 1974 when the plaintiff did talk to an officer of the corporation who advised him that the price of the truck had increased and offered to sell the truck to the plaintiff for the increased price. The plaintiff refused to take the new truck. At this time an officer of the defendant company advised the plaintiff that the “Vehicle Buyer’s Order” had never been signed or accepted by the company’s sales manager or any officer of the company.

The “Vehicle Buyer’s Order” was introduced into evidence and showed that just above the plaintiff’s signature appeared the following words “THIS ORDER IS NOT VALID UNLESS SIGNED AS ACCEPTED HERE BY SALESMANAGER OR OFFICER OF THE COMPANY.” The plaintiff testified that he knew that the sales manager or officer of the company had not signed the agreement but that he thought it was sufficient for the salesman who made out the order to sign the order. The trial court held that the “Vehicle Buyer’s Order” was not a valid contract between the parties since it had not been accepted by the sales manager or an officer of the defendant company. The plaintiff, appellant herein, seeks a reversal of the judgment of the trial court and cites four grounds therefor which may be listed as follows:

1. Failure on the part of the company or an officer of the company to notify plaintiff of nonacceptance amounts to a ratification of the contract.

2. The defendant is estopped to deny the agency of the salesman and ratified the salesman’s act in stating to the plaintiff that the order had been accepted by failure of the defendant to take some positive action to inform the plaintiff to the contrary.

3. The defendant was bound by the terms of the “Vehicle Buyer’s Order” even if an officer of the company did not sign said order where it led the plaintiff to believe that the offer had been accepted by the acts of the salesman.

4. It was never intended that the ‘‘Vehicle Buyer’s Order” be accepted in writing by an officer of the company.

[725]*725In support of plaintiff’s contention that failure to notify or silence amounts to an affirmance of the contract the plaintiff cites Restatement of Agency, Second, p. 244, Sec. 94:

Failure to Act as Affirmance:

a. Silence under such circumstances that, according to the ordinary experience and habits of men, one would naturally be expected to speak if he did not consent, is evidence from which assent can be inferred. Such inference may be made although the purported principal had no knowledge that the other party would rely upon the supposed authority of the agent; his knowledge of such fact, however, coupled with his silence would ordinarily justify an inference of assent by him.

Plaintiff’s reliance upon this section is not justified. The balance of Sec. 94 which was not quoted by the plaintiff reads as follows:

Whether or not such an inference is to be drawn is a question for the jury, unless the case is so clear that reasonable men could come to but one conclusion.

The trial court after hearing the evidence and observing the witnesses concluded that an inference from silence was not justified and ruled against the plaintiff. While this was not a jury question, it was a question for the trier of the fact and the trial court having rejected the contention, such ruling should not be upset upon appeal.

In further support of plaintiff’s contention with regard to failure to notify of nonacceptance of the contract or ratification of the contract, plaintiff cites 3 Am.Jur.2d 565-6, Agency, Sec. 179. This section discusses the failure to promptly repudiate the agent’s acts but points out that this duty arises only after information of the transaction is received by the principal. There is no evidence in the record that the defendant company knew of the acts of their agent. Therefore, plaintiff’s first contention must be rejected.

The argument made with respect to es-toppel to deny the agency of the salesman is this: The company ratified the salesman’s act by stating to the plaintiff that the order had been accepted by failing to take some positive action to inform the plaintiff to the contrary.

Plaintiff’s contention in this regard is without merit. The evidence in the record shows that the only notification to plaintiff that the order had been accepted came from the salesman of the defendant company and not from an officer or sales manager of the company. The company cannot be estopped by failing to take some positive action about a matter which the evidence shows the defendant’s officer or sales manager had no knowledge. The authorities cited by plaintiff assume that the principal knows that another has purported to act as his agent, or after receiving information that an act had been done without actual or apparent authority is not bound by that act under the law of agency unless he ratifies the act. Ratification of an act about which the principal knows nothing is inherently impossible.1

With regard to plaintiff’s contention that the defendant was bound by the terms of the “Vehicle Buyer’s Order” even though an officer did not sign said order the plaintiff contends:

It is fundamental contract law that the parties may become bound by the terms of a contract even though they did not sign the contract, where they have have otherwise indicated their acceptance of the contract, or led the other party to so believe that they have accepted the contract.2

This is a sound principle of contract law but has no application in this case.

Plaintiff relies on the case of Albright v. Stegeman Motor Car Company,3 which [726]*726case adopts the foregoing principle of contract law. Albright is easily distinguished from this case. The order form in the Albright case contained the clause:

This proposal, if accepted, constitutes a contract, subject to the approval of the Stegeman Motor Car Company, at its office in Milwaukee, and must be countersigned by an officer of the company to be valid and in force.

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Ercanbrack v. Crandall-Walker Motor Company
550 P.2d 723 (Utah Supreme Court, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
550 P.2d 723, 1976 Utah LEXIS 850, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ercanbrack-v-crandall-walker-motor-company-utah-1976.