F. Industries, Inc. v. Cox

263 S.E.2d 791, 45 N.C. App. 595, 1980 N.C. App. LEXIS 2697
CourtCourt of Appeals of North Carolina
DecidedMarch 18, 1980
Docket7923SC699
StatusPublished
Cited by7 cases

This text of 263 S.E.2d 791 (F. Industries, Inc. v. Cox) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
F. Industries, Inc. v. Cox, 263 S.E.2d 791, 45 N.C. App. 595, 1980 N.C. App. LEXIS 2697 (N.C. Ct. App. 1980).

Opinion

HEDRICK, Judge.

Based on six exceptions duly noted, plaintiff argues that the court erred in directing a verdict for the defendant Cox as to plaintiff’s claim and in refusing to direct a verdict for it as to defendant’s counterclaim. These assignments of error present for our review the sufficiency of the evidence to show the existence of contractual terms as alleged in plaintiff’s complaint. Plaintiff contends that its evidence establishes a contract entered into between its agent Miller and the defendant Cox which included, in addition to their agreement to buy and sell four Hendrickson trucks, a promise that the plaintiff would receive spare parts and “patent rights” to the trucks at no extra cost. Defendant concedes the existence of a contract with plaintiff to buy and sell the four trucks and the spare parts. He insists, however, that he promised to include the parts at no additional cost only if the plaintiff actually purchased four trucks. At no time, Cox contends, did the parties enter into an agreement respecting “patent rights.” Moreover, he testified that he did not now own, nor had he ever owned, any such rights on the trucks. Thus, the first question we must answer is whether the plaintiff’s evidence is sufficient to raise an issue of fact for the jury to determine if these parties contracted with respect to “patent rights.” We agree with Judge Rousseau that it is not.

The contract at issue in this case was never reduced to a formal written instrument. At most, the record contains mere assertions by the plaintiff’s agent Miller that he was supposed to *599 receive all the “paper work,” by which he meant “all the patent rights that come with the Hendrickson tractor.” It is impossible to decipher from Miller’s testimony exactly what it was the parties allegedly intended the “patent rights” to cover, their extent or their value. For example, it appears from the record that the trucks were designed by one company (Ryder) and manufactured by another (Hendrickson). Some apparently were equipped with Cummins engines; others had the “Detroit engine.” Presumably, various other parts which went into making up the whole of the Hendrickson trucks — such as the tires, the batteries, the mufflers — were manufactured by still other companies. Logic and common sense would thus suggest that a number of patents held by numerous individuals or entities would exist on a single truck. Surely plaintiff did not expect to acquire “all the patent rights that come with the Hendrickson tractor” by virtue of purchasing four of them from the defendant. Yet, he was unable at trial to delineate any more clearly what “rights” to the trucks he allegedly contracted to receive from Cox.

It is axiomatic that “[a] court cannot enforce a contract unless it can determine what it is.” 1 Corbin, Contracts § 95 at 394 (1963); accord, 3 Strong’s N.C. Index 3d, Contracts § 3 (1976). In order to constitute a valid and enforceable written or verbal agreement, the parties must express themselves in such terms that the court can ascertain to a reasonable degree of certainty what they intended by their agreement. In the instant case, the agreement, if any, respecting the conveyance to plaintiff of “patent rights” is so general, vague and indefinite as to be incapable of acertainment, much less enforcement.

Neither are we persuaded that plaintiff’s evidence of the “value” of the “patent rights,” in the form of opinion testimony by Miller, supplies adequate contours to the alleged contract to enable the jury to ascertain its substance. Hence, whether Judge Rousseau was correct in striking that testimony prior to ruling against the plaintiff on the defendant’s motion for a directed verdict is of no consequence to our decision.

Plaintiff’s case is weakened even more by one of its own exhibits. The defendant Cox testified that, after plaintiff had purchased the first three trucks, he and plaintiff’s agent Miller discussed plaintiff’s purchasing three more trucks. According to *600 Cox, he agreed during a meeting with Miller on 6 October 1978 to assign to Miller any rights in the trucks he had under his purchase agreement with Ryder Truck Rentals, Inc., and he made a notation to that effect on the reverse side of the purchase agreement. Plaintiff’s Exhibit No. 14 is the purchase agreement between Ryder as seller and the defendant Cox as purchaser of “ten (10) vehicles and vehicle spare parts”. On the back of the last page appears the following handwritten notation:

October 6, 1978
I Harvey A Cox will assign and delegate all my rights given in the agreement that this is written on pertaining to the Ryder designed, Hendrickson manufactured trucks to Van Miller Jr. These rights are not being sold, but assigned at no cost under the conditions that Mr. Miller purchase the other three tractors as agreed.
Harvey A Cox
Witness Jesse L. Moore

This memorandum, which Cox admits he wrote and signed, is the only concrete and unambiguous evidence in the record as to any “rights” Miller was to acquire in the trucks. The purchase agreement makes no mention of “patent rights.” Moreover, the logical inference from this writing is that Miller had to purchase a total of six trucks in order to secure any rights whatsoever. He admits he bought only three. In our opinion, this evidence, coupled with the dearth of specific facts showing the existence of the alleged agreement respecting “patent rights,” fully justifies and compels the entry of a directed verdict against the plaintiff on its claim. The evidence was plainly insufficient for the jury which would have been required to guess whether such an agreement was part of the contract actually made.

To the contrary, the issues raised by the defendant’s counterclaim were properly submitted to the jury for determination. Neither plaintiff nor defendant disputes the existence of an agreement between them to buy and sell Hendrickson trucks and spare parts. Their dispute arises from and revolves around the construction of Cox’s promise to include the spare parts at no additional cost. That is, was the plaintiff obligated under their bargain to purchase four trucks before it was entitled to keep the *601 parts? Unlike the issue of “patent rights” where no agreement which can be interpreted has been shown to exist, the question raised by the evidence as to the parts clearly involves only a factual determination which essentially boils down to an issue of credibility. Given the admitted agreement to include the parts, it becomes the task of the fact-finder to decode the parties’ intentions and, as in any other case, to decide which side it will believe. In answering “yes” to the first issue, the jury in this case, on credible evidence, found that the parties intended for plaintiff to receive the parts at no extra cost only if it purchased a minimum of four trucks. Hence, plaintiff’s actions in stopping payment on the check for the fourth truck, returning that truck to defendant, and refusing to either return or pay for the parts constitute a breach and render the plaintiff liable in damages.

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Cite This Page — Counsel Stack

Bluebook (online)
263 S.E.2d 791, 45 N.C. App. 595, 1980 N.C. App. LEXIS 2697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/f-industries-inc-v-cox-ncctapp-1980.