Fairbanks, Morse & Co. v. Twin City Supply Co.

170 N.C. 315
CourtSupreme Court of North Carolina
DecidedNovember 24, 1915
StatusPublished
Cited by10 cases

This text of 170 N.C. 315 (Fairbanks, Morse & Co. v. Twin City Supply Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fairbanks, Morse & Co. v. Twin City Supply Co., 170 N.C. 315 (N.C. 1915).

Opinion

Walker, J.,

after stating tbe case; As the presiding judge gave a peremptory instruction in favor of tbe plaintiff, bolding tbat in no view of tbe case could tbe defendant sustain its counterclaim, and excluding tbe evidence from tbe consideration of tbe jury, we need only consider tbe validity of this ruling, and not discuss the question of damages. In tbe view we take of this ease it does not involve tbe question of the authority of an agent to alter tbe terms of a written contract made by bis principal, although it was made through bis agency, whether forbidden by its express terms to do so or not (Medicine Co. v. Mizzell, 148 N. C., 387; Piano Co. v. Strickland, 163 N. C., 250, and eases therein cited), nor the other question, whether where tbe parties reduce their contract to writing parol evidence can be received to contradict, add to, modify or explain it, in tbe absence of fraud, mistake or other equitable element. Tbe general rules excluding such evidence, which are relied on principally by plaintiff, are fully conceded, but tbey do not apply here, as defendant admits tbat it is bound by tbe terms of tbe contract and can not recover for any loss it may have sustained [320]*320which is provided against in the contract, or forbidden by its terms. This contract is somewhat like the one this Court considered in Allen v. Tompkins, 136 N. C., 208, where it was held that if the buyer of the machinery failed to make any- request for new pieces of machinery to take the place of those which had proved to be defective, he could not recover damages, as the contract required that he do so, and that there should be no recovery if the seller complied with this stipulation of the contract and furnished the new pieces, but that if application was made for the new pieces, and the seller failed to comply with the request, and to the extent he failed in that duty, he would be liable for the resultant damages. The Court, in that case, remarking that the ordinary rule of damages did not apply, “for the reason that in section 13 of the specifica-' t.ion sheet, which forms a part of the contract between the parties, a specific and particular method of remedying original defects in the machinery is agreed upon, said: “The language of that section of the contract is as follows: ‘We guarantee all machinery and equipment to be first-class in material and workmanship, and to work well for the purposes intended, if properly used. In case of original defects in any machine or part of machine, we agree to make good the defect by supplying a new machine or new part.’ . . . The plaintiffs, before using the machinery and making payment, could have demanded a refitting of the machinery by the furnishing of new crusher rollers and a new separator to be in good order and capable of doing the work required of them, and, if those pieces had been furnished of such character, the defendant’s liability would have been at an end. That was the contract between the parties. No breach of the contract, by which damage in money could be recovered, was in contemplation of the parties. Such an idea was excluded by the terms of the agreement. The plaintiff’s remedy was for new pieces of machinery. If the defendant, upon demand for new pieces of machinery, refused to furnish them, then, of course, the ordinary rule would apply, and the plaintiff would have been entitled to collect such damages as reasonably flowed from a breach of the contract.”

But Kester v. Miller, 119 N. C., 475, is more in point. There the defendants purchased an engine and a boiler to do the work which the sellers had guaranteed for it, and defendant was requested to keep it upon a promise of the sellers to put it in good condition, so as to bring it up to the guaranty. This they failed to do satisfactorily. Plaintiffs sued upon the notes for the price, and defendants counterclaimed for a breach of the contract and asked for damages. This Court, holding that they were entitled to them, said: “As long as the plaintiffs insisted on the defendants keeping the engine, they, the-plaintiffs, promising that they would make it satisfactory and remedy the defect, cannot be heard to say that they are not answerable to the defendants for loss they might [321]*321subject them to by reason of their course. The contract not having been performed by the plaintiffs, they, instead of forcing the defendants to make the option of receiving the engine and holding them liable for the difference between the contract price and the actual value or reject it, chose to induce the defendants to keep the engine and operate it while they were engaged in trying to put it in the condition guaranteed in the sale. If they saw fit to continue this attempt to remedy the defect it was at their risk and on their own responsibility, and that responsibility continued as long as they, without success, tried to put the engine in a satisfactory condition.” That would seem to be exactly like this case in principle. The true meaning of this contract is that for any original defect in the engine the plaintiff should not be liable in damages, provided, on notice thereof to be given by defendant, it replaced any defective part with a new one of the same kind, but without any defect in it, and so that the engine would perform its normal functions and conform, thereby, to the terms of the warranty. There was a good reason for giving the plaintiffs this fair opportunity to make good their' stipulation to furnish a good engine, as until it was shaken down and tested out any defect in it would not, perhaps, be discoverable, whereas, by using it a while, defendant would be able to detect any original and “inherent” imperfections in it; but the parties did not contemplate that the plaintiffs should not be liable in damages if any substituted piece itself proved to be defective, for the contract is that they will replace a bad piece with a good one, and any other meaning would make the contract absurd, and plaintiffs, as we understand, do not insist upon any such construction of it. Besides, it was not understood that the plaintiffs would be allowed an unreasonable or indefinite time to make good any defect in the engine, but only a reasonable time for the purpose of doing so. In the contract they had agreed and “guaranteed” that the engine should be of “good material and workmanship,” and, if it was not, it would be made so upon application, and it was not intended by the other stipulation, as to how any breach in this respect might be atoned for, that the guaranty itself should be made nugatory. All instruments should receive a sensible and reasonable construction, and not such a one as will lead to absurd consequences or unjust results, and the effect of the stipulation as to furnishing “new parts” should not be carried beyond what is necessary to give the plaintiffs the full benefit thereof, and should not be in excess of the intention. “It is not the-province of a court, however, to change the terms of a contract which has been entered into, even though it may be a harsh and unreasonable one. Nor will the dictates of equity be followed if by doing so the terms of a contract are ignored; for the folly or wisdom of a contract is not for the court to pass upon. Its terms, however onerous they may be, must [322]*322be enforced if sucb is tbe clear meaning of tbe language used, and tbe intention of tbe parties using tbat language; but tbe words of a contract will be given a reasonable construction, where tbat is possible, ratber tban an unreasonable one, and tbe court will likewise endeavor to give a construction most equitable to tbe parties, and wbicb will not give one of tbem an unfair or unreasonable advantage over tbe other.” 9 Cyc., 587.

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Cite This Page — Counsel Stack

Bluebook (online)
170 N.C. 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fairbanks-morse-co-v-twin-city-supply-co-nc-1915.