Good Roads Machinery Co. v. Moore

58 N.E. 540, 25 Ind. App. 479, 1900 Ind. App. LEXIS 118
CourtIndiana Court of Appeals
DecidedNovember 14, 1900
DocketNo. 3,159
StatusPublished
Cited by2 cases

This text of 58 N.E. 540 (Good Roads Machinery Co. v. Moore) 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
Good Roads Machinery Co. v. Moore, 58 N.E. 540, 25 Ind. App. 479, 1900 Ind. App. LEXIS 118 (Ind. Ct. App. 1900).

Opinion

Henley, J.

—The material averments of appellant’s first paragraph of complaint are that by written contract dated February 8, 1897, it appointed appellee Moore its agent for the sale of road machinery in Indiana and a part of Illinois ;■ [480]*480that appellees Hoover, Stinson, and Poster became the sureties for said Moore by signing a bond indorsed on the back of said contract, conditioned for the faithful performance by said Moore of the obligations imposed upon him by the contract with appellant; that Moore failed to remit and account for the proceeds of the sales made by him under the contract with appellant. Judgment for the amount so withheld is demanded against Moore and his sureties. Copies of the contract and bond and a bill of particulars showing the amount claimed are filed with and made a part of the complaint.

It is averred in the second paragraph of the complaint that by written contract of date above mentioned, the appellant appointed said Moore as its agent for Indiana; that appellees Hoover, Stinson, and Poster became sureties as aforesaid, but that long prior to said date said Moore had desired to represent appellant in the state of Illinois, as well as in Indiana, and had been negotiating with appellant on that subject; but that appellant at that time had promised a part of Illinois to other agents and could not tell what part of Illinois he would be able to assign to said Moore; that appellant prepared and sent to said Moore a contract in which was printed the following clause: “In and for the following named territory, viz., the State of Indiana and ■——-;” that a blank was left after the word “and” of two and one-half lines of said printed form; that appellant told said Moore that as soon as it learned wkaJ part, of Illinois it could assign him, a description of the part assigned would be inserted in the contract where the blank lines were left after the word “and”; that the contract in such condition with the bond, indorsed on its back, was signed by said Moore, and the bond was signed by his sureties and was so delivered to appellant; that thereafter, appellant having ascertained what part of Illinois it could assign said Moore, filled in at the request of said Moore and after the word “and” in said contract the following words: [481]*481“Illinois north of and not included in the counties of Adams, Pike, Scott, Morgan, Macoupin, Montgomery, Shelby, Coles, and Edgar.”

It is averred that exhibit A filed with the complaint is a copy of the contract with the blank filled up as heretofore set out. The failure to comply with the terms of the contract in remitting money to the appellant is averred, and the same relief prayed for as in the first paragraph. Appellees Hoover, Stinson, and Eoster separately demurred to the second paragraph of the complaint. The court held the second paragraph of the complaint insufficient as against a demurrer for want of facts. Appellees Hoover and Stinson answered jointly, and appellee Eoster severally. These answers were in five paragraphs, a general denial and four, special paragraphs. The averments of the answers were identical. Appellant’s demurrer for want of facts to the last four paragraphs of each answer was overruled. Error is assigned only in the overruling of appellant’s demurrer, to the fourth paragraph. In the fourth paragraph of the answer <?f Hoover and Stinson, and in the fourth paragraph of the separate answer of Eoster, it is averred that after the bond had been signed and delivered, the appellant, without the knowledge or consent of said appellees, altered and changed the contract between itself and said Moore by writing in and adding after the word Indiana that paid of the state of Illinois which the contract contains. To these four paragraphs of answer appellant filed three paragraphs 'of reply, to the second and third of which demurrers for want of facts were sustained. The first paragraph was a general denial ; the second paragraph avers that after the contract was made Moore applied for permission to sell in said part of Illinois in addition to Indiana, and that appellant gave such permission and consented thereto in writing, by inserting in the contract after the words “in the State of Indiana and” the words “Illinois north of” etc., and that such insertion was made for the purpose of giving and evidencing in writing its [482]*482consent that Moore might sell outside of the territory originally allotted.

The third paragraph of reply in its averments is very similar to the second paragraph of the complaint, averring the fact of appellant’s inability at the time the contract was made to determine what part of Illinois it would be able to assign to Moore, and that it being the mntual desire of said appellant and said Moore to go to work without delay, the contract was executed to cover the State of Indiana, and the blank left for the purpose of inserting therein whatever part of Illinois it might be able to assign him, and that the subsequent filling in of the blank at the request of said Moore was for- the sole purpose of complying with the original negotiations.

The cause was submitted to the court for trial. There was a finding and judgment in appellant’s favor against appellee Moore, and a finding and judgment in favor of the appellees Hoover, Stinson, and Eoster. The questions presented by the rulings on the pleadings are, we think, properly resolved into the following: (1) Under the terms of the contract, was the alteration a material one ? (2) Was the alteration made by appellant such an alteration as appellant was, under the form and terms of the contract, authorized to make without the knowledge or consent of the sureties ?

That a material alteration of the terms of a contract without the consent of the surety will release the surety is a proposition, of law too well settled,to need the citation of authorities to sustain it. Equally well settled is the rule in this State that the contract of a surety is strictissimi juris. By the terms of the contract Moore was restricted in his sales to the territory named therein. The words used in the contract restricting him to “said territory” must mean the territory named. He was not given the exclusive right to the territory named with the power to go beyond, but was given the exclusive right to the territory named and restricted to “said territory.” If other territory was added, the presumption is that the sales under-the changed contract [483]*483would be increased in proportion as the territory was enlarged, and as tbe sales increased so would the liability of the sureties increase. Counsel for appellant have failed to cite us to any authority or to give in their able brief any reason why such a change as the one made in the contract under consideration is not a material change.

We come then to the next question, which involves the right of appellant to enlarge the scope of the contract by filling in words at the blank lines descriptive of other territory than that described at the time the contract was signed and the bond executed.

The contract described the territory as “The State of Indiana and -,” the blank space following the word “and” covering three lines of the printed contract. The sureties signing the bond are chargeable with notice of the existence of the blank lines at the time they signed the bond.

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Cite This Page — Counsel Stack

Bluebook (online)
58 N.E. 540, 25 Ind. App. 479, 1900 Ind. App. LEXIS 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/good-roads-machinery-co-v-moore-indctapp-1900.