Handlan Buck Manufacturing Co. v. Stave Electrical Co.

168 S.W. 785, 184 Mo. App. 247, 1913 Mo. App. LEXIS 296
Missouri Court of Appeals·Decided December 31, 1913·Published·Cited by 7 cases

Opinion

ALLEN, J.

This is an action to recover money paid by plaintiff to defendant for certain lamps, under and by virtue of a contract between tbe parties. Defendant denied liability for tbe return of the money so paid it, and interposed a counterclaim for the value of certain other lamps that it had shipped upon plaintiff’s order. There was judgment for defendant, both on plaintiff’s cause of action and on defendant’s counterclaim, and plaintiff prosecutes this appeal.

On August 5, 1909, a contract was entered into between the parties, both of them being corporations, wherein defendant, Stave Electrical Company, is designated as the party of the first part, and the plaintiff, Handlan-Buck Manufacturing Company, as the party of the second part. The contract, omitting unessential verbiage, is as follows:

“Whereas, the party of the first part is the owner of United States rights in certain arc lamps known as ‘Flaming’ and ‘Miniature’ arc lamps:

“Now, in consideration of the execution of this contract, the performance of the agreements hereinafter recited and the receipt of one dollar in hand paid to the party of the first part by the party of the second part, receipt whereof is hereby acknowledged, the party of the first part hereby graúts and gives unto the party of the second part the exclusive right of the sale of arc lamps hereinafter mentioned, throughout . . . [a designated territory] for a period of six months from date of this contract with the privilege of the party of the second part to renew this contract for a further period of six months, provided that the sales in the first period of six months amount to one Imndred and fifty lamps, and to again renew this contract for a further period of six months provided the sales in the second period amount to two hundred lamps.

“It is further agreed between the parties hereto that the party of the first part shall sell and deliver [254] to the party of the second part, or to snch customers which the party of the second part may determine, two types of ‘Flaming’ arc lamps, . .. . the former to sell at the list price of fifty-five dollars per lamp, the latter for the list price of sixty-five dollars per lamp. . ." . All these prices are subject to a discount of twenty per cent and ten per cent to party of the second part delivered f. o. b. St. Louis, Missouri.

‘•‘It is furthermore agreed that the parties of the second part shall be actively represented, and immediately establish subagencies throughout the territory controlled by them.

“It is further agreed that the party of the second part will upon execution of this contract immediately order ttoelve lamps in all of the different types and sizes as per order given under even date, and that payment for said lamps shall be made within thirty days from date of shipment, and that all payments for future orders shall be made within thirty days,

“It is further agreed that the party of the first part will from time to time ship lamps on consignment for approval orders, as requested by the party of the second part, and to be shipped- to them or to such customers as the party of the second part may designate, but the number of' such lamps on consignment shall not exceed forty.

“The party of the first part agrees to furnish free of charge to the party of the second part stationery, advertising matter, circulars, pamphlets, in order to facilitate sales, and further agrees to mention the party of the second part in all their general advertising and refer to them as a local branch of the Stave Electrical Company. . . .

“It is also further understood and agreed that should the party of the first part at the expiration of first term of contract decide to discontinue smne the party of the first part agrees to take back such lamps and parts as party of the second part may have on [255] hand, provided the party of the second part pays the freight both ways.

“The party of the first part reserves to itself the right to consummate any deal with profits to the .party of the second part. ... In the event of the party of the second part making sales in territory other than their own, said second party hereby agrees to hand one-third of the gross profits to the organization controlling such territory, but in the event of such territory not being controlled by any agent, the party of the second part is privileged to make the sale as if such territory were part of this agreement.

“It is further agreed that the party of the second part shall not sell, assign or transfer this contract and its rights thereunder without the consent of the party of the first part, and that they shall be actively engaged in' said arc lamp business, and that no business antagonistic to such arc lamp business shall at any time be conducted by the party of the second part, and that any violation of this paragraph will subject the entire contract to immediate abrogation.”

We have italicized certain portions of the above instrument for the purpose of later directing attention thereto.

The petition avers the execution of the contract, a copy of which was attached thereto, alleges- that plaintiff thereunder became the agent of defendant, and that for the purpose of such agency agreed to order and pay for, and did so order and pay for, lamps of the value of $507.26; that defendant by the contract agreed that, if at the expiration of six months said contract was not renewed, defendant would receive back such lamps and return to plaintiff the cost price thereof, provided plaintiff paid freight both ways; that the contract was not renewed at the expiration of six months; that plaintiff had performed all of the terms and' conditions thereof, had tendered to defendant the lamps mentioned, and demanded the return [256] of its money and offered to pay the freight; but that defendant had refused to receive the lamps and return plaintiff the purchase price thereof; the plaintiff praying judgment in the sum of $507.26.

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Handlan Buck Manufacturing Co. v. Stave Electrical Co., 168 S.W. 785, 184 Mo. App. 247, 1913 Mo. App. LEXIS 296 (Mo. Ct. App. 1913).

168 S.W. 785 (Handlan Buck Manufacturing Co. v. Stave Electrical Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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