Hart-Parr Co. v. Finley

153 N.W. 137, 31 N.D. 130, 1915 N.D. LEXIS 159
CourtNorth Dakota Supreme Court
DecidedApril 20, 1915
StatusPublished
Cited by12 cases

This text of 153 N.W. 137 (Hart-Parr Co. v. Finley) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hart-Parr Co. v. Finley, 153 N.W. 137, 31 N.D. 130, 1915 N.D. LEXIS 159 (N.D. 1915).

Opinions

Goss, J.

This action is to recover $2,400 damages as the purchase price of an engine plaintiff claims to have sold and delivered defendant, together with an additional $104 freight charge thereon. June 10, 1912, defendant executed and delivered the usual written machinery order to plaintiff. It was duly accepted. Before the stipulated time for delivery, defendant notified plaintiff he would not receive the engine and to cancel his order. Plaintiff refused cancelation, insisting upon full performance. On receipt of defendant’s written notice of revocation, and on June 29th, plaintiff wrote defendant as follows: “Referring to your letter of June 22d, in which you ask us to cancel your order, wish to say that we cannot do this. . . . The order contains no provision for cancelation, and like any other contract it cannot be abrogated or annulled without the consent of all the parties thereto. We will ship you the engine promptly on July 15th (the date specified for shipment in the order), and will carry out our part of the contract in every detail. We shall then insist that you carry out yours, and you have absolutely no grounds whatever upon which to refuse to do so.” Defendant’s reply, duly received, was: “Tours of the 28th of June, refusing to cancel order, at hand. . . . Now I positively will not receive said engine, and do not think you are giving me a square deal in trying to hold me up. If it is a case of damages, make a statement and I will consider it. But if you wish to go >o law, I am ready.” On July 15th, the earliest date fixed for performance, plaintiff tendered the engine to defendant f. o. b. at Porest River, according to the terms of the con[137]*137tract. He refused to accept it, or to execute and deliver his notes or pay the freight. On August 13th, and within the stipulated period for performance, plaintiff took said tractor to the home of defendant, and unconditionally tendered it to him in performance of its obligation; defendant refused to receive the engine, which plaintiff then left at his farm against his expressed wishes and protest and without his consent; that the freight from the factory to Forest Fiver was $104.

These are the findings. The appeal is from the judgment of dismissal, raising only the legal conclusions to be drawn from the findings. The decision is the answer to whether a suit can be maintained for the purchase price and freight added, as for damages suffered by the failure of the defendant to receive the stock engine ordered for future delivery to him, where before the time for delivery he had given plaintiff his unequivocal and unconditional notice of cancelation of his order, and that he would neither receive the engine nor pay for it; with defendant refusing to receive or pay for the engine and insisting upon his repudiation.

Plaintiff claims: (1) That the attempted cancelation and notice was ineffectual for any purpose, and amounted to but defendant’s offer that the contract might be canceled, which offer was rejected, leaving the written contract in force; under which, however, it was not obliged to tender the engine in the face of the defendant’s offer and refusal to receive it; but nevertheless it claims it did deliver it to him, and thereby parted with its title, and therefore can recover damages as for the purchase price, and (2) irrespective of the passing of title, the order should be construed as authorizing a recovery for $2,400 and freight, inasmuch as such is plaintiff’s contract rights, because payment was not conditioned upon the passing of title as a condition either precedent or concurrent. Defendant asserts that: (1) title did not vest in defendant, as the contract was repudiated before delivery, upon which repudiation an action for damages only for such breach is accorded to the seller, with the measure of damages recoverable fixed by § 7156, Comp. Laws 1913, as declared where the title does not pass to the purchaser; and (2) that a purchaser has a right to stop performance of an executory contract of purchase and sale by notice of its cancelation, and the question of [138]*138breach of contract by anticipation is not. involved; and (3) that upon notice of cancelation it became the duty of the seller to mitigate its damages, rather than enhance them; and that freight paid for the shipment made after notice of cancelation was such an enhancement •of its damages.

The questions presented are whether (1) this purchaser had a right to cancel his executory contract of purchase while it remained wholly executory; (2) the effect of his attempted cancelation thereof; (3) the measure of damages for the breach; and (4) the effect of cancelation to mitigate such damages.

The difficulty is not in passing upon the issues in the light of the common law alone, or of our statutes, declaratory thereof; but instead arises in their solution in harmony with both the common law .and consonant in reason with the holding and the principles announced in Stanford v. McGill, 6 N. D. 536, 38 L.R.A. 760, 72 N. W. 938; wherein was repudiated the common-law doctrine that there could be .an anticipatory breach of a wholly executory contract of .purchase and sale. Stanford v. McGill is the bulwark behind which the plaintiff is intrenched. Under the doctrine of that case it reasons that this .attempted cancelation is ineffectual except to relieve it from the necessity of making a tender; that the contract never was breached until refusal to accept the tendered property; that the attempted cancelation in no wise relieved defendant from his obligation to purchase and pay the purchase price, inasmuch as it constituted but a mere offer, the rejection of which left the contract unaffected; and under which it has performed promptly and punctually upon the first day upon which it could elect to perform; that it thereby cast title upon defendant and can recover the purchase price therefor that it can recover as damages for freight paid, because if it can disregard the cancelation at its pleasure, that cannot logically furnish a foundation for minimizing such damages necessarily incurred in moving the machine to Forest Eiver, that it'might be there for tender on July 15th; that under the reasoning of Stanford v. McGill it had the right to expect that, notwithstanding defendant’s attempted repudiation, he would nevertheless repent thereof upon a tender made to him, and perform; and that accordingly it had the right to make shipment and place itself in readiness to perform its part on the first day possible; [139]*139that it is therefore entitled to recover at least the freight, inasmuch as that damage should not be mitigated on any plea that it should take notice of a futile attempt at cancelation, and anticipate that defendant’s refusal would be the result of the tender, to do which is diametrically contrary to one of the chief reasons for the holding in Stanford v. McGill. And appellant can confidently inquire why it should be compelled to recognize an attempted repudiation for purposes of mitigation of damages, inoperative under Stanford v. McGill, to relieve defendant from his performance, and when the attempted repudiation itself did not affect the original rights of plaintiff under the contract? How can you mitigate as to the amount of the necessary expense of performance when the contract is unaffected by the attempted repudiation, and consequently valid as an entirety during the time the expense to be mitigated was incurred? Plaintiff propounds, in effect, these questions for answer.

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Cite This Page — Counsel Stack

Bluebook (online)
153 N.W. 137, 31 N.D. 130, 1915 N.D. LEXIS 159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hart-parr-co-v-finley-nd-1915.