Harvey v. Henry

78 N.W. 850, 108 Iowa 168
Supreme Court of Iowa·Decided April 8, 1899·Published·Cited by 8 cases

Opinion

RobiNsoN, C. J.

— In tbe year 1895 tbe defendants R. L. Henry and Wesley Hénry purchased of J. Harvey & Co. an engine, tank, belt, weigher, and stacker, for tbe agreed price of nine hundred and seventy-five dollars. In payment tbe defendants gave their three promissory notes, of which one for four hundred dollars was payable January 1, 1896, one for four hundred dollars was payable January 1, 1897, and one for one hundred and seventy-five dollars was payable January 1, 1898. To secure the payment of the notes, the defendants executed to the seller a mortgage on the property purchased. The note which first became due has been paid. This action is brought to recover the amount of the other two notes, which the plaintiff claims to own by virtue of blank indorsements, and to foreclose the mortgage. In the year 1896 the defendants purchased of the Nichols & Shepard Company a traction engine, separator, with truck, wagon, straw stacker, belts, and other appurtenances, and gave, as part payment, the engine and certain appurtenances, and the stacker, purchased the year before of J. Harvey & Co., and a separator which the defendants had used several years, and promissory notes for the aggregate amount of one thousand six hundred and ninety dollars. The contract for the new outfit was made through the plaintiff, as agent for the Nichols & Shepard Company; and the defendants claim that the contract price for the outfit was two thousand four hundred and forty dollars, on which credit for four hundred dollars, for the note to J. Harvey & Co-, which had been paid, and three hundred and fifty dollars for the old separator, were to be given, and that the notes in suit were to be canceled, and with the mortgage, were to be surrendered to the defendants. The plaintiff avers that the contract price for the new outfit was but two thousand two hundred and forty dollars, and that the [170] oredit for the old engine, separator, and other property, was but five hundred and fifty dollars, and denies that the contract required the notes in suit to be canceled and surrendered.

1 I. When the contract for the new outfit was entered into, the defendants signed an order for it, addressed to the Nichols & Shepard Company, which contained the following: “The undersigned agree to receive said machinery, * * * and pay in cash the freight and charges thereon from the factory, and also -agree to pay to your order * * * the further sum of $-, as follows: Old steam outfit taken in trade at $550.00,. including an Aultman & Taylor Separator; note due January 1st, 1897, for $300.00; note due January 1st, 1898, for $595.00; note due January 1st, 1899, for $595.00; and note due January 1st, 1900, for $200.00.” The order does not contain any reference to the cancellation of the notes in suit, but the defendants contend that it was required by a verbal stipulation. That is denied by the plaintiff, and he contends that the order is apparently complete, free from ambiguity, and should be regarded as expressing the entire contract of the parties to the transaction. He insists, therefore-, that it cannot be contradicted or varied by parol evidence. The general rule for which the appellant. contends is well settled. Evidence of a contemporaneous oral agreement is not admissible to vary, add to, or contradict a valid agreement in writing which is clear, definite, and complete. Fawkner v. Paper Co., 88 Iowa, 169, and authorities therein cited. But such evidence is admissible to show “the existence of any separate oral agreement as to any matter on wdiich a document is silent, and which is not inconsistent with its terms, if, from the circumstances of the case, the court infers that the parties did not intend the document to be a complete and final statement of the whole transaction between them.” 7 Am. & Eng. Enc. Law, 91; 17 Am. & Eng. Enc. Law, 443. The order in question, when accepted, becomes a contract in writing between the defendants and the Nichols & Shepard Company, and [171] parol evidence to show that tbe company was required1 to cancel tbe notes in suit would tend to add to tbe writing, and, as between tbe parties to it, would not be admissible. But tbe evidence shows that tbe plaintiff bad a special interest in tbe contract, in tbe compensation be was to receive for securing it. Pie states' that be was required to take the old outfit in settlement with tbe company, and be did take it. He knew that be'would be required to do so when tbe contract was made; and, since it was satisfactory to bis principal for him to do so, there was no legal objection to bis agreeing to cancel and surrender tbe notes which are in controversy, to induce the defendants to enter into the contract. If there was an undertaking to do so, it was collateral to the contract in writing, and is not in conflict with it. Proof that it was made would not in any manner affect tbe contract entered into by tbe defendants with tbe company. This case is unlike that of Horn v. Hansen, 56 Minn. 43 (57 N. W. Rep. 315), cited by tbe appellant.

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Harvey v. Henry, 78 N.W. 850, 108 Iowa 168 (iowa 1899).

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