Henriott v. Main

279 N.W. 110, 225 Iowa 20
CourtSupreme Court of Iowa
DecidedApril 5, 1938
DocketNo. 43824.
StatusPublished
Cited by3 cases

This text of 279 N.W. 110 (Henriott v. Main) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henriott v. Main, 279 N.W. 110, 225 Iowa 20 (iowa 1938).

Opinion

Mitchell, J.

— W. F. Main Operates under the name of Standard Manufacturing Company at Cedar Bapids, Iowa, and in 1932 and subsequent thereto was engaged in the sale of merchandising vending machines. On April 12, 1932, F. A. Henriott, who lived in Louisville, Kentucky, purchased from Main, thru his salesman, forty vending machines and twenty pounds of confection, for the sum of $1,156.40. A guarantee, in writing, guaranteed a cash return of 120 per cent from the operation of the vending machines for a period of twelve months from date, and if the machines did not produce this much the amount paid, plus interest, would be refunded. The machines were delivered, were located in the territory provided, to wit, in Louisville, Kentucky, and were operated for the required time. According to plaintiff, the purchaser, the total income was $320.91. He notified the defendant in regard to this and offered to ship back the machines. In writing he was notified not to do so. Defendant having refused to pay the amount of money to which plaintiff felt he was entitled under the contract, to wit, the purchase price plus interest after the allowance of credit because of the amount made in the operation of the machines, plaintiff commenced this action. The ease was tried to a jury, which returned a verdict in the amount of $1,021.11. Defendant, being dissatisfied, has appealed.

We turn to the record to ascertain the facts.

W. F. Main is an individual engaged in the business of selling penny vending machines, operating his said business under the trade name of Standard Manufacturing Company. F. A. Henriott lives at Louisville, Kentucky. A salesman for *22 Main contacted Henriott, and after some negotiations sold him forty vending machines at the price of $29.50 each. Two per cent was allowed for cash with the order and Henriott paid the sum of $1,156.40. With the vending machines went a certain amount of confection used in same.

The contract is so unusual and the defenses relied upon by appellant to escape payment so closely connected with the contract, that we set out the essential parts of it:

"STANDARD MANUFACTURING- COMPANY,
"CEDAR RAPIDS, IOWA.
# # *
"April 12, 1932.
"Total 40 units @ $29.50
......................$118.00
"To F. A. Henriott 709 Sutcliffe Ave., Street_Louisville Town
" State_Texas_Freight How to ship_Engineer Business
"TERMS: $1156.40 cheek or draft in advance............
"2% off check or draft in full with order.
"Transportation charges to be paid by purchaser.
"All sums due under this agreement are payable at Cedar Rapids, Iowa.
"The Standard Mfg. Co. guarantees a cash return of 120% on the investment in the above machines from the operation of same on a vending machine route for a period of twelve months from the date they have been placed in operation by the purchaser, if the purchaser will buy from this company all the products to he vended through the machines and will keep the machines at all times in good working order, clean and attractive in appearance, and well filled with the above products and adjusted to vend at an average price to the consumer of to 85 per pound, and will rotate the different kinds of products so as to make available to the public the different kinds, flavors and assortments thereby making the machines more profitable, and will notify the company at once giving dates, names and addresses of all original locations and changes in locations of machines in order to keep them operating in the most profitable *23 places, and furnish to the company at its offices in Cedar Rapids, Iowa, every six weeks, a report showing the name and address of the person with whom machines are placed, the dates serviced, the amount and kinds of products vended, the amount of money taken by each machine so that the company will know just what the machines are doing and will continuously operate the route with proper care and diligence. If the above provisions are complied with and if the above named cash return resulting from the operation of the above machines for the twelve months period is less than 120% and if all of the machines are delivered within thirty days after the expiration of said twelve months period to the Std. Mfg. Co. at Cedar Rapids, Iowa, transportation charges prepaid, securely packed and good condition, this company upon receipt of the machines will re-purchase the above machines at the full purchase price paid therefore, plus 6% interest, less the retail price of the products vended after deduction of 20% thereof to cover location rental. The term ‘cash return’ as used above is understood to mean the total cash realized from the sale of the products vended less the purchase price of the products vended and the 20% paid for location rental. Purchaser agrees that in the event any machine gets out of order to promptly notify the company for repair and replacement. All of the above provisions are construed as constituting a single agreement and not independent agreements, and are of the essence of the repurchase agreement. * * *
“Name of Firm.......................................
“Signature of Purchaser F. A. Henriott
“Signature of party signing for above..................
“Accepted at Cedar Rapids, Iowa, this 5th day of May, 1932.
“STANDARD MANUFACTURING COMPANY
“By E. L. Weidner, Manager.
“Salesman Louis Okin.”

I. Appellant contends that the court erred in overruling the motion for a directed verdict made at the close of the evidence. It is his contention that there are enumerated in the contract certain conditions precedent which had to be performed in order to require him to repurchase the machines. The contract was prepared by appellant. A reading of it will convince *24 anyone that it was prepared with the one thought in mind of limiting appellant’s liability and making it almost impossible to recover the amount of money he promised to pay in ease the machines did not show the profit of 120 per cent within the year. In view of such a situation the contract will be construed most strongly against him.

As said by the late Justice Weaver in the case of First National Bank v. Dutcher, 128 Iowa 413, at page 423, 104 N. W. 497, 500, 1 L.R. A. (N. S.) 142:

“It is to be remembered that the conditions attached to the warranty are framed by the seller to limit his liability and restrict the benefit thereof to the buyer. It is a settled rule that such conditions are to be strictly construed against the party in whose interest they are made. Parsons v. Gadeke, 1 Neb. (unofficial) 605, 95 N. W. 850; Meyer v. Fidelity, 96 Iowa 385, 65 N. W. 328, 59 Am. St. Rep. 374.”

II.

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279 N.W. 110, 225 Iowa 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henriott-v-main-iowa-1938.