Henry v. McCardell

40 S.W. 172, 15 Tex. Civ. App. 497, 1897 Tex. App. LEXIS 99
CourtCourt of Appeals of Texas
DecidedMarch 4, 1897
StatusPublished
Cited by12 cases

This text of 40 S.W. 172 (Henry v. McCardell) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henry v. McCardell, 40 S.W. 172, 15 Tex. Civ. App. 497, 1897 Tex. App. LEXIS 99 (Tex. Ct. App. 1897).

Opinion

WILLIAMS, Associate Justice.

Appellee sued appellant upon a promissory note, and recovered the judgment from which this appeal is taken. The questions are raised upon the ruling of the court sustaining exceptions to the answer.

The answer alleged that, prior to the giving of the note, plaintiff was a merchant, owning a stock of goods and carrying on business; that he had previously often offered to sell his stock to defendant on credit, and, at the date the note sued on was executed, renewed his offer; that defendant, being poor and having no means and no credit or commercial *498 rating, for that reason, stated to plaintiff, declined to buy; that plaintiff, in order to make the trade, proposed to defendant that, if he would buy the stock on credit, plaintiff would assure and secure a line of credit among merchants and wholesale dealers in the aggregate sum of $2500 in excess of the stock; that he further proposed that defendant buy the stock on credit for $1820, to be arrived at as stated below, and give his two notes for $910 each, payable at different times; and that plaintiff further proposed that later on, “during the coming season of 1892,” he would enter into said business as an equal partner, in consideration of one of the notes to be given by defendant, which plaintiff would deliver up to defendant; that plaintiff proposed, as he was needing securities to be deposited with his creditors then pressing him, and as there was no time then to take an inventory .of the goods, that the value of the goods be ascertained from an inventory theretofore taken, which should be used as a basis to close up the trade, deducting 33-J- per cent thereof, and for the sum thus ascertained the notes be given; but plaintiff agreed that another inventory should be afterwards taken, and if the value of the goods should be found to be less than $1820, the difference should be credited on the notes; that, placing confidence in plaintiff’s promises and propositions, defendant accepted plaintiff’s terms of sale, along with his propositions, and executed the notes one of which is sued on, and entered upon ihe business of merchant under said contract; that he often demanded of plaintiff that he furnish defendant the promised line of credit, and subsequently often demanded during said season of 1892, that plaintiff come into partnership and deliver up the note as he had promised, all of which plaintiff refused to do, and refused to carry out his contract, and that defendant soon found that he had no credit; that, because of the refusal of plaintiff to comply with his agreement, the business proved a failure, and defendant was compelled, in October, 1892, to go out of business and make an assignment; that the inventory agreed to be taken subsequently was never taken; that the one from which the value of the goods was ascertained had been taken to enable plaintiff to make a showing to his creditors, and put a fictitious and excessive valuation upon the stock, which was in fact worth only $1200; that, soon after the notes were given, plaintiff endorsed them to his creditors as security; that, at the time of the trade, defendant was an employe of plaintiff; that he put into the business $225, besides giving his notes for the stock; that his services during the time he carried on the business were worth $1000, and that all of this, as well as the amount of the note sued on, was lost; that, through plaintiff’s refusal to comply with his agreement, soon after the trade was made plaintiff’s property was attached by his creditors; that plaintiff was an old merchant, having been in business a number of years, and understood the business and was well known among wholesale merchants as such; that by plaintiff’s failure to comply with his agreement defendant lost, in profits which would have been made, $1000.

*499 There are some other allegations in the answer, which we do not deem it necessary to state. The answer was framed both as a plea of failure of consideration and a plea in reconvention, and was verified by affidavit.

The exceptions which were sustained were, in substance, (1) that the part of the answer above stated showed no defense; and (2) that the damages claimed for value of the defendant’s services and time lost, and for the profits which would have been made, and for the loss of business, were unliquidated, vague, indefinite and uncertain.

We do not think the defense set up in the answer is subject to the objection that it seeks to vary by paroi the terms of the note sued on. It is simply a case in which the entire contract is not expressed in the notes. As a part of a contract may be in writing and other parts may be oral, it is always competent, when such is the case, where the oral stipulations are not such as the law requires to be written, to show by paroi those which were made orally, provided that, in so doing, the part which has been put in writing is not altered or varied. Thomas v. Hammond, 41 Texas, 42.

The part of the answer which approaches nearest to an attempt to vary or contradict the note is that in which is alleged the contemporaneous agreement that the whole of the amount for which the notes were given was not to be paid, if it should subsequently be found, by the agreed method, that the goods were not worth so much. As we do not think the allegations are sufficient to show a right to an abatement under that agreement, it is immaterial to inquire whether or not it could be shown by paroi. It is alleged that the subsequent inventory was never taken, and it is not shown that this was through any default of plaintiff. It is not averred that plaintiff was ever asked to join in the making of an inventory, or that defendant himself ever took one. It is stated, as an isolated fact, that plaintiff, “soon after” the notes were given, indorsed them to his creditors; but it does not follow that the taking of the inventory and accruing of the consequent benefit to the defendant were prevented by that act. As plaintiff only agreed to a reduction if the value of the goods should be ascertained in this way to be less than the amount for which the notes were given, and as this was not done, no abatement of the amount can be claimed on this ground.

The other agreements made by plaintiff are consistent with the notes. If a defense is shown under those promises it does not arise out of facts which vary the notes, but out of the breach of contemporaneous promises, consistent with the notes, which breach occurred subsequent to the giving of the notes. There can be no doubt that the promises made and accepted under the circumstances stated constituted a valid contract, binding upon plaintiff as well as upon defendant.

We have had some doubts as to whether a breach of the contract to form the partnership is sufficiently alleged. The time fixed for its formation is quite vaguely expressed. If the “coming season of 1892” meant the whole year, or the autumn of 1892, it would be difficult to *500 hold that a breach of the agreement appears. In the first instance, plaintiff would have had the whole of the year, and, in the second, the whole of the autumn, to enter into the partnership; and, as the business ceased in October, 1892, the time allowed him had not expired. But, as the contract was made in the winter, the language, in the absence of anything to explain its meaning, would naturally mean the coming spring season.

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Bluebook (online)
40 S.W. 172, 15 Tex. Civ. App. 497, 1897 Tex. App. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henry-v-mccardell-texapp-1897.