International Accountants Society v. Santana

117 So. 768, 166 La. 671, 59 A.L.R. 276, 1928 La. LEXIS 1941
CourtSupreme Court of Louisiana
DecidedJune 4, 1928
DocketNo. 29207.
StatusPublished
Cited by16 cases

This text of 117 So. 768 (International Accountants Society v. Santana) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Accountants Society v. Santana, 117 So. 768, 166 La. 671, 59 A.L.R. 276, 1928 La. LEXIS 1941 (La. 1928).

Opinions

ROGERS, J.

Plaintiff is a corporation engaged in the business of teaching by correspondence through the mails. Its principal office is in the city of Chicago, and it operates agencies in other cities throughout the country for the purpose of promoting its business.

Defendant is a resident of the city of New Orleans, and on November 14,1923, he signed an application for membership in the plaintiff society, entitling him to a course of instruction by correspondence in “higher accountancy.” In this application, which consist? of a printed form furnished by the plaintiff, is embodied an agreement on the part of the defendant to pay the enrollment fee of $155, of which $10 is to be paid in cash, and the balance is to be paid in monthly installments of $10 each. At the time of signing his application, defendant paid $10 to the local representative of the plaintiff, who acknowledged receipt thereof on the application itself. The application was then forwarded, presumably, by plaintiff’s representative to the “home office in Chicago” for “official acceptance” by plaintiff. Later, plaintiff furnished defendant with certain lessons, of which, however, defendant did not avail himself. Upon receipt of the lessons, defendant addressed a letter to plaintiff, offering tot return them, and requesting to be released from his contract. Plaintiff refused the offer, denied the request, and insisted on holding defendant to his agreement. Defendant did nothing further in the matter, except to make to plaintiff’s local representative three small payments of $5 each at long intervals during a period of eight months, the last of said payments being made on October 24, 1925. Defendant having refused to make any further payment thereafter, plaintiff, on June 7, 1926, filed this suit in the first city court of New Orleans to recover a balance of $130 alleged to be due on defendant’s obligation under the contract, which is styled in the petition as a promissory note.

The defendant, in his answer, pleaded that he was a minor at the time the contract was entered into. The agreement shows on its face that defendant was 20 years of age when he signed it. Plaintiff urged, as against the plea of minority, that defendant had ratified the contract by making the three payments of $5 each after he had reached his majority.

Judgment was rendered by the city court in favor of plaintiff as prayed for. This judgment was set aside by the Court of Appeal, which rejected plaintiff’s demand. The record was brought here on a certiorari, and the case is now before us for review.

Plaintiff relies on Civ. Code, art. 1785, providing that a minor may, after reaching his majority, expressly or impliedly, ratify, in the manner and on the terms set forth in the Code, a contract made during his minority, and Civ. Code, art. 2272, reading as follows, viz.:

“The act of confirmation or ratification of an obligation, against which the law admits the action of nullity or rescission, is valid only when it contains the substance of that obligation, the mention of the motive of the action of rescission, and the intention of supplying the defect on which that action is founded.
“In default of an act of confirmation or ratification, it is sufficient that the obligation be voluntarily executed, subsequently to the period at which the obligation could have been validly confirmed or ratified.
“The confirmation, ratification, or voluntary execution in due form, and .at the period fixed by law, involves a renunciation of the means and exceptions that might he opposed to the act, without prejudice, however, to the right of persons not parties to it.”

In the Court of Appeal, plaintiff’s contention, based on the codal articles, was, as shown by the original brief filed in its behalf, “that the minor (defendant) ratified the *675 contract or note by deliberately and knowingly making payments on account after majority.” Tbe Court of Appeal, applying tbe well-settled r.ule of law that tbe ratification of a contract made during minority must be with tbe full knowledge of tbe disability and with tbe clear intention to abandon all legal right to question its validity upon that ground, held that tbe payments made by defendant after reaching his majority were not of themselves sufficient to constitute ratification.

In its application, to the Court of Appeal foi; a rehearing, which was refused, plaintiff shifted its position somewhat, and argued that defendant was bound, not because he bad ratified the contract, hut because be had voluntarily executed it after becoming of age. This is the contention which plaintiff stresses before this court, resting it upon the second and third paragraphs of Civ. Oode, art. 2272, hereinabove quoted.

Under tbe provisions of tbe codal article now relied upon by plaintiff, it is plain that in order to' confirm an act not binding upon a party, a formal instrument is not indispensible, and that a voluntary execution involves the renunciation of the exceptions which might have been opposed to it. Cobb v. Parham, 4 La. Ann. 148. Nevertheless whether a void or voidable act be validated by a formal instrument or by its voluntary execution, there is no difference in the interpretation and legal effect of the respective methods which may be used for the purpose. In the one case the ratification is express and in the other ease it is implied. To execute voluntarily is to execute with the intention to confirm and ratify. Celeste Sugar Co. v. Dunbar-Dukate Co., 160 La. 694, 107 So. 493; Augustin v. Farnsworth, 155 La. 1053, 99 So. 868; Sims v. Jeter, 129 La. 262; 55 So. 877. In either case the intention to ratify by the party against whom the act is opposed must be clearly and unequivocably shown. Celeste Sugar Co. v. Dunbar-Dukate Co., supra; Wells v. Files, 136 La. at page 133, 66 So. 749; Sims v. Jeter, supra; Breaux v. Sarvoie, 39 La. Ann. 243, 1 So. 614. No intention to ratify will be inferred when, the act can be otherwise explained. Sims v. Jeter, supra. And in case of doubt the party against whom ratification or voluntary execution Is claimed must have the benefit of tbe doubt. Succession of Easum, 49 La., Ann. 1345, 22 So. 364.

Tbe burden of proving -the ratification or voluntary execution of the contract is on the plaintiff. Riva’s Heirs v. Barnard, 13 La. 175. The defendant reached his majority on February 2, 1924. He never derived any benefit from tbe contract either before or after he became of age. Plaintiff’s claim of ratification or voluntary execution rests entirely, therefore, on the fact that defendant made three payments of ?5 each on an unexecuted contract between 13 and 21 months after he had reached his majority. But these payments do not necessarily show intention to ratify.

Larombiere says (as set forth in Breaux v. Sarvoie, supra):

“That, as the acts from which confirmation or ratification -is sought to be deduced, have no value otherwise than as indicia of the intention on the part of him from whom they emanate, that intention can be inferred only from a voluntary execution, which must be enlightened, reasoned, and exempt from all error. Volume 4, p. 625, No. 35, § 3.”

In 2 Greenleaf’s Ev. § 367, the author says:

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Bluebook (online)
117 So. 768, 166 La. 671, 59 A.L.R. 276, 1928 La. LEXIS 1941, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-accountants-society-v-santana-la-1928.