International Paper Co. v. Beacon Oil Co.

290 F. 45, 1923 U.S. App. LEXIS 1745
CourtCourt of Appeals for the First Circuit
DecidedJune 4, 1923
DocketNo. 1618
StatusPublished
Cited by6 cases

This text of 290 F. 45 (International Paper Co. v. Beacon Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Paper Co. v. Beacon Oil Co., 290 F. 45, 1923 U.S. App. LEXIS 1745 (1st Cir. 1923).

Opinion

ANDERSON, Circuit Judge.

The oil company’s suit against the paper company, for breach of a written contract to purchase oil for the year 1921, resulted in a verdict for the plaintiff of $390,143.60. The contract is on a printed form prepared by the oil company, and is as follows, typewritten insertions being printed in italics:

“Sales Contract Beacon Oil Company, 111 Devonshire St., Boston, Mass.
“Memorandum (in duplicate) of sale made on this fourth day of October, 1920, between the Beacon Oil Company (hereinafter called the seller) and the International Paper Company of New York (hereinafter called the buyer).
“Product: Beacon fuel oil.
“Specifications: Gravity — 13/16° Baume. Flash — not under 150° F. closed cup. Waiter amd/or sediment — not over 1%. '
“Base price: $3.50 per barrel of 42 ü. S. gallons f. o. b. cars, Everett, Mass.
“Terms of payment: On 25th of each month for shipments made in first [46]*46half of same month and on 10th of each month for shipments made in last half of previous month.
“Contract starts: About January 1, 1921 — buyer to give seller timely notice of date it desires shipments to start.
“Contract terminates: On December SI, 1921.
“Quantity: Buyer’s requirements for its Bumford and Livermore mills up to maximum of 550,000 barrels per amm/um. <
“Rate of delivery: Approximately equal monthly quantities according to buyer’s requirements, but not over 55,000 barrels in any one month.
“Mode of delivery: Tank car lots. Seller to furnish cars necessary for accomplishing delivery under normal transportation conditions.
“Destination: Buyer’s mills at Bumford and Livermore Falls, Maine.
“And the provisions printed and typewritten on the succeeding pages hereof, except those that by their terms are inapplicable, are parts of this contract.
“Beacon Oil Company,
“By H. L. Wdllenberg, Vice Pres. & Gen. Manager. ■
“International Paper Company,
“By G. M. Smith, Manager Purchasing Department.”

Then follow two pages of “Pfovisions of Contract,” largely immaterial and sufficiently shown by the headings of the paragraphs and by excerpts, as follows:

“Sale. By this náemorandum the seller sells and agrees to deliver, and the buyer purchases and agrees to pay for, the goods mentioned within. Unless specifically provided to the contrary by the parties hereto, the product sold hereunder is to be used by the buyer exclusively for its own requirements, and is not to be resold by the buyer without the written consent of the seller. * * *
“Tests and Measurements.” — Immaterial.
“Claims.” — Immaterial.
“Payments.” — Immaterial.
“Taxes.” — Immaterial.
“Freight rates.” — Immaterial.
“Monthly Shipments. — If the contract extends over a period of months, shipments of deliveries shall be in equal monthly quantities unless otherwise stated in the memorandum, the buyer having the option of varying the monthly quantities by 10 per cent: Provided that, subject to the other provisions of this contract, the agreed quantity must be taken within the time fixed. The buyer shall give the seller at least 10 days’ previous notice of the quantity required in any month, which quantity shall then become the fixed amount deliverable during such month.”
“Tank Cars.” — Immaterial.
“Deliveries by Seller’s Barge." — Immaterial.
“Approximate Quantities. — In case deliveries are made in carload, barge-load, or tank wagon lots, deliveries within 10 per cent, of amounts called for by the contract or any installment thereof shall be deemed sufficient deliveries by the seller, only the actual amounts delivered to be paid for.
“Storage Capacity. — The buyer shall provide storage capacity equal to at least one month’s requirements, and the seller may anticipate deliveries hereunder to any extent permitted by such storage facilities. The buyer shall furnish unloading facilities providing capacity for unloading in any day a number of cars at least equal to one week’s normal requirements.”
“Force Majeure. — Neither party shall be responsible for delays, failure, or omissions hereunder due to any cause beyond its control, wheresoever arising and not due to its own negligence and Which cannot be overcome by the exercise of due diligence, including labor disturbances, riots, fire, earthquake, flood, storm, lightning, epidemic, .war, disorders, hostilities, expropriation or confiscation of properties, 'failure of and delays by carriers, interference by civil or military authorities, whether legal or de facto, and whether purporting to act under some constitution, decree or law, or otherwise, acts of God, perils of the sea, etc., whether or not the cause be of the same class or kind as those enumerated above, such enumeration being expressly under[47]*47stood to be in nowise exclusive of other causes or classes of causes; nor shall the Seller be responsible for any delay, failure, or omission hereunder due to the failure to receive at its Everett refinery its supply of crude petroleum from the party or parties with whom it is under contract for crude oil from which it intends to manufacture the product hereunder. In any such case the operation of this contract so far as necessary shall be suspended without liability for damages, it being understood that the cause of such interruption shall be remedied, if possible, with all dispatch and performance resumed at the earliest practicable time after cessation of such interruption.
“If deliveries are interrupted for any of the causes embraced in the foregoing, the amount of product which is not delivered at the regular contract rate during the period of any such suspension or reduction shall be deducted from the full amount which otherwise would have been delivered under this contract, and the seller shall not be under any obligation to make up such omitted deliveries either during the contract period or after the termination thereof.'
“No Tender Required. — In case of failure of the buyer to accept delivery hereunder, no physical tender of product by the seller shall be necessary, but written notice of the seller’s readiness and willingness to deliver any quantity of the product at any time specified shall be equivalent to physical tender thereof.
“General Conditions. — This contract shall take effect and shall be construed in accordance with the laws of the state of Massachusetts:
“This contract shall not be assignable by either party without the 'written consent of the other.

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Cite This Page — Counsel Stack

Bluebook (online)
290 F. 45, 1923 U.S. App. LEXIS 1745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-paper-co-v-beacon-oil-co-ca1-1923.