Johnson Oil Refining Co. v. Federal Oil & Supply Co.

189 Iowa 1
CourtSupreme Court of Iowa
DecidedMay 15, 1920
StatusPublished

This text of 189 Iowa 1 (Johnson Oil Refining Co. v. Federal Oil & Supply Co.) 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
Johnson Oil Refining Co. v. Federal Oil & Supply Co., 189 Iowa 1 (iowa 1920).

Opinion

Gaynor, J.

This is an action to recover damages for an alleged breach.of contract to deliver ten cars of fuel oil, at $1.75 per,barrel. The plaintiff is an Illinois corporation, and located near the city of Chicago. The defendant is an Iowa corporation, doing business at Des Moines, Iowa. Each handles oil products. On the 3d day of November, the plaintiff wrote the defendant the following letter, properly addressed to and received by the defendant:

“We are interested in receiving quotations on fuel oil, gasoline, for shipment into Illinois and Indiana, also for shipment into eastern points. If you have anything to offer for immediate shipment, we shall appreciate your quotations by wire.”

On November 5th, the defendant answered:

“We have your letter of the third asking for quotations, etc. * * * and we are very pleased to enclose one of our sales sheets showing what we have to offer. * * In regard to fuel oil, we can quote you $1.75 for Illinois and Indiana delivery. * * * We have a good supply of these commodities, and would be very glad to open some business with your company.
■ “P. S. We are asking our Mr. Wolfe who is located in the Peoples’ Gas Building, to call on you at the earliest possible opportunity.
“Note: All quotations are for immediate acceptance and subject to change or withdrawal without notice. All agreements are contingent on strikes, accident and other delays unavoidable or beyond our control. Any tax imposed by the government must be added to our price.”

[3]*3. With this letter, or attached to it, were the sales sheets referred to in the letter, showing quotations of prices on oil commodities, including the commodity referred to in plaintiff’s letter.

On the 6th day of November, plaintiff wired the defendant :

“Your letter fifth. Enter our order ten cars fuel oil one seven five, barrel group, three points, Oklahoma. Wire when can ship.”

On the same day, they followed this telegram by a letter, properly addressed to and received by defendant, as follows:

“Please deliver the following as per instructions indicated. and charge to Johnson Oil Refining Company, Chicago Heights, Chicago, Illinois. Ship to Johnson Oil Refining Company, Chicago Heights, Illinois, by C. I. I. delivery, terms 1-10-30, F. O. B. Group three points. Mail invoice Chicago Heights, Illinois: 1-8000 Gal. Tank Car 26-30 Fuel Oil at 81.75 per barrel, Group three points. Confirming wire. If shipment cannot be made on day requested above, notify us when you will ship.”

On the 8th day of November, 1917, the defendant answered :

“We have your wire asking us to enter your order for ten cars Fuel Oil at $1.75, and we have been checking over our supply with our refinery, and are as yet unable to say if we can enter your order. We have sold pretty heavily the last few days, and we will knoAv, no doubt, by tomorroAv at AAdiich time Ave Avill advise you. Thanking you for your desire to give us some business, Ave are,” etc.

On the 10th day of November, defendant Avrote the plaintiff as follows:

“As per our letter to you yesterday, we have checked our orders for fuel oil, and Ave regret very much to find that Ave cannot accept your order for ten cars as we are so heavily sold that it Avould be useless to take on additional business. We are very sorry, indeed, to turn doAvn this initial business from you, and hope to be more fortunate next time. Assur[4]*4ing you we appreciate your desire to patronize us, we are,?’ etc.

These letters are the only direct communications between the plaintiff and defendant touching the purchase and sale of the oil in question, and it goes without saying that these letters fail to show an acceptance on the part of the defendant of the order of November 6th, and, therefore, no contract. In fact, they affirmatively show that the order of November 6th was refused. If nothing further appeared, there would be no occasion -for proceeding further in the discussion of the case. Plaintiff, however, claims that, before the letters hereinbefore set out, rejecting the order, were received by it, the defendant had, in fact, accepted the order, and, therefore, became bound to perform, by delivering to the plaintiff the oil called for by its order of November 6th. The only evidence upon which the plaintiff relies to show this is found in letters written by the defendant to the Mr. Wolfe referred to in defendant’s letter of November 5th, enclosing the quotations. These letters are as follows:

“Nov. 5, 1917.
“Mr. E. B. Wolfe, Chicago, Illinois.
“Dear Sir: We enclose copy of letter received from the Johnson Oil Company, together -with our reply. Won’t you please make a trip to see them and endeavor to secure their business. I was wondering if their inquiry was to find out our prices, as I believe they are largely tank car dealers themselves.”
“Nov. 8, 1917.
“Mr. E. B. Wolfe: I have your letter of the 7th regarding the order for ten cars given us by Johnson Oil Refining Company. Of course you understand that I am waiting for Roxana to cover me on this transaction, and I have not heard from them, although I wired them this morning as follows: ‘Have you entered our orders fuel oil totaling twenty cars, wire answer.’ I have not acknowledged this order yet to the Johnson people as I do not want to make myself liable until I hear from Roxana,. I suppose on ac[5]*5count of W. O. being in Tulsa, there is some delay in hearing from them. If you can throw any light on the matter, I would like to hear from you.”
“Nov. 12, 1917.
“Mr. E. B. Wolfe: I enclose a copy of letter received this morning from the Johnson Oil Refining Company to which I am making no reply until I can hear from you. I would like to know if you took this order under the name of i;he Great Balees Petroleum Company or under the name of the Federal Oil & Supply Company. It is impossible for us to fill this order, and I feel sure that you understand the situation, and that you will protect us as much as possible in your conversation or in your correspondence with the. Johnson people from now on.”
“Nov. 13, 1917.
“Mr. E. B. Wolfe: Enclosed find copy of letter just received from Johnson Oil Refining Company, together with copy of our reply. Did you have any correspondence with them regarding this order, or was your transaction with them all verbal ? If any letters passed between you, please send me copies and greatly oblige.”

The letter, referred to above, we take it, is a letter written by the plaintiff to the defendant on November 10, 1917, as follows:

“We acknowledge receipt of yours of the 8th with reference to our order for ten cars of fuel oil at $1.75, noting carefully Avhat you have to say in this connection. We respectfully refer you to your letter of Nov. 5th wherein you made us a flat offer on fuel oil at $1.75 for Illinois and Indiana delivery, also in this letter you state you had a good supply of this commodity and desired to open some business Avith us. Also in regard to the above, your Mr.

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