Kadish v. Young

108 Ill. 170, 1883 Ill. LEXIS 68
CourtIllinois Supreme Court
DecidedNovember 20, 1883
StatusPublished
Cited by57 cases

This text of 108 Ill. 170 (Kadish v. Young) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kadish v. Young, 108 Ill. 170, 1883 Ill. LEXIS 68 (Ill. 1883).

Opinion

Mr. Justice Scholeield

delivered the opinion of the Court:

>

This was assumpsit, by appellees, against- appellants, to i| recover damages sustained by the breach of an alleged con-5 tract, whereby, on the 15th of December, 1880, appellees sold to appellants 100,000 Jmshels of No. 2 barley, at one dollar and twenty cents per bushel, to be delivered .to 'appellants, and paid for by them, 'at such time during the month of January, 1881, as appellees should elect. Appellees tendered to appellants warehouse receipts for 100,000 bushels of No. 2 barley on the 12th of January, 1881, but appellants refused to rcc^tfMft receipts and pay for the° barley. Within a reasomBBMPie thereafter appellees sold the barley upon the market, and having credited appellants with the proceeds tliereof, they brought this suit, and on the trial in the circuit court they recovered the difference between the contract price and the value of the barley in the market on the day it was to have been delivered by the terms of the contract. Upon the trial appellants denied the making of the alleged contract, that th'ey were iiarfcners, or that any purchase of the barley wTas made for their joint account; and they also contended, if a contract was shown, then that on the next day after it was made they gave notice to appellees that they did not consider themselves bound by the contract, and they would not comply with its .terms, and evidence was given tending to sustain this contention.

The questions of fact contested upon the trial in the circuit court, and to some extent discussed in argument here, ¡'are, by the judgment of the Appellate Court, conclusively nettled against appellants, and we are denied the power of inquiring whether they are rightly or wrongly settled. Bridge Co. v. Commissioners of Highways, 101 Ill. 519; Edgerton v. Weaver, 105 id. 43; Indianapolis and St. Louis . R. Co. v. Morganstern, 106 id. 216; Missouri Furnace Co. v. Abend, 107 id. 44.

The questions of law to which our attention has been directed by the arguments of counsel, arise upon the rulings of the circuit judge in giving and refusing instructions. He thus ruled7"aKohg other things, that appellants, by giving , notice to appellees on the next day after the making of the 1 contract that they would not receive the barley and comply with the terms of the contract, did not create a breach of such contract which appellees were bound „, . eg. d, or impose upon them the legal obligation i_ resell “úhe hdey on the market, or make a forward contract for the purchase of other barley of like amount and time of delivery, within a reason^ able time thereafter, and credit appellants mm'~ of \ such sale, or give them the benefit of such forwarocontract, ’ but that appellees had the legal right, notwithstanding such ' notice, to wait until the day for the delivery of the barley by ! the terms of the contract, and then,--upon appellants’ failure ¡ to receive and pay for it on its being tendered, to resell it i on the market, and recover from appellants the difference between the contract price of the barley and its market varne on the day it was to have been delivered.

That in ordinary cases of contract of sale of personal property for future delivéry,- nd failure to receive and pay for it at the stipulated.time, the measure of damages is the f difference between the contrar1 -ice and the market or cur- j rent value of the property at tu'j «mie and place of delivery, has been settled by previous decisions of this court, (see McNaught v. Dodson, 49 Ill. 446, Larrabee v. Badger, 45 id. 440, and Saladin v. Mitchell, id. 79,) and is not contested by appellants’ counsel. But their contention is, that in ease'of Ij such contract of jale for future delivery, where, before the, time of delivery, the buyer gives the seller notice that he will' not receive the property and. comply with the terms of the! 1 contact, this, whether the seller assents thereto or not, creates a breach of the contract, or, at, all events, imposes the legal duty on the seller to thereafter take such steps with reference to the subject of the contract, as, by at once reselling the property on the market on account of the buyer, or making a forward contract for the purchase of other property of like amount and time of delivery, shall most effectually mitigate the damages to be paid by the buyer in consequence of the breach , yt imposing loss upon the seller, ^^the' ’■uyer may th. i cr-ate a 1 jacli of the contract without the^ consent of-the seller, we doubt not the duty to sell, (where the property is in the possession of the seller at the time,) at least withr reasonable time after such breach, will result as a necessary consequence of the breach. When the breach' occurs by a failure to accept and pay for property tendered pursuant to the terms of a contract at the day specified for its delivery, this is doubtless the duty of the seller, and no reason is now perceived why it should not equally result from any breach of the contract upon which the seller is legally boy. J to act.

But the well settled doctrine of the English courts is, that a -ouyer can not thus create a breach of contract upon which the seller is bound to act. In Leigh v. Patterson, 8 Taunt. 540, (4 Eng. C. L. 267,) Phillpotts et al. v. Evans, 5 M. & W. 475, Ripley v. McClure, 4 Exch, 359, and, it may be, also in« other early cases, it was held ; -party to. a contract to be pery formed in the future can not, by merely giving notice to theij opposite party that he will not perform Efs part of the con-jj tract, create a breach of the contract. Subsequently, however, in Cort v. Amhergate and Nottingham Ry. Co. 6 Eng. L. & Eq. 230, and more explicitly in Hochster v. De La Tour, 20 id. 157, the doctrine was announced as not in conflict with previbus decisions, that the party to whom notice is given in such cases will be justified in acting upon the notice, provided it is not withdrawn before he acts. Lord Campbell, Gh. J., in delivering his opinion in the latter case, and speaking for the court, used this language: “The man who wrongfully renounces a contract into which he has deliberately entered, can- not justly complain if he is immediately sued injured, and it seems reasonable to allow an option to the injured party either to sue immediately or to wait till the time when the act was to be done, still holding it as prospectively binding for the exercise of this option, which may ,pe advantageous to the innocent party, and can not be prefor a judicial to the wrong doer."

The leading text-writers who treat of this question follow the authority of these eases, and the rule they announce is thus expressed in Sedgwick on Damages, (6th ed.) 340, *284: “An effort has been made in many cases by the purchaser to relieve himself from the contract of sale before the time fixed for performance by giving notice that he would not be ready to complete the agreement, and in these cases it has been.insisted that the damages should be estimated as at the time of giving notice; but the English courts have justly denied the right of either party to rescind the agreement, and have adhered to the day of the breach as the period for estimating damages. ” To like effect see Chitty on Contracts, (11th Am. ed.) 1079; 2 Parsons on Contracts, (6th ed.) 676 ; Benjamin on Sales, (1st ed.) 559, (4th Am. ed.) 973; Addison on Contracts, *952; Wood’s Mayne on Damages, 250,

The question came before this court in Fox v. Kitton, 19 111.

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108 Ill. 170, 1883 Ill. LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kadish-v-young-ill-1883.