Kansas Flour Mills Corp. v. Dreyfus Bros.

1934 OK 713, 40 P.2d 20, 170 Okla. 325, 1934 Okla. LEXIS 753
CourtSupreme Court of Oklahoma
DecidedDecember 11, 1934
Docket22879
StatusPublished
Cited by5 cases

This text of 1934 OK 713 (Kansas Flour Mills Corp. v. Dreyfus Bros.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kansas Flour Mills Corp. v. Dreyfus Bros., 1934 OK 713, 40 P.2d 20, 170 Okla. 325, 1934 Okla. LEXIS 753 (Okla. 1934).

Opinion

RILEY, C. J.

This is an appeal from a judgment for defendant in an action commenced by plaintiff in error.

The facts which are not disputed are: The Alva Roller Mills is a mill operated by plaintiff at Alva, Okla. On July 6, 1928, plaintiff and defendant entered into a written contract whereby plaintiff sold to defendant 420 barrels of flour, two grades, one grade known as Sun flour at $6.50 and the other! Big A flour at $6.10', f. o. b. car at Alva, with freight allowed to Tulsa, Okla., subject to an allowance or commission of '20c per barrel, as provided by a prior written agreement; shipment to be made on specifications to be furnished by defendant.

On July 10, 1928, the parties entered into an oral agreement whereby plaintiff sold defendant 5,000 barrels of flour, to consist'of Sun flour at $6.40 per barrel and Big A brand at $6, or net price after allowing the discount or commission (or $6.20, for Sun brand and $5.80 for Big A), the flour to be shipped as and when directed by defendant before January 1, 1929, on specifications as to amount of each brand; flour to be in cotton bags, 48 lbs. basis, with differential allowed for bags of smaller capacity.

This oral contract was afterwards reduced to writing and signed by plaintiff, but *326 defendant never did sign or confirm same in writing.

Plaintiff contends that the oral contract was thereafter validated so as to remove it from the provisions of 'the statute of frauds (St. 1931, sec. 9455), by the delivery to, and acceptance by, defendant of ten barrels of flour, and the payment therefor by defendant. This defendant denies.

It appears that a minimum carload of flour is 210 barrels. That is, if less than 210 barrels is shipped in a car, the amount of freight charges is the same as though the car contains '210 barrels. Shortly after the written contract was entered into defendant gave plaintiff directions specifically to ship 220 barrels of flour, which was done.

Defendant received, accepted, and paid for same. Thereafter and on August 3, 1928, defendant ordered a further shipment of flour. The evidence is in conflict as to how much was ordered shipped. That of plaintiff is that defendant directed plaintiff to ship 210 barrels; that of defendant is that specifications and directions as to the amount of flour was 200 barrels, or enough only to complete the written contract for 4'20 barrels. The conversation was by telephone and there were no written specifications., so that the amount ordered shipped in the last car was a disputed question of fact for the jury. However, plaintiff did ship to defendant in the last car 210 barrels; not all of it, however, was Sun brand and Big A brand; 30 barrels thereof being Snowflake brand. There were also 30 barrels of Snowflake in the first car shipped. It appears that at that time there was no objection to the substitution of Snowflake for one of the other brands.

When the last car was shipped plaintiff sent defendant an invoice purporting to show that the shipment was made under the two contracts,' one designated as No. 193, dated . 7/5 /28, and the other No. 180, dated 7/10/28. All the flour in this car was invoiced at the prices under the written contract of July 5, except 10 barrels which were ¡invoiced at the price of the like grade covered by the oral contract, which was ten cents per barrel higher. When the flour arrived in Tulsa defendant accepted same and paid for it at the prices stated in the invoice.

The evidence of plaintiff also shows that on August 3, 1928, plaintiff wrote and mailed defendant the following letter:

“Dreyfus Brothers,
“Tulsa, Oklahoma.
“Dear Mr. Dreyfus:
“Following telephone instructions given us today by Mr. Goldman, we have entered for prompt shipment, car of flour per specifications attached. Please check these directions carefully, advising us immediately of any errors.
“200 barrels of these specifications are being applied on your purchase of July 6th, completing the contract, and the other ten barrels on your purchase of July 10th.
“Thanking you kindly for these directions, we remain
“Very truly yours,
“The Alva Holler Mills.
“Manager.”

Defendant, however, denied that this letter was ever received, and its evidence is in substance that when defendant accepted and paid for the last carload of flour they did not know that the extra ten barrels of flour was applied or sought by plaintiff to be applied upon the oral contract of purchase of July 10, 1928.

Defendant refused to confirm in writing the oral contract, and refused to direct further shipments, and, though not denying the oral contract, refused to perform.

The basis of plaintiff’s claim in its petition is that immediately after the oral contract it purchased in the open market sufficient wheat out of which to manufacture the 5,000 barrels of flour. That it was necessary so to do in order to protect itself against subsequent raise in the price of wheat, and consequent. loss in fulfilling its contract. That instead of a raise in the market price of wheat there was a decline; that it was necessary that plaintiff hold the wheat in readiness to manufacture the flour until January, 1929, which it did, and at which time the market price of wheat was much lower, with a corresponding decline in the market of flour of $1.01 per barrel, whereby it suffered a loss of $5,039.90. To recover, this amount with interest this action was commenced.

Plaintiff’s right to recover depends, first, upon whether its contract with defendant was one of sale or a contract for work and labor. If the latter, it was not necessary that the contract be reduced to writing and signed by defendant. If not a contract for work and labor, then upon whether the oral contract relied upon was in fact rendered *327 effective by partial 'performance, that is, by delivery and acceptance of a part of the flour contracted for, that is, the ten barrels.

Receipt of this letter was positively'denied by defendant, and it cannot be said as a matter of law that defendant was bound by the statements therein made when he after-wards paid for the extra ten barrels of flour.

Defendant asserts that, although it knew that the two cars of flour contained 430 barrels, or ten barrels more than was covered by its contract of July 6, it was accepted and paid for under a custom then obtaining in the flour trade to the effect that where a buyer ordered a quantity of flour a few barrels less than a minimum carload, it was the custom for the seller in filling the order to include enough flour to make up a minimum carload, and for the buyer to accept and pay for the extra amount, not necessarily at the price set in the order of contract of purchase, but at the market price prevailing at the time of delivery. The explanation of the reason for this custom was that the party liable for the freight would thereby secure the advantage of the amount of freight which would thus be saved, the freight being the same up to a minimum carload of 210 barrels.

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Bluebook (online)
1934 OK 713, 40 P.2d 20, 170 Okla. 325, 1934 Okla. LEXIS 753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-flour-mills-corp-v-dreyfus-bros-okla-1934.