Keswick v. Rafter

54 N.Y.S. 850
Appellate Division of the Supreme Court of the State of New York·Decided December 9, 1898·Published·Cited by 1 cases

Opinion

INGRAHAM, J.

The action was brought to recover the loss sustained by the plaintiffs because of the refusal of the defendant to accept a consignment of tea, purchased by plaintiffs for the defendant in China. The ground assigned by the defendant for his refusal to accept the tea was that it was not up to the grade required by the contract or order. That question was sharply litigated upon the trial, and the case was submitted to the jury by the learned judge [852]*852who tried the ease, with the instruction that, unless they found that the tea was the grade required by the order or contract, they must find a verdict for the defendant. The tea was graded in China before it was shipped, and again upon its arrival in this country, by experts whose qualifications were not disputed by the defendant. The evidence was amply sufficient to sustain the verdict that the tea was fully up to the grade described in the order, and we think the verdict of the jury disposes of that question.

The appellant contends that the contract in question was a sale of the tea by the plaintiffs to the defendant, and not an order of the defendant to the plaintiffs to purchase for him a certain lot of teas in China. We do not see how this would help the defendant. If, as he contends, there was a sale of the tea by the plaintiffs, the price that he was bound to pay was 21 cents a pound; while it appears from the evidence, and was not disputed, that the cost of the tea to the defendant, if he had accepted it, paying the drafts drawn against him therefor, would have been a little under 20 cents a pound; and the amount of the verdict was based upon the latter figure, as being what the plaintiffs were entitled to receive from the defendant for the tea. If there was a sale of the tea by the plaintiffs to the defendant, the defendant would have been indebted to the plaintiffs more than one cent a pound in addition to the amount of the verdict. We think, however, that the contract was not a sale by the plaintiffs to the defendant, but an order for the purchase of these teas in China by the plaintiffs, as the agents of the defendant.

The contract is evidenced by certain letters, the first being a letter from the plaintiffs to Messrs. Beebe Bros., tea brokers, as follows:

“We would like to have you make the following offer to Mr. Edward Rafterr 4000/5000 Superior Formosa Oolong, at 21%c., O. F. & X. Suez. Mr. Leyburn especially states that this is the best parcel offering, and that it will not be-replaced.”

In answer to this, and on the 26th of October, 1893, the defendant sent a communication to the plaintiffs, as follows:

“I will give 21c., O. F. & I., for the 4000/5000 block Superior Formosa Oolong, via Suez Canal, recommended by Mr. Leyburn to me.”

In reply to this letter, and on the same day, the plaintiffs wrote to the defendant:

“We beg to confirm our verbal message of this a. m., conveyed through Mr. O. W. Beebe, to the effect that we thought we could buy the parcel of 4000/5000 pkgs. Superior Formosas previously offered you at 21%c., and have your reply that you will accept the same at 21c., for which we thank you, and we are cabling to-night, as per inclosed memo.’’

There was inclosed in this memorandum a writing which stated that the cable that they had sent to China was as follows:

“For account Ed. Rafter, we offer you 21c. for parcel of 4000/5000 Super. Formosa Oolong, or less if you cannot get as many.”

This letter also contained the statement that the cost of the cable was $13.72, which amount the defendant paid the plaintiffs’ representative in New York.

Contracts of this nature seem to have been familiar to the trade in New York, and it was so testified to. They were explained by a [853]*853witness for the plaintiffs as being contracts whereby the teas were to be purchased for the defendant in China, and shipped to Hew York, the defendant paying the purchase price, freight, commissions, insurance, and expenses incurred by the plaintiffs, upon the condition, however, that the total amount to be paid should not exceed the price named per pound. This testimony was not contradicted by the defendant, nor by any testimony produced in his behalf. It was also in evidence that the defendant had made several purchases through the plaintiffs on like orders previous to the transaction in question, where he had paid, not the price specified, but the purchase price for the tea in China, with freight, insurance, commission, and expenses added. Heither in the offer by the plaintiffs to the defendant, nor in the reply of the defendant, is there any statement that the plaintiffs are to sell the teas to the defendant; nor does the defendant in his reply, in which he expresses his willingness to purchase the goods at the price named, offer to buy them from the plaintiffs. The original offer states that a Mr. Leyburn, who appears to have been the plaintiffs’ representative at Amoy, China, states “that this is the best parcel offering, and that it will not be replaced.” And the defendant, in his reply, says: “I will give 21c., C. F. & I., for thé 4000/5000 block Superior Formosa Oolong, via Suez Canal, recommended by Mr. Leyburn to me.” In reply, the plaintiffs do not accept this counter offer of the defendant, or agree to sell to him the teas at the price named, but state that they thought they could buy the parcel at 21| cents, and, having the defendant’s offer, have cabled their representative in China that such offer was 21 cents a pound for the parcel of 4000/5000 Formosa Oolong, “or less if you cannot get as many.” The contents of the cable were communicated to the defendant on the same day, and to it he made no objection, but, on the contrary, ratified it by paying to the plaintiff the cost of the cable, which would be most inappropriate if there was a contract for a sale to the defendant of the teas in question.

Thus, the correspondence between the parties, explained, as it was, by the evidence of the broker who made the contracts and prepared the offer made by the defendant, shows that a contract of this kind was an order for the plaintiffs to purchase the tea for the defendant in China. The plaintiffs, thus being the agents of the defendant for the purchase of this tea, were entitled to recover the cost" they were put to in carrying out the order given by the defendant, provided that they followed his instructions. Acting under the authority thus given, the plaintiffs purchased the tea; and the evidence is that, when they came to ship it, there were no available means by which it could all be shipped by the Suez Canal, and the plaintiffs’ representative in China shipped part of it by what is called the “Overland Route,” which is from China to San Francisco, and then by rail to Hew York. The balance of the tea was sent by steamer via Suez Canal. , The reason for this change was stated in the testimony. The freight by what is called the “Overland Route” is usually higher than that by the Suez Canal, but at this particular time a shipment by the Overland Route was more advantageous; and it further appears that the trade shipped [854]*854by the Overland Eoute, if possible, when the cost was not greater. The deviation made by the plaintiffs’ representative in China was made in the interest of the defendant, to save freight, and insure the prompt arrival in New York. The evidence is that this was accomplished.

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Keswick v. Rafter, 54 N.Y.S. 850 (N.Y. Ct. App. 1898).

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