L. Grauman Soda Fountain Co. v. Etter

16 P.2d 417, 41 Ariz. 151, 1932 Ariz. LEXIS 160
CourtArizona Supreme Court
DecidedNovember 23, 1932
DocketCivil No. 3182.
StatusPublished
Cited by4 cases

This text of 16 P.2d 417 (L. Grauman Soda Fountain Co. v. Etter) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L. Grauman Soda Fountain Co. v. Etter, 16 P.2d 417, 41 Ariz. 151, 1932 Ariz. LEXIS 160 (Ark. 1932).

Opinion

*152 ROSS, J.

This is an action by the L. Grauman Soda Fountain Company, Inc., against Earl E. Etter for the purchase price of three soda fountain units sold by the plaintiff to the E & G Fruit Juice Company, a copartnership composed of defendant and one George C. Keith, for the sum of $1,650, evidenced by the partnership note dated January 16, 1930, and payable on or before April 1, 1930. The defenses are (1) a general denial; (2) that the note was without consideration; and (3) that it was given under compulsion and coercion. The court heard the evidence and gave judgment to the defendant on the grounds of want of consideration and the failure of the plaintiff to deliver or tender delivery of the soda fountain units to defendant. The plaintiff has appealed.

In its amended assignments the plaintiff says the court erred in its judgment, in that the contract between the parties does not require a tender or delivery of the soda fountain units in order to obligate the defendant to pay the agreed purchase price; and in that the plaintiff’s promise to deliver the goods upon the order of defendant was a good and sufficient consideration; and in that■ plaintiff had fully performed on its part the terms of the contract and was entitled to recover on the note.

A statement of the facts of the case as made by the plaintiff in its brief, to which no objection is taken by the defendant and which after reading the evidence we are satisfied is correct, is, with some slight changes and deletions, as follows: On May 11, 1929, the partnership, E & G Fruit Juice Company, was engaged in the manufacture and sale of soft drinks in the city of Phoenix, and on that date it entered into a written contract with plaintiff under the terms of which the partnership agreed to buy, and the plaintiff to sell, ten soda fountain units, containing mechanical re *153 frigeration or frigidaire coils, at the price of approximately $650 for each unit; and, if not paid for in cash when delivered, to be paid for one-third cash and balance in deferred payments, with title to remain in seller until fully paid for. One of such units was paid for and delivered. On September 4, 1929, the partnership having decided that the type of fountain contracted for as above was not suitable to their needs, communicated the fact to plaintiff, and on that date said original contract was modified so as to call for only four more fountains, to be built by plaintiff according to specifications; that is, they were to be changed from the mechanical refrigeration type to the direct icing type, and the price was also changed from $650 to $550 each.

On September 4th, and as a part of the same transaction, the plaintiff gave to defendant, who was acting for the partnership, the following agreement, receipt and acceptance:

“Beceived of the E & G Fruit Juice Co., composed of E. E. Etter and George Keith, Phoenix, Ariz., a note, in the sum of $2,500.00 made payable to E. E. Etter, by the General Citrus Stores Co. and signed by W. A. Larkins, Pres, and Julius Fried, Secy, dated July 1st, 1929, and payable July 1st, 1930.
“It is understood that this note is deposited as collateral security, against the purchase of four (4) Dispensing’ Units, being’ made for the E & G Fruit Juice Co., at the price of $550.00 each F. O. B. Los Angeles, Calif. Units to be shipped as ordered, and it is understood that the four (4) units are to be paid for, not later than April 1st, 1930, and that as each unit is shipped, it will be billed, and considered as part of Lease Sale Contract, and is to bear interest at the rate of 7% from date of shipment, until paid for.
“L. GRAUMAN SODA FOUNTAIN CO., INC.
“By C. C. ORNAUER.
“Accepted:
“E & G FRUIT JUICE CO.
“By EARL E. ETTER.”

*154 Under this new arrangement plaintiff very soon thereafter manufactured and delivered to the partnership one of the four units, and was subsequently paid therefor the agreed purchase price. The other three units the plaintiff completed, or practically completed, during September, 1929, but they have not been ordered out by the partnership, and are still in plaintiff’s possession.

In January, 1930, the defendant, Etter, who was the owner of the $2,500 note pledged to plaintiff as collateral, appeared at plaintiff’s office in Los Angeles, and after some negotiations, obtained the release of said collateral, and in lieu of the agreement of September 4, 1929, gave to plaintiff the following note and agreement:

“$1,650.00 Phoenix, Ariz. Jan. 16, 1930.
“On or before April 1st, 1930 — after date We promise to pay to the order of L. Grauman Soda Fountain Co. Inc. Los Angeles, Calif, sixteen hundred fifty and 00/100 — Dollars, payable at the office of L. Grauman Soda Fountain Inc. Los Angeles, Calif.
“It being understood, that in consideration of the release of a $2,500.00 note deposited as collateral security, we agree that the terms of original contract apply, and we are to remit against this note, before maturity, and should we order out balance of three units, or any part of the three, prior to April 1st, we are to remit the sum of $550.00 on each of such units so ordered out, at the time of ordering shipment made.
“With interest at the rate of 7%.
“E & G FRUIT JUICE CO.
“By GEO. C. KEITH, Pres.
“By EARL E. ETTER.”

The action is to recover on the last note and agreement.

Taking and construing together the contract of September 4, 1929, and its modification of January *155 16, 1930, it is made evident that plaintiff agreed to sell the partnership, and the partnership agreed to buy, four soda fountain units at the price of $550 each, to be paid for not later than April 1, 1930, but, if ordered shipped by the buyer prior to that date, to be paid for when ordered, the time of shipment being optional with the buyer. The contract of September provides “units to be shipped as ordered.” The one of January 16th provides, “and should we order out balance of three units, or any part of the three, prior to April 1st, we are to remit the sum of $550 on each of such units so ordered out, at the time of ordering shipment made.” Under these agreements there was no duty on the part of the plaintiff to deliver or ship said fountains, or any of them, until ordered by the partnership to do so. Since the partnership failed to order shipments, the plaintiff has not breached its contract. The partnership, however, has breached that provision of the contract wherein it agreed unconditionally to pay plaintiff the purchase price of the units “on or before April 1, 1930.” It is also apparent that plaintiff did everything it had agreed to do. It had performed its agreement to the extent that it had been requested or permitted to perform.

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Cite This Page — Counsel Stack

Bluebook (online)
16 P.2d 417, 41 Ariz. 151, 1932 Ariz. LEXIS 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-grauman-soda-fountain-co-v-etter-ariz-1932.