M. Lowenstein & Sons v. Noon Bag Co.

226 P. 222, 111 Or. 421, 1924 Ore. LEXIS 155
CourtOregon Supreme Court
DecidedMay 20, 1924
StatusPublished
Cited by1 cases

This text of 226 P. 222 (M. Lowenstein & Sons v. Noon Bag Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M. Lowenstein & Sons v. Noon Bag Co., 226 P. 222, 111 Or. 421, 1924 Ore. LEXIS 155 (Or. 1924).

Opinion

COSHOW, J.

It is well established in this state that the findings of the Circuit Court in an action at law have the force of a verdict: Section 159 Or. L.; Cannon v. Farmers’ Union Grain Agency, 103 Or. 26, 40 (202 Pac. 725); Stark v. State Industrial Accident Commission, 103 Or. 80, 102 (204 Pac. 151). If there is any evidence in the record to support the findings of the Circuit Court, the judgment of that court must be affirmed.

The plaintiff contends that the telegrams and letters, passing between the parties directly and through their agents, constitute a binding and complete contract in writing, which it is the duty of the court to construe. Correspondence set out in above statement numbered 1 to 14, inclusive: Williams v. Burdick, 63 Or. 41 (125 Pac. 844, 126 Pac. 603); Ankeny v. Young, 52 Wash. 235 (100 Pac. 736); 35 Cyc. 54; 20 Cyc. 256; 27 C. J. 257, § 307, note 22; 7 C. J. 294, § 367, notes 86, 87; 23 R. C. L. 1260; 25 R. C. L. 644, 681; Butler v. Thomson, 92 U. S. 412 (23 L. Ed. 684); Eau Claire Canning Co. v. Western Brokerage Co., 213 Ill. 561 (73 N. E. 430); Merritt [442]*442v. Clason, 7 Johns. (N. Y.) 102, 7 Am. Dec. 286; 4 Am. & Eng. Ency. Law, 751. The parties themselves, however, did not so treat this correspondence. When the sold note was transmitted from M. R. Jacobs & Bros., Inc., to the Noon Bag Company, the defendant, the latter was requested to detach, sign and return the receipt attached to said sales note, which reads in part as follows:

“Received from M. R. Jacobs & Bros., Inc. * * Sales note No. 5162, which we have examined and confirm.”

See also letters numbered 17, 26, 27, 32, 33, 34 and 35. It must be remembered that at the time the defendant wrote the letters and transmitted the.telegrams, numbered 10, 11, 16 and 21, approving the alleged sale, the defendant had no knowledge of the condition embodied in the sales note transmitted by M. R. Jacobs & Bros., Inc., to the defendant. The same condition was incorporated in the bought note delivered to the plaintiff. As soon as the defendant had notice of that condition, it demanded explanations. There was no delay on the part of the defendant in making objection to the condition upon which the alleged purchase was made. There is nothing in the record that indicates, in any degree, that the defendant’s agent had authority, in any manner, to modify the unconditional purchase order. Indeed, the letter from the agent of the defendant, O. C. Bynum, through whom the order was made, indicates that the purchase had been made from the owners of the goods. The fact is that the order was given to other brokers. The letter, dated September 27, 1920, from O. C. Bynum to the defendant, contains this language:

[443]*443“I note that you were somewhat surprised at our being able to execute your order at the price under the circumstances existing at the time, but we found the goods in second hands, and landed them at our figure.” Letter No. 15.

The fact appears to be that the goods were not owned by the plaintiff at the time the alleged contract was entered into. It appears that it had not so much as given an order for the goods for when the name of the mill was demanded by the defendant, the plaintiff was unable to give the required information.

The contention of the plaintiff that the correspondence, referred to and numbered 1 to 14, inclusive, in the statement herein, constitutes a valid and binding agreement could be upheld if the parties had rested on that correspondence and the broker had not exceeded his authority. Such were the facts in the cases of Eau Claire Canning Co. v. Western Brokerage Company, 213 Ill. 561 (73 N. E. 430), and relied upon by the plaintiff: Williams v. Burdick, 63 Or. 41 (125 Pac. 844, 126 Pac. 603); Ankeny v. Young, 52 Wash. 235 (100 Pac. 736, 738). Nor is the case of Coast Fir Lumber Co. v. Parker, 106 Or. 641 (213 Pac. 617), authority for sustaining the modification of the terms of the alleged purchase as authorized by the defendant. In the latter case, the confirmatory order did not in any wise change or modify the original contract. For that reason, the introduction of the confirmatory order was permitted. The jury was instructed that the confirmatory order was admitted solely for the purpose of showing how the parties dealt and acted in reference to the original contract. In the instant case, the agents of the defendant were given an unconditional order to purchase. The broker in New York modified that order by adding thereto [444]*444that the same was subject to the production of the Southern Mills. This was a material departure from the order. Such an addition left the defendant uncertain as to whether or not he would receive the goods ordered.

It is contended by the plaintiff that the provision in the sale note objected to by the defendant was such a provision as the broker was authorized to make, because it was agreeable to the custom and usage in New York City in the cotton cloth trade. Custom and usage are not pleaded. The meaning of language used in framing contracts, and particularly with reference to manufactured articles, may be explained by oral testimony without pleading custom and usage. This is the principle announced in the case of Coast Fir Limber Co. v. Parker, 106 Or. 641 (213 Pac. 617). Testimony is never admissible to prove custom or usage as authority for modifying a contract. In page 648 of the last mentioned case, the court used this language:

“The challenged evidence was received as a means of interpreting the contract and not for the purpose of importing new terms into it or for the purpose of varying terms already in it.”

In the instant case the broker M. B. Jacobs & Bros., Inc., had authority for an unconditional purchase. They attempted to execute that authority by incorporating into the contract the following language :

“If the production of the Southern Mill shall be curtailed during the time above named by strikes, or any unavoidable casualty, the deliveries stall be made proportionate to the production.”

This is clearly adding to the contract authorized by the defendant. It is a material modification of [445]*445that contract and beyond the authority of the broker to make.

A broker is an agent with limited authority: 2 Mechem on Agency (2 ed.), § 2397. He is not authorized to vary or change the terms of sale fixed by his principal: 2 Mechem on Agency (2 ed.), §§ 2402, 2407; 4 Am. & Eng. Ency. 968. In Barnard & Bunker v. Houser, 68 Or. 240, 243 (137 Pac. 227), Mr. Justice Burnett says:

“Custom is used in evidence only as a means of interpretation of a contract, and not for the purpose of importing into it new terms: Holmes v. Whitaker, 23 Or. 319 (31 Pac. 705); Savage v. Salem Mills Co., 48 Or. 1 (85 Pac. 69, 10 Ann. Cas. 1065)”; Coast Fir Lumber Co. v. Parker, 106 Or. 641, 648 (213 Pac. 617).

The instant case illustrates the proper function of custom.

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Related

Williams v. Ledbetter
285 P. 214 (Oregon Supreme Court, 1929)

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Bluebook (online)
226 P. 222, 111 Or. 421, 1924 Ore. LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-lowenstein-sons-v-noon-bag-co-or-1924.