Marshall's, Inc. v. Columbia Ribbon Co.

300 F. 41, 1924 U.S. App. LEXIS 2992
CourtCourt of Appeals for the First Circuit
DecidedJuly 15, 1924
DocketNo. 1710
StatusPublished

This text of 300 F. 41 (Marshall's, Inc. v. Columbia Ribbon Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marshall's, Inc. v. Columbia Ribbon Co., 300 F. 41, 1924 U.S. App. LEXIS 2992 (1st Cir. 1924).

Opinion

ANDERSON, Circuit Judge.

This is a suit to recover damages for breach of two alleged written contracts for the sale of hat bands [42]*42by the Columbia Ribbon Company to Marshall’s, Inc. Plaintiff had a verdict for $18,000. The crucial question is whether the defendant was entitled to a ruling that the contracts declared upon were incomplete and invalid, because lacking the essential element of prices legally fixed, so that, as defendant contended, it was entitled on the pleadings and the evidence to a ruling that the plaintiff could not recover.

Plaintiff’s declaration 'sets up that about October 14, 1919, a written contract, No. 6960, was made, consisting of an “acknowledgment” and “confirmation” (stated below); that under this contract the prices for the goods sold were to be fixed by the vendor at the time of the shipment of the goods:

“And the plaintiff further says that on or about the nineteenth day of July, 1920, the plaintiff fixed the prices for the various articles manufactured and to be manufactured under the said contract and the defendant agreed thereto.”

The other contract, No. 7736, is, except as to date, which was October 24, 1919, alleged to have been made in exactly the same way.

In the answer is a specific denial of any valid agreement as to prices.

Plaintiff and defendant had had business relations for many years. Plaintiff’s factory and chief place of business was at Paterson, N. J., but it maintained a sales office in New York City. Defendant’s factory and chief place of business was at Fall River, Mass., but it also had a sales office in New York City. The orders in question were placed by defendant in plaintiff’s sales office; but the practice, after such orders were thus placed, was for the parties to exchange by mail a written “acknowledgment of order” by the plaintiff, and “confirmation of order” from the defendant, in which was the following:

“Delivery. First goods ready about 4% months after receipt by seller of signed confirmation. Balance ready about 10-12 weeks after first shipment is ready.”

Then follow provisions as to payment, quantities, qualities, not now material, and prices:

“Prices. It is agreed between the Columbia Ribbon Company and the purchaser hereof that the price or prices at which the within mentioned merchandise is or are to be sold, is or are to be fixed by the vendor at the time' of shipment of goods.”

On the back are seven “conditions,” only 1 and 4 of which seem now pertinent. These are as follows:

(1) “It is agreed that delays or non-delivery of any of the goods specified in this contract shall not subject the seller to damages for breach of contract: Provided, however, that in the case of non-deliyery, the same must have been occasioned by strike, lockout, fire, act of God, the elements, or any other unavoidable cause.”
(4) “If goods are ready within two weeks after specified date of delivery, such shall constitute good delivery, but if the delivery of this order or any part thereof is delayed by reason of strike, lockout, fire, act of God, the elements or any other unavoidable cause, the purchaser agrees to accept the goods at such time as the seller may be able to deliver: Provided, however, that the delay in delivery does not exceed the above specified' delivery by more than four months.”

[43]*43As to price agreement, plaintiff cites the provision in the Sales Act, which reads:

“The price may be fixed by the contract or may be left to be fixed in such a manner as may be agreed, or may be determined by the course of dealing between the parties.”

Plaintiff’s learned counsel concedes in his brief that:

“An agreement incomplete with regard to any of its essential terms, and which Is not subsequently completed, may not he a valid and enforceable contract; still the principle is that, where those terms are later fixed, the contract becomes valid and binding.”

Butohe relies upon the proposition that;

“It is no objection to a written contract if some of its terms are to be fixed by something to be done in the future if that something is done before action is brought”

—citing Freeland v. Ritz, 154 Mass, at page 260, 28 N. E. 226, 12 L. R. A. 561, 26 Am. St. Rep. 244; Spiers v. Union Drop Forge Co., 174 Mass. 175, 54 N E. 497; Spiers v. Union Drop Forge Co., 180 Mass. 86, 61 N. E. 825. And on this legal theory plaintiff grounds an alleged agreement as to price, through letters set forth below.

But, before stating and construing this correspondence, enough of the facts should be disclosed, so that the letters may be construed in the light of the surrounding circumstances.

In the early spring of 1920 there were (at least in form) five unfilled orders (including 6960 and 7736 now in suit) outstanding between the parties. It was a time of frequent and serious labor troubles, affecting both plaintiff and defendant; so that the plaintiff, unless entitled to invoke the strike clause as a valid excuse for belated delivery, was in default, as the period of about five months fixed in the contracts for first deliveries under these orders placed in October^ 1919, had already expired.

On April 1, 1920, the plaintiff issued a circular letter to its customers, including the defendant, setting forth that during the lase few weeks it-had been approached by customers and asked to cancel outstanding orders. Plaintiff therefore suggested that the customers go over their—

“orders and let us know whether you desire any of them canceled. * * * The only selfish reason we have in writing you as above is the fact that we are behind on deliveries, due to no fault of ours, and by ridding ourselves of certain orders with the consent of customers, we would be in a position to catch up on delivery. * * * ”

In May, 1920, the plaintiff sent its sales agent, McEaughlin, to Fall River to see the Marshalls. He took with him a list of the goods covered by these five orders, and went over it with Robert Marshall, the defendant’s president. Defendant claims, as one defense to the suit, that at that time, in consideration of the defendant’s waiving its asserted right to cancel all five orders, because of delayed delivery, it agreed with plaintiff, through McEaughlin, that it would accept the goods under three of them, numbered 1735, 1852, and 7346, and that Nos. 6960 and 7736, on which this suit was brought, should he canceled.

[44]*44This contention is consistent with plaintiff’s written statement of April 1, supra, that it was “behind on deliveries,” and therefore suggested that its customers consider, and discuss with it, cancellations.

For present purposes it is immaterial that McLaughlin denies making such agreement to cancel, that plaintiff denies McLaughlin’s authority so to agree; and that certain letters written by some one in the defendant’s concern were arguably inconsistent with defendant’s claim.

In June, the plaintiff, at the defendant’s request, delayed shipping goods then ready and due under the other three contracts.

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Related

Hamilton v. Liverpool, London & Globe Insurance
136 U.S. 242 (Supreme Court, 1890)
Freeland v. Ritz
12 L.R.A. 561 (Massachusetts Supreme Judicial Court, 1891)
Speirs v. Union Drop Forge Co.
54 N.E. 497 (Massachusetts Supreme Judicial Court, 1899)
Commonwealth v. Nelson
61 N.E. 802 (Massachusetts Supreme Judicial Court, 1901)
Speirs v. Union Drop Forge Co.
61 N.E. 825 (Massachusetts Supreme Judicial Court, 1901)

Cite This Page — Counsel Stack

Bluebook (online)
300 F. 41, 1924 U.S. App. LEXIS 2992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshalls-inc-v-columbia-ribbon-co-ca1-1924.