Maxwell v. Burr

62 N.W. 236, 44 Neb. 31, 1895 Neb. LEXIS 4
CourtNebraska Supreme Court
DecidedFebruary 19, 1895
DocketNo. 6437
StatusPublished
Cited by3 cases

This text of 62 N.W. 236 (Maxwell v. Burr) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maxwell v. Burr, 62 N.W. 236, 44 Neb. 31, 1895 Neb. LEXIS 4 (Neb. 1895).

Opinion

Ryan, C.

In this action brought by the plaintiffs in error in the district court of Lancaster county there was a judgment in favor of the defendant, except as to a small sum, in reference to which no discussion is necessary. The instrument sued on was in the following language:

“ GUARANTY.
“In consideration that S. A. Maxwell & Co., of Chicago, Ills., furnish to M. Stoughton, .Lincoln, Neb., mdse, to the amount of $762.32 on credit, I, for value received, hereby guaranty due payment thereof. C. C. Burr.”

In the petition it was alleged that plaintiffs, wholly relying upon said guaranty, sold and delivered to M. Stough[32]*32tou goods and merchandise, as per statement attached to said petition, of the agreed price and value of $762.32, as ordered by said Stoughton. The defendant in his answer admitted that goods and merchandise of the agreed price and value of $762.32 were sold to Stoughton by the plaintiffs in reliance upon the guaranty set out in the petition, and that no part thereof had been paid. This admission, that no part of the purchase price of the goods purchased has been paid, serves to eliminate from consideration the suggestion that by giving his notes Stoughton paid the account in settlement of which said notes were given.

The district court found specially that about October 1, 3 890, plaintiffs, through P. W. Meiksell, plaintiffs’ agent, sold a bill of goods amounting to $762.32 to M. Stoughton of Lincoln, Nebraska; that the terms of .said sale were that the goods should be shipped from time to time, covered by a written order made between said parties until the full order had been supplied; that for the goods shipped prior to March 1, 1891, Stoughton was to settle at the latter date, by payment in cash at a certain rate of discount, or give his note for such amount as should be delivered before March 1, 1891, as of that date due four months thereafter, and for all goods shipped after March 1 aforesaid Stoughton was to pay cash with a discount off, or give his note due four months from the date of shipment; that before plaintiffs would ship any of the goods after the receipt of the above order they wrote to Stoughton that they must have a guaranty or the payment of the bill, whereupon Stoughton procured the guaranty sued on. The court found specially that after Stoughton sent in the guaranty plaintiffs began shipping goods under the aforesaid order, and before March 1,1891, had shipped goods, of the value of $609.40; that after March 1, aforesaid, goods were shipped in installments, aggregating $129.86; that there were executed to plaintiffs by Stoughton on March 2,1891, four promissory notes for the sum of $152.35 each, or in all, $609.40, — the value of [33]*33the goods sold before March 1, aforesaid; that these notes fell due respectively in 1891 as follows: One on June 1, •one on June 20, one on July 10, and finally one on August 1; and that the defendant was ignorant of the terms of the contract made October 1, 1890, between plaintiffs through Meiksell, their agent, and Stoughton, and was also without knowledge of the giving by Stoughton of his notes to plaintiffs.

On the above findings of fact the district court based its conclusions of law, that the contract of guaranty of the defendant should be construed and his liability thereunder ■determined by the terms of the sale made by Meiksell for plaintiffs to Stoughton, and that by taking notes as above described, instead of taking a single note for $609.40, due July 1, 1891, plaintiffs changed the terms of the contract between themselves and Stoughton from what those terms were when the contract of guaranty was made, whereby the guarantor was relieved of his liability as such. It is not deemed necessary to discuss, separately, the transactions arising out of the sales made after March 1,1891, for the measure of the defendant’s liability applicable to the transactions of previous dates, equally governs these. As to the correctness of the abstract principle applied by the district court there seems to be little, if any, difference between counsel for the respective parties. If we understand them correctly, they agree that if the defendant, as a •guarantor, became bound for the payment by Stoughton of a certain sum at a fixed time, an extension of the time of payment by the payee on a sufficient consideration, without the consent of the guarantor thereto, operated to release his collateral liability. As has already been remarked, the claim that the notes given operated as a payment is not presented in this record. The only questions are, first, whether or not there was, when the guaranty was executed, an existing contract of sale, and second, did any contract between plaintiffs and Stoughton inflexibly require that a [34]*34note or notes taken March 1, 1891, should fall due July 1 thereafter.

It has already been noted that in the petition it was-averred that, relying wholly upon the guaranty and the faith and credit of the guarantor, plaintiffs sold and delivered toM. Stoughton the goods for the payment of which this-suit was brought, and that in the answer there was an admission that said goods, of the agreed price and value sued for, were sold to Stoughton in reliance upon the guaranty.. The evidence of Mr. Stoughton was without bearing on this point, and the usages of trade were not established by such proofs as would entitle .them to consideration as having impliedly been within the minds of both contracting parties when the goods were sold, so that there was in reality only the testimony of Mr. Meiksell as to the manner in which the sale of the goods was made and its terms. Referring to the list of merchandise sold, which was thereupon introduced in evidence, Mr. Meiksell said:

“This is a list of goods that I sold him in two orders,. Nos. 27 and 29; but you understand I took these in a manifold copy book and delivered to him a copy of the-order. * * * On the one order — the copy of the order that he got — the statement was made on there that that was-stock goods. The bill was to be four months from March next. * *' * All goods were sold in the regular terms of all wall-paper houses, jobbers and manufacturers, four months from the first of March following the order. * *■ The understanding was the bill would not be due until next July.
“Q. Now I notice this paragraph in the heading of the bill, ‘Terms four months note or 12 per'cent per annum discount for unexpired time. Settlement to be made within 30 days from date of invoice (either by note or cash).’ Now what do we understand to be the custom, under that clause?
“ A. Well, it is the custom of all paper houses to require [35]*35notes of a man after he receives the goods simply to make a showing that he has got, or has had the goods, because, if we give a man four months’ time and required no note he might get up and swear he never got the goods.”

It has already been stated that for the introduction of testimony as to custom no sufficient foundation was laid. It is hardly necessary to point out that the above evidence as-to the purpose for which notes were taken was incompetent, as being in contradiction of the language of the notes-themselves. The question and answer quoted are fully set out as a striking illustration of the violation in practice of the rule that parol evidence is inadmissible for the purpose-of varying the terms of a written contract.

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Cite This Page — Counsel Stack

Bluebook (online)
62 N.W. 236, 44 Neb. 31, 1895 Neb. LEXIS 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maxwell-v-burr-neb-1895.