McAnelly Hardware Co. v. Bemis Bros. Bag Co.

94 So. 567, 91 So. 567, 208 Ala. 394, 1922 Ala. LEXIS 537
CourtSupreme Court of Alabama
DecidedNovember 2, 1922
Docket8 Div. 437.
StatusPublished
Cited by11 cases

This text of 94 So. 567 (McAnelly Hardware Co. v. Bemis Bros. Bag Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McAnelly Hardware Co. v. Bemis Bros. Bag Co., 94 So. 567, 91 So. 567, 208 Ala. 394, 1922 Ala. LEXIS 537 (Ala. 1922).

Opinion

McCLELLAN, J.

This action, instituted by appellee against appellant, was submitted to the jury on issues tendered by counts L. and 2 and defendant’s general traverse of the complaint “with leave ito give in evidence-any matter which if well pleaded would be good as a defense either in bar or abatement” of the action. Without objection the trial proceeded as if appropriate traverses or matters of avoidance had been interposed by plaintiff. Jersey Ice Co. v. Banner Cone Co., 204 Ala. 532, 86 South. 382. Count 1 declared* upon defendant’s breach of a contract to buy of plaintiff, at stipulated prices, 7 bales of 40-inch 7%-ounce burlap, to be delivered monthly, June to December, 1918, inclusive f. o. b. Memphis, Tenn., the breach averred consisting in defendant’s refusal or failure to receive and pay for two hales of the burlap; and count 2 declared upon the like contract, averring defendant’s failure to pay for two bales of the burlap, describing it, however, as 7-ounce quality rather than 7%-ounce quality of burlap.

Count 1 contained this averment:

“ * * * That notwithstanding it (i. e., plaintiff) has carried out the terms of the con-
*396 tract' upon its part in this: That they (i. e., plaintiff) have delivered five bales of said burlap, and offered to deliver the other two bales thereof,” the defendant failed and refused to receive and pay for the two bales undelivered. (Italics supplied.)

The italicized words, in this, referred to the antecedent allegation with respect to plaintiff’s performance of the terms of the contract ; but these words restricted the averment of plaintiff’s performance to the specifications thereinafter set forth, viz. that plaintiff delivered five bales of the burlap and offered to deliver the other two bales. So interpreted, the count (1) does not aver plaintiff’s entire performance of the terms of the contract. Not having alleged complete performance on plaintiff's part, no variance or failure of proof, entitling defendant to the general affirmative charge requested and refused, resulted from the evidence showing, without dispute, plaintiff’s breaches of the contract through the nondelivery of a bale of burlap in July, 1918, and through the overcharge of defendant by plaintiff, for the bale delivered in September, 1918. There is no as.‘•'ignment of error questioning the action of the court in overruling demurrer to count 1, and there is in the demurrer no ground specifically criticizing the count (1) in respect of its averment of performance of the contract by the plaintiff. The sufficiency of the count (1) on demurrer is hence not before the court for consideration. The construction of the count is only made necessary by the request for the general charge. A separate request for general affirmative instruction concluding against plaintiff’s right to recover under count 2 was not presented on the trial.

The evidence leaves in no fair state of contest these facts: That in May, 1918, defendant engaged with plaintiff to buy, to receive and to pay for, at stipulated prices, seven bales of 40-inch 7%-ounce burlap, the plaintiff obligating itself to ship a bale a month, beginning in Jjine, 1918, .until seven bales had been shipped in consecutive months; that one of these bales was shipped, received, and paid for in June, 1918; that plaintiff did not ship the July bale; that four other bales of this quality of burlap were seasonably shipped by plaintiff in August to November, inclusive, and these were received and paid for by defendant; that plaintiff charged defendant and the defendant paid for the September bale a price in excess of the agreed price for that bale; and that on November 25,1918, subsequent to both of these breaches by plaintiff, the defendant wrote the plaintiff as follows:

“We are writing to ask that you kindly hold the two bales of 40" 7% oz. burlap which will complete our present contract, until we advise you further. If you can see your way clear to indulge us in this instance, same will be very much appreciated.”

The plaintiff, three days later, replying:

“We are of course willing to extend the time on your contract for 7% oz. burlaps and will be glad to hold the goods until you have instructed us to ship them.”

Correctly interpreting the contract, the court, upon defendant’s request, instructed the jury, in substance, that under the contract the plaintiff’s duty was to make monthly shipments for June, July, and August without special order from defendant as to what day of the month on which the shipment should be made, and that a failure so to ship forbade recovery by plaintiff unless the jury concluded from the evidence that defendant waived noncompliance with respect to the shipment of the July bale.

Unless, as defendant contended, there was a “substitution” of a different quality of burlap for the July bale that, under the contract, plaintiff should have shipped, but did not during July, 1918—a contention plaintiff contested in point of fact—the letter of November 25,1918 (quoted ante), aside from other considerations pertinent to a like inquiry, manifested and effected an election (a form of waiver, 2 Williston on Contracts, § 083) to treat the contract as still efficacious and binding notwithstanding its breach by plaintiff through plaintiff’s failure to make seasonable shipment of the bale due to be shipped to defendant in July. Apart from the contested issue of “substitution” of another quality of burlap for the contract’s prescription of a bale to be shipped in July, it is evident that upon consummation of the breach of the contract defendant had an election to treat the contract as terminated or to regard it as of continuing force notwithstanding its breach. Pretermitting consideration of the possible effect of defendant’s action in thereafter receiving the August-November shipments to place the plaintiff, relying and acting upon such action as a recognition by defendant of the contract’s continuing operation (2 Williston, §§ 684-6S6) in a changed posture, it is clear that the terms and request of defendant’s letter of November 25,1918, promptly acceded to by plaintiff, manifested defendant’s recognition of the contract’s continuing efficacy, notwithstanding plaintiff’s stated breaches of its obligations, if knowledge of the facts, the consummation of the breaches, was imputable to defendant in the premises. In circumstances not now necessary to be more than indicated (as has been done through the last citation of Williston's illuminating text), knowledge of the facts is essential to constitute the elements of an election, a choice between alternatives, which, upon occasion, operates to waive an antecedent breach of contract and to restore the rights and obligations of the parties. Willis-ton, supra. This precedent information of the breach of a contract necessary to afford an essential basis for an “election” to treat *397 "the breached contract as efficacious may be actual knowledge or a knowledge imputed to the party to the contract whose “election” is asserted.

“The principle of election is an equitable one, and unless the other party has been deceived or the situation changed it is inequitable to regard a choice- as final unless the party having the right of election was aware, or should have been aware, of all material facts making one choice desirable or the reverse.

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Bluebook (online)
94 So. 567, 91 So. 567, 208 Ala. 394, 1922 Ala. LEXIS 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcanelly-hardware-co-v-bemis-bros-bag-co-ala-1922.