McCormick Harvesting Machine Co. v. Richardson

89 Iowa 525
CourtSupreme Court of Iowa
DecidedOctober 18, 1893
StatusPublished
Cited by14 cases

This text of 89 Iowa 525 (McCormick Harvesting Machine Co. v. Richardson) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCormick Harvesting Machine Co. v. Richardson, 89 Iowa 525 (iowa 1893).

Opinion

Kinne, J.

The petition alleges that on January-31, 1891, the defendant entered into the following written order:

“January 31, 1891.
Mr. W. S. Krebs, Albert Lea, Minn.:
Please ship McCormick binder twine as follows:
167 bales Standard, mixed, 5 lb. balls, 60 lbs each............10,020 lbs.
50 bales Pure Sisal, 5 lb. balls, 60 lbs each................. 3,000 lbs.
117 bales New Zealand, % and 5 lb. balls, 60 lbs each..... 7,020 lbs.
20,040 lbs.
to M. Richardson, Algona, Iowa, on or about May 1, by C. & N. W. R’y, for which I agree to pay, f. o. b. cars in Chicago, as follows: Standard Mixed, ten and one half cents per pound; Pure Sisal, nine cents per pound; New Zealand, nine and a quarter cents per pound: net cash on or before October 1, one half, and November 1, balance, next.
“[Signed] M. Richakdson.”

That Krebs, to whom the order was addressed, was the general agent of the plaintiff, having charge of its business at Algona, Iowa; and that the defendant knew he was ordering said twine of the plaintiff through said general agent. That Krebs gave the order to the plaintiffs, who accepted the same, purchased, twine to fill the same, and on May 1, 1891, thereafter, shipped said twine to the defendant in pursuance of said order. That after the arrival of said goods at Algona, and about June 1, 1891, the defendant refused to receive [527]*527the goods, whereupon the plaintiff caused the same to be sold to the highest bidder, after due notice, and applied the proceeds of such sale, less the expense of selling and the freight, upon the contract price of the goods. That the amount so applied was one thousand, five hundred and fifty-five dollars, and sixty-five cents, leaving a balance due the plaintiff of five hundred and seventeen dollars and twelve cents, for which judgment is prayed.

The defendant answered, admitting that'he signed the order, that the contract price was as is stated in the order, and that the plaintiff sold the goods after they arrived at Algona; denies all other ’allegations in the petition. The defenses set up in the second and third divisions of the answer were not submitted to the jury, as no evidence1 had been offered to sustain them. The fourth division of the answer is a general denial. In an amendment to the answer the defendant admits the signing and delivery of the order, and avers that at said time it was orally agreed between the defendant and the plaintiff’s agent, Strouse, who took the order, that it should be sent to the plaintiff, or its general agent, Krebs, at Albert Lea, Minnesota, for approval and acceptance of the plaintiff, and the same was so sent. That the plaintiff received the order about February 2, 1891, and prior to June 1, 1891, did not inform or notify the defendant that said order was accepted, or that the goods would be shipped, and the defendant had no knowledge that the goods would be shipped, or order accepted until he received notice that they were shipped, which was about June 1, 1891. That said order was not accepted within a reasonable time after same was received by the plaintiff, and there was no contract between the plaintiff and defendant by reason thereof.

[528]*528i. sales: orders: necessary to tract. [527]*527I. The plaintiff contends that the writing heretofore set out, was a contract of sale, and binding upon [528]*528both parties from the date of its execution, The defendant insists that the writing was a mere request, proposal, or order, wiilcm was not binding until accepted or acted upon by the plaintiff, and that it might be recalled, rescinded, or revoked at any time prior to its acceptance. The court construed the writing as contended for by the defendant. The correctness of'the court’s action is raised by objections to testimony; also by exceptions to certain instructions given, and to the refusal of the court to give instructions asked by the plaintiff.

The material question.in the case is as to the proper construction of the writing. It is said in Goodpaster v. Porter, 11 Iowa, 161-163: - “A contract includes a concurrence of intention in two parties, one of whom promises something to the other, who, on hie part, accepts such promise; hence, consent or acceptance is indispensable .to the validity of every contract.” “Mutual consent is requisite to the creation of a contract, and it becomes binding when a proposition is made on one side and accepted on the other.” 2 Kent’s Commentaries, 477; 1 Parsons on Contracts, 475. “A mere offer, not assented to, constitutes no contract, for there must be not only a proposal, but an acceptance thereof. So long as a proposal is not acceded to, it is binding upon neither party, and. may be retracted.” 1 Story on Contracts, section 490. “Where there is a written offer to sell, an acceptance constitutes the agreement, if the offer is still standing; and it is presumed to be so until the time fixed, or, if none were appointed, till it is expressly revoked or countervailed by a contrary presumption. * * * A bargain is closed where nothing mutual remains to be done to give either party the right to have it effected. Until both parties are .agreed, either may withdraw an offer which he has made.” Hilliard on Sales, section. 20. “A proposal or offer, therefore, must in some [529]*529way be accepted to constitute a sale.” Benjamin on Bales, [Bennett’s Ed. 1892, American Notes] p. 73. It has been held that such a writing does not constitute a contract until accepted or acted upon, and that, prior thereto, it may be withdrawn. Johnson v. Filkington, 39 Wis. 65; Church v. Sherman, 36 Wis. 404; National Refining Co. v. Miller, 47 N. W. Rep. (S. D.) 962; Morris v. Brightman, 9 N. E. Rep. (Mass) 512; Stensgaard v. Smith, 44 N. W. Rep. (Minn.) 669. See, also, Greve v. Gauger, 36 Wis. 369; Western Historical Co. v. Schmidt, 14 N. W. Rep. (Wis.) 822; Graff v. Buchanan, 48 N. W. Rep. (Minn.) 915; Thomas v. Greenwood, 37 N. W. Rep. (Mich.) 196; Etheredge v. Barclay, 6 S. Rep. (Fla.) 861.

In the light of these elementary principles and of the cases cited it seems clear that the writing in question does not constitute a contract in the absence of its acceptance, or of any action under it by the party whose duty it is to accept. It does not purport to be a contract between the parties. By it the • plaintiff was not obligated to do anything on its part. The plaintiff does not undertake, by the terms of the writing, to ship the twine on the proposed conditions. It is merely a request or a proposition from the defendant to the plaintiff that, if the latter will" ship certain goods, he will pay a certain sum therefor at a fixed time. It may be said to be an order, but it lacks an essential element of a contract, mutual assent. Being only a request or order, which required acceptance by the plaintiff to give it the force of a contract, it follows that it might be withdrawn or countermanded at any time prior to its being so accepted. We do not say that the acceptance must be a formal one. The acceptance, might be shown by proving an act done on the faith of.

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Bluebook (online)
89 Iowa 525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccormick-harvesting-machine-co-v-richardson-iowa-1893.