McMurray v. Bateman

144 S.E.2d 345, 221 Ga. 240, 1965 Ga. LEXIS 425
CourtSupreme Court of Georgia
DecidedSeptember 9, 1965
Docket23023
StatusPublished
Cited by29 cases

This text of 144 S.E.2d 345 (McMurray v. Bateman) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McMurray v. Bateman, 144 S.E.2d 345, 221 Ga. 240, 1965 Ga. LEXIS 425 (Ga. 1965).

Opinion

Quillian, Justice.

The defendant, plaintiff in error here, contends his general demurrer should have been sustained because the contract between the parties, made a part of the petition and upon which the plaintiff’s cause is based, is unilateral and unenforceable. A contract is unilateral in the sense that renders it invalid “when one party to it is bound and the other is not, or when one party gets something and the other *251 nothing.” Lowery Lock Co. v. Wright, 154 Ga. 867 (1e) (115 SE 801). While “a promise of another is a good consideration for a promise” (Code § 20-304), “ ‘the promise in each instance must be of such a character as to be capable of enforcement against the party making it, as otherwise neither party will be bound. It must be sufficiently definite both as to time and subject matter.’ McCaw Manufacturing Co. v. Felder, 115 Ga. 408, 411 (41 SE 664). Unless the promises are of such character, the contract based solely on consideration thereof is unilateral and not binding.” Pepsi-Cola Co. v. Wright, 187 Ga. 723, 727 (2 SE2d 73), and cases therein cited. “ ‘The test of mutuality is to be applied as of the time the contract is to be enforced; and if the promisee accomplishes the object contemplated, then the promise is rendered valid and binding,’ Hall v. Wingate, 159 Ga. 630, 652 (126 SE 796).” Breed v. Nat. Credit Assn., 211 Ga. 629, 632 (88 SE2d 15).

These rules above mentioned apply to executory not executed contracts. Measured by the standards they provide, we think the contract was not unilateral, because it imposed reciprocal obligations binding up both parties and stipulated substantial benefits were to flow to each of them. However, we here deal with an executed contract performed by the parties for two years and three months and as to contracts of that nature the rule is pronounced in Brown v. Bowman, 119 Ga. 153, 156 (46 SE 410): "In Hammond on Contracts, 683, it is said: ‘The test of mutuality is to be applied, not as of the time when the promises are made, but as of the time when one or the other is sought to be enforced. A promise may be unenforceable for want of mutuality when made, and yet the promisee may render it valid and binding by supplying a consideration on his part before the promise is withdrawn.’ This doctrine is well settled by many adjudged cases cited by the above-named text-writers, and has been fully recognized by this court.”

Regarding the contract in the present case, if there had originally been a lack of mutuality in its provisions, the deficiency would have been supplied by performance.

The defendant insists his demurrer should have been sustained because the petition disclosed the contract between the *252 parties, reference to which is made in the preceding division, is too incomplete and indefinite to be enforceable. The document was primarily an employment contract and possessed all of the requisites of a contract of that nature expressed in reasonably certain terms. It designated, as we construe it, the defendant’s place of employment, the period for which he was employed, the nature of the services he was to render and the compensation he was to receive.

While the contract contains no express promise that the defendant’s place of employment would be the Forest Park Clinic and the Georgia Baptist Professional Building, the contract is explicit that he was to come and practice with the plaintiff and that the latter’s practice was conducted at the places mentioned. The contract stipulates services, those incident to the practice of medicine and surgery, and that his compensation is to be arrived at according to an understandable formula, which reads: “The overhead for our group, when we are fully staffed, and for similar groups in the United States runs about 50%. We collect about 90% of what is put on the books. Therefore, the 10th of each month you shall receive 50% of the money collected on the work you do or 45% of what you place on the books for the past month. If at the end of the year we can reduce our overhead and raise our percentage of collections you shall, of course, receive an additional check giving you payment in full of all money cleared on your work. In figuring the amount of work you place on the books you shall receive full credit for all office work, (including Lab. and Xray fees) and the same for the occasional home call you might make plus 50% of all patients we (you and I) admit to the hospital for surgery, treatment or diagnosis.”

In reaching this conclusion we have considered the epitome of reasons the defendant contends the terms of the' contract were incomplete and indefinite. He points out two provisions of the contract as indicative of its incompleteness: (1) “In the event anything arises not covered in this agreement nor already covered by precedent it shall be decided on the basis of the spirit herein contained and the Golden Rule, plus accepted Christian principles.” (2) “Trips, vacations, outside study, time off, etc. to be arranged by mutual consent.”

*253 The former really has no legal significance. It is merely a statement that the contract may be altered by subsequent agreement of the parties. This is, as a matter of law, generally true of contracts, where the interest of a third party is not involved. The latter provision does not concern the essential elements of the contract, but simply provides that customary details concerning its performance will, from time to time, be determined by mutual consent of the parties. A contract is not usually incomplete because minor details incident to the performance of its terms are left to be agreed upon. This principle is recognized in Prior v. Hilton & Dodge Lumber Co., 141 Ga. 117 (80 SE 559). “A contract of which the obligations are mutually binding upon the parties thereto is not rendered unilateral merely because matters concerning the details of performance are left to the option of one of the contractors.” Seabrook Coal Co. v. Moore, 25 Ga. App. 613 (2) (103 SE 839); 17 Am.Jur.2d 363, Contracts, § 27.

The defendant further contends that the contract is incomplete because it does not stipulate whether the plaintiff is to provide office space, secretarial services or other facilities for the practice of medicine, and did not define what was meant by “overhead” expenses. We think the letter embodying the contract and the terms of the contract made it clear that the defendant was to practice as the plaintiff’s employee and associate at the Forest Park Clinic and this carries with it the inescapable conclusion that he was to have office space, and the use of the clinic’s facilities. The term “overhead” is not defined. It was not necessary that the contract define words that are commonly used in the connection of the conduct of business or the practice of professions. “Overhead” has a connotation generally understood. It means those expenses incidental or incident to the practice of a profession. Rivers v. Atlanta Southern Dental College, 187 Ga. 720, 722 (1 SE2d 750). It is impossible to stipulate accurately in advance what will constitute such overhead expenses because from their very nature they depend upon contingencies occurring in the course of practice generally not predictable or certain.

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Bluebook (online)
144 S.E.2d 345, 221 Ga. 240, 1965 Ga. LEXIS 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcmurray-v-bateman-ga-1965.