Mendel v. Converse & Co.

118 S.E. 586, 30 Ga. App. 549, 1923 Ga. App. LEXIS 527
CourtCourt of Appeals of Georgia
DecidedJune 27, 1923
Docket14123
StatusPublished
Cited by29 cases

This text of 118 S.E. 586 (Mendel v. Converse & Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mendel v. Converse & Co., 118 S.E. 586, 30 Ga. App. 549, 1923 Ga. App. LEXIS 527 (Ga. Ct. App. 1923).

Opinion

Belt., J.

The petition in this case was founded upon the theory of an anticipatory breach of an alleged written contract for purchase of goods, the vendor seeking to recover as damages the difference between the contract price and the market price at the time and place for delivery. General and special demurrers to the petition were overruled, and demurrers to certain parts of the answer were sustained. Only the plea of non est factum was allowed to remain. The plaintiff recovered, and the defendant excepted to the rulings upon the demurrers and to the denial of his motion for a new trial. Held:

1. “An absolute refusal by one party to perform an executory contract containing mutual obligations, prior to the date or dates fixed for performance, if such repudiation goes to the whole contract, amounts to a tender of a breach of the contract; and if accepted as such by the opposite party to the contract, it constitutes an anticipatory breach, and the injured party may at his election at once sue and recover his entire damages. The opposite party is not required to accept a tender of a breach of the contract, but he may elect to keep the contract in force for the purpose for which it was made; and in such case his own obligation, as well as that of the other party, will continue until the time for performance, as fixed by the contract. Smith v. Georgia Loan Co., 113 Ga. 975 (39 S. E. 410); Anderson v. Kirby, 125 Ga. 62, [550]*55067 (54 S. E. 197, 114 Am. St. R. 185, 5 Ann. Cas. 103); Ford v. Lawson, 133 Ga. 237 (5) (65 S. E. 444); Byrd Printing Co. v. Whitaker Paper Co., 135 Ga. 865 (70 S. E. 798, 22 Ann. Cas. 182); Southern Flour Co. v. St. Louis Grain Co., 11 Ga. App. 401 (75 S. E. 439).” Phosphate Mining Co. v. Atlanta Oil & Fertilizer Co., 20 Ga. App. 660 (93 S. E. 532).

2. Irrespective of whether it is necessary in a case of this sort for the plaintiff to allege its election to accept the tender of the breach (but see Smith v. Georgia Lorn Co., 113 Ga. 978), such election sufficiently appears, as against a general demurrer, in the fact of the filing of the action before the expiration of the time for performance, and in the averment that the “ attempted cancellation ” of the contract “ constituted an anticipatory breach.” An “ attempted cancellation ” could not amount to an anticipatory breach unless accepted (Oklahoma Vinegar Co. v. Garter, 116 Ga. 140 (2), 42 S. E. 378, 59 L. R. A. 122, 94 Am. St. R. 112), and the form of the averment, upon a mere general demurrer, would imply such acceptance, when considered with the fact of the time of the filing of the suit. See Steele Lumber Co. v. Laurens Lumber Co., 98 Ga. 329 (10), 358 (24 S. E. 755); Board of Education v. Day, 128 Ga. 156 (6), 166 (57 S. E. 359).

3. The alleged buyer, under the plaintiff’s averments, having repudiated the contract and refusing to be bound thereby, it was not incumbent upon the plaintiff to make, or allege, a tender of the merchandise. Carolina Portland Cement Co. v. Columbia Improvement Co., 3 Ga. App. 483 (60 S. E. 279); Southern Upholstering Co. v. Lieberman, 27 Ga. App. 703 (3) (109 S. E. 509); Banks Foundry Co. v. Woodstock, 127 Ga. 108 (56 S. E. 106); 6 R. C. L. 948, § 328. Furthermore, where an anticipatory breach is tendered by the purchaser and' accepted by the seller, performance by the latter is not thereafter required, and an offer of performance need not be alleged. In such a case the contract is terminated except as to the right of the party aggrieved to sue for the damages resulting from the breach.

4. “ While one who repudiates an executory contract before the time of performance has arrived can not call upon the opposite party to make forward contracts for his benefit for the purpose of lessening the damages of the party at fault, nevertheless, if the opposite party accept the tender of the breach, he is bound to abate his damages by reason of circumstances of which he ought reasonably to have availed himself. Rhoem v. Horst, [178 U. S. 1, 20 Sup. Ct. 780, 44 L. ed. 953]; Civil Code (1910), § 4398. The tender of an anticipatory breach does not change the time at which the damages are to be estimated, nor affect the general rule of damages; but if the tender is accepted by the opposite party, that party acts thereafter under the rule of avoidable consequences.” Phosphate Mining Co. v. Atlanta Oil & Fertilizer Co., "supra. What particular thing, if anything, the plaintiff should have done in reduction of the damages is a question for the jury. Southern Railway Co. v. Cunningham, 123 Ga. 90 (7) (50 S. E. 979); Pelham & Havana R. Co. v. Walker, 27 Ga. App. 398 (108 S. E. 814).

5. But the rule above quoted, embodied also in the code section cited, is [551]*551ordinarily to be invoked by way of defense, and, “the petition having set up the correct measure of damages under the facts alleged, it was unnecessary for the plaintiff, by his petition, to allege that he had undertaken to abate, mitigate, or lessen such damage.” Southern Upholstering Co. v. Lieberman, supra.

6. The instrument set up by the plaintiff as the contract is in the form of a letter by the seller to the purchaser, specifying the quantity, kind, and price of the goods to be sold, the time of delivery and of payment, with certain stipulations here immaterial, except that the right was reserved in the seller “ at any time to determine or modify credit extended hereunder.” It was headed “ New York ” and dated. It appears to have been signed in the lower right-hand corner by the plaintiff as “ Converse & Company, selling agents,” and, following the words “ accepted for,” in the lower left-hand corner, appears the name of the defendant. “ A contract is an agreement between two or more parties for the doing or not doing of some specified thing.” Civil Code (1910), 4216. “To constitute a valid'contract, there must be parties able to contract, a consideration moving to the contract, the assent of the parties to the terms of the contract, and a subject matter upon which it can operate.” Civil Code (1910), 4222. The instrument, in sufficiently disclosing a party agreeing to sell, and another agreeing to buy, a specified quantity and kind of goods, at a stipulated price, with the time of delivery and of payment stated, is prima facie a valid contract, and not void for uncertainty. Hanks Foundry Co. v. Woodstock Iron Works, supra; McGhee Cotton Co. v. Herrine, 10 Ga. App. 700 (74 S. E. 66). Neither is it wanting in mutuality, nor, if executed as alleged, does it fail to comply with the statute of frauds, for the purposes of the action of the plaintiff.

7. The agreement was not rendered unilateral because of the stipulation that the seller could “ determine or modify credit extended,” without the consent of the purchaser. The latter could give to the former the option of demanding payment on delivery of the goods, without affecting the agreement as a whole.

S. Although it may be that the plaintiff is a broker, as the use of the phrase “ selling agents ” as above indicated would possibly imply, in the transaction under consideration it appears to have been

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Bluebook (online)
118 S.E. 586, 30 Ga. App. 549, 1923 Ga. App. LEXIS 527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mendel-v-converse-co-gactapp-1923.