Northwestern Consolidated Milling Co. v. Sloan

232 Ill. App. 266, 1924 Ill. App. LEXIS 75
CourtAppellate Court of Illinois
DecidedFebruary 20, 1924
DocketGen. No. 28,083
StatusPublished
Cited by4 cases

This text of 232 Ill. App. 266 (Northwestern Consolidated Milling Co. v. Sloan) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northwestern Consolidated Milling Co. v. Sloan, 232 Ill. App. 266, 1924 Ill. App. LEXIS 75 (Ill. Ct. App. 1924).

Opinions

Mr. Justice O’Connor

delivered the opinion of the court.

Plaintiff brought suit against the defendant to recover damages claimed to have been sustained by it by reason of the defendant’s refusal to receive 5,000 barrels of flour which plaintiff had sold him. At the close of all the evidence the court on motion of plaintiff struck out all of defendant’s evidence and directed the jury to return a verdict in favor of plaintiff for $24,750, which was accordingly done and judgment was entered on the verdict.

The record discloses that plaintiff was engaged in the manufacture of flour in Minneapolis and maintained a. branch office in Chicago; that the defendant was engaged in the bakery business in Chicago and had from time to time bought flour from plaintiff; that on or about July 7, 1920, plaintiff’s salesman who was working out of the Chicago branch called on the defendant for the purposes of selling defendant some flour, and on the next day what purported to be a writ-' ten contract was entered into whereby plaintiff agreed to sell and defendant agreed to purchase 5,000 barrels of flour at $13.50 per barrel, the flour to be shipped “within four months.” This contract was made out on a printed blank and was signed by the defendant. Plaintiff’s name is printed thereon and it is purported to he signed by salesman J. T. Bashaw, its agent, the name of the salesman being typewritten in the blank space left for the agent’s name. There is evidence in the record that tends to show that prior to and at the time the contract was executed by the parties and subsequent thereto, defendant was endeavoring to have plaintiff agree that he should be given a longer period of time within which to take all of the flour; that on August 30, 1920, the representative of the Chicago branch after having received authority from the main office in Minnesota wrote a letter to the defendant, advising the defendant that the time within which shipment of the flour was to be delivered would be extended to January 1,1921, without charge to the defendant. The evidence further tends to show that afterwards, sometime during October or November, the defendant gave plaintiff directions to ship him a large quantity of flour, plaintiff taking the position that this was a part of the 5,000 barrels mentioned in the contract in suit, the defendant’s position being that this order was for other flour which he had purchased from the defendant. On November 29, the defendant notified the plaintiff that he would take none of' the flour mentioned in the contract. Plaintiff treated this as a breach and brought the instant case to recover damages based on the market price of the flour as mentioned in the contract and the difference between market price on the date of November -29, 1920.

On the trial of the case the defendant offered evidence tending to show that at the time of the execution of the contract by him and before it was delivered to plaintiff’s agent, it was expressly understood and agreed that the written contract should be taken by plaintiff’s agent, delivered to his principal and the period mentioned in the contract within which the flour was to be delivered — “within four months”— should be changed to read that the flour should be delivered “as needed” by the defendant. The court permitted witnesses to testify to this effect stating, nevertheless, that he was of the opinion that it was clearly inadmissible because it tended to vary the terms of the written contract, but that he would hear it. After the evidence to this effect was given, it was struck out by the court on the ground that such evidence was inadmissible, as it violated the parol evidence rule. Whether the court’s ruling in this respect was correct is the chief controversy and is a question that is not at all free from difficulty.

Defendant’s position is that the parol evidence rule is not applicable because the evidence was not offered to vary the terms of the written contract, but was offered as tending to prove that there never was a contract — that the written document was never a binding obligation because it was delivered to plaintiff’s agent with the expressed understanding and' agreement that it would not be binding until and unless the period within which the flour was to be delivered should be changed.

At first blush it might appear that the ruling of the trial judge was in accordance with the law. But after a careful consideration of the authorities, we are constrained to hold that the court erred in striking out the evidence and the question whether there was a valid and binding contract, as the document indicated on its face, should have been left to the jury.

It is a well-established rule of law that when any contract, agreement or undertaking has been reduced to writing, its contents cannot be contradicted, altered, added to or varied by parol or extrinsic evidence. While the matter excluded by this rule is commonly termed “parol” which “signifies and implies essentially the idea ‘oral,’ i. e. matter of speech, as contrasted with matter of writing, ’ ’ this idea is radically incorrect, because when the rule is applicable, what is excluded may equally be written as oral. The rule is in no sense a rule of evidence but a rule of substantive law. 5 Wigmore on Evidence (2d Ed.) sec. 2400. The same author in discussing this question whether a contract is binding between the parties so as to bar the introduction of parol evidence that tends to vary or contradict it depends upon the “finality of utterance” and says: “Whenever, therefore, certain conduct or writing is put forward against a party as his purporting act, no principle prevents him from showing that there never was a consummation of the act * * *. The mark of finality was the delivery of the deed. But it is clear that there can be no fixed and invariable mark of finality; or, in the older phraseology, what amounts to a delivery depends upon the circumstances of the case. No specific manual act is decisive.” (Sec. 2408.) And in section 2410 of the same work, the author further says: “It has therefore long been well understood * * * that the finality of the writing as a jural act depends upon the circumstances of each case; that it may be left to depend on a third person’s assent or upon any other precedent condition, and, in particular, that this is so whether the writing (or escrow) is provisionally handed to the grantee himself or to any one else,” and that this doctrine is completely accepted in the United States. And continuing the author says (sec. 2435): “But by the general principle of delivery * * * no conduct becomes effective as a jural act if its consummation is suspended until the happening of a condition precedent ; and hence such a condition, precedent to the existence of the obligation, may always be established, and has the effect of destroying the apparent obligation of the writing embodying the draft of the act. The difficulty is to distinguish whether, in a given case, the condition is such a precedent one, or whether it is a subsequent one such as the present principle forbids recognizing. Here some subtlety of construction may be required.”

It has been repeatedly held in this State that where a cause of action was predicated upon a written document, signed by the parties, the defendant might offer any evidence that tended to show that the document in question was never in fact a binding obligation and that such evidence did not violate the parol evidence rule. Jordan v. Davis, 108 Ill. 336; Kilcoin v. Ortell, 302 Ill. 531. The Jordan case was an action of forcible detainer.

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Cite This Page — Counsel Stack

Bluebook (online)
232 Ill. App. 266, 1924 Ill. App. LEXIS 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwestern-consolidated-milling-co-v-sloan-illappct-1924.