Pace Corporation v. Jackson

275 S.W.2d 849, 1955 Tex. App. LEXIS 2462
CourtCourt of Appeals of Texas
DecidedFebruary 9, 1955
Docket10271
StatusPublished
Cited by6 cases

This text of 275 S.W.2d 849 (Pace Corporation v. Jackson) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pace Corporation v. Jackson, 275 S.W.2d 849, 1955 Tex. App. LEXIS 2462 (Tex. Ct. App. 1955).

Opinion

ARCHER, Chief Justice.

This is an appeal from a judgment of the court, based on jury findings, awarding ap-pellee $19,000 as damages for the breach of paragraph (E) of the contract and agreement entered into by the parties hereto for the sale and purchase of certain capital stock in Pace Corporation.

The contract and agreement provided for the purchase of certain shares of stock from appellee and the amount and manner of payment, and paragraph one is as follows:

‘‘First: As part of the consideration for this transaction, Allan Jackson agrees and is bound not to re-engage in the handling of sales of cigarettes by the use of cigarette vending machines, in the County of Bexar, Texas, either as an individual, partner, or employee, or to own stock in any corporation engaging in such business in Bexar County, Texas, at any time for the period thát Pace Corporation is indebted to him, and for two years thereafter.”

Paragraphs (D) and (E) are as follows:

“(D) As a part of the consideration for this transaction. Pace Corporation and its remaining directors, Lee Mof-fett and Allan Dubose, individually agree and are bound not to engage, directly or indirectly in the handling or sale of cigarettes by the use of cigarette vending machines in any business other than Pace Corporation or for the account of said Corporation, in Bexar County, or in any manner whatsoever, in the Counties of Kerr and Bandera, Texas, whether as an individual, a corporation, partner ' or employee, or to own stock in any corporation, (other than Pace Corporation, in Bexar County) engaging in such business in Kerr and Bandera Counties, Texas, at any time during the period that Pace Corporation is indebted to Allan Jackson, *852 and Lee Moffett and Alan Dubose individually and for their heirs, successors in office, and assigns, join in the execution of this agreement for the limited purpose of showing their agreement to be bound by the provisions of this paragraph, and by the provisions of the preceding Paragraph (C).
“(E) As a part of the consideration for this transaction, Pace Corporation agrees to supply Allan Jackson for any business he may become interested in outside of Bexar County, with cigarettes on a cash basis, at cost, for a period not to exceed two years after Pace Corporation has paid its indebtedness to Allan Jackson, such cost being defined as invoice price less normal trade and cash discount, if any.”

The litigation was begun by the filing of a motion for Declaratory Judgment by appellants in which the court was asked to determine and declare the true meaning and interpretation to be given the contract, and allegations were made that a proper construction to be given the contract does not require the Pace Corporation to supply Jackson for any business outside of Bexar County with cigarettes, other than the sale of cigarettes by the use of vending machines in Bandera and Kerr Counties, Texas; that the term “business” as used in the contract was expressed in the singular, and does not embrace any but a single business transaction, or in any event the wholesale distribution and sale of cigarettes; that it was the intention of the parties that the supply of cigarettes to be furnished Jackson was to be taken out of the company’s usual stock on hand; that any other construction would render the contract lacking in mutuality, and no legal standard to determine the relative rights and obligations thereunder, etc.

The defendant, appellee, answered that the contract to supply him, “for any business he may become interested in outside of Bexar County, with cigarettes, on a cash basis, at cost, etc.” was plain, clear and unambiguous ; that it was never the intention of the parties that the term “any business” limited any venture in which defendant might become engaged, outside of Bexar County, to any one business, or to a cigarette vending machine business; that the phrase “any business * * * outside Bexar County” was inserted in the contract on the insistence of defendant with the approval of plaintiffs.

The defendant made specific denials to other allegations of plaintiff, as to cost, etc., and prayed that the plaintiff take nothing.

By way of cross action defendant sought damages for the failure of plaintiff to comply with the contract terms, etc.

The pleadings in this case are very voluminous, the transcript containing 131 pages and the statement of facts 360 pages, with many exhibits and it is impossible, without unduly lengthening this opinion to attempt to review the pleadings further. We shall consider the evidence later on.

The appeal is before this Court on 50 points assigned as error.

Points Nos. 1 and 2 are as follows:

“The error of the Court in not holding that the separable and divisible portions of the contract declared upon by Appellee as the basis for his cross-action is too indefinite, vague and uncertain to create any contractual obligation on Appellants to supply Appellee with cigarettes.
“The error of the Court in not holding the separable and divisible portions of the contract declared upon by Ap-pellee as the basis for his cross-action are completely lacking in mutuality. Appellee admittedly had no obligation thereunder to purchase and take any cigarettes from Appellant. Appellant Pace Corporation had no obligation thereunder to supply Appellee with any definite quantity or kind of cigarettes and no definite time or price was, provided therefor. Each of those elements is essential to the creation of contractual obligations under the contract.”

*853 Under these points appellants contend that the provisions of the agreement are so uncertain, indefinite and so lacking in mutuality as to be unenforceable.

Paragraphs (D) and (E) are set out herein and will not be restated.

We do not believe that these provisions are so uncertain and indefinite and so lacking in mutuality as to be unenforceable.

In this case appellee agreed to the sale of his stock in the Pace Corporation in return for the execution of the agreement and has delivered the stock, given up this partial ownership in the corporation and done all he agreed to do. The appellants contend that paragraph (E) is uncertain, etc. and does not mean that the Pace Corporation is bound to supply Jackson, for any business he may become interested in outside of Bexar County, with cigarettes on the basis set out.

The appellants have failed to comply with the agreement to provide appellee with cigarettes on the basis set out, for use by ap-pellee in his business in Kerr and Bandera Counties.

Terms such as mutuality, uncertainty, and indefiniteness, etc. are construed in the light of the circumstances under which the agreement is made and such terms used, and have no definite and fixed meaning and are interpreted so as to deal equitably with the parties.

The right to purchase cigarettes by appel-lee was only a part of the consideration, and the primary consideration which appellants received was the transfer of the stock in the corporation. The contract had been completely executed by appellee at the time of the institution of this suit.

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Bluebook (online)
275 S.W.2d 849, 1955 Tex. App. LEXIS 2462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pace-corporation-v-jackson-texapp-1955.