Paterson & Edey Lumber Co. v. Carolina-Portland Cement Co.

112 So. 245, 215 Ala. 621, 1927 Ala. LEXIS 643
CourtSupreme Court of Alabama
DecidedMarch 31, 1927
Docket6 Div. 565.
StatusPublished
Cited by18 cases

This text of 112 So. 245 (Paterson & Edey Lumber Co. v. Carolina-Portland Cement Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paterson & Edey Lumber Co. v. Carolina-Portland Cement Co., 112 So. 245, 215 Ala. 621, 1927 Ala. LEXIS 643 (Ala. 1927).

Opinion

*625 GARDNER, J.

The suit is by appellant against the appellee seeking a recovery of damages for breach of contract. As last amended, the plaintiff stated his case in nine counts. Defendant’s demurrer was sustained to each count, and on account of such adverse ruling on the pleadings, plaintiff took a nonsuit and prosecutes this appeal for a review thereof. J. E. Paterson is the assignee of this chose in action, the Paterson Lumber Company being the assignor, and the suit is properly brought in the name of the Paterson Lumber Company for the use and benefit of said assignee. Snead v. Bell, 142 Ala. 449, 38 So. 259; Spurgeon v. McCall, 204 Ala. 395, 85 So. 480.

The parties to the contract will, for convenience, be designated as the Paterson Com-, pany and the Carolina Company.

Counts AA, OC, DD, and EE rest for recovery upon breaches of a written contract made Exhibit A thereto. Negotiations with reference to this contract were carried on with one Brewer as representing the defendant company. These' counts disclose that the written contract, Exhibit A, was agreed upon by the Paterson Company and said Brewer on May 15, 1920, subject to the approval of an executive officer of the Carolina Company. Two copies were duly signed by proper officers of the Paterson Company, and delivered to Brewer, duly authorized to receive them. for the Carolina Company, and two copies retained by the Paterson Company. It was agreed that the written contract should “become. effective if and when it was approved by an executive officer of said Carolina Company.” The counts then allege that the contract was approved by an executive officer of the Carolina Company on August 6, 1920. The contract was “not signed by the Carolina Company or any one purporting to act for it in the premises,” and it is insisted that, prima facie at least, from a consideration of the written contract in connection with the aver-ments of the pleader in reference thereto, approval by signature was the intention of the parties, and that if approval otherwise was to be considered of binding force and effect, these counts should have so averred in more specific terms.

Appellant relies upon the well-recognized rule that the object of signature is to show mutuality and assent, which may be shown in other ways, and that unless a contract is required by statute or arbitrary rule to be in writing, it need not be signed, provided it is accepted and acted upon. 13 C. J. 305; Whatley v. Reese, 128 Ala. 500, 29 So. 606; Forthman v. Deters, 206 Ill. 159, 69 N. E. 97, 99 Am. St. Rep. 145; Hard Wood Package Co. v. Courtney (C. C. A.) 253 F. 929; 1 Williston on Contracts, p. 157.

“But it is equally well settled that an unsigned contract cannot be enforced by either of the parties, however completely it may express their mutual agreement, if it was also agreed that the’contract should not be binding until signed by both of them.” Hard Wood Package Co. v. Courtney, supra.

This latter'authority contains also the following excerpt from the opinion in the case of Miss. SS. Co. v. Swift, 86 Me. 248, 29 A. 1063, 41 Am. St. Rep. 545, of interest in this connection:

“When parties enter into a general contract, and the understanding is that it is to be reduced to writing, or if it is already in a written form, that it is to be signed before it is to be acted on, or to take effect, it is not binding until it is so written or signed. * * * When correspondence indicates that a formal draft of a contract was in the minds of the parties, or at least in the mind of the party sought to be charged, as the only authoritative evidence of a contract, and that he did not have, nor signify, any intention to be bound until the written draft had been made and signed, he is not bound until such draft is duly made and signed. * * * The burden of proof is upon the party claiming the completion of the contract before the written draft thereof is signed.”

Upon concluding a review of some of the leading authorities the Supreme Court of Maine in the Swift Case, supra, summed up the whole matter with the following observations:

“From these expressions of courts and jurists it is quite clear that after all the question. *626 is mainly one of intention.’ If the party sought to be charged intended to close a contract prior to the formal signing of a written draft, or if he signified such an intention to the other party, he will be bound by the contract actually made, though the signing of the written draft he omitted. If, on the other hand, such party neither had nor signified such an intention to close the contract until it was fully expressed in a written instrument and attested by signatures, then he will not be bound until the signatures are affixed. * * * In determining which view is entertained in any particular case several circumstances may be helpful, as: “Whether the contract is of. that class which are usually found to be in writing; whether it is of such nature as to need a formal writing for its full expression; whether it has few or many details; whether the amount involved is large or small; whether it is a common or unusual contract; whether the negotiations themselves indicate that a written draft is contemplated as a final conclusion of'the negotiations. If a written draft is proposed, suggested, or referred to, during the negotiations, it is some evidence that the parties intended it to be the final closing of the contract.”

It clearly appears from the averments of these counts and a consideration of the contract itself that it was one of great imXfortance, containing many details and involving considerable sums of money, and as conclusive of all these matters was the act of the parties in having the agreement made by Paterson Company with the agent, Brewer, reduced to a formal and evidently skillfully prepared written contract, actually signed in duplicate by Paterson Company with blank space for the signature of the Carolina Company, and appropriate spaces for signatures of attesting witnesses for each of the contracting parties. The two copies signed by the Paterson Company were delivered to the agent for the Carolina Company.

We are of the opinion that the averments of these counts in connection with the contract suffice to raise the implication that the approval of the executive officer referred to therein was to be manifested in like manner as the Paterson Company, by signature to the instrument. Both reason and common sense so indicate, and, clearly, the contract and' conduct of the parties is to be properly so construed as disclosing, prima facie at least, such an intention. To each of these counts (with the exception of DD where it is omitted), the telegram relied upon as evidencing the approval of the executive officers is- referred to and made an exhibit thereto; but we are unable to see that it adds any weight to plaintiff’s case. Its language, “mailing signed contract to you today,” is rather confirmatory of the view that approval by signature was the intention and understanding of the parties. No signed contract is alleged or exhibited. Upon the face of these counts, therefore, we think it appears sufficiently, by implication at least, that the approval of the executive officer of the defendant company was to be manifested by signature to the contract.

These counts are to be construed most, strongly against the plaintiff, and the burden was upon hini to show a binding and enforceable contract.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dannelly Enterprises, LLC v. Palm Beach Grading, Inc.
200 So. 3d 1157 (Supreme Court of Alabama, 2016)
Mercedes-Benz U.S. International, Inc. v. Cobasys, LLC
605 F. Supp. 2d 1189 (N.D. Alabama, 2009)
Hunter v. Wilshire Credit Corp.
927 So. 2d 810 (Supreme Court of Alabama, 2005)
Ex Parte Rush
730 So. 2d 1175 (Supreme Court of Alabama, 1999)
Quality Truck and Auto Sales, Inc. v. Yassine
730 So. 2d 1164 (Supreme Court of Alabama, 1999)
Lawler Mobile Homes, Inc. v. Tarver
492 So. 2d 297 (Supreme Court of Alabama, 1986)
Bell v. Washington
373 So. 2d 865 (Court of Civil Appeals of Alabama, 1979)
Perry v. Commissioner
49 T.C. 508 (U.S. Tax Court, 1968)
Butler v. Olshan
191 So. 2d 7 (Supreme Court of Alabama, 1966)
Webb v. Litz
102 So. 2d 915 (Alabama Court of Appeals, 1958)
American Life Ins. Co. of Alabama v. Carlton
8 So. 2d 166 (Supreme Court of Alabama, 1942)
Sovereign Camp, W. O. W. v. Young
186 So. 453 (Supreme Court of Alabama, 1939)
Federal Land Bank v. Bridgeforth
173 So. 66 (Supreme Court of Alabama, 1937)
Ingalls Steel Products Co. v. Foster & Creighton Co.
145 So. 464 (Supreme Court of Alabama, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
112 So. 245, 215 Ala. 621, 1927 Ala. LEXIS 643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paterson-edey-lumber-co-v-carolina-portland-cement-co-ala-1927.