Patterson v. Yellow Cab Mfg. Co.

298 S.W. 918, 1927 Tex. App. LEXIS 770
CourtCourt of Appeals of Texas
DecidedMay 6, 1927
DocketNo. 255.
StatusPublished
Cited by9 cases

This text of 298 S.W. 918 (Patterson v. Yellow Cab Mfg. Co.) 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
Patterson v. Yellow Cab Mfg. Co., 298 S.W. 918, 1927 Tex. App. LEXIS 770 (Tex. Ct. App. 1927).

Opinion

LESLIE, J.

About October 9, 1923, appellant G. C. Patterson, "executed and delivered to-appellee, Yellow Cab Manufacturing Company,, a “customer’s original order” for two taxicabs.. There was a separate deal for each cab, hut. made upon the same terms and conditions,., and delivery was simultaneous. Upon delivery of cabs Patterson executed to said, company a series of notes in payment therefor and a chattel mortgage lien on the vehicles-' to secure the payment of ,the notes. This-suit is by the cab company for judgment on-the notes, with foreclosure of the lien.

‘ The answer of Patterson consisted of demurrers, general denial, and sought rescission, of the final sales contract and cancellation of the notes upon various grounds of fraud inducing him to enter into said contract and. to execute and deliver the notes and mortgage. Failure of consideration, both total, and partial, was alleged.

• The fraud alleged consisted of false promises by one Galfee (plaintiff’s sale agent) in. this: That during the conversations precede ing the order for the cabs, and at the time-of the making thereof, the cab company (1)-agreed to protect the defendant, Pattetson,. against all other colored cabs; (2) to secure franchise for the defendant from the railroad of exclusive soliciting privileges at the-depot; and (3) to furnish operating and service engineer, etc.

Defendant alleged such promises were-fraudulently made without any intention upon the part of the plaintiff to perform, the same; that they constituted parts and parcels of the contract agreed upon between-him and the agent; and that he relied-upon such representations, acted upon same,, and executed the notes in question; that the plaintiff failed -to comply with said promises, and fraudulently omitted to incorporate the same in the provisions of the-contract for the cabs which he later signed, and for which rescission is herein sought.

In ,a supplemental petition the plaintiff, among other defenses, specially denied the-allegations of fraud, but alleged that, if any committed, the defendant was estopped-to set up the same because of defendant’s failure to exercise due diligence in ascertaining the contents of the contract at the time-he received the same and accepted the delivery. of the' cabs, and further alleged waiver of fraud, if any, on the part of the-defendant, in that he, after the discovery of the fraud, retained and used the cabs.

Upon the conclusion of the testimony, the-trial court instructed the jury to return a-verdiet for the plaintiff. Judgment was en-- *919 tered thereon, and from the action of the’ ■court this appeal is prosecuted.

Appellant presents various assignments of error to the court’s action in so instructing the jury, as well as in its refusal to submit the case to the jury upon special issues tendered by the defendant, and which sought to present to the jury for its determination various alleged false promises made by the plaintiff’s agent to the defendant, which induced him to enter into the contract, and which it was alleged plaintiff, at the time of the mating thereof, had no intention of fulfilling.

The negotiations leading to the sale of the cabs by plaintiff to the defendant occurred at Breckenridge, Tex., and were between Calfee, the agent of said company, and the defendant, G. C. Patterson. After somewhat prolonged negotiations, they reached a common understanding whereby the defendant executed the order referred to, of date October 12, 1923. That order contained the following provisions:

“It is understood that this order will be supplemented by a written contract drawn between the two parties, covering all details of the purchase and sale, in accordance with this ■order and subject to the standard provisions of seller’s form contract.
“It is understood that this order shall not be binding until accepted in writing by the Yellow Cab Manufacturing Company, a corporation, notwithstanding that any deposit by the undersigned purchaser may have been made.”

This excerpt from the order, as well as the testimony, evidence a mutual understanding between the plaintiff and the defendant that a written contract of the plaintiff’s “standard form” should be the consummation of - their ■negotiations looking to the sale and ultimate transfer of the title to the cabs, and it is elementary that under such circumstances there is no binding contract, where, although its terms have been agreed upon orally, the parties have also agreed and stipulated that it' shall not be binding until evidenced by writing. Great Eastern Casualty Co. v. Thomas (Tex. Civ. App.) 178 S. W. 603; 6 R. C. L. p. 618, § 39; 13 C. J. p. 289, § 100; Atchison, etc., v. Smyth (Tex. Civ. App.) 189 S. W. 70; Dorsey v. Cogdell (Tex. Civ. App.) 210 S. W. 303.

After the lapse of a few months, the cabs were ready for delivery, and the defendant went to receive' the same and to execute the written contract contemplated by the parties and provided for in the order. The defendant, Patterson, testified that, upon reaching the office of the attorney for the plaintiff, he was delayed in procuring the contract, because the attorney was busy in court, but that, when he got access to the attorney, the written contract in question was delivered to him, and the negotiations at that time upon the part of said company through its agent and attorney can best be understood from the testimony of the appellant, which is as follows:

“When Mr. McCustion or McCutcheon, whatever his name is, presented me with these papers, he told me that was the contract, or part of. the contract, for the yellow cabs to be delivered in Port Worth under the original sale, or two sales, rather.”

There is no evidence that the attorney, McCutcheon, was ever present during the negotiations between the defendant, Patterson, and Calfee, which led up to the execution of the original order in pursuance of which this contract was executed, or that he knew anything about such negotiations.

It is important to observe that appellant’s contention of fraud and right to rescission is based upon the statements and representations made to him by said attorney, which he contends amounted to a statement and representation upon the part of him, and consequently the cab company, that the contract then delivered contained provisions covering the promises and covenants made to him by the agent in the negotiations and verbal understanding reached at the time, and leading up to the execution of the original order; that the contract did not contain such provisions; and that they had been fraudulently omitted therefrom, thereby entitling the defendant to the cancellation of the notes and rescission of the contract. In this connection appellant, Patterson, testified that, when the contract was handed to him, he did not read it, that he was acquainted with the financial standing and good business reputation of the Yellow Cab Company, and had confidence in them; that by reason of the statement of their attorney, and under the pressure of an impending change in the weather (in Texas), he signed and received the contract without reading the same or in any way undertaking to inform himself of its contents.

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298 S.W. 918, 1927 Tex. App. LEXIS 770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patterson-v-yellow-cab-mfg-co-texapp-1927.