Pierson-Lathrop Grain Co. v. Potter Lumber, Grain & Hardware Co.

239 S.W. 559, 210 Mo. App. 387, 1922 Mo. App. LEXIS 214
CourtMissouri Court of Appeals
DecidedMarch 11, 1922
StatusPublished
Cited by3 cases

This text of 239 S.W. 559 (Pierson-Lathrop Grain Co. v. Potter Lumber, Grain & Hardware Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pierson-Lathrop Grain Co. v. Potter Lumber, Grain & Hardware Co., 239 S.W. 559, 210 Mo. App. 387, 1922 Mo. App. LEXIS 214 (Mo. Ct. App. 1922).

Opinions

COX, P. J.

Action for damages for breach of contract to sell 10,000 bushels of corn. Trial by jury; verdict and judgment for plaintiff and defendant has appealed.

The plaintiff claimed to have purchased 10,000 *392 bushels of corn from defendant and that defendant had refused to deliver it. The value of the corn was in excess of $30 and the contract is therefore within the Statute of Frauds and this statute was pleaded as a defense. The deal being in conversation over the telephone and it is claimed by plaintiff was consummated by the exchange of letters.

On October 12, 1917, the plaintiff, whose place of business was at Kansas City, Missouri, wrote defendant at Iantha, Missouri, a letter confirming the oral contract previously made by phone for the purchase of 5,000 bushels of corn. The material parts of this letter are as follows: “We confirm purchase of you per phone 11 a. pi. of car 5,000 bushels corn No. 3 or better @ 1.14½ basis f. o. b. Iantha, Missouri. ... if December shipment 2 cents less, 5 cents per bushel margin to be deposited with us and kept good to the market . . . if shipment not made in time specified our option to accept, reject, extend time or buy in for shippers account. ’ ’

On October 15, 1917 a similar letter except as to price and time of shipment, which was for December, confirming purchase of 5,000 bushels of corn was written to defendant by plaintiff.

Up to October 23rd, no reply had been received by plaintiff to either of these letters and on that day plaintiff wrote defendant the following letter: “We have drawn draft on you today for $500 margin on 10,000 bushels of corn which we have purchased from you on deferred shipment. It is usual to require a margin on trades made for deferred shipment and is one of our rules. We trust you will take up this draft promptly on arrival and pay it.”

On October 24, 1917, Mr. Potter wrote plaintiff-for defendant as follows: “We have your letter addressed to the Farmers Grain & Implement Company of Iantha, Missouri, and note you have made draft for $500. We do not expect to margin this contract or any other contract that we make outside of buying options, You are *393 buying corn from us and if we get the cars, you will get the corn.” Plaintiff did not reply to this letter and there was no other correspondence until November 20, 1917, when plaintiff wrote defendant as follows: “Under date of October 12th, we purchased five thousand bushels of No. 3 corn for November shipment. Kindly bill this grain to us at Kansas City, Missouri.”

On November 23rd, plaintiff again wrote to defendant asking when the corn bought October 12th would be shipped. On December 5th, plaintiff wrote to defendant asking when it might expect shipment of the 10,000 bushels. On December 17th, plaintiff again wrote defendant and in that letter set out the terms of the agreement of both purchases aggregating 10,000 bushels but made no reference to a deposit for margin and quoted therein a part of defendant’s letter of October 24th in which defendant had stated: “We do not expect to margin this contract or any other contract we make outside of buying options. You are buying corn from us and if we get the cars, you will get the corn” and suggested that defendant could, if he wished, wait until December 31st, and then plaintiff could buy other grain to replace that bought from defendant and they could settle on payment of the difference. On December 20th, plaintiff wrote that if defendant could not secure cars to ship to Kansas City, Missouri, shipment could be made to plaintiff at Ft. Worth, Texas. On January 5, 1918, plaintiff wrote defendant that it would extend the time to January 10th and unless defendant should be heard from by that date, plaintiff would buy grain and take steps to collect the difference in cost from defendant. Defendant did not answer any of these letters that were written by plaintiff after October 24, 1917. The only letter written by plaintiff was the one of that date above set out. After January 10, 1918, plaintiff drew on defendant for $4380 which defendant refused to pay and this suit followed.

We have set out the material parts of all the letters that passed between the parties for it is from these letters *394 that the question of a contract in writing to comply with the Statute of Frauds must he determined. To bind a party by a writing signed by him the writing must contain the terms of the contract or must refer to some other writing from which the terms of the contract may be ascertained without the aid of oral testimony. A contract may be shown by letters or telegrams and if, when all the written communications between the parties are read together without the aid of oral testimony, except such as may be pertinent to show the situation of the parties and the circumstances surrounding the transaction, the essential terms of the contract can be ascertained with reasonable certainty, it is sufficient. [Young Men’s Christian Association of Kansas City v. Dubach, 82 Mo. 475; Fox v. Courtney, 111 Mo. 147, 20 S. W. 20; Dunham v. Hartman, 153 Mo. 625, 629, 55 S. W. 233; Meramec Cement & Material Co. v. Kreis, 261 Mo. 160, 169, 168 S. W. 1148; Peycke Bros. v. Ahrens, 98 Mo. App. 456, 72 S. W. 151; Leesley Bros. v. A. Rebori Fruit Co., 162 Mo. App. 195, 144 S. W. 138; Truskett v. Rice Bros. Live Stock Commission Co., 180 S. W. 1048.]

The converse of that proposition necessarily follows and unless the letters or other writing's do either expressly or impliedly so refer to each other as to show that they are to be considered together and then when so considered, a contract is shown and its terms stated with reasonable certainty, the statute is not complied with.

The petition was in two counts'based on the two separate purchases of grain. The facts relating to each were the same except the dates and prices. On October 12,1917, a conversation over the telephone resulted in an agreement by which plaintiff purchased from defendant 5,000 bushels of corn. The parties to this conversation, Mr. Sulbvan for plaintiff and Mr. Potter for defendant, disagreed in their testimony as to the terms of the contract as orally agreed upon over the phone — another illustration of the necessity for, and wisdom of, the statute. This conversation, of course, was not binding and on the *395 same day plaintiff wrote defendant a letter confirming the purchase and giving the terms. This provided for a cash deposit by defendant with plaintiff of 5‡ per bushel as follows: “5‡ per bushel margin to be deposited with ns and kept good to the market.” On October 15th another telephone conversation took place between the same parties followed by a letter of the same date confirming that purchase and contained the same provision for 5d per bushel margin to be deposited with plaintiff by defendant. Neither of these letters were answered and on October 23rd, plaintiff wrote defendant: “We have drawn draft on yon today for $500 margin on 10,000 bushels of corn which we have purchased from you on deferred shipment. It is usual to require a margin on trades made for deferred shipment and it is one of our rules.” Mr. Potter was an officer in the bank to which the draft was sent and also an officer in, and manager of, defendant company.

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Bluebook (online)
239 S.W. 559, 210 Mo. App. 387, 1922 Mo. App. LEXIS 214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pierson-lathrop-grain-co-v-potter-lumber-grain-hardware-co-moctapp-1922.