Record & Tribune Co. v. Brandtjen & Kluge, Inc.

39 N.W.2d 288, 240 Iowa 1342, 1949 Iowa Sup. LEXIS 423
CourtSupreme Court of Iowa
DecidedOctober 18, 1949
DocketNo. 47468.
StatusPublished
Cited by1 cases

This text of 39 N.W.2d 288 (Record & Tribune Co. v. Brandtjen & Kluge, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Record & Tribune Co. v. Brandtjen & Kluge, Inc., 39 N.W.2d 288, 240 Iowa 1342, 1949 Iowa Sup. LEXIS 423 (iowa 1949).

Opinion

Hale, J.

— On May 13, 1946, a representative of defendant corporation called on the plaintiff for the purpose of selling it a large automatic press. Negotiations for the sale of the press were carried on between Don L. Berry and Martha Berry, a copartnership, and Art Link, the representative of the defendant. It was urged by defendant’s agent that there had been an advance in the price and that iii order to avoid further increase *1343 it would, be advisable to contract for the press at that time and that shipment would be made within six months or around the first of the year. Link was a witness at the trial, but at no time denied making- these statements. A contract was entered into at the agreed price of $2200.80, being cost of press, $1965, plus twelve per cent, $235.80, on which an initial payment of $50 was made by the plaintiff.

The execution of the contract constitutes the principal contention in the ease. The contract and duplicate thereof bear a clause which was inserted by rubber stamp, as follows: “These prices subject to increase at vendor’s option to effective permitted legal prices prevailing on date of shipment Avith additional cash increase subject to same terms.” Such rubber-stamp statement is called by the defendant an “escalator clause.”

Copy of the contract signed on May 13, 1946, but not containing the aboA^e clause, is set out as Exhibit A of the plaintiff’s petition. As so set out the total amount of the contract was $2200.80. When the carbon copy of the contract was received by the plaintiff from the defendant in the Spring of 1948 it contained the above escalator clause stamped upon it by a rubber stamp, and the figures pertaining to price had been crossed out and typewritten figures inserted. The total figures of $2200.80 for the machinery had been thus crossed out and $3095.70 inserted. Other figures in the contract also had been inserted and the original figures crossed out. The cash credit of $50 which plaintiff had paid at the signing of the contract by the partnership had been alloAved, but the other figures that appeared in the contract Avere all different from the original instrument which the plaintiffs had signed. The question therefore for our determination is: Did the contract signed May 13, 1946, contain the escalator clause as claimed by defendant, or was such claim of contract inserted as alleged by plaintiff?

Both Don L. Berry and Martha Berry testified that they read the contract before they signed it and it did not contain the escalator clause, and that the first time they had any knowledge of its existence was after the altered copy of the contract bad been received by them almost two years after its sighing. A.rt Link, representative of the defendant, testified to the con *1344 trary — -that the contract signed by them contained the escalator clause. The district court, under all the testimony submitted, found that it was established by a preponderance of the evidence that the contract executed on May 13, 1946, did. not contain the escalator clause.

After the execution of the contract on May 13, 1946, both the copies were transmitted to the defendant in St. Paul for acceptance. It is alleged by the plaintiff that the contract was accepted by the defendant; the defendant writing the plaintiff on May 22, 1946, thanking it for the order and assuring plaintiff that shipment would be made as soon as possible. The defendant did not inform the plaintiff of the probability of a change in price or of the probability that the shipment might be delayed. The letter from the defendant to the plaintiff is as follows:

“May 22,' 1946
“The Record and Tribune Company
203 West Salem Avenue
Indianola, Iowa
“Gentlemen:
“We acknowledge and thank you for your order dated May 13, 1946 given through our Mr. Art Link of our St. Louis branch office for one, 12x18 Six Roller Kluge Automatic Platen Press with automatic lowering delivery, A. C. variable speed single phase motor and controller 110-220 volt.
“Your order is being given to our Production Department today to be scheduled for shipment as soon as possible.
“Again thanking you for this order and assuring you of our cooperation in making this a profitable investment for you, we are
Very truly yours,
Brandtjen & Kluge, Ino.
s/ Henry A. Brandtjen
BY Henry A. Brandtjen.”

Defendant, in its answer, alleges that at the time it accepted plaintiff’s offer there was' inserted in said contract the clause quoted in plaintiff’s petition, and that no contract existed except said contract containing the escalator clause; that the plaintiff had accepted the alleged counter offer of defendant by accept *1345 ing and installing the press, and that plaintiff had been using the press since the first of March 1948, and alleges further that under the admissions made by the plaintiff the plaintiff had made a contract to purchase the press for the total sum of $3095.70; that the plaintiff’s pleading shows that the plaintiff either accepted the counter offer at the installation of the press or that the plaintiff’s petition shows that there was no contract because the minds have never met as to price and that the defendant is either entitled to the return of the press because there is no contract, or to the payment to the defendant by the clerk of court the sum of $1545.70, which plaintiff alleges he has deposited together with interest thereon. It is not disputed that the sum of $1545.70 was deposited by plaintiff with the clerk of the district court as balance due, which would be the balance due plaintiff if the contract was only for the original price claimed, $2200.80.

I. It will be seen from the foregoing that the contention of defendant is that the actual contract containing the escalator clause was executed on May 13, 1946. There was considerable correspondence between plaintiff and defendant relative to the delay in delivery of the press, but we do not find in any place that the escalator clause was mentioned by the defendant, nor is there any evidence as to any statement by defendant relative thereto. Defendant notified plaintiff by telegram on March 17, 1948, that plaintiff would receive the press within ten days, and on March 25, 1948, defendant wrote plaintiff advising it of the shipment of the press, and attaching to the letter a copy of the bill of lading and a copy of the invoice which did not contain the price of the press. The record does not seem to be exactly clear as to the time when the press was actually received at Indianola. It was about the time or after the notification from the defendant. It was, however, installed and used by the plaintiff sometim'e in April 1948.

On April 26, 1948, plaintiff sent its check for $1500 to the defendant, which was cashed and used by it.

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Bluebook (online)
39 N.W.2d 288, 240 Iowa 1342, 1949 Iowa Sup. LEXIS 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/record-tribune-co-v-brandtjen-kluge-inc-iowa-1949.