Red Line Products Co. v. J. M. High Co.

195 S.E. 296, 57 Ga. App. 304, 1938 Ga. App. LEXIS 579
CourtCourt of Appeals of Georgia
DecidedFebruary 11, 1938
Docket26609
StatusPublished
Cited by4 cases

This text of 195 S.E. 296 (Red Line Products Co. v. J. M. High Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Red Line Products Co. v. J. M. High Co., 195 S.E. 296, 57 Ga. App. 304, 1938 Ga. App. LEXIS 579 (Ga. Ct. App. 1938).

Opinion

Sutton, J.

J. M. High Company filed a petition, in aid of an attachment levied by service of garnishment, against Eed Line Products Company, a non-resident, alleging that the defendant was indebted to it in the sum of $1294.99 for merchandise, the receipt of which was evidenced by a credit memorandum issued under date of May 17, 1932, a copy of which was attached to the petition as exhibit A, in the amount of $1574.93, against which the defendant was entitled to a credit of $279.94, leaving the balance above named due the plaintiff with interest at 7 % per annum from May 17, 1932, all of which the defendant had refused to pay; that contemporaneously with the execution and delivery of the credit memorandum the parties entered into a certain contract, dated April 27, 1932, a copy of which was attached to the petition as exhibit B and made a part thereof, and which provided, among other things, as follows: “Por and in consideration of the purchase of merchandise this day made from the party of the first part by the party of the second part in sufficient amount to consume credit memorandum in full on basis as named below, to be delivered from time to time upon the orders -and specifications of the party of the second part within a period of two years from the date thereof, at the current printed Eed Line Eed List in effect on date order is received by the party of the first part, said party of the first part has this day accepted from the party of the second part, but for credit only on the aforesaid purchase contract, certain salable merchandise of the party of the second part to the amount of $1574.93 as per list attached hereto, [305]*305the same to be applied from time to time as forty-five per cent, credit on each invoice of merchandise as shown on Red Line Red List of the party of the first part, sold and to be delivered hereunder, as the same is specified and ordered out by the party of the second part, in accordance with the following limitations and restrictions: (1) It is understood that the title to said merchandise accepted hereunder is this day vested in the party of the first part, and the same is to be delivered to the party of the first part or any person or firm it may name upon written orders to that effect to the party of the second part. . . (3) Should the party of the second part for any reason whatsoever not promptly make shipment of said merchandise after notification by party of the first part, party of the second part agrees to pay to party of the first part 30 °¡o of the amount covering the merchandise as sold to the party of the first part, as liquidated damages for breach of this contract. Said payment to be made in cash within ten days from date of shipping instructions from party of the first, part. (4) In the event that the party of the second part should, for any reason whatsoever, fail to use the full amount of credit issued hereunder, in the manner herein provided, within said period of two years, then any part of the credit remaining unconsumed shall become the property of the party of the first part as liquidated damages for the breach of this contract, and in full settlement of all claims for damages which the party of the first part might have against the party of the second part for said breach; however, if at any date before the. expiration of this contract, should the party of the second part make an additional trade, the expiration date of this contract is automatically extended two years from date of such additional trade. (5) Terms and discounts on all invoices of the party of the first part against the party of the second part as the goods purchased hereunder are ordered out from time to time shall be as follows: Forty-five per cent, of the amount of such invoices to be charged against the aforesaid credit, the other fifty-five per cent, to be paid in cash within ten days from the day of shipment. . . (9) No agreement other than that printed hereon will be recognized. (10) No oral or written agreement or statement of any kind will be binding on party of the first part or be considered a part of this contract unless duly signed by an official of this company.”

[306]*306It was further alleged that under the terms of said contract the plaintiff delivered to the defendant and the defendant accepted from plaintiff the merchandise therein referred to in the amount of $1574.93, the purchase-price of which is sued for, and that pursuant to said contract the plaintiff had the right, within a period of two years thereafter, to order and receive from the defendant company articles sold by it “‘at the current printed Eed Line List in effect on date order was received’ by defendant company;” that (par. 6) at the time of execution of said contract (referred to as exhibit B) defendant company exhibited to plaintiff a certain paper entitled “Eed Line Eed List,” bearing date April 1, 1932, and containing a list of articles of merchandise then being sold by defendant company to retail merchants, and expressly represented and agreed with plaintiff that the term “current printed Eed Line List in effect on date order is received by the party of the first part” appearing on said contract should refer and did refer to future price lists to be put out by the defendant from time to time containing the same articles of merchandise contained on the Eed Line Eed List then exhibited to plaintiff, but that the prices which would appear opposite said articles on such current printed Eed Line Eed List would be subject to change but would be at' the current prices being then offered by defendant company to the general trade; that (paragraph 7) pursuant to said contract and agreement plaintiff sent orders to defendant company from time to time for merchandise appearing on said Eed Line Eed List, no objection was made to plaintiff’s right to order the same but said orders were filled by defendant, - and the plaintiff paid 55 % of the then current list price of the same and credited defendant company with 45 % of said list price as provided for in said contract (exhibit B); the defendant company has received credits by plaintiff to the extent of $279.94 upon said total amount of $1594.53 ($1574.93) representing agreed price of merchandise delivered by plaintiff to defendant as aforesaid. “Petitioner shows that defendant company not only expressly agreed that the phrase ‘current Eed Line Eed List’ as contained in said contract meant said original Eed Line Eed List as to articles with current prices thereon, but accepted orders from plaintiff of articles as contained on said original Eed Line Eed List and invoiced the same to plaintiff, charging plaintiff [307]*30755 % of the list price in cash and allowing plaintiff 45 % of said list price by way of merchandise credits as contemplated by said contract; that [paragraph 8] on September 19, 1932, defendant company issued and delivered to plaintiff what was termed a ‘Red Line Eed List’ containing only -sixty-six (66) items which also appeared on the said original Eed Line Eed List, said new list also allowing 45 % merchandise credit and bearing the notation ‘prices subject to change without notice.’ The defendant then contending that it had the right to omit from said original list of April 1, 1932, a large number of the items therein contained, to which contention of the defendant this plaintiff objected; that [paragraph 9] on March 23, 1933, the plaintiff requested defendant company to ship to plaintiff a number of articles included on the Eed Line Eed List dated April 1, 1932, (hereinafter referred to as ‘the original Eed. Line Eed List’), and defendant delivered the same to plaintiff, but instead of invoicing the same to plaintiff upon the terms provided in said contract, to wit,

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Bluebook (online)
195 S.E. 296, 57 Ga. App. 304, 1938 Ga. App. LEXIS 579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/red-line-products-co-v-j-m-high-co-gactapp-1938.