Robertson v. Bland

517 S.W.2d 676
CourtCourt of Appeals of Texas
DecidedDecember 18, 1974
Docket16367
StatusPublished
Cited by13 cases

This text of 517 S.W.2d 676 (Robertson v. Bland) 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
Robertson v. Bland, 517 S.W.2d 676 (Tex. Ct. App. 1974).

Opinion

PEDEN, Justice.

Suit on a contract to remodel a residence. Appeal from the granting of judgment in favor of its owners against R. D. Robertson individually and Peachtree Builders, Inc.

The appellants’ first point of error is that the trial court erred in its third conclusion of law, which was that R. D. Robertson incurred joint and several liability with Defendant Peachtree Builders, Inc. by virtue of his representations to Plaintiffs and as a consequence of his failure to disclose his intent to the Plaintiffs to sign the contract only as a representative of the corporation; the appellant says this conclusion was erroneous because as a matter of law the failure of a corporate officer to affix his corporate capacity to his signature on a contract does not make it a contract of the individual officer where the contract on its face is a contract of the corporation and the other parties have notice of his relation to the corporation.

At the top of the contract in question appeared:

“CONTRACT AND AGREEMENT I/We the owner(s) of the premises described below, called Owners, hereby contract with
PEACHTREE BUILDERS, INC.
11505 Chimney Rock — Suite 4 Houston, Texas 77035
PA 9-9932
called contractor, and agree and authorize you to furnish all necessary labor and materials to install . . . ”

The letters in “Peachtree Builders, Inc.” at the top of the contract are approximately one-fourth of an inch high. The letters in “Contract and Agreement” are slightly smaller and the rest of the lettering is considerably smaller.

In the spaces for signature, R. D. Robertson signed his name on a line above the word “Contractor”. “Peachtree Builders, Inc.” does not appear immediately above or below his signature, nor does any other indication that he signed as agent for the corporation.

The trial judge made these findings of fact:

“1. That Plaintiffs, Richard L. Bland and Rita Bland, signed a contract for the remodeling of their residence for the consideration of $25,000.00, which contract named Peachtree Builders, Inc. as contractor, but was signed by R. D. Robertson individually.
“2. That Plaintiffs at the time of signing the contract and subsequently *678 throughout the work done thereunder believed and felt they were dealing with R. D. Robertson.
“3. That Defendants initiated performance under the contract, and Plaintiffs paid Defendants a consideration of $22,500.00.
“4. That Plaintiffs were at all times prepared to perform under the terms and conditions of the subject contract.
“5. That Defendants wholly failed to complete their contractual obligations to Plaintiffs, by failure to complete the remodeling of Plaintiffs’ home as called for, leaving Plaintiffs’ home in a state of disrepair.
“5a. That Defendant R. D. Robertson, both individually and as President and majority owner of Defendant Peachtree Builders, Inc., so failed and refused to complete said job through no fault of Plaintiffs.
“6. That Plaintiffs were reasonably required to expend $17,500.00 to complete the contract breached by Defendants.”

The trial judge made these conclusions of law:

“1. This Court has jurisdiction of the parties and the subject matter of this action.
“2. Plaintiffs and Defendants entered into a valid contract for the remodeling of Plaintiffs’ home.
“3. Defendant R. D. Robertson incurred joint and several liability with Defendant Peachtree Builders, Inc. by virtue of his representations to Plaintiffs and as a consequence of his failure to disclose his intent to the Plaintiffs to sign the contract only as a representative of the corporation.
“4. The Defendant R. D. Robertson left it ambiguous on the face of the contract whether he signed it individually or in his representative capacity and the construction most against R. D. Robertson, the person signing the contract, should prevail.”

We sustain the appellant’s first point.

“It is the rule that where, in the body of the contract, it purports to be a contract of the corporation, the signature of the name of the officer with or without an affix designating his representative capacity does not render it his personal contract.” 19 Am.Jur.2d 752, Corporations § 1346.
“As long as a corporate contract is signed by the necessary or proper officers or agents, in the absence of a statutory, charter, or by-law provision to the contrary, no particular form of signature is required, provided it is apparent that it is the corporation’s contract and not the individual undertaking of its agent.” 19 C.J.S. Corporations § 1138, pp. 707-708.

In conclusion of law number 4 the trial court held that the contract was ambiguous as to whether R. D. Robertson signed it individually or in his representative capacity. We do not agree that it was ambiguous but have considered a point of error based on that holding.

Appellants’ second point of error is that the trial court’s finding of fact that the contract was executed by R. D. Robertson individually was against the great weight and preponderance of the evidence. This point is directed at the first finding of fact. We have noticed that the signature line for the contractor bore the signature of R.- D. Robertson, that the word “Contractor” appeared beneath the line and that “Peachtree Builders, Inc.” did not appear just above or just below the signature.

*679 Having considered the contract ambiguous as to the capacity in which Robertson signed the contract, the trial court admitted evidence as to the agreement and understanding of the parties.

“The intention of the parties, which should be ascertained from all the facts and circumstances of the particular case, governs as to whether a party to a contract binds himself personally thereon or whether he is free from personal liability because he is acting only in a representative capacity. While the parties may choose to deal with each other as principals even though one of them is, in fact, acting in a representative capacity, where it appears from all the facts and circumstances that the parties understood that one of them was acting only in a representative capacity and was not to be personally bound by the contract, ordinarily such intention will be given effect.
“One who contracts in a representative capacity is not individually liable where, from the manner in which the instrument is executed, or from the nature of the instrument, it appears that it is the obligation of the person or legal entity represented and that such person or legal entity is the contracting party, but, in general, the rule is otherwise where the contract is executed in his name as a party.

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Bluebook (online)
517 S.W.2d 676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robertson-v-bland-texapp-1974.