Salem King's Products Co. v. Ramp

196 P. 401, 100 Or. 329, 1921 Ore. LEXIS 91
CourtOregon Supreme Court
DecidedMarch 22, 1921
StatusPublished
Cited by16 cases

This text of 196 P. 401 (Salem King's Products Co. v. Ramp) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salem King's Products Co. v. Ramp, 196 P. 401, 100 Or. 329, 1921 Ore. LEXIS 91 (Or. 1921).

Opinion

HARRIS, J.

It appears from the foregoing statement that the plaintiff concluded in 1917 to construct a plant in Salem for the dehydration of fruits, vegetables and berries; and, accordingly, such a plant was erected in 1917, and since that time it has been in operation. The plaintiff does not confine its attention to berries. The plant is operated about 10 months in the year, and only about one month of that period is devoted to loganberries. In order to assure itself of a supply of loganberries the plaintiff sent out field agents in July, 1917, with authority to negotiate with growers of loganberries for deliveries to be made during a period of 10 years beginning with 1918. These field agents were given printed forms of contracts. The field agents worked among the growers for a “couple of days,” but without success. The plaintiff then authorized a rider to be attached to the printed form; and subsequently the defendants signed contracts. It is conceded by all concerned that the rider is a part of the contracts made with the defendants.

The Salem Company had a contract with the parent company under the terms of which the whole of the products manufactured by the former was sold to the latter for cost plus 10 per cent. The Salem Company had no resale contracts except the one with the parent company. The Salem Company had not done any advertising. The parent company, however, had made many large resale contracts on the faith of get[351]*351ting the Salem Company’s output for 1919; and the parent company had conducted an extensive and expensive advertising campaign in order to get resale contracts.

The defendants made deliveries in 1918; but in 1919 they refused to make deliveries and out of such refusals arose this suit. Each of the ten defendants has a separate contract with the plaintiff; but, notwithstanding this single suit may be said to embrace ten suits, no party has objected to the joinder of these ten growers as parties defendant in a single suit, presumably for the reason that the contracts are substantially alike and the contentions of the defendants are so much the same that all parties tacitly agreed that a single suit would be the most convenient method of settling the controversies.

The dispute centers around the typewritten rider attached to the printed part of the contract. The plaintiff insists that the language of the rider is plain and unambiguous and also free from fraud or mistake, and is conclusive upon the parties; and that therefore the obligation of the plaintiff was to pay five and one-half cents and no more for the crop of 1919, while the obligation of each of the defendants was to deliver to the plaintiff all the berries grown on the acreage covered by his contract. The plaintiff insists that these field agents did not make any of the representations attributed to them by the defendants; and the plaintiff also insists that even though it be assumed that the field agents did make the representations as alleged by the defendants, nevertheless the plaintiff is not bound by these representations for the reason that the field agents had authority only to negotiate and did not have authority to execute contracts, and that the defendants had knowledge of such limited authority because the printed form [352]*352provided that “this contract is not valid unless countersigned by the field manager.” The plaintiff says that none of the executive officers made any of the representations relied upon by the defendants. The plaintiff contends that the rider means that the defendants are to receive four cents each year for their loganberries; but that, although the plaintiff is not obliged to buy from other persons or growers in any year, nevertheless, if it does elect to buy additional berries and if it pays more than four cents for such additional berries, then in such event and only in such event the defendants are entitled to receive the same advanced price for their berries. In support of its construction of the rider, the plaintiff points to the alleged fact that notwithstanding the market price exceeded four cents in 1918, the defendants delivered their berries to the plaintiff, thus indicating that the defendants themselves understood the contract to mean that they were not entitled to receive more than four cents, even though the market price should exceed four cents, unless the plaintiff actually bought additional berries for more than four cents.

The defendants disagree with the construction placed upon the language of the rider by the plaintiff. The defendants argue that whether the rider is construed by itself or is viewed in the light of what preceded the execution of the contract, in either event the contract cannot be given the construction contended for by the plaintiff. The defendants insist that the rider, standing alone and without extrinsic evidence of the circumstances under which it was made and without any evidence of the negotiations which preceded its execution, means that each year the plaintiff must have for other growers a good faith buying price.

[353]*3531-3. Courts are empowered to construe contracts, but they cannot make contracts for parties. Tbe primary object is to ascertain the intention of tbe contracting parties, and if tbe words used by them are plain, clear, definite and unambiguous, they will be taken as tbe final evidence of tbe intention of tbe parties; and even though contracts contain onerous provisions courts will not, in tbe absence of fraud or mistake, afford relief from them. It is tbe obligation of a party to perform bis unambiguous contract; and if a party be unwilling to perform it is tbe duty of tbe court specifically to enforce such contract where tbe remedy at law is not adequate. "Where tbe intent of the parties is expressed in clear and unambiguous language, there is no need for tbe application of any of tbe rules of construction. Most, if not all, of tbe rules of construction applied by courts have been framed and adopted as instrumentalities to be used as aids in ascertaining the probable intention of tbe parties. Let us now turn to tbe rider and attempt to determine its meaning.

4. The contracts' cover a period of ten years with an agreement by tbe plaintiff to pay a minimum of four cents per pound. Tbe rider declares:

“If Salem King’s Products Co. raises their buying price to other growers in 1918, or thereafter, this contract will automatically conform with that price.”

Tbe contract must be considered as a whole; and tbe rider must be considered in tbe light of tbe stipulation concerning tbe minimum of four cents. Tbe rider is introduced by tbe word “if.” This is a word of condition, so that tbe agreement to pay more than four cents is conditional. Tbe plaintiff contends that tbe obligation to pay more than four cents is dependent upon two conditions; tbe contention being [354]*354that the rider means that if the plaintiff has a buying price and if the plaintiff raises that buying price “this contract will automatically conform with that price.”

We are unable to agree with the plaintiff in its contention that its construction is the one which must necessarily be placed upon the rider; nor can we agree with the plaintiff that its construction is the only one of which the rider is fairly and reasonably susceptible. Nor can we agree with the suggestion of the defendants that the language of the rider was deliberately chosen by the plaintiff’s representatives with a trickish purpose.

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Cite This Page — Counsel Stack

Bluebook (online)
196 P. 401, 100 Or. 329, 1921 Ore. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salem-kings-products-co-v-ramp-or-1921.