Sealy Cotton Co. v. Gustafson & Spencer, Inc.

258 S.W. 911
CourtCourt of Appeals of Texas
DecidedDecember 6, 1923
DocketNo. 8404. [fn*]
StatusPublished
Cited by9 cases

This text of 258 S.W. 911 (Sealy Cotton Co. v. Gustafson & Spencer, Inc.) 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
Sealy Cotton Co. v. Gustafson & Spencer, Inc., 258 S.W. 911 (Tex. Ct. App. 1923).

Opinion

GRAVES, J.

Appellee in this proceeding sued appellant for breach of a contract to purchase from appellee’s predecessor, to whose rights it had succeeded, 144,000 gallons of fuel oil, to be delivered during a period of six months from March 1 to August 31, 1921, at the agreed price f. o. b. tank car refinery at Wichita Falls, Tex., of $1 per barrel of 42 gallons, cash upon receipt of sight draft, with bill of lading for each shipment attached; the contract' of purchase provided that orders would be made by appellant upon appellee’s predecessor for the oil, and deliveries would be made monthly, 8,000 gallons each for March and April, and 32,000 gallons each for the remaining months of May, June, July, and August.

Appellee charged that contrary to and in violation of this contract the cotton company refused to accept any of the oil for the months of April, June, July, and August, and only accepted 7,931 gallons of the agreed amount for the month of May, to its aggregate damage according to the difference in the market and the contract price for the months specified, which it ’set out in detail, of $1,685.68 and interest thereon.

The appellant answered the suit with a general denial and a plea of non est factum duly verified as refluired by law.

The appellee then further pleaded as follows:

“Plaintiff would further allege in reply to defendant’s answer that the said contract was signed ‘Sealy Cotton Company, by H. L. Hille-brand, Manager,’ and plaintiff would further allege that the said H. D. Hillebrand, aforesaid, had the proper huthority to execute the contract on behalf of the defendant herein. Plaintiff further alleges that the said H. L. Hillebrand had the implied authority to execute the contract 'in fulfillment of his express duties as manager of the defendant company. Plaintiff would further allege that the said defendant herein held out the said H. L. Hillebrand, aforesaid, as possessing authority to execute such contract, and that said Hillebrand had the apparent or ostensible authority to execute the same, and that the plaintiff herein was justified in believing, as it did believe, that the said H. L. Hillebrand, manager aforesaid, did have the authority, commensurate with his duties as manager of the defendant company, and that the defendant herein is estopped to deny the lack of authority on the part of this agent to the detriment of this plaintiff.
“Plaintiff would further allege that the defendant, by and through its representatives conducting its business and having authority — express or apparent authority — to do so, expressly ratified and confirmed the said contract, and did, in fact, accept and pay for one shipment of the oil in question under this contract; and that, for each and all of the above reasons, the defendant is estopped to deny the authority of the said H. L. Hillebrand, whose name is attached to the contract in question.”

*913 The cause was tried before the court without a jury, and judgment in favor of appel-lee for $1,704.64 was rendered against appellant, from which it prosecutes this appeal.

On the trial below, under the pleadings outlined, the appellee offered in evidence as the sales contract sued upon an instrument literally conforming in contest to the aver-ments made, duly signed upon the one side by its predecessor, and upon the other bearing this signature:

“Accepted: By Sealy Cotton Co., H. L. Hille-brand, Mgr., Per O. A. 6.”

Appellant objected on the ground that the contract tendered was at variance with the one declared upon, in that the one in suit was alleged to have been made by Hillebrand on the part of the cotton company, whereas' that offered in proof showed that another person not the manager, O. A. G., had esecuted it; further, that no proof of the esecution of or esplanation of erasures and interlineation in the document tendered had been made.

The objections were overruled, and the trial court’s action in receiving the contract in evidence is complained' of here.

We do not think any error is shown. In the first place, there was no material variance tending to surprise or mislead the appellant, and, in the second, if it could be said that the due execution of the contract at inception was not established, proof at least of its subsequent acknowledgment and ratification, pursuant to the allegations to that effect in answer to the non est factum plea, was made; as the plea of non est factum has reference to the time and act of execution, this conclusion alone disposes of all appellant’s contentions having their source in the filing of that pleading.

The appelle'e, in that part of its trial petition which preceded the previously quoted averments therein by way of reply to the non est factum answer, had alleged:

“That on or about the 17th day of 'February, 1921, Anderson & Gustafson, Inc. [its predecessor] entered into a written contract with the defendant, Sealy Cotton Company,” etc.

It was certainly no material variance from that declaration to present in proof a contract subscribed, “Accepted: By Sealy Cotton Co., H. L. Hillebrand, Mgr., per O. A. G.,” since it directly purported to be the cotton company’s act, as just charged.

When the quoted averments were added setting up that the contract — that is, the Cotton Company’s contract, as previously al-. leged — was signed by H. L. Hillebrand, manager, declaring him to have been thereunto authorized, further charging express ratification, part performance, and confirmation thereof by appellant, as well as urging a consequent estoppel to deny the same against it, evidence to substantiate the claim was clearly receivable along with the instrument it-self; and this notwithstanding that Hille-brand’s name appeared to have been signed by O. A. G. It was still permissible to show that the act itself was that of Hillebrand, manager, through authorization from him to-the one who signed his name. Ry. Co. v. Chandler, 51 Tex. 416; Henderson v. Lumber Co., 61 Tex. Civ. App. 136, 128 S. W. 671.

When the evidence is looked to, as before stated, it clearly appears that the contract was that of appellant, and, if not originally executed by Hillebrand’s direction, or with his knowledge and consent, was subsequently ratified and acted under by him in his official capacity as manager for appellant. It bore date February 17, 1921, and no question of a lack of authority to execute it for appellant was ever raised until its answer was filed in this suit on June 7, 1922. Between these two dates there was correspondence between the parties about the matter, Hillebrand signing the name of appellant as manager, and not only was there no denial of the authenticity of the contract, but it was expressly recognized. For instance, on March 21, 1921, he wrote in reply to a letter from appellee’s predecessor, explaining that the cotton company could not take any oil that month on account of having no storage for it', saying as soon as they got a. boiler in operation and used up some of the oil on hand they would advise the seller. On August 5,1921, he wrote appellee in response to its letter to appellant of the day before, expressly referring to the oil contract, and stating that they had at no time refused to take the oil, but asked that it be shipped open on 30 or 60 days’ time, as the cotton company was unable at that time to pay cash for the .shipments.

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Bluebook (online)
258 S.W. 911, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sealy-cotton-co-v-gustafson-spencer-inc-texapp-1923.