Serhant v. Gooch Milling & Elevator Co.

148 N.W. 911, 96 Neb. 754, 1914 Neb. LEXIS 127
CourtNebraska Supreme Court
DecidedSeptember 26, 1914
DocketNo. 17,816
StatusPublished

This text of 148 N.W. 911 (Serhant v. Gooch Milling & Elevator Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Serhant v. Gooch Milling & Elevator Co., 148 N.W. 911, 96 Neb. 754, 1914 Neb. LEXIS 127 (Neb. 1914).

Opinion

Fawcett, J.

' This action was instituted in the district court for Lancaster connty, for damages on account of the breach of a •contract of the defendant to sell 400 barrels of flour to [755]*755plaintiffs. A general demurrer to the petition was sustained and plaintiffs’ action dismissed. Plaintiffs appeal.

The petition alleges that the contract was not in writing, hut that a memorandum thereof, in the nature of an order for purchase and sale, was made and signed by J. J. Langer, who was and was acting as the agent for the defendant. The form of the order is set out thus:

“Date Line- Jan. 16, 1909.
“GOOCH MILLING & ELEYATOR COMPANY, LINCOLN, NEBRASKA.
“Sold to Kryda & Company, Chicago, 111.
“Shipment — February Yia C. B. & Q.
“Terms — as before
“No. Lbs. — Brands Size Bbls. Price of cwt. No. of bags.
“400 brls. — Old Settlers 4.70
“All orders must be signed by purchaser.
“Ordered by-.
“J. J. Langer, Salesman.
“All orders subject to confirmation by mail.”

The petition further alleges that plaintiffs accepted the order verbally as offered by defendant at the time it was made, and bears date, in Chicago, Illinois, with the said Langer for and on account of the defendant; that in the memorandum the reference, “Shipment: February, Yia C. B. & Q.,” means and refers to the agreement that the flour should be shipped and delivered to plaintiffs in Chicago during the month of February; that the words “terms' as before” mean and refer to a similar former memorandum of the purchase and sale of flour between the same parties, in which the terms of the purchase were written, and which indicate that the flour should be paid for at the price of $4.70 per barrel on 30 days’ time, or, if payment were made within ten days from the time of delivery, a discount of two per cent, on the price was to be allowed; that the words and figures in the memorandum “400 brls.” under the heading of “No. lbs.,” and the words “Old Settlers” under the heading “Brands,” and the figures “4.70” [756]*756under the heading “price of cwt.” mean that it was agreed between the parties that 400 barrels of the brand of Old Settlers flour were bought by plaintiffs and agreed to be delivered at the price of $4.70 per barrel of 196 pounds weight; and that the signature of Langer at the bottom of the memorandum was the signature and execution of the memorandum of the contract by him as agent and salesman for the defendant. It is further alleged “that the memorandum referred to, which is blank under the heading ‘size bbls.’ and ‘No. of packages,’ indicates, as the agreement was between the parties, that the flour should be shipped in packages or sacks of 98 lbs. weight, and that, if any portion of the flour was desired to be shipped in smaller pr larger packages, the designation of their size would, by the understanding of the parties, their course of dealing in the similar purchases just preceding this, and by the general custom of the trade, have been entered on said memorandum. The plaintiffs further designated and directed that said 400 barrels of flour be shipped in 98-pound sacks or packages when said memorandum was made, and so directed said Agent Langer.” It is further alleged that on or about January 20, 1909, Langer delivered the memorandum and order for the flour to defendant, and defendant wrote plaintiffs a letter, which was received in due course by mail, which letter was as follows :

“Gooch Milling & Elevator Company.
“Manufacturers of Hard Winter Wheat Flour,
“Lincoln, Nebraska, Jan. 20, 1909.
“Kryda & Company, Chicago, 111. Gentlemen: We have your order of the 16th inst. given to our Mr. Langer, for 400'barrels of Old Settlers flour at $4.70 per bbl. to be shipped to you in February. We thank you for this order and it shall have our careful attention. We await shipping instructions from you for our next car and hope you will be able to give them to us soon. Yours truly,.
“Gooch Milling & Elevator Company,
“F. E. Roth; Secretary.”

[757]*757It is further alleged that defendant failed and refused to ship any or all of the flour so purchased during the month of February to the plaintiffs, “although they often requested said defendant so to do, orally on giving the ■order, at times in Feb., May 8 and 28, and by letter in the hand of defendant about May 14, 26, and June 3, 1909, and were ready and willing to pay the price agreed upon for said flour according to the terms of said agreement and memorandum;” that at all times mentioned plaintiffs were engaged in the wholesale and retail selling of flour in the city of Chicago; that the order was given defendant for the flour in controversy for the purpose of meeting and fulfilling contracts made by plaintiffs for the sale of flour during the month of February, 1909, and at the time the contract was made and the order for shipping flour was given plaintiffs were taking orders for the sale and delivery of the flour during the month of February, “all of which was well known to the defendant; that during the said month of February the market price of flour of the quality and grade of ‘Old Settlers’ flour, purchased from the defendant, increased to $6.05 per barrel on the market at Chicago, and the plaintiffs could and would have obtained that price for the flour so bought of the defendant, if the same had been delivered as was agreed to be done;” that, by reason of the failure of defendant to deliver the flour, plaintiffs were compelled to order other flour to fill their orders for that month at the advanced price named, and were prevented from making the profits stated on the flour, purchased from the defendant, to their damage in the sum of $540, for which they pray judgment.

Plaintiffs state in their brief that the demurrer was based on two objections: First, that the contract for the sale of the flour was not mutual between the parties, no obligation having been assumed by plaintiffs to take and pay for the flour; and, second, that the memorandum of the contract, which was a sale order, did not satisfy the statute of frauds, not having been signed or confirmed in writing by the purchaser. Defendant’s brief insists: (1) That the contract was not enforceable against either party [758]*758under the statute of frauds and was equally inoperative and unenforceable against either party regardless of the statute; (2) that the conditions to the contract prescribed by the defendant to be performed by plaintiffs were conditions precedent to the creation of a contract obligating* the defendant; (3) that the defendant never contracted absolutely, but upon the condition that the contract was by the plaintiffs’ acts to be rendered mutually enforceable between the parties; (4) that when a condition is attached to the making of a proposed contract that both the parties shall sign the contract, and one party neglects or refuses, to sign, the party signing is not bound by the contract,, whether or not the contract is within the statute of frauds;. and (5) that a petition tested by demurrer must be construed most strongly against the pleader.

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Cite This Page — Counsel Stack

Bluebook (online)
148 N.W. 911, 96 Neb. 754, 1914 Neb. LEXIS 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/serhant-v-gooch-milling-elevator-co-neb-1914.