Shpunt v. Machinery Merchants, Inc.

112 Misc. 457
CourtAppellate Terms of the Supreme Court of New York
DecidedJune 15, 1920
StatusPublished
Cited by1 cases

This text of 112 Misc. 457 (Shpunt v. Machinery Merchants, Inc.) is published on Counsel Stack Legal Research, covering Appellate Terms of the Supreme Court of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shpunt v. Machinery Merchants, Inc., 112 Misc. 457 (N.Y. Ct. App. 1920).

Opinions

Mullan, J.

The plaintiffs, furniture manufacturers doing business at Boston, Mass., under the style of Bay State Upholstering Company, on July 24,1918, wrote to defendant, a domestic corporation engaged, in New York city, in the business of selling woodworking machinery, as follows:

" Machinery Merchants, Inc.,
New York, N. Y.:
" Gentlemen.— We did not use your cylinder and bus planer. We would like to exchange these two [458]*458machines with a balance in cash for an H. B. Smith 36 inch 3 drum sander, either new or built over.
‘ ‘ Kindly send your best quotations.
“ Tours very truly,
“ Bay State Upholstering Co.”

The plaintiffs had previously bought from the defendant the cylinder and bus planer mentioned in the letter, and other machinery.

In reply to their letter the plaintiffs received the following letter, dated July 30, 1918:

“ Bay State Upholstery Co.,
“ Boston, Mass.:
“ Gentlemen.— We have yours of the 24th inst., answer delayed owing to the absence of the writer.
“ Do you require an endless bed sander or a roll feed sander? At the present time, we have no second hand machine of the 36" size, but can fill your requirements with a roll feed 42" or 48" sander.
“We should appreciate your advising us as to whether or not it will be convenient for you to have the writer call on you to go into the matter in detail.
“We are anxious to serve you and await your reply with interest.
“ Tours very truly,
“ Machinery Merchants, Inc.
“ H. J. Rosbnkranz,
Sec’y.”

The plaintiffs not having acknowledged the letter of July thirtieth, the following letter was sent to them, under date of August sixth:

“ Bay State Upholstery Co.
“ Boston, Mass.:
“ Gentlemen.— We wrote you recently for appointment with our Mr. Rosenkranz so that he may call to [459]*459see you in reference to trading your Cylinder and Bus planer for a 36" three drum sander.
‘ ‘ Kindly let us know by return mail when it will be convenient for you to see our Mr. Rosenkranz, and oblige,
“ Yours very truly,
" Machinery Merchants, Inc.,
H. J. Rosenkranz,
Sec’y”

Plaintiffs replied to the August sixth letter as follows:

August 9,1918.
‘ ‘ Machinery Merchants, Inc.,
“ New York, N. Y.:
Gentlemen.— In reply to your letter of the 6th inst. wish to say that we would like to have your Mr. Rosenkranz call on us the week of August 12. Please let us know just when he will call.
Yours very truly,
“ Bay State Upholstering Co.”

Rosenkranz, the writer of the letters sent from the defendant’s place of business, went to Boston on August fourteenth, called upon the plaintiffs, and, after negotiations extending over three hours, effected an arrangement to sell to the plaintiffs a forty-two inch H. B. Smith sanding machine for the sum of $1,300, agreeing to accept payment by taking three notes aggregating $700, and three machines owned by plaintiffs at a stipulated valuation of $600. A contract, embodying those and other essential terms, was thereupon dictated by Rosenkranz and typewritten on a printed form of the defendant in which the defendant is repeatedly referred to as the selling party. One of the terms of the printed form was: This order is subject to accept[460]*460anee or rejection by a properly authorized officer of the ‘ Company ’ (‘ Company ’ having been therein before described as ‘ Machinery Merchants, Inc.’).” The contract was executed by the plaintiffs, and by ‘ ‘ Machinery Merchants, Inc., By H. J. Rosenkranz. ’ ’ Rosenkranz was, at all the material times, the secretary of the defendant. The plaintiffs had not previously met, or had any dealings with Rosenkranz, in the course of their previous transactions with the defendant. In his conversation with the plaintiffs that led to the making of the written agreement, Rosenkranz appeared to be thoroughly acquainted with the sanding machine he was endeavoring to sell, and was able to describe it in detail. He was also able intelligently to fix a price on the plaintiffs’ machines he agreed to take in part payment. Indeed, it was made very plain by his own testimony that he was a duly accredited salesman, acting constantly in that capacity. He returned to New York on August fourteenth, and on the followng day he, in the company’s name, telegraphed plaintiffs: “ Sander sold yesterday by this office, therefore do not ship machines, trying to locate another. ” On the same day he wrote the plaintiffs to the same effect, signing the letter “ Machinery Merchants, Inc., H. J. Rosenkranz, Sec’y.” Rosenkranz’ communications were apparently written openly and in the ordinary course of the routine method employed in the defendant’s office. It is not even suggested that they were made secretly so that the other officers and employees would not know of them. When the plaintiffs were notified that the sander they supposed they had bought had been sold to another purchaser, no suggestion was made as to any lack of power in Rosenkranz. The plaintiffs sued for damage due to the breach, and the defense was interposed that Rosenkranz was without authority to bind the defendant to the bargain he had negotiated on its [461]*461behalf. Upon the trial, in addition to the undisputed facts hereinbefore set out, it was shown that under the by-laws of the defendant its secretary was to perform the ordinary duties of that office, as they are commonly enumerated in the by-laws of business corporations, there being no provision vesting in him any specific power to do anything that is not, in a strict and technical sense, secretarial in character. The by-law dealing with the duties of the president provided that ‘ ‘ he shall sign and execute all contracts in the name of the company when authorized so to do by the board of directors.” The plaintiff Shpunt, with whom Eosenkranz dealt in the matter, testified that Eosenkranz said nothing upon the subject of his authority to act for the defendant. Eosenkranz testified that he told Shpunt that he, Eosenkranz, was without authority to act, and that the contract should be executed on defendant’s behalf by one of its “ executive ” officers; and he justifies his actual signing of the contract by saying he did it to please Shpunt, who said: 1 ‘ What you say goes, sign it personally.”

The complaint was dismissed at the close of the whole case, upon the ground that Eosenkranz had neither express nor implied authority to bind the defendant to the bargain.

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