Societe Titanor v. Sherman MacHine & Iron Works

1935 OK 543, 45 P.2d 144, 172 Okla. 213, 1935 Okla. LEXIS 416
CourtSupreme Court of Oklahoma
DecidedMay 14, 1935
DocketNo. 21842.
StatusPublished
Cited by7 cases

This text of 1935 OK 543 (Societe Titanor v. Sherman MacHine & Iron Works) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Societe Titanor v. Sherman MacHine & Iron Works, 1935 OK 543, 45 P.2d 144, 172 Okla. 213, 1935 Okla. LEXIS 416 (Okla. 1935).

Opinion

GIBSON, J.

Plaintiff in error will be referred to herein as plaintiff, and the defendant in error as defendant.

Plaintiff .commenced this action in the district court of Oklahoma county to recover the price of one thousand and twenty-five (1,025) pounds of steel shipped by plaintiff to defendant in compliance with the alleged terms of a written contract.

The contract was an order written on the stationery of the defendant company and was as follows, omitting letterhead:

“Oklahoma City, Okla.
“January 21, 1927.
“Societe ‘Titanor’,
“55 Rue de Chateaudun,
“Paris, France.
“Gentlemen;
“Please supply the following goods, consigning same to Sherman Machine & Iron AVorks, 18-36 East Main Street, Oklahoma City, Oklahoma, charging same to our account :
“1 bar of Titanor Steel of each of the following dimensions:
“Flat % x iy2"; 1" x 2"; 1A4" x 2y2" (weldable).
“Square 1%"; 1%"; 2" for cold sets.
“This is to be delivered at the price of 52e per pound, duty and freight paid, to the above consignee at Oklahoma City, Oklahoma, U. S. A.
“It will be agreeable to have the lengths of each bar cut in two pieces suitable for shipping.'
“Yours very truly,
“Sherman Machine & Iron AVorks.
“NSSJr/ZL By N. S. Sherman Jr.,
“Treasurer.”

Defendant answered alleging fraud on the part of the plaintiff in procuring the execution of the contract; that the signing thereof was solicited, induced, and procured by fraud, misrepresentation, and artifice on the part of plaintiff’s agent, J. Rossant, in that the said agent came into the office of N. S. Sherman, Jr., treasurer of the defendant company, and solicited a small sample order cf Titanor steel, and that the said Sherman agreed to give such order provided it did not exceed 200 pounds in weight, to which J. Rossant agreed, and requested permission to draw the order so that the quantity of steel would not exceed 200- pounds; that said Rossant did dictate the order, and represented to Sherman that the quantity of steel described did not exceed 200 pounds; that said Sherman believed and relied upon said representations, and by reason thereof *214 signed said order, and that Sherman was without experience in estimating weight of Titanor steel; that the shipment was received by defendant, but upon learning the contents thereof, it immediately notified plaintiff of its refusal to accept the order. Tender of the shipment was made by defendant to plaintiff.

Verdict and judgment were for defendant, and the plaintiff has appealed.

The plaintiff says the trial court erred in hearing evidence of fraud used in procuring the execution of the order, since the pleadings failed to show incapacity to read on the part of Sherman, or any, trick or artifice resorted to on the part of Rossant to prevent the reading of the order,

Plaintiff contends, further, that to warrant the cancellation of the written contract on the ground of fraud, -the elements of such fraud must be clearly pleaded and proved; that such proof must be clear and convincing; that mere preponderance of the evidence is not sufficient, and the instructions of the court requiring only a preponderance of the evidence constituted reversible error.

Counsel say the established rule in this jurisdiction is that the mere false representation to a man in possession of his faculties and able to read that a writing embodies their verbal understanding is not fraud which vitiates a contract. Guthrie & W. R. Co. v. Rhodes, 19 Okla. 21, 91 P. 1119; McNinch v. Northwest Thresher Co., 23 Okla. 386, 100 P. 524; Ames v. Milam, 53 Okla. 739, 157 P. 941; Bass Furn. & Carpet Co. v. Finley, 129 Okla. 40, 263 P. 130. It is claimed that the written order is plain and unequivocal in its terms and the defendant cannot defend on the ground that its officers did not read the contents thereof.

The above cited cases are not authority for the proposition as stated by the plaintiff. These cases express the rule that a statement as to mere matters of opinion as to something that would transpire in the future would not change the terms of a contract; and, further, in the absence of allegations that a contract was signed upon the assurance from, or reliance upon, some one as to the contents thereof, there is no sufficient charge of fraud in procuring the execution of a contract.

The allegations of fraud in defendant’s answer bring its defense squarely within the rule announced by this court in Mount Hope Nurseries Co. v. Jackson, 36 Okla. 273, 128 P. 250, as follows:

“* * * a party who misrepresents a matter to another, where the other relies on the statements made, is liable for the misrepresentations. A man who makes a false statement to another, for, the purpose of inducing that other to enter into a contract with him, and which the other believes, and, believing, is thereby induced to enter into a contract with him, will not bd heard to say: Tt w.as not my misstatements, but your negligence in believing them, that injured.’ It is not for the plaintiff to say that the defendant relied too implicitly on the statements of its agent. * * *”

We cannot agree with plaintiff that the written order is plain and unequivocal in its terms. It is not so to one without experience! in dealing in the commodity therein described, in the absence of familiarity with, or understanding of, the descriptive terms employed therein. The defendant says that such was its position in the transaction, and that it relied upon the statements and representations of the plaintiff when it signed the order, and that such statements and representations were fraudulent and resulted in the signing of the contract.

This amounts to a direct charge of positive fraud. Active, positive fraud is always recognized as a defense in a suit on contract; and whether the defendant was deceived by the alleged misrepresentations of Rossant was a question for the jury. Mount Hope Nurseries Co. v. Jackson, supra.

The agreement that Sherman was bound to familiarize himself with the contents of the order is not sustained by former holdings of this court. In the Mount Hope Nurseries Case, supra, the rule announced in Graham v. Thompson, 55 Ark. 299, 18 S. W. 58, was cited and followed, as follows:

“* * * The very representations relied upon may have caused the party to desist from inquiry and neglect his means of information ; and it does not rest with him who made them to say that their falsity might have been ascertained and it was wrong to credit them.”

The real question in cases of this character is, Was’ the party in fact deceived by the false representations? Prescott v. Brown, 30 Okla. 428, 120 P. 991.

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Bluebook (online)
1935 OK 543, 45 P.2d 144, 172 Okla. 213, 1935 Okla. LEXIS 416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/societe-titanor-v-sherman-machine-iron-works-okla-1935.