Suman v. Inman

6 Mo. App. 384, 1878 Mo. App. LEXIS 139
Missouri Court of Appeals·Decided December 31, 1878·Published·Cited by 1 cases

Opinion

Bakewell, J.,

delivered the opinion of the court.

The second count of plaintiff’s petition alleges that defendants were factors and commission-merchants; that plaintiff shipped to them a car-load of goods worth $474, which defendants received and agreed to sell for a commission of five per cent, and guarantee the payment of the proceeds to the plaintiff; that defendants sold the goods to Eox & Co., which firm was then, and ever since has been, insolvent ; that plaintiff has received no part of the proceeds of the sale, though demand was made of defendants. Judgment is asked for $474 and interest. There was a general denial, and a counter-claim for commissions. The first count of the petition was abandoned at the trial. There was a verdict and judgment for plaintiff, and the cause comes here by writ of error.

The testimony was contradictory. There was, however, some evidence that the goods were sold on a del credere commission. There was also testimony tending to prove the other material facts alleged in the second count of the petition.

1. An instruction in the nature of a demurrer to tiie evidence was asked by defendants and refused; and it is claimed that, as the contract was not in writing, there was no evidence to support the verdict.

It was formerly said by learned writers that the contract of a factor binding him in the terms implied in a del credere commission was a collateral obligation and within the statute. Chitty on Con. (10th ed.) 209. And it was held in [386] Morris v. Cleashey, 1 Mee. & W. 556, that the obligation is collateral. But the later cases do not so hold. To quote the language of Judge Curran in Wolff v. Koppel, 5 Hill, 458: “It may not be strictly correct to call the contract of a factor a guaranty, in the ordinary sense of the word. The implied promise of the factor is merely that he will sell to persons in good credit at the time; and in order to charge him, negligence must be shown. He takes an additional commission, however, and adds to his obligation that he will make no sales unless to persons absolutely solvent; in legal effect, that he will be liable for the loss that his conduct may bring upon plaintiff without the onus of proving negligence. The merchant holds the goods, and will not part with them to the factor without this extraordinary stipulation, and a commission is paid to him for entering into it. What is this, after all, but another form of selling the goods? Its consequences are the same in substance. Instead of paying cash, the factor prefers to contract a debt or duty Which obliges him 'to see the money paid. The debt or duty is his own, and arises from an adequate consideration. Upon non-payment by the vendee, the debt falls absolutely upon the factor. * * * The action is, in effect, to recover the factor’s own debt.” This ruling was followed in England, in Couturier v. Hastie, 8 Exch. 55, where Parke, B., speaks of the judgment in Wolff v. Koppel as a very able one, and adopts the reasoning of the case.

The rule that in the case of factors who have possession of the goods, and sell under a del credere commission, the agreement is not collateral, and therefore not within the statute, is now too well established to be disturbed. 1 Am. Ld. Cas. 659-663; Bradley v. Richardson, 23 Vt. 720; Swan v. Nesmith, 7 Pick. 222; 2 Denio, 228; Story on Ag., sect. 215. The factor’s promise stands upon the consideration of his own duty and responsibility growing out of his employment. If it terminates in a liability to pay the debt of another, that is a mere incident; and one ought [387] not to set up the statute as a pretext to escape the performance of a valid verbal promise for another purpose because in performing it the discharge of another’s debt is incidentally involved. Brown on Stat. Fr., sect. 214. If the rule is regarded by any as impolitic, and a wish is felt that cases of this character had been left within the statute, the present-case would perhaps strengthen their opinion. The only testimony to the agreement is that of one of the plaintiffs, and his recollection of the conversation in which he says it was made is directly contradicted, not only by the other party to the alleged contract and conversation, but also by one of plaintiff’s own witnesses, present at the time of the talk on which this suit is based. And the other testimony tends rather to discredit than to corroborate the recollection of plaintiff as to any understanding that the sales were to be guaranteed by defendants.

2. A letter written by defendants to plaintiff, three months after the sale, was offered in evidence by defendants and excluded. This letter was one asking instructions as to whether defendants should at once sue the purchaser or whether they should wait. We think the letter was too late in time to be considered as connected with the original transaction so as to afford any illustration of its character as part of the res gestee.

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Suman v. Inman, 6 Mo. App. 384, 1878 Mo. App. LEXIS 139 (Mo. Ct. App. 1878).

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