Tallulah Cotton Oil Co. v. McLemore Bros.

7 La. App. 729, 1927 La. App. LEXIS 310
CourtLouisiana Court of Appeal
DecidedDecember 21, 1927
DocketNo. 2993
StatusPublished

This text of 7 La. App. 729 (Tallulah Cotton Oil Co. v. McLemore Bros.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tallulah Cotton Oil Co. v. McLemore Bros., 7 La. App. 729, 1927 La. App. LEXIS 310 (La. Ct. App. 1927).

Opinion

ODOM, J.

On September 20, 1924, plaintiff sold to defendants ten car loads of cotton seed hulls and meal, at $42.50 per ton for the meal and $14.50 per ton for the hulls, to be delivered at Rayville, Louisiana, as ordered out by defendants up to December 31st, 1925; and on September 30th, 1924, it sold to defendants five cars to be delivered at Winnsboro, Louisiana; shipments and deliveries in each case to be made as ordered by. defendants.

The defendants ordered, received and paid for only a portion of the hulls and meal which they had purchased, leaving in the hands of plaintiff 112% tons of hulls and 37% tons of meal.

The market declined, and that portion of the hulls and meal not taken by defendants was sold by plaintiff, at $11.00 per ton for the hulls and $37.10 per ton for the meal, or a total of $688.13 less than the amount which plaintiff would have received if defendants had taken and paid for the hulls and meal at. the contract price.

Plaintiff brings this suit to recover that amount. Its demands were rejected by the lower court and it prosecutes this appeal.

OPINION

Plaintiff’s suit is grounded upon the proposition that it sold to defendants a certain quantity of cotton seed hulls and meal at a stipulated price per ton and that defendant failed to take and receive the entire quantity, and that upon defendants’ default upon the contract it sold in the open market and to the best advantage that portion of the hulls and meal refused by defendants, the sale being made for less than defendants had agreed to pay, and that it thereby sustained a loss of $688.13, for which amount it brings this suit.

It is undisputed that defendants paid for all the hulls and meal they received as per the contract.

Defendants admit that they signed the two orders or contracts for hulls and meal as alleged by plaintiff, and admit that they accepted and paid for several contracts thereof, but defend on the gfound that the contract was cancelled, insofar as the balance was concerned, on August 3, 1925, and that on that date, by specific agreement with plaintiff, they were relieved of the obligation to take any more hulls and meal.

According to our view, the case hinges on the question whether, as a matter of fact, the contract was cancelled on August 3, 1925, and the defendants re[731]*731lieved from their obligation to take the undelivered portion of the hulls and meal.

Counsel for defendants, in brief, makes some contention that they were never bound to take the full quantity of hulls and meal stipulated in the two instruments signed by them, for the reason that said instruments were no more than orders for the goods and were subject to cancellation by defendants at will.

Our conclusion, however, is that there was a sale of the goods.

The first instrument signed by defendants is styled “Confirmation of Sale”, is on a printed form with blanks to be filled in, is dated September 20, 1924, addressed to “Messrs. McLemore Brothers, Rayville, La.”, and reads, in part, as follows:

“Gentlemen: We confirm the following sale made this day to you: Quantity:”

The above is printed. Then, following, is inserted, with typewriter:

“10 — 20 ton cars. Product cotton seed meal and hulls sacked.
“Quality 8% ammonia meal. Price— $14.50 per ton hulls — $42.50 per ton meal • — delivered Rayville.
“Terms____________________Shipment up to December 31st.”

At the bottom of the instrument is printed the name: “J. Y. Wright, Lessee”; but he did not sign the instrument.

This instrument was sent to defendants who endorsed thereon, at the bottom:

“Accepted: McLemore Brothers. By H. E. McLemore.”

And returned it to plaintiff.

The second instrument, dated September 30, 1924, is identical with the first, except as to date and quantity ordered, and is likewise accepted by defendants.

In addition to the above, we find in the record the following letter:

“Rayville, La.,. September 29th, 1924.
“Mr. J. V. Wright, Tallulah, La.
“Dear Sir: In answer to yours of 27th inst. we wish to state that we will take the additional five cars on the terms stated, delivered to Winnsboro, La. Please fix us a contract and send over for our signature, using the same proportions of hulls and meal as in our other contract. We will send you the specifications for first car upon returning the contract.
“Yours very truly,
“McLemore Brothers, By C. McLemore.”

In response to the letter the instrument dated September 30th was made out and forwarded to defendants and accepted by them, as already stated. Both documents were made out and forwarded to defendants read, as stated:

“We confirm the following sale made this day to you:”

These instruments were not signed by Wright — his name was printed at the bottom thereof — and for that reason defendants contend that there was no completed contract.

We do not concur in this view.

It is undisputed that when Wright received the orders from defendants he at once made out and forwarded to them said instruments, which were accepted, and that following the accepted confirmations both parties treated the transactions as closed contracts of sale; for plaintiff shipped to defendants hulls and meal as« ordered and defendants received and paid for them as per the agreement.

Defendants in their letter of September 29th asked that a contract be sent over, which was done, and they accepted it as written, and stated in the letter,

[732]*732“using the same proportions of hulls and meal as in our other contract”.

It is quite evident that both plaintiff and defendants considered that there was a contract of sale. Whether the written confirmation of the sale was signed by plaintiff or not makes no difference — the fact is that there was a contract.

Article 1762 of the Civil Code reads as follows:

“The contract must not be confounded with the instrument in writing by which it is witnessed. The contract may subsist, although the written act may, for some defect, be declared void; and the written act may be good and authentic, although the contract it witnesses be illegal. The contract itself is only void for some cause or defect determined by law.”

The defendants having ordered the goods and their orders having been accepted by plaintiff, the sale was complete.

Furthermore the defendants’ answer, we think, clearly admits the validity, of the contract of sale.

They set up, as a special defense, that early in the year 1925 the wholesale business owned and operated by them was destroyed by fire and that on account of the loss thereby sustained by them they decided to discontinue said wholesale business and that—

“long before said fire your defendants ordered several car loads of meal and hulls from the plaintiff, the most of which had not been paid for, and that shortly after the fire above referred to, one Mr. Yeager representing J. Y.

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Bluebook (online)
7 La. App. 729, 1927 La. App. LEXIS 310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tallulah-cotton-oil-co-v-mclemore-bros-lactapp-1927.