Templeman v. Closs

212 S.W. 187, 1919 Tex. App. LEXIS 623
CourtCourt of Appeals of Texas
DecidedMarch 6, 1919
DocketNo. 7640.
StatusPublished
Cited by5 cases

This text of 212 S.W. 187 (Templeman v. Closs) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Templeman v. Closs, 212 S.W. 187, 1919 Tex. App. LEXIS 623 (Tex. Ct. App. 1919).

Opinion

PLEASANTS, C. J.

This suit was brought by appellants against appellee to recover damages for the alleged breach by appellee of a contract executed by appellee and A. H. Keefer, as agent for appellants, for the sale and delivery of 50 bales of cotton. The contract was as follbws:

“North Zulch, 8-4-1915.
“Bot of Tom Closs 50 bales of cotton, delivered North Zulch during October, 1915, at 8c middling basis. [Sighed] A. H. Keefer. Guaranty, A. L. Lipscomb. Witness: W. Garland. Affirmed by J. T. Closs.”

Appellants allege substantially that by the execution and delivery of- the said contract they purchased, through their said agent, of appellee 50 bales of cotton at 8 cents per pound, basis middling, and the said appel-lee sold the same to appellants at the stipulated price of 8 cents per pound, basis middling, appellee to deliver said cotton to their *188 agent at North Zulch in Madison county, Tex., during the month of October, 1915; that' appellants .were cotton buyers, and at the date aforesaid and long prior thereto were engaged in buying and selling cotton, having their principal place of business at Navasota, Tex., hut their agent, A. H. Keefer, was located at North Zulch in Madison county, Tex., where the contract was made; that appellee had been growing and selling cotton in the bale for many years prior to said contract in Madison county and adjacent counties ; that under the general custom and long-established usage among buyers and sellers of cotton in Madison and adjacent counties it was understood that a bale of cotton when sold for future delivery meant 500 pounds of cotton, or a total for the 50 bales set forth in the- contract of 25,000 pounds; that appellants agreed to pajr appellee 8 cents per pound for said cotton, basis middling, a total of $2,000; that the. market price of said cotton at the time and place when and where appellee agreed to deliver the same was liy8 cents per pound, or a total price upon the said 50 bales of $2,843.75, leaving a bal-anc'd due and owing appellants by appellee upon said contract, by reason of his alleged breach thereof, the sum of $843.75. Appellants further allege their ability and willingness to have taken and paid for said cotton under the contract and the failure and refusal of appellee to deliver the same as required by said contract.

The appellee answered by general demurrer and general denial, and specially denied that Keefer was the agent of appellants in making said contract, and denied the right of appellants to recover thereon. He further pleaded:

“Eor further special answer to said petition, the defendant says that it is true that, on or about the 4th day of August, A. D. 1915, one A. H. Keefer did prepare a memorandum of an agreement which the said Keefer proposed to enter into with this defendant for the purchase of 50 bales of cotton in terms as follows:
“ ‘North Zulch, Texas, 8-4r-15. Bot of Tom Oloss 50 bales of cotton, delivered North Zrilch during October, 1915, at 8c middling basis. [Signed] A. H. Keefer. Affirmed by [Signed] J. T. Oloss.’
“But the defendant avers that the said memorandum, at the time it was written and signed by the said Keefer and affirmed by this defendant, was not then guaranteed by A. L. Lipscomb, as set forth in plaintiffs’ petition; nor was the same then or thereafter delivered t& this defendant; nor did this defendant agree to accept the guaranty of A. L. Lipscomb to assure performance of said contract by said Keefer ; and the defendant further alleges that said contract was not to be delivered or to become effective as a contract unless and until both the said A. H. Keefer and this defendant deposited the sum of $5 per bale on the 50 bales of cotton referred to therein; that is to say, until the said A. H. Keefer and this defendant had each deposited as a guaranty of his good faith and to assure compliance with said memorandum the sum of $250; and it was understood and agreed, by and between the said Keefer and this defendant, that such mutual deposit of $250 each by them was condition precedent to the taking effect of said contract. In this connection this defendant avers that neither the said Keefer nor himself ever made any deposit of the $250 as agreed upon between them to make said contract effective. Wherefore said contract did not become effective at all, and is not in fact a contract, and the plaintiffs are not entitled to recover anything herein of this defendant based upon the alleged breach of said contract, and of this the defendant puts himself upon the country and prays judgment of the court that he go hence without day and recover of plaintiffs all costs in this behalf incurred.’’

The trial in the court below with a jury resulted in a verdict and judgment in favor of the defendant.

The undisputed evidence shows that appel-lee and Keefer executed the written instrument declared on by the petition. Appellee testified in substance that at the time he signed the contract and left it in Keefer’s possession it was understood and agreed that it was not to become effective or binding upon either party until each had deposited the sum of $5 per bale on said 50 bales of cotton to guarantee the performance of the contract, and that he did not agree to accept the guaranty of Mr. Lipscomb in lieu of the deposit of $5 per bale. Keefer testified that the first agreement between him and appel-lee was that each would make the deposit of $5 per bale, but that at the time the contract was signed by appellee and left with him appellee agreed to take Lipscomb’s guaranty in lieu of the deposit. Appellee says that Keefer proposed to him to have the contract guaranteed by the bank, but did not mention Lipscomb’s name, and that he, ap-pellee, did not agree to accept any guaranty in lieu of the deposit, and that when he signed the contract and left it with Keefer the understanding was that “I was to come back over there and put up the money.” Appel-lee did not return to North Zulch to make his deposit, and no deposit was ma(de by either party.

On the same day the contract was signed, and a very short time thereafter Keefer procured Lipscomb’s guaranty of the contract. About three weeks after the contract was signed Keefer wrote appellee the following letter:

“North Zulch, Texas, 8-27-1915.
“Mr. J. T. Oloss, Bryan, Texas — Dear Sir: I herewith confirm contract given me 4th day of Aug. for fifty bales delivered during Oct. 1915.
“ ‘Contract.
“ ‘North Zulch, Texas, 8-4-1915.
“ ‘Bot of T. J. Oloss 50 bales cotton delivered North Zulch, Texas, during Oct. 1915 at 8c basis middling Galveston differences at time of delivery for grades above and below. [Signed] *189 A. H. Keefer. Guaranty: A. L. Lipscomb. Witness: W. Garland.’
“This is duplicate of one signed -while you were here and am. haring the cashier of this bank guarantee same for me as per your request.
“The reason I have not sent this sooner was I was looking for you over here. You may keep this for your guarantee.
“A. H. Keefer.”

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Bluebook (online)
212 S.W. 187, 1919 Tex. App. LEXIS 623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/templeman-v-closs-texapp-1919.