Ward v. Cook

122 N.W. 785, 158 Mich. 283, 1909 Mich. LEXIS 705
CourtMichigan Supreme Court
DecidedOctober 4, 1909
DocketDocket No. 23
StatusPublished
Cited by3 cases

This text of 122 N.W. 785 (Ward v. Cook) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ward v. Cook, 122 N.W. 785, 158 Mich. 283, 1909 Mich. LEXIS 705 (Mich. 1909).

Opinion

McAlvay, J.

Plaintiff, a resident of the State of Iowa, recovered in the Wayne circuit court a judgment against defendant, a resident of Detroit, for certain money paid and losses sustained under a certain contract between the parties. The defendant in 1905 caused to be inserted in newspapers in several States an advertisement reading as follows:

“ Man, trustworthy. To manage branch office and distributing depot for large manufacturer; salary to start with $1,500 first year, and extra commissions and expenses. Applicant must have good reference and $1,000 cash. Capital secured, experience unnecessary. Address Manufacturer, 31 West Atwater Street, Detroit, Michigan.”

Plaintiff saw this in the Chicago Record-Herald, and on September 35, 1905, answered it, stating his business experience, habits, present occupation, and ability to give references, and asked for full particulars. Defendant replied at length on September 37th, using the trade-name “The Elysian Manufacturing Co.,” under which he was doing business. This letter contained statements that—

“It is our intention to open an office and distributing depot in your locality at an early date, and to enter into a business arrangement with a trustworthy and responsible man to manage the business. * * * We are willing to enter into a permanent arrangement with a satisfactory party, and will pay $1,500 per year, payable monthly for the first two years, and to this we will add a commission [287]*287of 5% on all goods sold through this department. * * * The office and distributing depot is opened and furnished at our expense. We shall pay all the running expenses of the business, such as rents, postage, advertising, typewriting, clerical help, etc. * * * We expect to send a man from our experienced staff to instruct the manager thoroughly in all details of the work. * * * The cash capital required on your part ($1,000) * * * can be withdrawn in full at the expiration of any arrangement we shall make with you. * * * Your capital is perfectly secure, as you always have on hand either the cash or its equivalent in merchandise.”

Other letters followed, in one of which from defendant was inclosed a booklet, which the letter stated was “descriptive of part of the goods which we manufacture, and which will give you some idea of our line.” Another letter stated:

“Inasmuch as we are the largest exclusive manufacturers of our line of goods in the country, we are in position to meet any and all competition.”

The description given in the booklet reads:

“Quality. Our perfumes and floral waters are equal to the highest standard of such goods in this country or Europe. We manufacture all the leading flower odors, and after ten years’ experience and successful manufacturing, we challenge comparison with any other like goods without regard to price.”

At the invitation of defendant plaintiff came to Detroit and went to defendant’s office. Plaintiff claims that he was met by a man named McGuire, who stated that defendant was busy, and could not see him, but he could attend to the business just as well; that during the conversation which ensued, relative to the business, he asked McGuire as to the quality of the goods manufactured, and he produced a copy of the booklet, saying, as he referred to the page, that it described the quality of the goods they manufactured; that he was taken into Mr. Cook’s office arnd introduced to him by McGuire, who did practically all the business, even to preparing the con[288]*288tract; that he saw defendant but a few moments at the time the contract was signed.

There is a sharp dispute between plaintiff and defendant as to what occurred at this time. McGuire was not produced as a witness.

The contract is as follows:

“ This agreement, made and entered into this tenth day of October, 1905, by and between the Elysian Manufacturing Company, party of the first part, and J. W. Ward, party of the second part, witnesseth:

“That the parties hereto, after a personal interview, and after a personal examination by said second party, of the goods manufactured by said first party, have embodied the result of all previous and present negotiations into this writing, said agreement being as follows, to wit:

“(1) Said first party hereby engages the said second party in the capacity of general sales agent, to conduct a sales agency in the city of Des Moines, State of Iowa, for a period of two (2) years from the date that the sales office is opened for the second, as hereinafter provided for, and for and in consideration of the faithful performance and fulfillment of each and all of the several agreements herein contained and agreed to between the parties, the party of the first part agrees to engage the said second party for a period of twenty-four (24) months, and agrees to pay the party of the second part one hundred and fifty dollars ($150) per month, as hereinafter provided, and give five per cent. (5%) additional commission on all sales of said office during the continuance of this contract.

“ (2) The party of the first part agrees, at its own expense, to open and fit up an office or salesroom for the use of the party of the second part, at said city, in which the party of the second part shall carry on said business as herein provided for, and the party of the first part further agrees to supply stationery and circulars for the proper handling of the business. Also to sell and deliver such stock as it manufactures and sells as the trade of said office may require from time to time at forty per cent. (40%) discount from retail list prices, and to supply merchandise for all moneys received from said second party, and to instruct said second party in the details of handling the business, until he is sufficiently instructed in the estimation of said first party.

“(3) At the expiration of the term and fulfillment of [289]*289this agreement, the party of the first part further agrees to repurchase from said second party all stock that he may have on hand, purchased from said first party, paying therefor in cash the same prices originally charged him.

“In consideration of the foregoing and subsequent agreements, the said second party agrees to the following:

“(1) The said party of the second part will and does hereby engage and agrees to become general sales agent for the goods manufactured and sold by the party of the first part, as heretofore stipulated, for a term of two (2) years, and that he will devote his whole time and. efforts to advancing his success of the business, and to satisfactorily perform the duties herein required of him, dealing honorably with the party of the first part, the public, and all persons with whom he may have business relations.

“ (2) That the said second party will supply no stock to agents, dealers, nor other purchasers from him that will in any way demoralize the trade, and only for cash with orders, or thirty (30) days’ time, if secured by the indorsement of some financially responsible party, or on some satisfactory letters of credit. Said second party is to use due care and diligence in looking up the standing of people to whom goods are sold on credit, and then, if any losses arise, these losses are to be charged as an item of expense to the business.

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Cite This Page — Counsel Stack

Bluebook (online)
122 N.W. 785, 158 Mich. 283, 1909 Mich. LEXIS 705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-v-cook-mich-1909.