Watkins v. Donnell

179 S.W. 980, 192 Mo. App. 640, 1915 Mo. App. LEXIS 521
Missouri Court of Appeals·Decided November 2, 1915·Published·Cited by 2 cases

Opinion

ALLEN, J. —

In 1907 the appellant, R. L. Zeigler, instituted in the circuit court of the city of St. Louis an action against the Donnell Manufacturing Company, a corporation. During the pendency of this suit a receiver was appointed for said corporation, and on April 9, 1910, appellant filed with the receiver a claim based upon his said alleged cause of action. The matter was referred to a referee who in due course made report of his findings, recommending that the claim be disallowed. The claimant’s exceptions to the referee’s report were overruled by the circuit court, and the cause is here on his appeal.

In February, 1907, appellant, a resident of South Carolina, having seen an advertisement of the Donnell Manufacturing Company, of St. Louis, whereby the latter advertised for a man to manage a branch wholesale business, at a salary of $1800 per year, wrote said company making application for the position. The company promptly replied, and further correspondence [645]*645was had between the parties. Appellant furnished “references,” to whom the company wrote receiving satisfactory replies. On or about March 21, appellant, at the company’s suggestion, and it paying one-half of his expenses, came to the city of St. Louis, for a “personal interview,” and on the following day a written contract was entered into between him and said company in terms as follows:

“This Agreement, made and entered into this twenty-second day of March, 1907, by and between the Donnell Manufacturing Company of the city of St. Louis, and State of Missouri, party of the first part, and R. L. Zeigler, party of the second part, of the city of Allendale, State of South Carolina, WITNESSETH]:
“That the parties hereto, after a personal interview and examination by said second party of the goods manufactured and sold by said first party, have embodied the result of all previous and present negotiations, representations and understandings into this writing, said agreement being as follows, to-wit:
“1. That said first party engages the said second party in the capacity of sales agent, to conduct a sales agency for the sale of its goods and specialities in the city of Columbia, State of South Carolina, for a period of two years, that is to say twenty-four months from the date that the sales office is opened for the second party, as hereinafter provided for, and for and in consideration of the faithful performance and fulfillment by said second party of each and all of the several agreements hereinafter contained and agreed to between the parties, said first party agrees to pay to the party of the second part one hundred fifty dollars per month, payable as hereinafter provided, and five per cent, additional commission on all sales of said office during the continuance of this contract.
“2. The party of the first part further agrees at its own expense, to open and fit up an office or sales [646]*646room for the use of the second party 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 sell and deliver to said second party, such stock of goods as it manufactures and sells,- as the trade of the said office may require from time to time at forty per cent, discount from retail prices, and to supply merchandise at the same rate to the party of the second part for all moneys received from said second party, and to instruct said second party in the details of handling the business so far as is necessary in the estimation of the said first party. At the expiration of the term as above and fulfillment of this agreement by said second party, the party of the first part further agrees to repurchase from said second party all stock that he may have on hand and which was purchased from said first party, paying therefor in cash the same prices as originally charged .him, said stock to be in fairly good condition.
“In consideration of the foregoing and subsequent agreements herein, the said second party agrees to the following:
“1. The said party of the second part will and do-es hereby engage and agree to become sales agent for the goods manufactured and sold by the party of the first part, as heretofore stipulated, for a term of two years, and that he will devote his whole time and best efforts to advancing the 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 second party will supply no stock purchased or furnished him by the first party to agents, dealers or other purchasers from him at other than the prices and on the terms, from time to time, agreed upon between the parties hereto, and only for cash with orders or on thirty days’ time, if secured by the [647]*647endorsement of some financially responsible party or on satisfactory letters of credit. All sales to be made by the second party to agents at a discount of thirty-three and one-third per cent, and to dealers at twenty-five per cent, from retail prices. The said party of the second part is to use his due care and diligence in looking up the standing of people to whom goods are soid on credit and then if any losses arise, these losses are to be charged as an item of expense to the business.
“3. Said second party further agrees to carry at the agency aforesaid a stock of merchandise manufactured or sold by the party of the first part, amounting to 'one thousand six hundred and sixty-six and two-thirds dollars at retail prices, which shall be an assortment to be selected by the party of the first part or jointly selected hy the parties hereto, and to be billed to said second party at forty per cent, discount from retail prices, amounting to one thousand dollars net. The said party of the first part is to carry all additional stock necessary for the proper handling of the business, based upon sales and reports of demonstrators and sales people.
“4. The party of the second part further. agrees to furnish the said party of the first part with daily and weekly reports and at the end of each month to forward to the party of the first part a report of all business done during said month, giving the names and address of any and all agents appointed, a full and accurate statement of expenditures, amount of goods sold, of money collected, and any other information regarding the business that may be requested by the party of the first part.
“5. As the permanent success of this business will depend upon a reasonable amount of merchandise being sold, it is understood and agreed that the sales of each month shall amount to six hundred dollars, which shall be considered the minimum amount of business necessary to constitute the fulfillment of this con[648]*648tract, and when the term minimum amount is herein used, it will be held to mean six hundred dollars. If the sale's of any month shall not amount to this minimum amount and during the succeeding month sales are in excess of the minimum amount required to make up an average of six hundred dollars, a month, this contract will hereby be fiulfilled in this respect by the party of the second part.

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Watkins v. Donnell, 179 S.W. 980, 192 Mo. App. 640, 1915 Mo. App. LEXIS 521 (Mo. Ct. App. 1915).

179 S.W. 980 (Watkins v. Donnell) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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