Watson v. Walker

23 N.H. 471
CourtSuperior Court of New Hampshire
DecidedDecember 15, 1851
StatusPublished

This text of 23 N.H. 471 (Watson v. Walker) is published on Counsel Stack Legal Research, covering Superior Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watson v. Walker, 23 N.H. 471 (N.H. Super. Ct. 1851).

Opinion

Eastman, J.

This action was brought upon an agreement under seal, dated August nineteenth, 1840, which is set forth at length, in the facts of the case. The declaration sets out the agreement in full, with the general averments, that the plaintiffs have kept, fulfilled and performed, all matters to be by them fulfilled and performed, and a general allegation of request upon the defendants, and neglect and refusal by them.

Several pleas were interposed to the plaintiffs’ right of recovery, upon all of which, excepting the fourth, an issue of fact was joined. To the fourth, a general demurrer was filed, and the defendants joined in demurrer. Pursuing the course adopted in the argument, we will first consider the issue of law.

That part of the agreement, upon which the questions of law are raised, is substantially as follows; “ And the said YYatson and Austin agree and engage, as soon as practicable and convenient, to send an agent to Europe, for the purpose of exhibiting said invention, and selling and disposing of said looms, and the right of making, using and vending the same, and that they and their said agent, shall make all suitable and proper efforts to do the same to the best advantage.” “ And in case after using all proper and reasonable exertions to sell such right and privilege in Europe, as aforesaid, said YYatson and Austin, or their agent, shall not be able to effect such sales, to the amount of the said sum of one thousand dollars, and all the expenses of such agency, then [491]*491in such case, said Walker and Mclntire agree, and promise to repay said Austin and Watson, said sum of one thousand dollars, and all the reasonable expenses of the agency, aforesaid, or to convey and assure to them the full undivided half of said patent right within the United States.”

The plea alleges, in substance, that although Austin and Watson did send an agent to Europe for the purpose of making the sales according to the agrément, yet that they did not within a reasonable time,-inform the defendants that neither they northern agent had been able to effect sales to the amount of one thous- and dollars and the expenses of the agency, and request of the defendants a re-payment of the sum of one thousand dollars and the reasonable expenses of the agency, or a conveyance to Watson and Austin, of the undivided half of the patent right in the United States; and that the covenants of the plaintiffs, being a condition precedent to the performance of the covenant of the defendants, the defendants ought not to be bound to the performance of their covenants, the plaintiffs not having in all things performed and fulfilled theirs.

The principal question raised by this plea and demurrer, is, whether notice of the failure to make sales in Europe, was necessary to be given by the plaintiffs to the defendants, before an action could be sustained upon the agreement. In relation to notice the rule is, that whenever the fact upon which the defendant’s liability is incurred, lies peculiarly within the knowledge and privity of the plaintiff, notice thereof must be stated to have been given to the defendant. But where the matter lies as much within the cognizance of the one party, as the other, notice is not necessary. When, however, notice is necessary, either by the terms or nature of the contract, it is of the gist of the action, and must be specially averred in the declaration, for without such averment, no complete right of action can appear. 1 Saund. on Pl. & Ev., 132 ; Gould’s Pleading, ch. 4, § 15 ; Rex v. Holland, 5 Term Rep., 621, 624; Lent & a. v. Paddleford, 10 Mass. Rep., 230, 238 ; Clough v. Hoffman, 5 Wendell’s Rep., 500. To these authorities many others might be added.

By the terms of the agreement, the thousand dollars, were [492]*492not to be re-paid by tbe defendants, till tbe plaintiffs had sent to Europe, and made all reasonable exertions to sell the right there, without success. The effort to sell, was to be made either by Watson and Austin, or by their agent. It was not confined to the agent alone ; and whether sales were effected or not, was a fact known to Watson and Austin, or to their agent, or both, and also to the purchasers. In making the sales, the plaintiffs are to act for themselves, and the agent is theirs. He was employed by them and is accountable to them. The defendants are interested in the sales, but the agent is in no way responsible to them or required to make known to them his doings. The defendants cannot know whether sales have been effected or not, except through the plaintiffs or their agent, or by enquiries of purchasers. If the information does not come from them, and they do not see fit to communicate it, the. defendants must remain in entire ignorance of the true state of the matter, unless they employ an agent themselves, to attend the plaintiffs or their agent, and note their doings. This, the agreement nowhere contemplates; and whether sales are made or not, appears to us to to be a fact peculiarly within the knowledge of the plaintiffs. And the plain and obvious intent of the instrument is, as wfe think, that the plaintiffs shall, in case of failure to make sales, communicate the fact to the defendants before they can have a cause of action against them. i

That the information should be communicated within a reasonable time seems clear. The condition is in the alternative. The defendants were to repay the thousand dollars, or to convey and assure to the plaintiffs the full undivided half of the patent within the United States ; and it cannot be required that they should hold themselves in readiness to carry out the conditions of the, agreement for an indefinite time. Com. Dig. Pleader, C., 74. The argument of counsel concedes that if notice is necessary before suit brought, it should be given within a reasonable time. Thus far, then, the plea is good. Notice should. be given, and within a reasonable time.

Whether it was necessary to make a Special request for a performance of the conditions before suit, depends upon the ques-[493]*493lion whether, upon notice being given of the failure to effect sales by the plaintiffs, the obligation on the part of the defendants was complete. The defendants contracted to repay the thousand dollars and also pay the expenses of the agency, or to convey one half of the right in the United States, in case the plaintiffs could not effect sales to the extent set forth in the contract. If, then, the plaintiffs' should attempt to sell, using all fair and honorable endeavors so to do, and failing, should give notice of their inability to effect the sales, they do all that is required of them by the terms of the agreement or a fair construction of the same, and the obligation of the defendants arises to repay the thousand dollars or convey one half of the right in the United States. When an obligation to pay is complete, a cause of action at once arises and no formal demand is necessary. Gould’s Pl., chap. 4, § 15; Com. Dig. Pleader, C., 69; Birks v. Trippett, 1 Saunders, 38, a.; Bul. Nisi Pri., 151, C.; 1 Saunders, on Pl. & Ev., 130, 131; Wallis v. Scott, 1 Strange, 88.

Had, then, the declaration contained an averment of notice, no averment of a special demand would have been necessary, though it would be improbable, as a matter of fact,.that the plaintiffs should give notice, without, at the same time, making a demand.

The plea alleges that the plaintiffs did not make known their inability to effect sales and

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23 N.H. 471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watson-v-walker-nhsuperct-1851.