Webster County Buick Co. v. Nebraska Buick Automobile Co.

249 N.W. 203, 216 Iowa 485
CourtSupreme Court of Iowa
DecidedJune 20, 1933
DocketNo. 41655.
StatusPublished
Cited by5 cases

This text of 249 N.W. 203 (Webster County Buick Co. v. Nebraska Buick Automobile Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Webster County Buick Co. v. Nebraska Buick Automobile Co., 249 N.W. 203, 216 Iowa 485 (iowa 1933).

Opinion

*486 Claussen, J.

I. Defendant-appellant was a corporation, organized under the laws of Nebraska, having its principal place of business in Lincoln, Nebraska. Original notice of the present action was served in Webster county on an individual connected in some way with appellant. Appellant entered a special appearance assailing the jurisdiction of the court on the theory that this individual was not such a representative that service upon him gave the court jurisdiction of the defendant corporation. This matter was heard by the court upon affidavits and oral evidence, and the controversy was determined adversely to appellant. Thereupon appellant filed an amended and substituted, answer, setting up various defenses, and ultimately the case was tried to a jury, with defendant represented in court by counsel. Appellant complains that the trial court was not justified by the facts in finding against it on the question of jurisdiction. We need not consider whether such complaint has merit, because appellant, having answered and appeared generally, cannot now question the jurisdiction of the court. Crouch v. National Livestock Remedy Co., 205 Iowa 51, 217 N. W. 557; Scott v. Price Bros. Co., 207 Iowa 191, 217 N. W. 75; Music v. DeLong, 209 Iowa 1068, 229 N. W. 673.

II. Appellant was general distributor of Buick cars in western Iowa and Nebraska. Appellee was, in a sense, a local distributor of such cars in a number of counties near Fort Dodge. The parties to the action had been thus engaged for many years prior to the difficulties out of which this suit grows. On August 1, 1928, a contract consisting of two instruments existed between the parties. Under it, appellee was enabled to secure cars and car parts and became entitled to a bonus, on cars sold in its territory, that increased in percentage with the number of cars sold in the 12-month period. Such contract provided that it could be canceled by either party by giving notice in writing of intention to cancel 30 days before the proposed date of cancellation. It also contained the following language:

“No change, addition or erasure of any printed portion of this agreement (except the filling in of blank lines) shall be valid or binding upon either party. It is declared by both parties that there are no oral or other agreements or understandings between them affecting this agreement or related to the sale or servicing of new Buick motor vehicles, chassis, parts, or accessories. This agreement *487 supersedes and cancels all previous agreements between the parties hereto.”

Late in September of 1928, appellee concluded to cancel the contract. Two of its officers went to the head office of appellant at Lincoln, Nebraska, and discussed the matter with the officer of appellant, with whom the former contracts between appellant and appellee had been negotiated. What took place at such conference is the subject of this suit. For the purpose of the present discussion, we will set forth appellee’s version of the matter. Upon being advised of appellee’s intention to cancel the contract, the officer, before referred to, asked that appellee continue the business until a new distributor could be found to take over the territory, and agreed that, if appellee would continue its business, the bonus paid to it would not be less than $2,500. In this conversation it was agreed that notice of cancellation should not be served and that the relations between the parties should continue under the agreement that the bonus would not be less than $2,500.

This action was brought to recover the bonus in the sum of $2,500, and appellee pleaded the oral agreement above set forth, and was permitted to introduce evidence to prove it. Appellant’s complaint in relation to these matters is that the written contract could not be superseded by the oral agreement, and that evidence of such oral agreement was improperly admitted. The language of the contract, quoted above, purports to prohibit only changes in the wording of the contract prior to the execution of the writing as a contract, and antecedent or contemporaneous extraneous agreements and understandings which might otherwise be urged as modifying the provisions of the contract. Assuming that the language is thus effective, it does not purport to take away, nor could it take, from the parties the right to subsequently modify the contract by mutual agreement. D. M. Osborne & Co. v. Backer, 81 Iowa 375, 47 N. W. 70; Esterly Harvesting Mach. Co. v. Bemis, 93 Iowa 398, 61 N. W. 980. The incorporation in the contract of a provision by virtue of which either party might terminate the contract, by pursuing the method pointed out, does not take away the right of the parties to terminate the contract in any other way or to supersede it with another contract by mutual agreement. There is no restraint on the right of parties to cancel a contract by mutual agreement, where rights of third parties have not intervened. Wilson v. Holub, 202 *488 Iowa 550, 210 N. W. 593, 58 A. L. R. 646. It follows that evidence of the oral agreement was properly admitted.

III. The trial court instructed the jury in relation to the binding effect of a contract made by an agent, within the scope of his apparent powers. No complaint is made of the form of the instruction, but it is contended that there was no evidence to support a finding that the agent, with whom appellee dealt, had, or apparently had, power to make the alleged oral agreement. The testimony in relation to the power, -real and apparent, of the agent is too lengthy to permit its being incorporated herein. We are of the opinion that the court properly submitted to the jury the question of the binding effect of the acts of the agent in making the agreement. It appears without dispute that the relations between appellant and appellee had extended over a period of at least ten years. The bonus feature of the relations between the parties seems to have been a matter of annual agreement. Such agreements were negotiated between this agent and appellee. The written contracts were signed by the president of appellant, company, but there is nothing in the record to suggest any limitation on the power of the particular agent to make contracts in relation to the payment of bonuses. This agent had a private office in the main office of the compapy, in which the particular oral agreement was made. He had negotiated previous bonus contracts with appellee. He had charge of securing local distributors. The oral contract was' a part of a plan to maintain service in the territory involved, pending the procurement of a new representative in Fort Dodge. There is nothing in the record, from which it can be said, .as a matter of law, that the oral contract was entered into by him in excess of the authority which appellant had recognized as being.his. The validity and binding force of the contract was a jury question.

It is said that the court, improperly admitted evidence of the oral agreement, because there was no proof of the,.power of the agent to bind - appellant by such contract. Under the record,- the extent of the agent's power- was a jury question. The trial court properly required the jury to first find, that such agent had power to bind his company by such contract, before permitting appellant to be bound by his agreement.

• IV. Appellee made an assignment for the benefit of creditors some time before the trial of the case began.

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Bluebook (online)
249 N.W. 203, 216 Iowa 485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/webster-county-buick-co-v-nebraska-buick-automobile-co-iowa-1933.