Weil Brothers Cotton, Inc. v. Kennington

301 So. 2d 400, 1974 La. App. LEXIS 3238
CourtLouisiana Court of Appeal
DecidedOctober 1, 1974
Docket12401
StatusPublished
Cited by2 cases

This text of 301 So. 2d 400 (Weil Brothers Cotton, Inc. v. Kennington) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weil Brothers Cotton, Inc. v. Kennington, 301 So. 2d 400, 1974 La. App. LEXIS 3238 (La. Ct. App. 1974).

Opinion

301 So.2d 400 (1974)

WEIL BROTHERS COTTON, INC., Plaintiff-Appellant,
v.
K. D. KENNINGTON, Defendant-Appellee.

No. 12401.

Court of Appeal of Louisiana, Second Circuit.

October 1, 1974.

*401 Wilkinson, Carmody & Peatross by John M. Madison, Jr., Shreveport, for plaintiff-appellant.

Walter O. Bigby, Bossier City, for defendant-appellee.

Before AYRES, PRICE and HALL, JJ.

AYRES, Judge.

This action arose out of an alleged breach of a certain contract wherein defendant agreed to sell and plaintiff agreed to buy cotton produced during the year 1971 on designated acreage in Bossier Parish, Louisiana. The defense urges, in an exception of no cause or right of action, that the contract, as to the quantity of cotton not delivered, contains a potestative condition, and hence is null and void. From a judgment upholding this defense and sustaining these exceptions, and thereby dismissing plaintiff's action, plaintiff appealed.

The facts as alleged are that plaintiff and defendant entered into a contract under date of April 26, 1971, wherein defendant agreed to sell and plaintiff agreed to buy for a price of $0.3125 per pound cotton produced during that year on a designated 1,620 acres of land situated in Bossier Parish; that the quantity of cotton produced totaled 1,271 bales, of which only 470 bales were delivered under the contract; that notwithstanding amicable demands defendant refused to deliver the remaining 801 bales and, as a consequence of such refusal, plaintiff was forced into the open market to purchase an equal quantity of cotton and to pay therefor the price of $0.3750 per pound in order to fulfill its contracts and commitments to its customers; and that, as a consequence, plaintiff suffered a loss of $25,031.25 which it now seeks to recover from the defendant.

Defendant alleges in his exceptions that plaintiff's petition discloses neither a right nor a cause of action in that the contract sued upon provides that the purchase of the cotton after December 15, 1971, was solely within the discretion of plaintiff and, therefore, that the contract contained a potestative condition rendering it null, void, and unenforceable.

*402 The pertinent provision of the contract upon which defendant relies recites:

"For good and valuable consideration, receipt of which is hereby acknowledged by each party hereto, and in consideration of the parties' mutual covenants, the BUYER agrees to purchase from the SELLER and SELLER agrees to sell to BUYER all of the cotton produced on 1,620 acres located in Bossier County, Louisiana, for the crop year 1971. BUYER does not have to accept any cotton ginned after December 15, 1971, with warehouse receipts dated this date or prior." (Emphasis supplied.)

The trial court, in sustaining defendant's exception, assigned written reasons and, in pertinent part, stated:

"While the Court recognizes that the respondent has a serious point in urging that the proper application of the nullity provided in Civil Code Article 2034 should be that it affects only his obligation to buy and that the exceptor's obligation to sell is valid and enforceable, this Court is nevertheless of the opinion that the correct application of that article and the jurisprudence dictates that transactions between the parties concerning cotton ginned after December 15, 1971, cannot be enforced under the subject purchase and sales agreement because the agreement gives the buyer the right to refuse to accept any cotton ginned after that date, thus binding him only if he chooses to be bound. Since this provision is based solely upon the will of the respondent, it is purely potestative and should be null."

A pertinent codal provision (LSA-C.C. Art. 2034) provides:

"Every obligation is null, that has been contracted, on a potestative condition, on the part of him who binds himself." (Emphasis supplied.)

This article thus provides for the nullity of obligations contracted on a potestative condition "on the part of him who binds himself" as an obligor in the contract. The article does not so provide with reference to such an obligation on the part of an obligee when he, the obligee, attempts to enforce the unconditional obligation of the obligor.

Here the seller's unconditional obligation to sell is at issue, not the buyer's obligation to buy. In this action the existence of a potestative condition or option on the part of the buyer to buy has no effect whatever on the unconditional obligation of the seller to sell "all of the cotton produced... for the crop year 1971." Potestative power is not in the seller-obligor (defendant) as required by LSA-C.C. Art. 2034 of the Revised Civil Code.

A review of the doctrine that a vendee can enforce the vendor's unconditional obligation to sell but can set up a potestative condition on his obligation to buy, if the seller sues to force him to buy, is found in a recent article by Professors Vernon V. Palmer and Andrew L. Plauche, Jr., entitled "A Review of the Louisiana Law on Potestative Conditions," 47 Tul.L.Rev. 284, 288-289 (1973). In that article the obligor-obligee distinction is clearly set forth as follows:

"Since the nullity of article 2034 only applies to the obligation of the obligor, it becomes imperative to identify which obligation under the agreement is questioned. The distinction is not difficult to apply in a unilateral contract. For example, in the contract of deposit (a unilateral contract arising upon delivery of the object) the person holding the thing is clearly the obligor or debtor who is obliged to preserve it and return it in kind to the obligee or creditor. As a simple illustration, assume A receives the deposit of a ring from B, A promising to keep and return the ring if he wishes. The nullity of article 2034 means that A's `obligation' cannot be enforced against him since he has actually made no promise.
"The application of article 2034 in bilateral contracts is not nearly as simple, *403 because the bilateral contract involves at least two obligations. One party is, in relation to his own obligation, an obligor or a debtor who owes performance on his own promise; that same party, in relation to his adversary's obligation, is also an obligee or creditor because he is owed performance by the other party. It is thus said that the nullity of article 2034 has a different application in bilateral contracts since either party has the capacity of creditor and debtor. Because one obligation may be unenforceable, still the other obligation will remain. For example, in a contract of sale where the vendor promises unconditionally to sell but the vendee reserves the option not to buy, the vendee's `obligation' to buy is really a nullity, but the vendor's obligation to sell is valid and enforceable should the vendee choose to buy. This conclusion results because the vendor is an obligee in relation to the obligation to buy and an obligor in relation to his own obligation to sell. Very simply, when there are two obligations and only one potestative condition, one obligation must of necessity be unconditional. If the vendor's obligation is called for by the vendee, the vendor is the debtor and also the obligor, but his promise was made subject to no condition. Therefore, article 2034's nullity is inapplicable because the potestative power does not reside in the person described as the obligor.

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Bluebook (online)
301 So. 2d 400, 1974 La. App. LEXIS 3238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weil-brothers-cotton-inc-v-kennington-lactapp-1974.