Whittaker Chain Tread Co. v. Standard Auto Supply Co.

103 N.E. 695, 216 Mass. 204, 1913 Mass. LEXIS 1408
CourtMassachusetts Supreme Judicial Court
DecidedDecember 13, 1913
StatusPublished
Cited by40 cases

This text of 103 N.E. 695 (Whittaker Chain Tread Co. v. Standard Auto Supply Co.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whittaker Chain Tread Co. v. Standard Auto Supply Co., 103 N.E. 695, 216 Mass. 204, 1913 Mass. LEXIS 1408 (Mass. 1913).

Opinion

Loring, J.

The plaintiff sold and delivered to the defendant goods to the amount of $80.03. The defendant undertook to return a part of the goods sold, of the value of $50.02. The plaintiff disputed its right to do so and refused to receive the goods from the teamster through whom the defendant undertook to make the return. While matters were in this condition the defendant sent the plaintiff a check for $30.01, which was admittedly due and which the defendant stated was in full settlement of the account. The plaintiff cashed the check and on the following day notified the defendant that it had done so, and demanded payment of $50.02, the balance claimed by it to be due after crediting the amount of the check as a payment on account. The judge found that the defendant had no right to return the goods which it attempted to return, and that the plaintiff was entitled to recover the $50.02 due from them unless it was barred by cashing the check.

Cases in which debtors have undertaken to force a settlement upon their creditors by sending a check in full discharge of a disputed account have given rise to more than one question upon which there is a conflict in the authorities.

[206]*206In Day v. McLea, 22 Q. B. D. 610, it was decided by the Court of Appeal in England that a creditor who cashes a check sent in full settlement is not barred from contending that he did not agree to take it on the terms on which it was sent if at the time he accepts it he says that he takes it on account. The ground of that decision was that to make out the defense of accord and satisfaction the debtor must prove an agreement by the creditor to take the sum paid in settlement of the account, and that if the creditor in taking the check notifies the debtor that he accepts it on account and that he refuses to accept it in full settlement, the debtor as matter of law has not proved an agreement on the part of the creditor to accept the check in satisfaction of the claim, but that that question must be decided by the jury. This doctrine is upheld in 17 Harvard Law Review, at p. 469, and in the case of Goldsmith v. Lichtenberg, 139 Mich. 163. See also in this connection Krauser v. McCurdy, 174 Penn. St. 174; Kistler v. Indianapolis & St. Louis Railroad, 88 Ind. 460.

But the true rule is to the contrary. The true rule is put with accuracy in Nassoiy v. Tomlinson, 148 N. Y. 326, 331, in these words: “The plaintiff could only accept the money as it was offered, which was in satisfaction of his demand. He could not accept the benefit and reject the condition, for if he accepted at all, it was cum onere. When he indorsed and collected the check, referred to in the letter asking him to sign the enclosed receipt in full, it was the same, in legal effect, as if he had signed and returned the receipt, because acceptance of the check was a conclusive election to be bound by the co'ndition upon which the check was offered.” And to that effect is the weight of authority. Nassoiy v. Tomlinson, 148 N. Y. 326. Washington N. Gas Co. v. Johnson, 123 Penn. St. 576. Partridge Lumber Co. v. Phelps Burruss Lumber & Coal Co. 91 Neb. 396. Neely v. Thompson, 68 Kans. 193. Hull v. Johnson, 22 R. I. 66. Cunningham v. Standard Contruction Co. 134 Ky. 198. Canton Union Coal Co. v. Parlin, 215 Ill. 244. Petit v. Woodlief, 115 N. C. 120. Pollman & Brothers Coal & Sprinkling Co. v. St. Louis, 145 Mo. 651. Potter v. Douglass, 44 Conn. 541. Cooper v. Yazoo & Mississippi Valley Railroad, 82 Miss. 634. Barham v. Kizzia, 100 Ark. 251. Thomas v. Columbia Phonograph Co. 144 Wis. 470. Sparks v. Spaulding Manuf. Co. 158 Iowa, 491. See also in this con[207]*207nection McDaniels v. Bank of Rutland, 29 Vt. 230; Hutton v. Stoddart, 83 Ind. 539; Creighton v. Gregory, 142 Cal. 34.

Indeed the decision in Day v. McLea, ubi supra, was explained by the Court of Appeal in the recent case of Hirachand Punamchand v. Temple, [1911] 2 K. B. 330, and made to rest not on the lack of agreement, but on the lack of consideration.

But in cases (like the case at bar) where there is a dispute as to the amount due under a contract and payment of an amount which he (the debtor) admits to be due (that is to say, as to which there is no dispute) is made by the debtor in discharge of the whole contract, further and other questions arise.

The question whether the creditor who under these circumstances accepts such a payment, protesting that he takes it on account, is or is not barred, is a question upon which again the authorities are in conflict. It was held in the following cases that a creditor in such a case is barred: Nassoiy v. Tomlinson, 148 N. Y. 326; Ostrander v. Scott, 161 Ill. 339; Tanner v. Merrill, 108 Mich. 58; Neely v. Thompson, 68 Kans. 193; Treat v. Price, 47 Neb. 875; Hull v. Johnson, 22 R. I. 66; Cunningham v. Standard Construction Co. 134 Ky. 198; Pollman & Brothers Coal & Sprinkling Co. v. St. Louis, 145 Mo. 651. See also in this connection Chicago, Milwaukee & St. Paul Railway v. Clark, 178 U. S. 353. But in the following cases it was held that he was not barred: Demeules v. Jewel Tea Co. 103 Minn. 150; Seattle, Renton & Southern Railway v. Seattle-Tacoma Power Co. 63 Wash. 639; Prudential Ins. Co. v. Cottingham, 103 Md. 319. See also in this connection Chrystal v. Gerlach, 25 So. Dak. 128; Robinson v. Leatherbee Tie & Lumber Co. 120 Ga. 901; Walston v. F. D. Calkins Co. 119 Iowa, 150; Weidner v. Standard Life & Accident Ins. Co. 130 Wis. 10; Louisville, N. A. & C. Railway v. Helm & Bruce, 109 Ky. 388.

The decision in most of these cases was made to turn upon the question whether payment of the amount admitted to be due without dispute did or did not constitute a valid consideration for the discharge of the balance of the debt about which there was a dispute. If that were the only question involved in the case at bar it would be necessary to consider whether Tuttle v. Tuttle, 12 Met. 551, is in conflict with the well settled law of the Commonwealth that a promise to pay one for doing that which he was [208]*208under a prior legal duty to the promisee to do is not binding for want of a valid consideration. The cases are collected in Parrot v. Mexican Central Railway, 207 Mass. 184, 194.

' Tuttle v. Tuttle, ubi supra, was a case in which the holder of a note made an express agreement to forego a claim which he had made to interest on the note in consideration of payment of the balance of the principal then unpaid. It was a question whether he was entitled to interest, but there was no question of his right to the principal. It was held that this agreement was a bar to any claim for interest on the note. There was no discussion in the opinion as to the lack or validity of a consideration.

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103 N.E. 695, 216 Mass. 204, 1913 Mass. LEXIS 1408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whittaker-chain-tread-co-v-standard-auto-supply-co-mass-1913.