Williams v. Lowenthal

12 P.2d 75, 124 Cal. App. 179, 1932 Cal. App. LEXIS 805
CourtCalifornia Court of Appeal
DecidedJune 8, 1932
DocketDocket No. 727.
StatusPublished
Cited by7 cases

This text of 12 P.2d 75 (Williams v. Lowenthal) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Lowenthal, 12 P.2d 75, 124 Cal. App. 179, 1932 Cal. App. LEXIS 805 (Cal. Ct. App. 1932).

Opinion

JENNINGS, J.

This action was instituted by plaintiff to recover the balance alleged to be due from defendant on account of the sale by plaintiff's assignor to defendant of a musical instrument known as an orchestrope. Defendant *182 was the proprietor of a restaurant in the city of Fresno. The orehestrope was an electrically operated phonograph equipped with fifty-six phonograph records. It was so arranged that it would operate upon the deposit of five-cent coins in a receptacle provided for them. The instrument was sold under a conditional sales contract whereby defendant agreed to pay therefor the sum of $1438, of which $100 was paid at. the time the written agreement was executed and the balance was to be paid at the rate of $55.77 per month. The sales contract provided that until the total purchase price was paid, title should remain in the seller. In case of default in the payment of any monthly installment due from the buyer the entire purchase price was to become immediately due and payable. It was further provided that no warranty or guaranty was given unless specified in the written agreement, which was declared to constitute the entire contract between the parties. Plaintiff’s complaint alleged the execution of the contract, the delivery of the instrument, default in the payment of three successive monthly payments, by reason of which default, plaintiff elected to declare the entire balance of the purchase price due and payable and prayed judgment for such balance, being the sum of $1226.86. The record shows that at plaintiff’s request a writ of attachment was issued and levied upon the orehestrope. From the allegations of the complaint, it is evident that plaintiff elected' to treat the transaction as a completed sale and to recover the balance due on the purchase price. Defendant’s answer set up the following defenses: (1) fraud; (2) breach of an express warranty of fitness; (3) total failure of consideration, and (4) rescission. The fraud was alleged to consist of false representations by plaintiff’s assignor, the seller, to defendant that the instrument would yield to defendant a revenue which would exceed the amount due monthly on the purchase price and that the instrument was in good order and would remain so for a long period of time and, if at any time it should be in need of repair, the seller would promptly repair it. The action was tried before a jury, which returned a verdict in plaintiff’s favor in the sum. of $250. From the judgment for such amount rendered in conformity with the verdict, plaintiff prosecutes this appeal. *183 The record indicates that the action was tried by defendant on the theory that fraud entered into the execution of the contract relied upon by plaintiff and the case was submitted to the jury under appropriate instructions relative to the defense of fraud. Defendant testified that he could neither read nor write, that the seller, prior to the execution of the written agreement, told him that the machine would produce a monthly revenue of $85, which would amount to approximately $30 per month in excess of the monthly installment of $55.77, that the machine was a good machine and' would probably not require repair, but that if repairs should be necessary he would furnish them, that the above representations were contained in the written contract and that the absence of such representations in the written agreement was not discovered by him until after the action was instituted. It requires the citation of no authority to sustain the familiar rule that the apparent consent of a party to a contract is not real when obtained through fraud. It is so declared in section 1567 of the Civil Code. But it is also elementary that representations relied upon as being fraudulent must contain the recognized essential elements of fraud. When, therefore, the defendant maintained that he was told that certain representations which were made to him were contained in a written agreement and that relying upon their presence in the agreement he executed it, the defense of fraud is available to him only if the representations of whose absence he complains were in fact fraudulent. This must be true, for if such representations were not in fact fraudulent their presence in the written agreement would obviously not give rise to a cause of action nor support a defense based upon fraud. The absence of nonfraudulent representations from the written agreement could have no different effect. The statement that the machine would produce a revenue sufficient to take care of the payments due under the contract and in addition yield a profit of $30 per month to the buyer is clearly a representation of the character denominated by the decisions as “seller’s talk”. The law long since recognized that sellers of property in their zeal to consummate sales were prone to “puff their wares” and exaggerated statements’ as to the value of property offered for sale were held to be mere expressions of opinion rather *184 than material representations as to existing facts where the parties dealt at arm’s length. In this category are representations respecting future profits to be derived by the buyer from property offered for sale (Lee v. McClelland, 120 Cal. 147 [52 Pac. 300] ; Cleason v. McPherson, 175 Cal. 594 [166 Pac. 332] ; Wegerer v. Jordan, 10 Cal. App. 362 [101 Pac. 1066].) The evidence fails to show that there was any relationship of trust and confidence between plaintiff’s assignor and defendant and there is an absence of any showing that the representation as to future profits was not honestly made or that it was made in bad faith. Such representations therefore could not support a charge of fraud. The representation that the machine was in good order at the time the sale was made was obviously a representation as to an existing fact and if false might, under proper circumstances, furnish sufficient support to the defense of fraud assuming that the defects could not, by the exercise of ordinary diligence, have been discovered. But the evidence produced by defendant relative to this representation was not sufficient to support the claim that it was false. Defendant testified that the seller stated that it was a good machine and would probably not get out of order and that if it did he would repair it. lie also testified that in the evening of the day on which the machine was installed difficulty was encountered in that the coins which caused the machine to operate did not reach the receptacle provided for them and that he summoned the seller, who repaired the defect. He further testified that during the whole period when the machine was in his possession it was out of order most of the time by reason of the failure of coins deposited by patrons of his restaurant to reach the coin receptacle. However, it appears from the record that the seller did make repairs to the machine when he was notified by defendant that it was out of order. The evidence therefore was sufficient to show that the seller performed his agreement to repair the machine when it was out of order and defendant’s claim that it was not in order when installed is not supported by a fair consideration of the evidence produced at the trial.

The defense of breach of warranty of fitness was pleaded in defendant’s answer. It was alleged that, at the time the written agreement was entered into between the *185

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Bluebook (online)
12 P.2d 75, 124 Cal. App. 179, 1932 Cal. App. LEXIS 805, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-lowenthal-calctapp-1932.