Southern Flour & Grain Co. v. Saint Louis Grain Co.
Southern Flour & Grain Co. v. Saint Louis Grain Co.
Opinion of the Court
This was an action brought by a seller of goods to recover from the purchaser damages for refusing to take and
It appears that before the time arrived for the delivery of the goods, the purchaser countermanded the order, thus making an anticipatory breach of the contract. It is contended by counsel for plaintiff in error that the exclusive remedy of the seller was to bring an action for the damages which he had sustained up to the date notice was given to the seller that the purchaser would refuse to take and pay for the goods. In other words, his position is that where one party breaks a contract it is the duty of the other party to lessen the damage, and that under this principle the seller, on receiving the notice, was bound to treat the contract as ended and sue for whatever damages he had sustained. Counsel for the plaintiff in error insists that the special remedy provided by § 4131, supra, where the seller is given the right to resell the property and recover the difference between the contract price and the price on resale if the latter be less than the contract price, is not applicable where there has been an anticipatory breach of the contract of sale. The rule is well settled that in such a case the exclusive remedy of the seller is an action for damages, and that he can not sue for the full amount of the purchase-price. Linder v. Cole Brothers Co., 10 Ga. App. 102 (72 S. E. 719), and cases cited. In this case the seller did not sue for the purchase-price, but his action was for damages for breach of the contract. The general rule is that the seller is entitled to recover the difference between the contract price and the market value at the time and place of delivery, and, under the terms of the code section, he may conclude the purchaser on the question of market value by reselling the property after notice to the purchaser. Where there has been an anticipatory breach of an executory contract of sale, the seller has a right to treat the contract as ended and immediately sue for damages, but he is not bound to do this. The purchaser alone can not rescind. Eescission can only be brought about by mutual agreement of the parties. If notice is given to the seller that the purchaser will not take and pay for the goods
These considerations clearly result from decisions of the Supreme Court in the following cases: Smith v. Georgia Loan Co., 113 Ga. 975 (39 S. E. 410); Ford v. Lawson, 133 Ga. 237 (5) (65 S. E. 444); Byrd Printing Co. v. Whitaker Co., 135 Ga. 865 (70 S. E. 798, Ann. Cas. 1912 A, 182). There is nothing to the contrary in Oklahoma Vinegar Co. v. Carter, 116 Ga. 140 (42 S. E. 378, 59 L. R. A. 122, 94 Am. St. R. 112). Indeed, the reasoning of Mr. Justice Little in the opinion in that case clearly supports the view above announced. An anticipatory breach was committed in that case. The plaintiff sought to pursue the special remedy provided by the Civil Code (1910), § 4131, whereby the seller is given the right to store and retain the goods for the benefit of the buyer and recover the full amount of the purchase-price. The court held that that remedy was not available in that case, simply because it appeared that the plaintiff had not stored and retained the goods. As was said in the opinion: “Had it done so it might have brought an action against the buyers for the entire price of the goods.” Here the seller adopted the other remedy provided by this section of the code, and resold the goods after notice to the purchaser. This fixed the measure of the plaintiff's damages and was con-
Reference
- Full Case Name
- SOUTHERN FLOUR & GRAIN CO. v. SAINT LOUIS GRAIN CO.
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- 10 cases
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- Published