Illinois Canning Co. v. Ft. Des Moines Canning Co.
Illinois Canning Co. v. Ft. Des Moines Canning Co.
Opinion of the Court
It is disclosed by the record that at the time in question plaintiff was engaged in the business of buying and selling canned corn, etc., at Hoopeston,. 111.; that defendant was engaged in the business of canning and selling corn, etc., at Des Moines, this State; and that the Pacific Selling Company, of Chicago, 111., was engaged in buying and selling canned corn, etc., for a commission or brokerage. The petition alleges that the contract sued upon was in writing, and contained in the certain letters and telegrams attached to and made part of the pleading by copy. The substance of these are as follows: On February 7, 1903, defendant answered a proposal received from the Pacific Company, saying: “Your offer for 5 M cases Std. corn, 1903 pack, at 65c f. o. b. factory, received. Will accept-order responsible party 65c factory, proportionate delivery. If order is placed with us corn will be loaded from our factory at Dexter. We would not care to accept offer on guarantee delivery. Enclosed find our blanks.” To this the Pacific Company responded, saying: “We are xmable to interest our trade here on your corn, pro rata delivery.” February 12th, the Pacific Company wired defendant as follows: “ Wire us refusal for to-day 5,000 futures at 65^ factory, pro rata delivery subject to usual brokerage charges to us.” And to this the defendant responded by wire as follows: “ Will accept order responsible party, five thousand, sixty-five factory, pro rata delivery.” Defendant followed this message by letter confirming the same, and adding: “ Can submit samples if desired.” The Pacific Company answered by
The averments of the petition are that by the contract thus made, defendant authorized the Pacific Company to sell corn as therein indicated, and that the Pacific Company, acting as agent or broker for the defendant, did sell or agree to sell to plaintiff five thousand cases of corn on the terms and conditions as so indicated and authorized. “ That at or about the same date plaintiff orally authorized the said Pacific Company to purchase said com upon said terms and condi
The question made by the demurrer is whether or not there is pleaded in the petition an enforceable contract as between plaintiff and defendant. The trial court took the view of no contract, and in this we concur. There are at least two sufficient reasons why this is so. It will be observed that the correspondence with defendant is limited to the Pacific Company.. If therefore, a contract as between plaintiff and defendant arose when the former was advised by the broker of a purchase from the latter made on its account, it must be because the broker was authorized by defendant to contract on its behalf. This we think does not appear. The initial letter to the broker, of date February 7th, was evidently brought into the pleading as explanatory in character. It makes intelligible the telegrams which followed as of date February 12th, and, as we have seen, the express language of the letter, as well as of defendant’s telegram, is that: “ Will accept order from responsible party.” Now, having in mind the fact that no previous business relations had existed between the parties, defendant and the broker, it seems plain to us that the language was understandable by the broker only in one way. In the first place, there was to he an order. Clearly, this did not contemplate an order from the broker, as the entire correspondence indicates that the Pacific Company was not offering to contract on its own account; rather, it contemplated an order from an intending purchaser through the broker, and blanks were inclosed with the initial letter for that purpose. So, too,
Moreover, with the disclosure of the name of the proposing purchaser came a request for a written contract of sale; and that, within the understanding of plaintiff, the situation called for such a writing, is shown by the correspondence. Now, if there was authority in the broker to sell, and, as is now claimed, he .did sell to plaintiff, there could have been no real necessity for supplementing such sale by a writing on the subject; this, because the correspondence was specific as to the character and quantity of goods, the terms of sale, delivery, etc. If, forsooth, such writing was wanted by plaintiff to fix the terms of the sale, then it would seem.to follow that within its understanding no sale had as yet been consummated. And there is nothing to indicate that it was wanted for any other purpose. The effect of the request, therefore, is to lend strength to the conclusion that neither the broker nor plaintiff understood that there was authority to consummate a sale, except in the defendant itself.
One other point made in argument may be noticed. Counsel for appellant seem to think that the no contract theory finds disparagement in the fact that a sale for account of defendant was reported by the broker on February 12th, and that this was not met by any protest or denial of authority; that, on the contrary, defendant later on forwarded sample labels from which selection by the purchaser might
We think a citation of authorities in support of our conclusion is not needed, and the judgment of the court below is affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.