Advance-Rumely Thresher Co. v. Zimmerman
Advance-Rumely Thresher Co. v. Zimmerman
Opinion of the Court
The opinion of the court was delivered by
This was an action on some promissory notes. The defense was a plea of settlement of matters in dispute between the parties and payment pursuant to such settlement.
It appears that in 1911 the defendant and his father and brother contracted with the Advance-Rumely Thresher Company to buy a second-hand engine and new threshing machine. They gave promissory notes in payment therefor. The threshing machine delivered was an old one rebuilt and repainted and it was not satisfactory. In 1912 the vendor’s business was taken over by the Rumely Products Company, and the vendor’s sales agent remained with the new company; and this agent made a new contract with defendant, in which it was agreed that a new engine should be supplied to the defendant and likewise a new separator.- Additional notes were given for these by defendant. A new engine was supplied but it was defective. The promised new separator was not delivered. Certain payments were made on the notes. In 1914, demand for further payments on the notes was refused until the engine should be repaired and a new threshing machine supplied. The defendant and his father and brother had given chattel mortgages on the property, in which it was provided that if default
The cause was tried by the court, a jury being waived; and judgment was entered for defendants.
The principal errors assigned chiefly relate to the question of the collector’s authority to make a binding settlement of all matters in controversy between the parties, but if the points
On being advised by the defendant’s answer, the plaintiff principal was bound to disavow the act of the collector and to restore the benefits received. Since this was not done, the plaintiff must be held to have adopted and ratified the compromise and settlement made by the collector. (2 C. J. 467, 468, 493, 496, 509.) There was no lack of evidence to prove the alleged agreement, and the fact that the $400 was not paid until some time after the collector took possession of the property and had sold it under the formality of a chattel-mortgage sale is just a jury argument and no more.
Plaintiff’s contention that the agreement was without consideration cannot be entertained. The defendant and his comakers had at least a partial defense to the notes as against the payees and those who acquired them with notice. The threshing equipment given for the notes was not satisfactory. The makers were promised a new threshing machine; they ■only got a renewed one. They gave additional notes upon the ■payee’s reiterated promise of a new separator and a new en
Nothing further can be discerned in this case which requires discussion; the record contains no error; and the judgment is affirmed.
Reference
- Full Case Name
- Advance-Rumely Thresher Company v. L. Zimmerman
- Cited By
- 2 cases
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- Syllabus
- SYLLABUS BY THE COURT. 1. Sale — Threshing Outfit — Notes—Authority of Agent to Make Compromise and Settlement — No Timely Disavowal of Agent’s Authority. Questions touching the scope of an agent’s authority to make a compromise and settlement of matters and claims between his principal and a debtor become immaterial when it appears that during fifteen months after the principal was advised of the compromise and settlement the latter did not disavow the acts of the agent and did retain the benefits secured thereby. 2. Same — Compromise and Settlement by Agent — Ratification by Principal. When an agent whose only authority is to collect a debt due his principal makes a compromise and settlement thereof without the knowledge of his principal, and later the debt becomes the subject of a lawsuit between the principal and the debtor, and the debtor pleads the facts of the compromise and settlement, the principal must then take notice thereof, and, if such settlement was made, he must promptly disavow the unauthorized act of his agent and must tender or surrender to 'the debtor the benefits and advantages which he received thereby; and his failure to do so is equivalent to adoption and ratification of the compromise and settlement made by the agent. 3. Same — Consideration for Compromise and Settlement. Under the facts recited in the opinion there was a sufficient consideration to support the compromise agreement made between the agent of the principal and the defendant debtor.\"