Bernard v. Torrance
Bernard v. Torrance
Opinion of the Court
delivered the opinion of the court.
The offer to purchase the Gum Senegal, for the value of which this suit was brought, was made by James A. Buchanan, agent for the Warren Factory, on the 15th April, 1829, at a period of time when George Torrance, the defendant, was a partner of E. S. Buchanan, and joint owner with her of the Warren Factory. The defendant and E. S. Buchanan were unknown to the public as the proprietors of the Warren Factory, but its business was transacted by J. A. Buchanan, as the agent. On the 16th April, 1829, the defendant contracted to sell to E. S. Buchanan his interest in the establishment, and ceased from that day ,to have any interest in the conduct and management of the concern, and it was in fact at no time afterwards conducted on his account. On the 13th April, 1829, G. S. Oldfield, who was the agent of the plaintiff, residing in New York, offered to the agent of the Warren Factory to sell the Gum Senegal in question, at a price, which by letter of the 15th April, the agent, James A. Buchanan refused to accept,- and he in his turn made the offer above adverted to, by-which he proposed to take 10,000 lbs. at 18 cts. 4 months credit, and in the offer, requested it to be forwarded if accepted, and desired to be notified of the acceptance “by the return mail, that he might regulate his foreign orders.” This letter was received by G. S. Oldfield in New York, and handed over by him to his principal, the plaintiff, who immediately shipped 10,892 lbs. of gum to Oldfield, Trull
If the terms of Buchanan’s letter of the 15th April, were substantially complied with by the plaintiff’s acceptance, we conceive that the defendant would be liable to the extent of ten thousand pounds of gum, notwithstanding his withdrawal from the concerns of the factory, on the 16th April, whether he be considered solely in the light of a principal in the transaction, or as a joint owner, or partner with E. S. Buchanan in the factory.
In the former case, the agency of James A, Buchanan, for some principals, was well known to the agent of the
If therefore, this contract had been accepted by the plaintiff, at any time anterior to the defendant’s withdrawal from the concerns of the establishment, or at any time before the agency of J. A. Buchanan had been determined, there could have been no doubt entertained, as to the responsibility of the defendant./ But as Torrance ceased to have any concern in the factory the day after the offer, and before the contract was consummated, it is supposed, that he could not be made liable. Treating the letter of the plaintiff as an acceptance, the contract with him was certainly not consummated until the 18th April, 1829, for it is the offer on the one side, and acceptance on the other, which constituted the contract. \But we apprehend, that under the circumstances which this case presents, it would not be essential to inquire, what was the date of the contract to determine the liabilities of the parties. The material inquiry is, the date of the offer. A principal authorising an agent to make an offer, cannot withdraw to the prejudice of him to whom the offer is made. On the supposition that an acceptance of the offer has been made, a contrary doctrine would work the grossest injustice to the plaintiff. He accepts the offer of one, who is known to be the agent, and ships his gbods accordingly, before he could by any possibility know that the principal had put an end ^jtq the agency, or withdrawn from the management and concerns of the factory. The contract by which the defendant
But to constitute it the contract^of the prineipal,jmd make the offer obligatory upon the defendant, it must have. beeiTacceptcd, according to the terms of the offer. James A. Buchanan could have entered into no new negotiations, or stipulation, after the withdrawal of his principal, which could bind the principal; nor could he possess any power after such withdrawal to dispense with any conditions oí the offer. Any new stipulation, or dispensation with offered stipulations, would make the agreement not the acceptance of the one offered, but a new agreement; which being made after the defendant’s withdrawal, would constitute a new contract, not binding on the defendant, but binding on the principal, of whom Buchanan had then become the agent, and it is therefore supposed that such has been the case here, and we arc called upon to say, that the contract in question is, in point of law, a new contract not obligatory upon the defendant.
The communications passing between the parties, which together constitute the contract, ought to receive a reasonable interpretation, and should be examined in that spirit of liberality, with which mercantile contracts ought always to be viewed by courts of justice.
With this principle in view, we will proceed to examine the facts relied upon, to show that there was not a consummation of the offer made, but that a new contract was formed.
We shall for the present, waive the inquiry, as to the period when the acceptance was made, and when notified, and the legal consequences growing out of these acts. These we shall examine in the close of this opinion.
If indeed, the plaintiff had at any time, agreed to discharge Torrance by accepting the responsibility of James A. Buchanan, or the proprietors of the factory at the time the second and third notes were renewed, the defendant could not in this case be answerable; but that is exclusively a question for the jury, and whether he did then agree or not, cannot have any bearing on the question, with whom the original contract was made. The acceptance of the first note, certainly furnishes no evidence of such consent to discharge the defendant, because as has just been stated, the plaintiff did not, nor could know, that any change in the ownership had taken place.
If Torrance and E. S. Buchanan be considered in the light of joint owners or partners, either dormant or otherwise, there exists the same responsibility. They were principals, and although unknown, the credit was given to
,. ¿Prom the preceding views it follows, that the county COTjrt'were in error in granting all, or any of the defendant’s prayers.
Before expressing an opinion upon the judgment of the court below, in their refusal to grant the prayers of the plaintiff, it will be necessary to examine one branch of the offer made by J. A. Buchanan to the plaintiff, which has not heretofore been adverted to, and upon the solution of f which, the event of this cause must mainly depend. We advert to that part of the offer, which called upon the plaintiff, if he accepted it. to apprise him of the fact byjhe return mail, that he might regulate his foreign orders. The construction ofthis clause, in a mercantile contract of This description can, we think, hardly admit of a doubt. Its importance to the defendant is manifested by the fact, that it constitutes a leading feature in the offer; ¡ and by the reason which is assigned for the request, and is just as obligatory as if it had constituted an express condition upon which the offer was made. That the defendant sustained no injury, if an answer had not been returned.as requested (¡son ¡ndai ned.
Applying the doctrines maintained in this opinion, to the various prayers offered by the plaintiff, it will follow, that the court were right in rejecting all the prayers offered by him.
The evidence of various merchants and traders, offered by the defendant, to prove that it was not generally known in Baltimore, or elsewhere, that the defendant was at any time interested in the factory, was, we think, properly admitted. For if it had been generally known in Baltimore, that Torrance was interested in the concern, a knowledge of that fact might have been presumed in the plaintiff; and if the plaintiff had knowledge of this interest, and no knowledge of the withdrawal, the defendant’s liability would continue, until he gave notice of his withdrawal. 1 Barn. & Adolp. 11. 20 Serg. & Lowb. 333.
JUDGMENT REVERSED AND PROCEDENDO AWARDED.
Dorset, J. dissented.
Reference
- Full Case Name
- John R. Bernard v. Geo. Torrance, Survivor of E. S. Buchanan
- Cited By
- 3 cases
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- Published