Gullich v. Alford
Gullich v. Alford
Opinion of the Court
delivered the opinion of the court.
The appellant was the owner of a steam saw and grist mill which was located or intended soon to be erected on his own land. He was indebted to the appellee in a certain amount, some of which indebtedness was evidenced by promissory notes. The appellee was a machinist, and it was agreed between the parties that the appellant should sell to him a half interest in said mill and machinery and in two yokes of oxen for the sum of four hundred and fifty dollars,
Electing to abandon the contract of purchase he was entitled to recover the debt due tohim from the appellant as well as compensation for the labor performed in repairing the engine, for if there was no sale of the engine this labor was done for the exclusive benefit of the appellant who is still the owner of the property repaired. But the court below, treating the agreement to form and carry on the partnership as a part of the contract of purchase, and inherent in and dependent on it, instructed the jury that unless the business conducted by the use of the machinery was carried on under a consummated contract of partnership, the appellee might renounce his position as partner and recover a reasonable compensation for his labor contributed to the business. This was error. Though it may be true that the appellee would not have entered into the partnership but for his expectation of becoming a part owner of the machinery by which its business was prosecuted, it is nevertheless true that he did assume the attitude of partner. The services for which he sues were rendered by him, not to the appellant but to the firm. The profits of the business were divided as profits. Each partner took and consumed or disposed of his portion of the corn received as toll from the mill, and the toll cotton was appropriated by the consent of both to the purchase of a gin stand, which by the purchase became the property of the two and not of Mr. Gullich. The status quo cannot be restored. There has been an absolute enjoyment of the fruits of the enterprise by the appellee as partner, and he cannot now say that he so enjoyed them intending only to be conditionally bound by their reception.
Judgment reversed.
Reference
- Full Case Name
- John D. Gullich v. L. G. Alford
- Cited By
- 3 cases
- Status
- Published
- Syllabus
- 1. Contract op Purchase. Terms to be in writing. Abandonment. Where a party makes a contract for the purchase of property and as a part of the contract it was agreed that its terms should be reduced to writing, the contract is not consummated until reduced to writing, and if one of the parties refuses or unreasonably neglects to do so, the other m*ay abandon the contract if unexecuted by him. 2. Partnership. Suit by partner for'services rendered the firm. Reception of profits. Where there is an unexecuted contract for the purchase of property, and an agreement that the seller and buyer shall form .a partnership conducted by the use of the property so contracted for, and the business contemplated is actually carried on and the profits therefrom divided among and appropriated by the partners, then there is an executed contract of partnership which cannot be rescinded by either party, and the right the partner contracting to buy a part of the property from the other to abandon the contract of purchase because unexecuted, does not cany with it the right to abandon the partnership and recover from the other for services rendered the firm.