Ham v. Cerniglia

Mississippi Supreme Court
Ham v. Cerniglia, 73 Miss. 290 (Miss. 1895)
Woods

Ham v. Cerniglia

Opinion of the Court

Woods, J.,

delivered the opinion of the court.

If strict regard be had to the literal terms of the written contract, it would appear to be a lease; but, looking below the surface and through the mere form employed, we have no hesitation in declaring the contract one of conditional sale. The total value of the property is named in the face of the instrument, and the monthly rentals, as they are called. But these monthly installments, if paid promptly, would quickly equal the value of the property. The value of the property, the amount of the monthly installments, and the right of the vendor *296to take possession of the goods on default in payment, are all Seen on the face of the writing. But there is ambiguity on the face of the instrument as to the period of cessation of payments, and the result to follow payments equaling the full value of the property. Resort was properly had to parol evidence to show the surrounding circumstances in order to remove these patent ambiguities. Nor is objection made to this, as we understand the briefs of counsel and the record before us. But objection was made, and sustained by the court below, to the evidence of appellant, which proved, or tended to prove, that there was an understanding between the conditional vendor and vendee as to the manner and effect of the appropriation of the partial payments, the monthly installments. If the property, in whole or in large part, was of such nature as to render it liable to rapid deterioration in value by the wear and tear of daily use, there would be nothing unreasonable in the vendor’s insisting with his vendee upon the retention of title in himself until the whole purchase price of the entire property had been paid. The excluded evidence was offered to show that there was an agreement of the parties, made after the sale of the first items of furniture, and when it became known to the vendor that the purchaser designed and desired to purchase more extensively .than the seller originally believed was to be done, by which it was understood between the parties that the payments from time to time were to be entered as credits generally upon the entire account of the purchaser, and not upon any particular items in any particular purchase.

This evidence was admissible. It did not vary or alter the written agreement; its purpose was to show the whole contract of the parties, and to make clear what was ambiguous on the face of the writing. The case was one, on all the evidence, for a jury’s determination. See the large number of cases cited in note 5, to paragraph 3, under title “ Conditional Sales Disguised as Leases,” 3 Am. & Eng. Ene. L., 126.

Reversed.

Reference

Full Case Name
C. M. Ham v. C. Cerniglia
Status
Published
Syllabus
1. Conditional Sale. Featu/res characterizing contract. Lease in form only. Although a contract in writing may be in the form of a lease, it will be treated as a conditional sale of the personal property mentioned in it, when the instrument shows on its face the ag'reed value of the property and the right of the vendor to take possession of the same in default of payment, together with the monthly installments agreed to be paid, which are denominated rentals, but are in such amounts as would, if promptly paid, quickly equal the agreed value of the property. 2. Same. Patent ambigwWy in instrument. Parol evidence to remove same. When admissible. Parol evidence of the surrounding circumstances is admissible on behalf of the vendor to remove a patent ambiguity in contracts of conditional sale entered into from time to time with the same vendee in respect to the period at which the payments were to cease and as to the result that would follow payments equaling the full value of the property. 3. Same. Enlargement of transactloi%. Ootemporaneous agreement as to appropriation of payments. Parol evidence of scume admissible. Replevin by vendor. In replevin by the vendor, it is error to exclude parol evidence that, before the purchase of any of the articles mentioned in the several contracts of conditional sale, except those mentioned in the one first executed, he agreed, at the request of the vendee, to sell to her more extensively than had been previously contemplated, and that it was then further agreed between them that the payments made from time to time should be applied to the entire indebtedness, and not to any particular items, and that none of the property should be released or considered as paid for until her entire account with him was paid.