Sussman, Wormser & Co. v. Sea Food Co.

Mississippi Supreme Court
Sussman, Wormser & Co. v. Sea Food Co., 127 Miss. 420 (Miss. 1921)
90 So. 116
Anderson

Sussman, Wormser & Co. v. Sea Food Co.

Opinion of the Court

Anderson, J.,

delivered the opinion of the court.

(After stating the facts as above.) Appellee’s contention is that it was excused from delivery in January and *430February, 1917, under paragraphs 1 and 6 of the “conditions” to the contract; and that the correspondence relied on as extending the time of delivery, and condoning the delay by appellants in forwarding specifications to appel-lee as provided in paragraph 7 of the “conditions,” was a novation of the contract for which there was no consideration, and therefore not binding on appellee; and apparently the trial court took that view. In order for a contract for the sale of goods to be discharged by implication by a new contract, the intention to discharge must clearly appear from the inconsistency of the terms of the new and the old contract. A mere postponement of performance by the new agreement does not discharge the old contract. The substitution of one agreement for another, and the postponement of the time for delivery, whether on request of one of the parties or by voluntary agreement, are entirely separate and distinct. Such a modification of the contract as to delivery does not amount to its discharge. As said by the court in Bacon v. Cobb, 45 Ill. 47: “It would be strange law, indeed, if the defendants were allowed to say that, inasmuch as you gave us further time in which to perform our contracts, and we did not comply, you have no right to an action against us on our original contract.” 2 Mechem on Sales, sections 807, 1151, and authorities cited and digested in the notes; and Roberts v. Benjamin, 124 U. S. 64, 8 Sup. Ct. 398, 31 L. Ed. 334. Philip Gruner Lumber Co. v. Algonquin Lumber Co., 123 Miss. 157, 85 So. 191, is directly in point. There the time of delivery of the lumber involved had been extended by agreement of the parties; the seller being justified by the terms of the original contract in not making delivery at the time fixed therein. The court held that the old contract was not discharged by the subsequent agreement postponing the time of delivery. Applying these principles to the facts which appellants’ testimony tended to establish, we find that the delivery of the carload of oysters was postponed from time to time by agreement of the parties, evidenced by a great mass of correspondence *431had between the parties, ‘ and also between each oí the parties and Taylor, the merchandise broker in San Francisco, through whom appellee made the original contract, most of which the trial court ruled out, and that finally it was distinctly agreed as shown by appellants’ letter to ap-pellee of June 8, 1918, and the latter’s reply thereto of June 14, 1918, that delivery should be made not later than March 1, 1919, which was not made.

These principles apply with equal force to the stipulation in the contract contained in paragraph 7 of the “conditions” which provided that “specifications” should be furnished appellee by appellants not later than January 1, 1917, and in default thereof it should be optional with appellee as to whether it would carry out the contract. Appellant’s testimony tended to show that this stipulation was complied with by it; but, if it was not, the correspondence between the parties clearly shows that the failure of appellants in that respect was condoned by the appellee. For illustration: In appellee’s letter to appellants of June 22, 1917, it acknowledges the receipt from appellants of shipping instructions for the carload of oysters, and states, “To all of which we will conform,” and in its numerous letters to appellants, offered in evidence, there is not an intimation that it had or intended to take advantage of any failure of appellants to comply with that stipulation.

It is contended on behalf of appellee that the agreement postponing delivery and waiving the time within which specifications were required to be furnished appellee by appellant amounted to a new contract which discharged the old contract, and, there being no consideration for the new contract, appellee was relieved from performance. As we have seen, the changes referred to did not make a new contract of the old. They were merely modifications of the written contract of November 20, 1916, agreed to by both parties. There was only one contract. The original consideration was sufficient under the law to support such modifications; and, if further consideration were needed, *432the mutual promises of the parties constituting the modifications would furnish it.

It follows from this view of the law that the trial court erred in ruling out- the correspondence between the parties, as well as that between the appellants and appellee on the one hand and Taylor, the latter’s broker in San Francisco, on the other, which tended to show such modifications of the contract. Appellee contends that it was excused from delivery under paragraphs 1 and 6 of the “conditions” attached to the contract, because prior to March 1, 1917, the limit of time fixed for delivery in the contract as originally written, at no time did appellee have the required amount of oysters packed to fill appellee’s contract, nor could they be procured in the ordinary course of its business, filling the contracts of its customers “in rotation,” as it claimed it had a right to do; and appellee’s testimony was addressed to justifying its failure to deliver Avithin that time. The fault of that position is that the contract as modified by the correspondence called for delivery by the appellee at any time not later than the postponed date of delivery, March 1, 1919. If delivery is delayed by agreement of the parties, the postponed delivery date simply becomes part of the original contract. The appellants offered testimony to show that the appellee could have delivered the oysters under the contract. The larger part of this evidence was ruled out by the court, Avhich was error.

The measure of damages in this case is the difference in the contract price of the oysters in question and their market price at the postponed date of delivery, March 1, 1919. If delivery is postponed by agreement of the parties, the market value at the time to which delivery is postponed is taken as the criterion. Summers v. Hibbard, 153 Ill. 102, 38 N. E. 899, 46 Am. St. Rep. 872; Crescent City Mfg. Co. v. Slattery, 132 La. 917, 61 So. 870; 24 R. C. L. section 337, p. 73; Covington Mfg. Co. v. Ferguson, 204 Ala. 192, 85 So. 726.

Reversed and remanded.

Reference

Cited By
8 cases
Status
Published
Syllabus
1. Novation. An agreement postponing performance of a sale contract does not discharge the latter. In order for a contract for the sale of goods to be discharged by a new contract by implication, the intention to so discharge must clearly appear from the inconsistency of the terms of the new and the old contract; a mere postponement of performance by the subsequent agreement does not discharge the old contract, but becomes a part of it 2. Novation. Agreement changing contract time of delivery held not to discharge original contract. Where a certain date is fixed as the time limit for delivery of a carload of oysters by the seller to the purchaser, and by subsequent agreement between the parties in the form of correspondence the time limit date for delivery is postponed, such agreement does not discharge the original contract, but same remains in full force, changed only to the extent that delivery is postponed. 3. Sales Purchaser’s delay in sending specifications held condoned so as not to constitute breach, but merely a modification of contract. Where a certain date is fixed in a contract for the sale of a carload of oysters, as the limit of time within which the purchaser is required to forward to the seller specifications for shipment, and such specifications are sent at a later date, and the seller acknowledges, receipt of same and agrees to ship the oysters, such failure on the part of the purchaser is condoned, and docs not constitute a breach of the contract by the purchaser, but is a mere modification of the contract to that extent. 4. Saijís. Modifications of original contract held not to require new consideration. Such modifications of the original contract are not invalid because not supported by a new consideration, the consideration for the original contract being sufficient for that purpose; and in addition the mutual promises and undertakings of the parties constituting such modifications are sufficient consideration for each other. 5.Sales. Measure of damages for failure to deliver is the difference between the contract price and the market value at postponed date. The measure of damages, where the delivery date within which delivery must be made has been postponed by the parties, is the difference be-between the contract price of the goods and their market value at such postponed date of delivery.