Borden v. Richmond & Danville Railroad
Borden v. Richmond & Danville Railroad
Opinion of the Court
It is conceded that the local agent of the defendant at Goldsboro made a written offer to ship for the plaintiff five hundred bales of cotton to Liverpool in November, 1891, and that the said agent was authorized to make such a proposal on the part of the defendant, and that plaintiff at once accepted this offer, his acceptance being also in writing. Furthermore, it seems to be conceded that the said agent plainly and unequivocally expressed what he understood to be the price to be charged by the defendant company for the transportation of the cotton, and there was no misunderstanding between the plaintiff and the agent as to any of the terms of the alleged contract.
Now it is evident that, if the agent is considered, not as the mere mouthpiece of the defendant corporation, through whom the intention of its higher officers in this matter was to be simply communicated to the plaintiff, but as its authorized contracting agent — its alter ego in this affair — there was no error or mistake at all, much less one that would prevent the written proposal and its written acceptance from constituting a valid contract, by the plain terms of which each party would be bound. In this view of the matter there was no variance between the intention of the defendant and the
Passing by that question and assuming, for the sake of argument, that the local agent at Goldsboro was the mere mouthpiece or spokesman of the defendant in this matter, and that plaintiff knew this fact, then we have here a variance between the intention of the proposer (the defendant) and the expression of that intention. There was an error in the expression of the defendant’s intention, but that error was unknown to the plaintiff. He had no good reason to suspect that the writing submitted to him did not correctly express the intention of the defendant. He did not “snap up” an offer which he knew or suspected was erroneously expressed. He merely accepted a plainly expressed proposition. In the view of the matter we are now taking, the question, then, is: If, in the expression of the intention of one of the parties to an alleged contract, there is error, and that error is unknown to and unsuspected by the other party, is that which was so expressed by the one party and agreed to by the other a valid and binding contract, which the party not in error may enforce? The law is well settled, says Mr. Lawson in his work on contracts, § 206, that a man is bound by an agreement to which he has expressed his assent in unequivocal terms, uninfluenced by falsehood, violence or oppression, and it judges of an agreement between two persons exclusively from those expressions of their intention which
We think, therefore, that all evidence in regard to plaintiff’s purchase of the cotton was irrelevant. He had a valid contract for its shipment at 69J cents. His rights thereunder could not be affected by a notice that the defendant’s agent had been misinformed, as we have seen.
Affirmed.
Dissenting Opinion
(dissenting): The evidence is not controverted that the local agent at Goldsboro did not have authority to quote rates of freight from that point to Liverpool (passing, as the freight must, over so many lines besides that for which he was agent); that the general agent at Richmond, in reply to an inquiry from local agent, quoted a rate of 89¡ cenls, and that by some error in transmission by telegraph this was received at Goldsboro as 69-J cents, and so quoted to the plaintiffs.
The mistake having been made by an agent or an employee of the railroad company, it is bound, but only to the extent that the plaintiffs had been misled and damaged by having acted upon it before the mistake was corrected, which was done promptly — as soon as the general agent had notice of the mistake which had been made in the transmission of the message.
If, by reason of the supposed reduction of the rate from 89\ cents to 69-|- cents, the plaintiffs had, before correction of the mistake, sold cotton in Liverpool at less than the market price, which is very improbable, or had bought cotton somewhat above the market rate in Goldsboro, which is possible, to whatever extent they had been thus damaged by relying upon the correctness of the dispatch the}' are entitled to compensation. There was no offer on the part of the railroad company through its general agent, who alone was authorized to speak for it, to carry at 69| cents. The local agent
The principal is only bound by the acts of its agents within the scope of their agency. The scope of Drake’s agency at Richmond was to contract for rates. He made no offer at 89J cents. He made no mistake. He has done nothing that fixes any contractual liability upon the defendant. Yet, he is the only one who could have done so. The scope of the
Take a homely example. A landowner has an overseer, who is authorized to employ hands. The overseer sends a message by one of his employees to some one that he will give him employment for a year at $10 per month. By reason of carelessness, drunkenness or stupidity, the messenger says the overseer will give $30 per month. Could it be contended that the landowner must pay for a year three times, the usual price for an ordinary farm hand?” Not at all.. He is bound by the act of his overseer, who is authorized to. hire hands, in the absence of collusion and the like. But as-to the messenger, the principal is bound by his mistake only to the extent of the damages actually suffered by the other party, by relying upon the message before it is corrected. In the present case it does not appear whether the telegraph line was operated by the defendant’s agents and employees, or by an independent company. Nor does it make any difference to the plaintiffs, as the telegraph agency acted for the defen
Reference
- Full Case Name
- A. BORDEN v. RICHMOND AND DANVILLE RAILROAD COMPANY
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- 4 cases
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- Published