Pontefract's Estate
Pontefract's Estate
Opinion of the Court
Opinion by
The appellant’s claim is under a contract for services “as a salesman and confidential clerk” in the business then carried on by the first party to the contract. The duration of the service was to be five years subject, however, to be terminated by the death of either party within that period or by the sale or discontinuance by first party of his business. An annual salary of $4,000 was provided for which was to be augmented by a commission equivalent to fifteen per cent of the net profits arising during the term of the appellant’s employment “from the manufacture, sale and storage of whisky in excess of $25,000 per annum.” The profits of the business were to be ascertained annually on July 1. These provisions have reference to a business then in operation and to be carried on prospectively for five years during which time the appellant was to render service in the capacity stated in the contract. His right to compensation would have ceased at the end of five years, and a like result was provided for in case of the death of either party or of the sale of the business. In either event his claim for compensation would wholly cease. The appellant’s obligation was to promote the business of the concern and to extend its trade and as an inducement to activity in that direction his compensation was to be increased in proportion to the success of the enterprise. From the nature of the business and the description of his employment it may be presumed that a principal part of his business was to sell the products of the distillery to its customers. It was evidently not in contemplation by the parties that he was to render any service in selling or discontinuing the business. The provision for annual adjustments of the commissions due shows that the profits to which the parties referred were those arising in the ordinary course of the business as it was carried on. The owner had the undoubted right to exercise a discretion as to the time when he would close out his business and his right so to do is plainly
The decree is, therefore, affirmed.
Reference
- Cited By
- 1 case
- Status
- Published
- Syllabus
- Master and servant — Salesman—Compensation—Commission on sales. Where a contract of employment of a salesman provides for a certain salary per year and commissions on sales in excess of a specified sum per annum, and the owner of the business reserves the right to discontinue it or sell it, and subsequently the owner leases the real estate and sells the personal property and the stock of merchandise on hand to a third party who continues the business, the salesman is not entitled to commissions on the sale of the stock to the lessee of the real estate, inasmuch as the sale was not in the line of his employment.