Producers Coke Co. v. Hillman
Producers Coke Co. v. Hillman
Opinion of the Court
Opinion by
The action was for recovery for a definite quantity of coke sold and delivered by the plaintiff company to the defendants between 3d July, 1912, and the 29th of the same month, at specified rates per ton, on an implied promise that the defendants would pay for the coke furnished. In the affidavit of defense filed defendants aver that on or about 10th May, 1912, the plaintiff company and the defendants entered into a contract, evidenced by writings, by which the plaintiff agreed to place in the hands of the defendants for sale, substantially all the coke it produced during the six months from 1st July to December 31, 1912; that under this contract the defendants made sales of large quantities of coke in their own names for delivery between 1st July, and 31st December; that about 20th July the same year the plaintiff desiring to be relieved of its obligations to furnish defendants all the coke it produced within the
“If, therefore, although the terms of the contract afford the rule for the apportionment of the consideration, yet if there be a special agreement to take the whole or nothing, or if the evidence clearly shows that such was the purpose of the parties, the contract would be entire.”
Story on Contracts, Sec. 24th. And again, in Sec. 24 this appears,
“Agreeably moreover to the weight of authority, a stipulation that the price shall be paid by instalments as the goods are delivered or the work proceeds, will not render a contract for an entire thing, as, for instance, to build a house or furnish a given weight or quantity of merchandise, divisible, or so apportion the consideration to the several parties as to dispense with an exact fulfillment of the law; and if the contractor fails to do all, he will not only be precluded from recovering what remains unpaid, but may be compelled to refund the sums which he has already received; and it will make no difference that the default arose without negligence on his part.”
In support of the text the case of Shaw v. Turnpike Company, 2 P. & W., 454, is cited, in which a contract that provided for apportionment of consideration was held to be entire, and the plaintiff was denied the right to recover except on full performance. In the case cited by the learned trial judge, and in those cited by counsel
“Where a bill of parcels is taken, and includes the articles bought under one whole price, it would, if accepted, afford evidence of an intention by both parties to treat the contract as entire. And wherever the failure as to part would materially defeat the object of the contract and would have affected the sale, had such failure been anticipated, the' contract would be entire.”
Story on Contracts, Section 24th.
While it is not averred in the affidavit that failure to complete the contract of plaintiffs would have affected the sale in this case, it is a reasonable inference in view of the situation of the parties and the object contemplated, that it would have done so. It was not required that it should have been averred in the affidavit. The courts always seek to avoid, as far as they consistently can, a construction that would render a contract ineffectual. The present is a case in which the manifest purpose of the agreement would be defeated were it held to be a divisible contract, thereby allowing the plaintiff not simply to disappoint the defendants in what it was intended they should receive for a specific and express purpose, but requiring from the defendants payment for so much performance as met the pleasure, convenience and advantage of the plaintiff. As against such construction the defendants might well reply, in haec foedera non venimus. We have discussed the case as though the contract were as averred in the affidavit. The defendants should be allowed an opportunity to prove the averment. The assignment of error relating to the matter discussed is sustained. The other assignments call for no examination at this time. The judgment is reversed with a procedendo.
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- Contracts — Divisible and entire contracts — Construction—Part performance — Affidavit of defense — Buie for judgment. 1. Whether a contract is divisible or entire depends upon the intention of parties, to be collected primarily from the words employed. Although the terms of the contract may afford a rule for an apportionment of the consideration, yet if there be a special agreement to take the whole or nothing, or if the evidence shows that such was the purpose of the parties, the contract will be construed to be entire. A stipulation that the price shall be paid by instalments as the goods are delivered or the work proceeds, will not render a contract for an entire thing divisible, and if the contractor fails to do all he will be precluded from recovering what remains unpaid. 2. In an action of assumpsit to recover for coke sold and delivered, defendant filed an affidavit of defense, alleging that by a written contract previously entered into between the parties, plaintiff had agreed to deliver to defendants all the coke to be produced by them during a period of six months; that shortly after the beginning of this period, at plaintiff’s request, defendants had released them from the contract upon a further agreement by plaintiff to furnish defendants such coke as was necessary for them to have to fill contracts entered into by them during the period in question, which was then and there specified as 3,680 tons during the month of July, and 2,124 tons for the months of August, September, October, November and December, at prices specified; that plaintiff had delivered during July 844% tons less than the amount called for, and had failed to deliver any coke whatever during the month of September. It appeared that suit was brought September 19th, to recover for coke delivered during July. Held, that the contract if as set forth in the affidavit, was entire; and that there could be no recovery by plaintiff for partial performance. The judgment of the court below for want of a sufficient affidavit of defense was reversed.