Maybank & Co. v. Rodgers
Maybank & Co. v. Rodgers
Opinion of the Court
The opinion of the Court was delivered by
This is an action on two contracts for future delivery of cotton, brought by the plaintiff, the buyer, against the defendant, the seller, for failure to deliver one thousand bales of cotton.
Both the plaintiff and the defendant requested the -trial Judge to direct a verdict in their favor.
Under the case of Beuttell v. Magone, 157 U. S. 155, 39 L. Ed. 655, 15 Sup. Ct. 566, the presiding Judge felt bound to direct a verdict in favor of the one or the -other, and directed a verdict- in favor of the plaintiff.
Mr. Justice (now Chief Justice) White, in delivering the opinion in that case said: “There is obviously no disputed question of fact.” In the later case of Empire State Cattle Company et al. v. Ry. Co., 210 U. S., 28 Sup. Ct. 607, 52 L. Ed. 931, 15 Am. & Eng. Anno. Cases 72, he says : “The
*282 validity of the peremptory instruction must depend upon whether the evidence was so undisputed or was of such a conclusive character as would have-made it the duty of. the Court to set aside the verdict if the cases had been given to the jury, and verdicts returned in favor of the plaintiff.”
From the verdict so directed and the judgment entered thereon, the defendant appealed upon six exceptions, but discusses four propositions.
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The statutes (Civil Code, 1912, section 3421) provides: “Every contract * * * for the sale * * * at any future time * * * of any cotton * * * shall be void unless the party contracting * * * is at the time of making such contract (1) the owner or assignee thereof, or. (2) is at the time authorized by the owner, or (3) unless it is the bona fide intention of both the parties to said contract at the time of making the same, that the cotton shall be actually delivered in kind by the party contracting to sell and shall be received in kind by the party contracting to receive the same.”.
Section 3422 provides: That in any and all actions brought in any Court to enforce such contract, the burden of proof shall be upon the plaintiff to establish that at the time of making such contract the party making the same was (1) the owner, or (2) was at the time authorized by the owner to make and enter into1 such contract, or (3) that at the time of making such contract it was the bona fide intention of both parties thereto that the said cotton should be actually delivered and received in kind by' the said parties at the future period, mentioned therein.
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The respondent says the intention of the defendant is proved by the language of the contract, and men are bound by their contracts. Here there is a wide distinction between *285 lawful contracts and contracts that are unlawful or bear upon their faces suspicion of unlawfulness.
The statutes do not stop here. Section 3423 provides that, if the defendant in an unlawful contract for future delivery had paid the loss, he would have been entitled to recover back his money and his oath shall bt prima facie proof of the unlawfulness of the contract.
If it. was the bona fide intention of both the buyers and seller, at the time of the making of the contract, that tHis cotton should be delivered and received, plaintiff ought to have his judgment for his loss. If it was not the bona fide intention of both parties, at the time of the making of the contract, that the cotton should be delivered and received in kind, then the plaintiff is not entitled to a judgment. This is a question of fact for the jury, and the cáse is remanded to the Circuit Court for a new trial.
Judgment reversed.
Footnote.—As to the admissibility of parol testimony to show that the contract was made in furtherance of objects forbidden by law, see Oroesbeok v. Marshall, 44 S. C. 538, 22 S. E. 743, and note in 16 Am. & Eng. Ann. Cases 388.
Reference
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- Sales for Future Delivery. Evidence. Trial. Issues por Jury. 1. In our Courts, if there is any evidence upon an issue it should be submitted to the jury. 2. Statements or acts of an agent beyond the scope of his authority' are inadmissible in evidence against his principal. 2a. An agent to make a contract has no implied authority to rescind or vary the rights of his principal. 3. Testimony as to the making of other contracts by defendant under which actual delivery was had, was relevant as to his intention in making the contracts in question. 4. In action to recover upon a contract of sale for future delivery (under Civil Code, sections 3421, 3422), the plaintiff must prove not only the buyer’s intention to receive, but also the intention of the seller to deliver, before he can recover for nondelivery. 5. The recitals of a written contract for sale of goods for future delivery is not sufficient proof, under Civil Code, secs. 3421, 3422, of the intent of the parties to actually deliver and receive in kind the goods in question, but testimony aliunde may be introduced to show the real intent. C. In action on contracts for future delivery of cotton, any evidence as to intention of the parties to actually deliver, presents a question for the jury.