Texas Co. v. American Trade Developing Co.
Opinion of the Court
Defendant in error, herein called plaintiff, sued to recover damages from plaintiff in error herein called defendant, growing out of the latter’s alleged breach of a contract to sell to
The evidence showed without conflict that one C. P. Elder, assuming to act as agent for defendant, entered into the contract sued on. The question to be decided is whether Elder had authority to bind defendant as its agent. Upon this issue, plaintiff’s evidence discloses that as early as January, 1915, in a letter received by it from defendant, Elder was referred to as defendant’s “representative.” April 28, 1.917, Elder, on behalf of defendant, wrote plaintiff a letter in which he stated:
“With reference to conversation with Mr. George Arias, we can offer you our kerosene in 2/5 eases at $1.50 U. S. per case, f. o. b. New Orleans, and would be glad to have an order from you, as it has been over one year since your last order.”
May 2, 1917, plaintiff replying to this letter wrote to Elder:
“Replying to your letter dated 28th ulto., quoting us kerosene in 2/5 eases at $1.50 U. S. cy. per case f. o. b. New Orleans. We wish to state we rather that you quote as f. o. b. Panama.” etc.
May 7, 1917, plaintiff wrote to defendant, at its New York office, a letter, from which we quote the following:
“Ifroin years back, I have been trying to buy from you your oil, which I purchase for my clients; but, unfortunately, up to now, we have not been able to come to terms. In 1915, when I was in New York, I called on you; but you told me that you had some contracts for the sale of your oil, and that you could not offer any business at that time. Since you have had some agents come to Panama, but they generally stay in Colon, and lately, when X wanted to buy a quantity of oil, the price of $1.50 f. o. b. New Orleans, which I was offered, was not suitable to me. * * * Now, if you have an agent for Panama and Colon, I must be clear with you that if I buy, or do any business in oil with you, I cannot consent to pay, directly or indirectly, any commission to your agent here, and it would be on this offer from you that Í may be ready to do business with your oil in this city. I know, if T open business with you, I can sell large quantities of oil on the Isthmus; sit least, not on the Colon side, but in Panama, and ports of the Pacific Coast. If convenient, please advise me, by letter or by cable, what would be your price for the kind of oil you ship to Panama. * * * Quote me price delivered Panama,” etc.
June 14, 1917, defendant wrote plaintiff as follows:
“Receipt is acknowledged of your letter of May 7th in connection with your request to quote price f. o. b. New Orleans. We would advise that wo would be pleased at any time to make you a quotation based on the market price f. o. b. New Orleans. We respectfully refer you to our Mr. Elder, our representative in Panama, who-is located in Cristobal, and who will quote you from time to time, if desired,” etc.
Executive officers of the defendant testified that Elder had custody of the oil stocks and other property of defendant in the Canal Zone; that his duties were to take care of it, gauge oil in tanks, and supervise the details of deliveries when made, and incidentally to receive and transmit inquiries concerning oil to the New York office, and to carry out any specific instructions which defendant might give him; but de
It is obvious from the correspondence that the parties had in contemplation, not an isolated sale, but continuous dealings with each other, and that Elder was authorized to quote prices “from time to time, if desired.” Taken in connection with the letter of inquiry as to prices, the authority to Elder to “quote” was equivalent to authority to fix prices. See Webster’s Unabridged Dictionary for definitions of the words “quotation” and “quote,” when used in a commercial sense. Defendant’s refusal to sell to plaintiff in New York was not inconsistent with the authority of defendant’s agent to do so in Panama.
The trial court found as a fact that plaintiff entered into the contract in good faith, and there was evidence, as already stated, that plaintiff was without knowledge that a similar offer to purchase, made in New York, had been rejected.
The judgment is affirmed.
Reference
- Full Case Name
- TEXAS CO. v. AMERICAN TRADE DEVELOPING CO.
- Status
- Published