Contracts Commons^™

Infants-Liability On Tort Arising Out Of Contract

Michigan Law Review

Plaintiff was the assignee of a conditional sales contract for an automobile purchased by defendant, a minor. The contract contained a provision that the car should not be used in connection with any violation of any state or federal law. The defendant was apprehended by federal officers while using the car for the illegal transportation of liquor. The car was seized and later forfeited, and the plaintiff brought a tort action for the conversion of the car. Held, the infancy of the conditional buyer was no defense to an action for conversion by a wilful, illegal use. Vermont Acceptance …

Vendor And Purchaser-Vendee's Lien-Failure Of Title

Michigan Law Review

The vendee of a contract for the sale of land discovered that there was great doubt as to whether the buildings were within the bounds described in the contract and whether there were encroachments. Alleging that these defects could not be corrected, he brought a bill in equity seeking cancellation of the contract and praying for a lien upon the lands for the money paid and the expenses incurred. The vendor counter-claimed for specific performance. Held, where the purchaser properly invokes the jurisdiction of the court and where it would be inequitable to compel specific performance, so far as …

A Comparative Study Of The Statutory Survival Of Tort Claims For And Against Executors And Administrators, Alvin E. Evans

Michigan Law Review

The problem of the survival of actions after death of one of the parties is unfortunately not merely a mater of history. Like the poor, it is always with us. We can no longer profitably wave aside the problems likely to be presented by a comparative study of American legislation on survival by stating that our legislation covers the same general field as do the English statutes of 4 Edward III and 3 and 4 William IV and others of less importance. There is a need for an outline of these American statutes and for a rationalization of the principles …

Workmen's Compensation Acts-Single Side Venture As A Business Of The Employer

Michigan Law Review

The plaintiffs, whose regular occupation was that of farming, were under a contract to move a house. The claimant, employed by the plaintiffs to assist in the undertaking (it does not appear whether he was regularly employed by them as a farmhand), was injured when a bridge, over which the house was being moved, fell into the river. Held, the injury was not compensable under the Workmen's Compensation Act since the employment was not "in the course of a trade, business, profession, or occupation'' of the employers. Vandervort v. Industrial Commission (Wis. 1931) 234 N.W. 492.

Review: A Textbook On Law And Business, J. Wayne Ley

Michigan Law Review

A Book Review on A TEXTBOOK ON LAW AND BUSINESS By William H. Spencer

Sales - Warranty - Theory Of Implied Assignment

Michigan Law Review

In the recent case of Wood v. Advance Rumely Thresher Co., the following relevant facts appeared: the plaintiff signed an order for a tractor, knowing that the defendant's agent, who solicited the order, had no power to make a binding contract, and knowing, from the face of the order, that there would be no contract till it was accepted at the defendant's home office. The agent's employment was terminated before he sent the order in, so he turned it over to another dealer. The latter did not forward the order to the defendant, but wrote a new one, signed …

Contracts-Breach Of Independent Promise As Ground For Recscission

Michigan Law Review

Having interested plaintiff in certain debentures, defendant, in return for a promise of one-fourth of any profit which plaintiff might receive, agreed to indemnify him against loss. By profit was meant any bonuses paid, and the difference between purchase and redemption price. When the call date was extended beyond the original period plaintiff gave notice that he would sell and hold defendant on his guaranty, to which defendant protested that no liability arose before the redemption date and that he would no longer consider himself bound. Plaintiff sold, but subsequently repurchased. The corporation having been wound up, plaintiff sued on …

Conflict Of Laws-Contracts-Married Woman's Capacity

Michigan Law Review

Defendant, a married woman, domiciled in Idaho, entered into a guaranty contract in California with the plaintiff. In a bankruptcy proceeding brought against her in the district court for Idaho, she denied the validity of the obligation because it was not within the exceptions in Idaho law to the common law disability of a married woman to contract. Under California law the contract was valid. The agreement stipulated that it should be construed according to California law. Held, the capacity of the defendant to enter into the contract is governed by the law of California, the place where it …

Conflict Of Laws--Contracts--Excuses For Non-Performance

Michigan Law Review

Libellant sought to recover on a contract made in Duluth for the shipment of grain by defendant from Duluth to Montreal. The grain was reshipped by defendant at Port Colbourne, Ontario, and was sunk in the St. Lawrence River. Canadian Water Carrier of Goods Act, sec. 6 (9-10 Edw. VII, c. 81), provides that if the owner of any ship carrying merchandise from any port in Canada exercises due diligence to make the ship in all respects seaworthy and properly manned, neither the ship, owner, agent, nor charterer shall be liable for faults in navigation. The court held defendant was …

Contracts-Liability Of Assignee For Unfullfilled Duties Of His Assigned

Michigan Law Review

Plaintiff contracted for the sale of lands with H., title being reserved in the plaintiff. The contract purported to bind the assigns of both parties, and contained an acceleration provision in favor of the plaintiff on default of any payment. Under North Dakota law the parties were substantially in the position of vendor-mortgagee and vendee-mortgagor. H then assigned to the defendant who made payments to the plaintiff, and there was also testimony indicating that in the printed form of the assignment defend ant had promised the assignor to assume the duties under the original contract. Upon default and foreclosure sale …

Contracts-Liability Of Purchaser At Forclosure Sale For Obligations Of Forclosed Railroad

Michigan Law Review

The BN Company executed a mortgage on certain railroad properties as security for a bond issue of the Company. Thereafter the Lehigh Company leased the mortgaged property for a term of 999 years. The lease stipulated that "all its covenants are to apply to the parties hereto, and to the several successors and assigns * * * of the parties or their properties." The lessee covenanted therein to indorse a guaranty of payment on the bonds of the BN Company. and did so indorse. Subsequently a mortgage executed by Lehigh prior to the lease with the BN Company, but which …

Equity - Conditional Rescission For Unilateral Mistakes

Michigan Law Review

Lessee submitted a lease containing an option for renewal to the attorney of the lessor. Being informed by 'the lessor's attorney that the lessor probably would not accept the lease with the option for renewal, the lessee submitted another without this feature. The lessor by mistake signed the lease containing the option and mailed it to the lessee. Lessor sued for rescission. Held, rescission granted on condition that the lessor give the lessee a privilege of taking the lease the lessor intended to sign. Miller v. Stanich (Wis. 1930) 233 N.W. 753.

Contracts - Rescission Of Contract To Rescind

Michigan Law Review

The parties entered into an installment contract for sale of meal of a certain quality. Provision was made for arbitration of disputes arising under the agreement. After several deliveries, the vendor consented to cancellation of the remainder of the contract upon the buyer's agreeing to pay £782 at four specified dates. This agreement was made under mutual mistake as to the defective quality of the goods, which would have justified repudiation of the contract. Before the adulteration was discovered, the seller had paid £500 for a release from a supply contract with a third person and the buyer had paid …

Contracts-Duration Of Offer Specifying A Definite Limit

Michigan Law Review

By a letter dated Jan. 29, 1929, A offered to exchange certain lands with B and stated in the letter, "I will give you eight days in which to accept or reject this offer." The letter was received on Feb. 2 and the acceptance was telegraphed on Feb. 8, reaching A on Feb. 9. Held, B could maintain a suit for specific performance. Since an offer is not complete until received B accepted within eight days. Caldwell v. Cline (W. Va. 1930) 156 S.E. 55.

Quasi-Contracts-Recovery Of Insurance Paid Under Mistake Of Fact

Michigan Law Review

The plaintiff insured articles of Jewelry for the defendant against loss. Defendant was unable to find a necklace covered by the policy in question and after an unsuccessful search the parties entered into an agreement whereby the defendant consented to accept other jewelry, equal in value to the necklace, as compensation for the loss. Later the necklace was found, and the plaintiff seeks rescission of the agreement and specific restitution of the articles delivered pursuant thereto. Held, payment made in settlement of an insurance claim may not be rescinded on the basis of mistake of fact as to the …

Public Utilities--Confiscatory Rate-Operation Enforced In Accord With Contract Between Predecessor And Municipality

Michigan Law Review

This action was brought to compel the defendant to operate in Decatur about a mile of its interurban system at an admittedly confiscatory rate. Defendant's predecessor, chartered by the Georgia legislature to acquire and operate street railways, contracted with plaintiff, in return for permission to remove one Decatur line, to operate the line involved and never charge more than a five-cent fare. The cost of service, aside from compensation to capital, exceeded the revenue. With a paving assessment imminent, the carrier offered to surrender its permit to operate, and notified plaintiff that it would discontinue service. The city refused to …

Sales-Conditional-Resale By Seller

Michigan Law Review

Plaintiff bought a truck under a conditional sales contract. Defendant, as assignee of the vendor, retook possession of the truck when plaintiff defaulted in his payments and undertook by sale of the truck to foreclose plaintiff's rights therein. The Uniform Conditional Sales Act, in force in the jurisdiction, provided for a compulsory resale at public auction by the retaking seller. He was required to give notice of the sale by registered letter to the buyer, by newspaper advertisement, and by three notices posted in public places. Defendant failed to post the three notices. Plaintiff then brought suit for conversion and …

Contracts--Risk Of Loss Under Executory Land Contract--Disposition Of Insurance Process.

Michigan Law Review

When buildings, which are part of the subject matter of an executory contract for the sale of land, are accidentally destroyed by fire, there immediately arises the question of who, as between the vendor and the purchase, shall bear the loss. The majority of courts in this country place it on the purchaser. This was the result reached in the leading English case of Paine v. Meller and has been adopted in the following states: California, Indiana, Iowa, Kentucky, Louisiana, Maryland, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota and West Virginia. …

Contracts-Rescission For Substantial Breach-Lien For Improvements Given Vendee

Michigan Law Review

For statement of facts see preceding note in this issue, Younger v. Caroselli, 251 Mich. 533, 232 N.W. 378.

According to the majority view in the United States, a builder, whose substantial breach of contract (the instant case can hardly be considered one of substantial performance) is merely negligent and in good faith, can recover the value of his labor and materials less the damage caused the promisee.

Deeds-Side Of Lake As Boundary-Presumption That Grantee Takes To Center

Michigan Law Review

ln a conveyance of land adjoining a lake, the description read in part, "thence running northerly * * * to the Rockland Lake thence westwardly along the south side of the Rockland Lake." Held, that the grantee took to the center of the lake. White v. Knickerbocker Ice Co. et al. (N. Y. 1930) 172 N.E. 452.

Fraud-By Third Party-Mistake As To Nature Of Transaction-Rescission As Remedy

Michigan Law Review

The plaintiff was injured as a result of the alleged negligence of the defendant company. His attorney induced him to sign a general release, representing that it was only a receipt for seven hundred and fifty dollars paid on account by the defendant company. The plaintiff was illiterate and relied upon the fraudulent representations of his attorney. In an action to set aside the release, held, on a motion for judgment on the pleadings, that the complaint stated a cause of action, and that the plaintiff was not negligent in relying upon the representations of his attorney. Affirmed. Pimpinello …

Injunction-Breach Of Negative Covenant-Adequate Remedy At Law

Michigan Law Review

The defendant, an owner of a gasoline station, entered into a contract with the plaintiff whereby he agreed to buy "all motor fuels handled, sold, or required" at his station from the plaintiff. He further agreed not to "sell, or allow to be sold on his premises * * * any other brands of motor fuel than those of the seller [plaintiff]." Before the expiration of the contract the defendant notified the plaintiff that he would no longer be bound by the contract. The lower court dismissed a bill praying for an injunction restraining the defendant from violating the negative …

Master And Servant-Tests Of Independent Contract

Michigan Law Review

The claimant was employed by a dairy company to sell and deliver milk along a defined route, his "payment being in the form of a commission on each bottle sold. He was required to make daily payments in cash for milk and cream sold, but had the privilege of returning unsold milk or cream at the end of each day. Horses and vehicles were hired from the company at a stated price per day. Claimant was injured by a fall from his wagon while making deliveries. The State Industrial Board held him to be a servant and awarded him workmen's …

Mechanic's Liens-Time Of Filing-Completion Of Work

Michigan Law Review

The plaintiff contracted to do plumbing work, the contract containing a one-year guaranty. The work was finished in December, 1926, and in February, 1928, two months after the guaranty had expired, the plaintiff at the request of the owner (defendant), gratuitously made some minor repairs. In March, 1928, he filed a claim for a lien for the entire contract. Held, the work was completed when the guaranty expired and the plaintiff had no lien, since his claim was filed after the statutory limit from the completion of the work. Bohinek v. Smith (Ohio App. 1930) 172 N.E. 852.

Specific Performance-Uncertainty Of Contract

Michigan Law Review

Bill for specific performance of a contract made with defendant's assignor. Defendant was the assignee of some leases, and took with notice of the contract with his assignor. By the contract the owner of the leases "sold, and does sell" to plaintiff all the natural gas that he might produce under them. Either party was given the right to terminate if production fell below a certain point, and it was also provided that unless terminated under this provision, the contract was to remain in force during the entire time that gas was produced "in paying or marketable quantities." Defendant showed …

Wills-Presentation Of Claims

Michigan Law Review

An action on a contract was commenced against the testator during his life time. After his death notice was given to claimants to present their claims as provided by statute, P. L. 1920 p. 96. On the expiration of the time limit the court granted a rule barring further presentation of claims. The action begun against the testator was then revived against the executor in pursuance of statutory authority, 1 Comp. St. 1910, p. 4. Held, that the action commenced against the testator was properly revived against the executor in accordance with the abatement statute, supra. Pull v. Nagle …

Carriers-Contract Against Liability For Negligence By Telephone Company

Michigan Law Review

Plaintiff sought to recover for damages to its business resulting from the failure of defendant company to list plaintiff's main office and number and the incorrect listing of plaintiff's branch office in the 1928 telephone directory plaintiff being a subscriber to defendant's service. The contract of service contained a clause providing that defendant shall not be liable "for damages arising from errors or omissions in the making up or printing of its directory." The court held that in the absence of any showing of gross negligence or wilful misconduct; there was no liability for the omission and error. Hamilton Employment …

Contracts-Breach Of Implied Warranty That Construction Be Usable For Purpose Intended

Michigan Law Review

Plaintiff and defendant entered into a contract by the terms of which defendant was to assign to plaintiff an equity in a land contract to purchase a lot. The plaintiff was to complete the payments and sell to the defendant on a land contract this same lot with a house and garage to be erected by the plaintiff, an experienced builder, according to plans and specifications to be drawn by the latter. The defendant was to be given credit for the amount he had previously paid on the lot, and the price was further reduced by the defendant doing the …

Insurance-Automobile Club Membership-Contract To Furnish Legal Services

Michigan Law Review

Complainant automobile club agreed to furnish its members with the services of an attorney, but not to pay judgments rendered, in any action brought by or against any member as a result of the ownership, or operation, of his automobile. Held, a contract of insurance. Allin v. Motorists' Alliance (Ky. 1930) 29 S.W. (2d) 19.

Quasi-Contracts--Improvements On Land Of Another By Mistake

Michigan Law Review

Plaintiffs filed a bill in chancery seeking compensation for a house built on the defendants' lot due to an error on the part of the plaintiffs. The lower court granted a decree offering the defendants the election of taking the improvements at a fair value found by the court or of releasing the lot to the plaintiffs on the plaintiffs' paying its fair value. On appeal, held, this relief was proper. Hardy et al. v. Burroughs et al. (Mich. 1930) 232 N.W. 200.