LAW.coLAW.co

GEORGE A. FRENCH and Another v. GEORGE E. YALE

Minnesota Supreme Court1913-12-19No. Nos. 18,021—(40)
124 Minn. 63

Summary

Holding. The judgment was reversed, and the court held that the defendant had the right to introduce parol evidence to establish an alleged separate oral agreement allowing a trial period with the option to return the instrument, because the written document was incomplete and did not represent the entire agreement between the parties.

Musical instrument dealers sold a Conover player-piano to the defendant under a written agreement specifying installment payments, interest, and a conditional title provision stating ownership would not transfer until full payment. The defendant later claimed the parties had a separate oral agreement allowing him to take the instrument on trial and return it if unsatisfactory. The lower courts ruled against him, finding the written document controlled. The appellate court considered whether oral evidence could establish this claimed trial arrangement outside the written terms.

The court held that oral evidence was admissible to prove the existence of a separate agreement on matters not addressed in the writing, provided such evidence did not directly contradict the written terms. The court found the document incomplete because it contained no terms on the sellers' side, failed to specify a purchase price, and merely addressed possession and foreclosure remedies. Since the writing appeared to be only a partial reduction of the full transaction, the defendant was entitled to prove the remaining terms through testimony.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether oral evidence may contradict or modify a written contract
  • Whether a written document represents the complete and final agreement or only a partial reduction to writing
  • Conditions precedent to a sale versus complete terms of a sale
  • Admissibility of parol evidence for separate agreements on matters the writing is silent about

Procedural posture

The defendant appealed from a district court order affirming a municipal court judgment against him in an action for the unpaid balance on an installment contract for a player-piano.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Philip E. Brown, J.

Appeal by defendant from an order of the district court of St. Louis county, affirming a judgment of the municipal court of Duluth.

Plaintiffs were dealers in musical instruments. After oral negotiations between the parties concerning the purchase of a Conover player-piano, on November 19, 1910, both executed a writing wherein defendant first promised to pay plaintiffs $800, in instalments, specified both as to amount and time, with interest at five per cent from date; and then the writing proceeded: “The consideration of this contract is the right of possession of one Conover player, style P. C. Mah. No. 126,542 and stool and scarf given me by said French & Bassett, upon the express condition that the title and ownership of said, instrument shall not pass under such delivery or this contract or transaction until the whole of said debt and purchase price are fully paid with interest as aforesaid, and that the giving of renewal contracts or payments thereon shall not divest such title.” Then followed an agreement on defendant’s part to keep the instrument insured against loss by fire for plaintiffs’ protection, and also a provision that in case of default in payments or interest or abuse or attempted sale, incumbrance, or removal from defendant’s residence without plaintiffs’ written consent, or if possession be parted with without such consent, plaintiffs might declare the contract and debt due, and bring suit for the unpaid balance or take possession of the property and sell the same, the proceeds, however, to be applied first to the expense of the taking and sale, and the balance upon the contract, the surplus, if any, to be returned to defendant, but, if the amount received was insufficient to pay the contract, defendant to be liable for the unpaid balance, which should then be considered due. The writing was headed as follows: “French & Bassett will not .be responsible for any written or verbal agreement or promises relative to this contract other than contained on the face hereof.”

Plaintiffs forthwith delivered the property specified to defendant, and default thereafter occurring in payments this action followed. Plaintiffs’ contention on the trial was that the sale was subject only to conditions stated in the writing, while defendant insisted the actual agreement was that he should take the instrument on trial and keep it, providing it was satisfactory, but otherwise could return it at his option. The latter claim was pleaded, and further that upon trial the piano did not play well, proved unsatisfactory, and defendant shortly after its delivery attempted its return, but plaintiffs refused acceptance. Sufficient showing was made to make these questions for the jury, if oral evidence was competent to establish the agreement claimed outside the writing.

The sole question involved then is: Had defendant a right to prove the agreement alleged by parol evidence, as a condition attaching to the sale? We answer affirmatively. The writing is not a complete contract of sale, nor does it sufficiently recite the terms of a past sale, so as to prevent the application of the well-settled excep tion to the general rule excluding oral evidence to contradict or vary the contents of a written contract, namely: That it is competent to prove “the existence of any separate oral agreement as to any matter on which a document is silent, and which is notsinconsistent with its terms, if, from the circumstances of the case, the court infers that the parties did not intend the document to be a complete and final statement of the .whole transaction between them.” Hand v. Ryan Drug Co. 63 Minn. 539, 65 N. W. 1081. See also McLoone v. Brusch, 119 Minn. 287, 138 N. W. 35.

The document in question, while signed by both parties, contains no stipulation on plaintiffs’ part, except as to the disposition of the proceeds of a sale of property therein described in event of foreclosure; says nothing concerning a sale or purchase, fails to state a price, and refers merely to the right of possession of certain described property, such right being “given” defendant by plaintiffs. The writing was evidently executed in part performance of a prior contract, a part only of which has been reduced to writing, and while so much of it as is embodied therein is conclusive as against modification or addition by parol, defendant had the right to prove the other part of the transaction. It is quite like the.instruments considered in Gammon v. Ganfield, 42 Minn. 368, 44 N. W. 125, and nothing further need be added to what is there stated.

Judgment reversed. Because of delay in printing the record, no statutory costs will be allowed in this court.