Motor Port v. Freeman

• Decision Date: 19 June 1933
• Docket Number: No. 5207.,5207.
• Citation: 62 S.W.2d 479
• Parties: MOTOR PORT, Inc., et al. v. FREEMAN.
• Court: Missouri Court of Appeals

62 S.W.2d 479

MOTOR PORT, Inc., et al. v. FREEMAN.

No. 5207.

Springfield Court of Appeals. Missouri.

June 19, 1933.

Rehearing Denied July 12, 1933.

Appeal from Circuit Court, Greene County; Warren L. White, Judge.

"Not to be published in State Reports."

Action by Motor Port, Inc., and another against John W. Freeman. Judgment for defendant, and plaintiffs appeal.

Affirmed.

Thompson & James and Wilbur J. Owen, all of Joplin, for appellants.

Foulke & Foulke, of Joplin, for respondent.

SMITH, Judge.

This is an action in two counts for breach of a contract entered into between plaintiffs and defendant; the contract being in words and figures as follows:

"This contract and agreement made and entered into this 6th day of October, 1930, by and between the Motor Port, Incorporated, a corporation, and G. L. Childress, as parties of the first part, and John W. Freeman, his heirs and assigns, as party of the second part.

"Witnesseth: That for and in consideration of the sum of One ($1.00) Dollar, the receipt of which is hereby acknowledged, the parties of the first part are the owners of all of the stock, equipment and lease at a garage located at the northeast corner of Second and Wall Streets, Joplin, Missouri, commonly called the Motor Port, Inc., and that the parties of the first part upon the date of the signing of this contract hereby agree to turn over to the party of the second part full charge of the business and the use of all tools, machinery, supplies and equipment located in the building of the garage at the northeast corner of Second and Wall Streets for a period from the date of this contract to the end of the first five year period of the lease on said premises from J. M. Leonard.

"It is further agreed between the parties hereto that the party of the second part will keep all tools, machinery and equipment in as good shape as when received by him, actual wear and tear excepted.

"It is further agreed between the parties hereto that the manager for the said garage shall receive a salary of One Hundred and Fifty Dollars ($150.00) per month, payable monthly, and that the office salaries shall not exceed the sum of $100.00 per month.

"It is further agreed between the parties hereto that the parties of the first part shall receive fifty per cent of the net profits derived from the operation of the said garage as aforesaid, and that said profits shall be payable for the first year at the end of the first six month period, and then at the end of the first year, and thereafter during the life of this contract they shall be divided every thirty days.

"It is further agreed between the parties hereto that the parties of the first part will upon the signing of this contract assign and transfer to the party of the second part their lease on said premises, dated the ____ day of 19__, made to them from J. M. Leonard, and also all rights and interests in the subleases now in force on parts of said premises.

"It is further agreed between the parties hereto that the parties of the first part are to turn over for collection all of their accounts receivable to the second part and that the second party shall use every diligent effort to collect said accounts, but that said accounts shall be under the supervision of the parties of the first part at all times; that the said moneys derived from the collection of the aforesaid mentioned accounts shall be the moneys of the parties of the first part, and shall be turned over to the parties of the first part on the 15th day of each month.

"It is further agreed between the parties that the party of the second part, shall as his part of the consideration for this contract, put into the business the sum of Four Thousand Dollars; that he shall put in One Thousand Dollars upon the signing of this contract and will put in the balance as the business needs the same up to the amount of Four Thousand Dollars.

"It is further agreed between the parties hereto that the business shall be carried on under the present name now used by the said corporation, but that the said party of the second part hereby agrees to indemnify the parties of the first part for any loss or damages on account of any liability, injuries or purchase of goods, and that the said party of the second part will hold the parties of the first part blameless for any action of any kind.

"The parties of the first part have an option for a renewal of the lease on said building for another five year period, and if at the end of this contract the said parties of the first part have received an average of One Hundred Dollars per month for the full term, except the last six months of the said lease, and shall for the last six months receive as much as One Hundred and Fifty Dollars per month, then the parties of the first part agree that this contract shall be extended for another period of five years, and that immediately upon the extension of the contract, the said parties of the first part will give to Fred Sebastian a one-third interest in the aforesaid mentioned corporation, transferring to him stock calling for the aforesaid amount.

"It is further agreed between the parties that the party of the second part shall pay all rents becoming due to said J. M. Leonard and expenses of whatsoever kind and character and shall indemnify the parties of the first part for any rents or expenses which the parties of the first part may have to pay in the operation of said business.

"It is further agreed between the parties if at the end of this contract the party of the second part has not received sufficient profit to reimburse him for the $4,000.00 which he will advance from time to time in the operation of the...