Taft v. Tiede & Co.

• Decision Date: 17 December 1880
• Citation: Taft v. Tiede & Co., 55 Iowa 370, 7 N.W. 617 (Iowa 1880)
• Court: Iowa Supreme Court
• Parties: TAFT v. TIEDE & CO.

55 Iowa 370

7 N.W. 617

TAFT

v.TIEDE & CO.

Supreme Court of Iowa.

Filed December 17, 1880.

Appeal from Clayton district court.

The plaintiff and the defendants entered into a written contract, of which the following is a copy:

“This agreement, made and entered into this twenty-sixth day of September, 1876, by and between George Taft and A. C. Tiede & Co., both parties of Elkport, witnesseth: This agreement is made for the following purposes: The above George Taft, not having the means to conduct the business of stave factory and saw-mill successfully, makes the following agreement with the above A. C. Tiede & Co.: The said A. C. Tiede & Co. to purchase all raw material, under the specifications of above George Taft, at the lowest possible price, and to charge the same to the above George Taft at actual cost price. They are further to advance the pay for all hands necessary to the successful prosecution of the above business, and also to advance the necessities of life to the above George Taft and his son, H. P. Taft.

The above A. C. Tiede & Co. hereby agree to take all the flour-barrel staves, of good, merchantable quality, made under this agreement, at 17 cents per set, including heading; said staves to be delivered as fast as merchantable. Above George Taft agrees to allow A. C. Tiede & Co. to store the same in his sheds, until sold, free of charge. The above George Taft further turns over to said A. C. Tiede & Co. all raw material and manufactured stock of any and all description now on hand and in his possession, to be manufactured and disposed of to the best possible advantage by said A. C. Tiede & Co., and hereby relinquishes all right to dispose of above material, or manufactured goods; all lumber and other manufactured goods to be sold at the highest possible price, and the proceeds to be credited to George Taft's indebtedness to A. C. Tiede & Co., after deducting first the amount paid or advanced by said A. C. Tiede & Co. for raw material and hands; and, secondly, 5 per cent. on gross amount received, which A. C. Tiede & Co. are to have for transacting the business, excepting above-mentioned staves, upon which there is to be no percentage, but which are to be credited the above George Taft, under the same conditions. The above George Taft hereby agrees to furnish said A. C. Tiede & Co. with a report at the end of each week, showing the amount and nature of the work done, and to furnish a correct report of time put in by each hand.

The above George Taft and his son, H. P. Taft, finally agree to devote their time and energy to the prosecution of the above business, without further compensation than above mentioned, and the above George Taft agrees to apply any and all balances appearing from the carrying on of this business on his indebtedness to A. C. Tiede & Co. This agreement to be binding for one year from the date of the same. A settlement to be made at the end of each month, showing the amount advanced by said A. C. Tiede and amount received; and, if any balance appear in their favor, above George Taft to give his note for the same, bearing 10 per cent. interest per annum.

In witness whereof we have hereto set our hands the day and year first above written.

A. C. TIEDE & CO.

GEORGE TAFT.”

This action was commenced January 4, 1878. The plaintiff averred that he had in all respects performed, or offered to perform, said contract on his part; that defendants refused and neglected to comply with said agreement on their part, by failing to purchase all the raw material, as requested and specified by plaintiff, necessary to carry on successfully the business of said factory and saw-mill; and that by reason of such failure the same was idle for 32 weeks of the year, provided for in the contract, and the factory, while it was operated, was run to great disadvantage. It was averred that the average earnings of said mill and factory, when run, with...