Christou v. Barrios

California Court of Appeal Feb 26, 1923 No. Civ. No. 4372.Published

Before: Nourse, Langdon, Sturtevant

AI Brief

AI-generated · verify before citing

Holding. The court held that the agreement between the parties constituted a contract of sale rather than an assignment of rights, and because the complaint failed to allege damages consistent with a breach of a contract of sale, the demurrer was properly sustained.

Issues

Whether the agreement between the parties constituted a contract of sale or an assignment of rights under an executory contract.
Whether the complaint sufficiently stated a cause of action for damages resulting from a breach of a contract of sale.

Disposition. affirmed

Quotations verified verbatim against the opinion

“The words “We confirm sale to you” have a well-defined and unambiguous meaning, the same as understood both in their ordinary and popular sense and according to their strict legal sense—a sale is contemplated.”

“Looking at the instrument as a whole, we think it must be construed as a contract of sale and that the demurrer was properly sustained.”

NOURSE, J.

Defendant's demurrer to plaintiff’s third amended complaint was sustained. Plaintiff declined to amend and judgment was thereupon entered in favor of defendant.

The amended complaint alleges that on the seventeenth day of May, 1920, plaintiff’s assignors, Harry Koclcos and Andrew Kockos copartners doing business as Kockos Bros., entered into a contract to purchase 300 tons of Java 24 table sugar for $20 per 100 pounds net c. i. f. San Francisco, California, in bond from A. B. Moulder

Co. Ltd., of Hongkong, China. The seller’s confirmation of the sale, which is set forth in the complaint

in haec verba,

requires: “Irrevocable letter of credit at 60 days sight, without interest, to be cabled immediately to Hongkong, China. This credit to be established today, May 17th, 1920.” The complaint then alleges that on the same day plaintiff’s assignors, having said confirmed right to purchase said sugar, entered into the following agreement with defendant “to transfer to said defendant their confirmed right to purchase said sugar”:

“San Francisco, U. S. A., May 17, 1920. “Messrs. Barrios & Co.,

“San Francisco, Cal.

“Gentlemen:

“We beg to confirm sale to you of 300 tons—2000# each Java 24 sugar at $20.00 per hundred pounds, net c. i. f. San Francisco in bond—Hongkong Chamber of Commerce Certificate or any other certificate final as to quality and

[142]

weight—May/June shipment from Orient to San Francisco —double mats 100# net.

“It is understood that this sale has been confirmed by A. B. Moulder & Co., Ltd., Hongkong, to us through Bernhardt Fest & Co.

“Terms:

“It is understood and agreed that Barrios & Co. will immediately today open letter of credit at 60 days sight covering above merchandise in favor of Moulder & Co. and we will notify Moulder & Co. through Bernhardt Fest & Co. that we have transferred above merchandise to Barrios & Co. and credit will be established by Barrios & Co.

Christou v. Barrios

AI Brief

NOURSE, J.

More from California Court of Appeal

Related research

AI Brief