Schreyer v. Foster

THOMPSON (IRA F.), J.

The defendants appeal from a judgment rendered against them and in favor of plaintiff in the sum of $1500. The testimony of the respondent’s witnesses establish the following situation: The appellants owned and operated an agency for Chevrolet automobiles at Watts and Compton. During the month of December, 1923, the respondent and Clyde H. Kettering opened negotiations

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with the appellants concerning the purchase by respondent and Kettering of this business. In reply to respondent’s inquiry during the first conversation concerning the price, the appellant C. R Foster stated that they wanted $8,000 for the goodwill and business plus the inventory value of the stock of accessories and automobiles, to which the respondent replied that he did not have a great deal of cash on hand, but that he did have a piece of property for sale and that if he could dispose of the property he would consider the purchase of the agency. During all of the subsequent negotiations the making of final arrangements was stated to be conditional upon a sale of this property by respondent. It also appears that no definite agreement was ever arrived at. At one time the appellants offered to turn over the business to the respondent upon a cash payment of $8,000 and agreed to make arrangements by which the remainder could be paid later, and finally they agreed to accept a cash payment of from $5,000 to $6,000. These negotiations continued from some time in December through January, February and into March. During this time the appellants induced the respondent to pay three different sums of money as follows: January 11, 1924, $200; January 19, 1924, $1,000; and January 30, 1924, $300. The receipt for the first payment recited that it was a deposit “to be returned if the deal is not accepted by the Chevrolet Motor Company of California.” The receipt for the second payment contained a similar statement, but the third receipt was silent with respect thereto. On two or three occasions the respondent or Mr. Kettering asked the appellant C. R Foster if the deal would be accepted by the Chevrolet Motor Company if only a part of the purchase price were paid in cash, to which the latter responded that he did not think it was necessary to let the company know everything that was done. Finally, on March 28, 1924, Mr. Kettering wrote a letter to a Mr. Ray Wilson, assistant sales manager of the Chevrolet Company, who had the authority to pass upon such matters, and asked if the latter would consider their tailing over the agency with an investment of from $5,000 to $8,000, allowing Foster to carry the remainder. Mr. Wilson replied to this question by saying that much more capital would be required regretting the inability of respondent and Kettering “to go ahead with the proposition.” Some time during