Cutting Packing Co. v. Packers' Exchange

Citations

• 86 Cal. 574
• 25 P. 52
• 1890 Cal. LEXIS 1069

Syllabus

<p>Assignment—Non-negotiable Contract of Sale. — A non-negotiable contract of purchase and sale may be transferred by indorsement, so as to transfer all the rights of the assignor, subject to all equities and defenses of the other party to the contract at the time of the indorsement.</p> <p>Id.—Burden of Obligation — Novation. — The assignor of the contract cannot, however, be released from his burden of obligation to the other contracting party, if he refuses to consent to a novation.</p> <p>Id. — Obligation of Assignee — Suretyship of Assignor. — When the assignee takes the benefit of the contract, he also assumes its burden, so far as it is apparent upon the face of the contract, and the assignor, if not released from liability, stands in the relation of a surety for the performance of the obligation by the assignee, who is bound to fulfill the terms of the contract.</p> <p>Id. —Implied Contract between Assignor and Assignee. —An implied contract arises between the assignor and assignee of a non-negotiable instrument, whereby the latter becomes bound to the former to perform the contract according to its terms.</p> <p>Id. — Breach of Implied Contract —■ Assignment of Crop — Action by Assignor — Damages. —If the assignee of a contract for the purchase and sale of a crop of fruit refuses to accept and pay therefor, the assignor may sue him for breach of his implied contract, and recover as damages the difference between the price paid by him under the contract of purchase and sale, and that realized from the sale of the fruit in open market at current rates.</p> <p>Id. — Contract for Sale of Future Crops — Potential Existence. — When crops of fruit contracted to be sold for a series of years are to be the product of trees owned by the vendor at the time the contract was made, they must be considered as having a potential existence, and as being subject to sale; and an assignee of such contract acquires the right to purchase the fruit for each of the seasons subsequ