Parker v. Moore

Citations

• 111 F. 470
• 1901 U.S. App. LEXIS 4980

Syllabus

<p>1. Contracts—Purchase of Cotton For Future Delivery—Validity Under South: Carolina Statute.</p> <p>Rev. St. S. C. 1893, § 1859 et seq., declares void every contract for tbe sale of certain articles, including cotton, for future delivery, unless tbe party contracting to sell shall at the time be the owner of such article, or the owner’s authorized agent, or unless it is the bona fide intention of both parties to the contract at the time of making the same that the said article shall be delivered and received in kind at tlie time for delivery specified. The statute also places the burden upon the plaintiff in any action Based on such a contract to bring the ease within its provisions, to be entitled to recover thereon. Held, that under such statute a broker who advanced margins for his principal to protect a purchase of cotton for future delivery on the New York Cotton Exchange could not recover the same from the principal, where the latter testified that it was not his intention at any time to receive or pay for the cotton, but to make a cask settlement in accordance with the difference between the market and contract price, notwithstanding the fact that under the rules and by-laws of the exchange, subject to which the defendant knew the contract to have been made, and to which he assented, actual delivery in kind, or acceptance and payment, could be enforced by either party. The statute goes behind the contract itself, and makes the actual intention of both parties that there should be a delivery and acceptance essential to its validity, and the right to enforce delivery is not inconsistent with an intention not to insist on such right.</p> <p>2. Federal Courts—Rules of Evidence—State Statute.</p> <p>Under the provisions of the conformity act (Rev. St. U. S. § 721), the rules of evidence of the courts of a state,’established by statute or decipión, become those of a United States court sitting therein, in actions at law. 1</p>