Thomson-Houston Electric Co. v. Central Electric Ry.

Citations

• 6 Cal. Unrep. 202
• 55 P. 777
• 1898 Cal. LEXIS 1079

Syllabus

<p>Agency.—Plaintiff was to Act as Purchasing Agent for defendant, but was to assume no responsibility for the satisfactory working of the apparatus purchased. The contract contemplated that plaintiff should pay for the apparatus, and be repaid by defendant in a lump sum, which was to include all supplies. The apparatus proved defective, and defendant notified plaintiff not to pay therefor until an adjustment was reached, stating that it had claims on other purchases against the seller almost equalling the entire cost, to which plaintiff’s agent agreed, and unsuccessful attempts were made to adjust defendant’s claims extending over several months, and until after the insolvency of the seller. In an action for the price, plaintiff’s treasurer and the seller testified that plaintiff paid for the apparatus soon after delivery, and before the notice of defect. Held, that the agreement to withhold payment by plaintiff’s agent, who did not know payment had already been made, did not prevent recovery, since it was without consideration.</p>