Dunham, Carrigan & Hayden Co. v. Thermoid Rubber Co.

Appellant is a manufacturer of automobile tires. Toward the end of the year 1919 it solicited respondent as jobber and distributor to carry as its leader, and push the sale of, Thermoid tires and tubes manufactured by appellant. A written contract was signed by the parties in December, 1919, which by its terms covered the period ending December 31, 1920. The contract contained numerous provisions regulating the course of conduct of the parties in their business relationship, such as discounts, terms of settlement, extent of territory, exchange of goods, adjustments, and the like, together with other clauses which will be hereinafter more specifically referred to.

The parties carried on the business contemplated by the contract during the year 1920 in substantial fulfillment of its terms. Toward the end of the year respondent returned to appellant a considerable quantity of tires which it had held for almost five months. These tires were said to be growing obsolete and were returned in conformity with a clause of the contract permitting respondent to exchange, for new stock, tires which had not been in respondent’s possession for more than five months. Appellant’s representative…