COURT OF
APPEALS DECISION DATED AND
RELEASED March
5, 1997 |
NOTICE |
A party may file with the Supreme Court a petition to review an
adverse decision by the Court of Appeals pursuant to § 808.10, Stats., within 30 days hereof,
pursuant to Rule 809.62(1), Stats. |
This opinion is subject to further editing. If published, the official version will appear in the bound
volume of the Official Reports. |
No.
96-1069
STATE OF WISCONSIN IN
COURT OF APPEALS
DISTRICT II
ARING
EQUIPMENT COMPANY, INC.,
a
Wisconsin corporation,
Plaintiff-Respondent,
v.
ALL-WAYS
SNOW & ICE CONTROL
CONTRACTORS,
INC., a Wisconsin
corporation,
Defendant-Appellant.
APPEAL
from a judgment of the circuit court for Waukesha County: ROGER MURPHY, Judge. Affirmed.
Before
Snyder, P.J., Brown and Anderson, JJ.
PER
CURIAM. All Ways
Snow and Ice Control Contractors, Inc. has appealed from a judgment in favor of
Aring Equipment Company, Inc. for unpaid rent on a bulldozer and loader. All Ways argues that the rental contracts
are null and void because they were not signed by an officer of Aring and
therefore were never accepted by Aring.
In the alternative, All Ways contends that the parties' two contracts
pertaining to the loader should be deemed ambiguous as to whether they
constituted an agreement for sale or rental.
It contends that this ambiguity should be resolved in its favor, and it
should be permitted to purchase the loader with credit given for payments
already made. We affirm the trial court's
judgment.
The
record indicates that in June 1993, All Ways contacted Aring about purchasing a
loader. Patrick Kneeland, the Aring
salesperson who dealt with All Ways, testified that he and Christopher Michels,
All Ways' president, agreed that All Ways would have to rent the loader for a
period of time to build up sufficient equity to obtain financing for the
purchase. He testified that they agreed
that if All Ways purchased the loader, the rental payments would be applied to
the purchase amount.
On
June 11, 1993, All Ways executed a document captioned "RENTAL
AGREEMENT--WITH ACCEPTANCE" agreeing to lease a loader from Aring
"for a minimum guaranteed rental period of 2 DAY 16 HR. DEMO." The rental agreement further specified
daily, weekly and monthly rental rates, and provided that the lessee was
required to pay in full the rent due for the minimum rental period and to
continue to pay rent after the expiration of that period if the equipment was
not returned.
On
June 18, 1993, All Ways signed a purchase order for the loader. In addition, in July 1993, it signed a
second rental agreement, this time pertaining to a bulldozer. The contract form was the same as that used
for the loader, and the minimum rental period specified in the agreement was
two months. Ultimately, Aring could not
locate financing for All Ways' purchase of the loader or bulldozer, and All
Ways returned the bulldozer. The loader
was repossessed by Aring, which then sued for unpaid rental amounts for the
periods during which the equipment was possessed by All Ways.
All
Ways' primary argument is that the rental contracts are null and void because
they were not signed by an officer of Aring.
It relies on language in each contract providing that "[t]his
offer, ... when accepted by an officer of the Aring Equipment Co., Inc., shall
constitute the entire contract" between Aring and All Ways. It also relies on language in each contract
providing that "[i]n the event this offer is not accepted, it shall become
null and void."
It
is undisputed that the contracts were not signed by an officer of Aring. However, the law is well established that a
party to a contract may waive a condition that is for its benefit. Godfrey Co. v. Crawford, 23
Wis.2d 44, 49, 126 N.W.2d 495, 497 (1964).
This waiver doctrine also applies to contractual conditions of
acceptance of a contract. C.G.
Schmidt, Inc. v. Tiedke, 181 Wis.2d 316, 321, 510 N.W.2d 756, 757-58
(Ct. App. 1993).
The
condition requiring acceptance by an officer of Aring was for Aring's benefit,
insuring proper management and oversight of its contractual obligations. While an Aring officer never signed the
contracts, Aring released the equipment to All Ways and accepted rental
payments pursuant to the contracts. By
its conduct, it waived the condition that acceptance of the offers be made by
an officer and entered into binding and enforceable contracts with All Ways. See id. at 320-21, 510
N.W.2d at 757-58. As Aring was bound,
so was All Ways.
The
remaining issue is whether the purchase agreement for the loader superseded the
rental contract. All Ways contends that
the use of the words "2 DAY 16 HR. DEMO" and
"DEMONSTRATION" in the rental agreement for the loader, combined with
the execution of a purchase order for the loader, establish that the rental
agreement was simply a temporary agreement to cover insurance matters and was
superseded by the purchase agreement.
This
is, in essence, a sufficiency of the evidence issue. Kneeland testified that All Ways could not afford to purchase the
loader and agreed to rent it.
Kneeland's version of the parties' arrangement was corroborated by a
check written by All Ways to Aring on June 28, 1993 in the amount of $3150, ten
days after the purchase contract was signed.
That check stated on its face that it was for "Loader
lease." While Kneeland also
testified that Aring agreed to apply the rental payments to the purchase price
if All Ways ultimately succeeded in financing and purchasing the loader, the
record indicates that when financing was not obtained by January 1994, Aring
repossessed the loader.
Based
upon the jury's verdict, it is clear that the jurors accepted Aring's version
of the agreement and found that All Ways agreed to pay rent to Aring for the
period in which it retained the loader.
Because credible evidence supports this finding, the judgment cannot be
disturbed by this court. See Fehring
v. Republic Ins. Co, 118 Wis.2d 299, 305-06, 347 N.W.2d 595, 598 (1984).
Because
we reject both of All Ways' arguments for reversal, we need not address Aring's
argument that it was also entitled to judgment based on principles of quantum
meruit.
By
the Court.—Judgment affirmed.
This
opinion will not be published. See
Rule 809.23(1)(b)5, Stats.