Associates Loan Co. v. Walker

416 P.2d 529 (1966)

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Nature of the Case

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Facts

Walker (D) owned a dairy farm. Partin sold mechanical water softeners under the trade name of Lindsay Soft Water Company. Partin solicited D to purchase a water softener to improve the drinking water for D’s dairy herd. Partin claimed it would increase milk production. It was orally agreed that Partin would install the machine and if milk production was increased, D would purchase it. If not, there would be no obligation to purchase the equipment. At Partin’s request, the parties executed an All Goods Retail Installment Contract. The contract states that D purchased the equipment and monthly installments with interest were to start on June 6, 1962. The title to the device was to remain with the seller until the price was paid in full. Partin orally agreed that the contract would not be assigned or transferred. Partin assigned the contract to Associates (P). The device was a failure. D made no payments on the assigned contract. Payments on the contract were made by Partin and a Stirman Rivers who had acquired the business. The water softener was removed from D’s property. D contends that the oral agreement created a condition precedent to the written contract becoming a valid obligation. Because the condition failed, the contract never came into existence. The trial court agree, and D got the judgment. P appealed.