Story Case

George Jackson, in a letter to Henry Owens, offered to work for him as an accountant for six months, provided Owen desired his services. Nothing was stated in the letter concerning his salary. Two days after the letter was sent Jackson made a personal call on Owens, who then stated to him,"All right, George, I'll have you begin work next week." This was all that was said on this subject at that time. On Monday of the following week, when Jackson offered his services, he was informed by Owens that his services were not needed. Thereupon Jackson brought suit for damages and breach of contract. Can he recover ?

Ruling Court Case. Gordon Vs. Gordon, Volume 96 Indiana Reports, Page 134

The plaintiff and defendant were brothers. Their mother owned a farm. The defendant, who had charge of the farm, leased it in writing to the plaintiff. By the terms of the lease the defendant was to receive one half of the corn raised upon the farm. He, in return, agreed to pay his brother for all necessary repairs made on the farm and for boarding and caring for their mother.

The plaintiff after a time refused to proceed with the contract and sued for the support of the mother and for the money he had expended in making necessary repairs.

To this action, the defendant contended as a defense that the written agreement contained nothing as to how long the contract should exist, the kind and extent of the repairs that might be made, the compensation to be paid therefor, and the compensation to be paid for the care and the support of the mother.

Decision

The contract was not complete as a written contract; the contract between the parties here was partly in writing and partly oral. This is treated as an oral contract. So far as the duty to work the farm, make the repairs, and support the mother was concerned, the terms of their agreement were in writing but the manner of repairs, the manner of supporting the mother, the amount of compensation for repairs on the farm and for the support of the mother, were terms which were not in writing but which the parties had orally agreed upon.

The decision held that the plaintiff might recover on this contract although all the terms of it were not in writing.

Ruling Law. Story Case Answer

In the absence of a statute requirement that a given contract shall be in writing, the agreement may be partly in writing and partly oral. A person may agree in writing to work for another for six months from that time, and the other person may orally agree to pay him a certain compensation therefor. Such an agreement is partly in writing and partly oral, nevertheless it is binding upon both of them. It is always better, however, to put into the writing every essential term of the agreement, or else to have no writing whatsoever. In the Story Case, a good contract existed between Jackson and Owens consisting of the letter to Jackson, which became a binding promise when Owens made his oral acceptance. Although no salary was stipulated, the court would infer that a reasonable wage was intended, depending upon custom, Jackson's ability and his prior wage. Jackson could recover in damages not the entire wage for six months, but the difference between what he could earn in like employment elsewhere, and this wage which Owens agreed to pay.