Story Case

Franklin Griswold, a famous portrait painter, agreed to paint a picture of the dead child of Eaton L. Walker. It was agreed that Walker would not have to take the picture of the child unless it was "to his satisfaction." After the portrait was finished, Walker was not pleased with it. He refused to accept and pay for it. Griswold sued him for the price of the work. At the trial, Griswold showed that the picture was a masterpiece and any reasonable man would be satisfied with it.

Walker defended on the grounds that the portrait was not a good likeness; that he was not satisfied with the work, and that the contract was so made that he could refuse to take the portrait, if he pleased. Which party should win?

Ruling Court Case. Geipel Vs. Smith, Law Reports Volume 7, Queen's Bench Court, Page 404

Smith was the owner of a certain vessel. It was agreed between him and Geipel that he, Smith, should with all convenient speed, sail to a coal spout as directed by Geipel and there load a full cargo of coal. It was further agreed that Geipel should then proceed to Hamburg and there deliver the coal to certain persons. Their agreement contained the provision that the contract should be subject to the "restraint of princes and rulers." Just as Smith was preparing to set out to get this cargo of coal, the war of 1870, between France and Germany broke out. The port of Hamburg was closed, and Smith abandoned his contract. Suit was brought against him for damages.

He defended on the ground that he was excused from further performing by the very terms of his contract, in that it was provided that the performance was subject to the "restraint of princes and rulers".

Decision

It is always competent for the parties to stipulate in their agreement when the contract shall come to an end. They may agree that upon the happening or non-happening of a given event, the contract shall come to an end. In case the event happens, or does not happen, as the case may be, the contract automatically comes to an end. In this case, it was provided that the performance of the contract was to be subject to the restraint of princes and rulers; the closing of the port of Hamburg was just such an act, and by that act Smith was excused from further performance of the contract.

Judgment was given for Smith in this case.

Ruling Law. Story Case Answer

A contract may be discharged by a provision in the original contract. That is, if the parties agree that the contract shall come to an end upon the happening or non-happening of some event, then the happening or non-happening of that event, as the case may be, will discharge the contract. In the Court Case of Geipel vs. Smith, the parties agreed that the contract should come to an end in case the performance of the contract was hindered by international difficulties. These international difficulties having intervened, the contract was discharged.

In the Story Case, the picture must be made to Walker's satisfaction. The court will not determine whether he is acting unreasonably in refusing his satisfaction, and the painter cannot recover.