E. C. Mccullough v. R. Aenlle & Co.

Summary

McCullough purchased a tobacco factory from R. Aenlle & Co. primarily to access the building for his printing business, agreeing to pay invoice prices for all tobacco stock. When the tobacco was later rejected by McCullough's newly-formed company for being of inferior quality than described in the inventory, McCullough sued for damages. The Supreme Court ruled that McCullough had contractually bound himself to purchase all tobacco at predetermined invoice prices regardless of quality, and the inventory was merely for determining total price, not establishing quality guarantees. The decision established that parties cannot later claim damages for quality differences when they have explicitly agreed to purchase goods 'as is' at predetermined prices, emphasizing the binding nature of completed sale contracts under the Civil Code.