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United States District Court for the Southern District of New York - 190 F. Supp. 116
Tags: Contracts, parol evidence, interpretation
The legal case involves a dispute over the interpretation of the term "chicken" in a contract for the sale of chicken between a New York sales corporation and a Swiss corporation. The court rules in favor of the defendant for breach of warranty, as the plaintiff has not proven that the contract used "chicken" in the narrower sense. The court examines the exchange of cablegrams between the parties before the formal contracts were executed and finds that the defendant's interpretation of "chicken" as any kind of chicken is more persuasive. The case highlights the importance of external signs in contract formation, rather than the parties' subjective intentions. The plaintiff's argument that the contract forms containing the words "through the intermediary of" negate agency is rejected. The defendant disputes the plaintiff's argument that there was a trade usage that the term "chicken" meant "young chicken," and must prove either actual knowledge of the alleged usage or that the usage is so generally known in the community that the defendant's actual individual knowledge of it may be inferred.
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