ZELL V. AMERICAN SEATING CO.
138 F.2d 641 (2nd Cir. 1943)
NATURE OF THE CASE: This was an appeal from the entry of summary judgment.
FACTS: Zell (P) offered to procure contracts for American (D) for manufacturing products
for national defense in consideration of $1,000 per month for a three-month period. If he
was successful in his efforts, P was to pay him a further sum of not less than 3 percent and
no more than 8 percent of the purchase price of the contracts. A written instrument was
executed, but it omitted the provision that if P was successful, he was to receive a bonus
varying from 3-8% and instead stated that the $1,000 per month would be the full
compensation but the company may if it desires pay you something in the nature of a bonus.
At the time of signing, the parties agreed that the written agreement was erroneous and that
the misstatement in writing was made solely to avoid any possible stigma, which might result
from putting the provision in writing. P procured $5,950,000 million in business for D but D
refused to pay commissions and offered a settlement of the $8,950 he was paid from the
monthly stipends and an additional sum of $9,000. P refused and sued. The trial court
granted D a summary judgment. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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