OFFICE OF THE ATTORNEY GENERAL OF’IEXAS
AUSTIN
0-O.NANN
A--
Honorable Earry Knox, Chairman
state Board ot Control
Aurtln, Texoa
Dear Elr:
4859, your depart-
rt the repulaition
Control to the istook
ttb tex ntempn, aWd~6
t iurrq1.tbe ooll-
or ~n~e~~prlntln~601~
oSor0, ths ‘hvoloea ior
ot be legally approvod Sor
of Control.
he tax atenpm mhtea under thie
ve been delivered to t&o state
the present tlmc, the Tremurer
000,000 or the
her tble rauui8ltloa~
-In view of these faote, your valued opinion
18 roepoot~ully rcquoatcd on the following pus8-
t1onma
“1. Doaa the 3tat.e of %&as t1ow here title
anO the right of ponscsaion to the abovr-
mentioned tax mtaapm whioh hume heretofore
bean bcllverrd to the 24iate Tmmmrer, but
whloh beoe not yrst been u~eb8
fionoreble
Harry Knox, Pega 3
"2. Xiiyour answer to the above qusatlon
is 'no', sna w3auming that no emergenay
o~uaed by the i&ok of tax etampe for aele
will thereby be ereatsd, whet
by the ,::tate
for~elltleewill have to be obeervsd by
the Board OS Control.lr order to -oura
legally a 6urricmt supply or such
to laet ror the dur8tion or said
star",pm
erergenoy?*
You have heratoforefurnirhed ue for examinetlon
the orlgineZ eontreatbetween the 2tat.eBoard of Control and
The nteok Corcpeny ereout6a July a, 1939, whereby The 6taok
Cosgeny e&reed ta deliver 300,000,000cigarette tar atampa
to the Cigarette Tax ::tamgBoard. You hove ala0 rurniahsa
us rith a photostetic copy or the requisltlou aat04 Sept-
mtiber10, 1939 one oparoved Ssptesber 19, 1934, whsreby the
additional 100,000,000cigerette tmx mtampu referred to ln
your letter were pur,"ortcd to heve been omtraoted ror.
hltbougb, as pointrd out in our o~lnion NO. O-3339, the
contraot of July 6, 19W had sxplred, tan4tbe requlsltion
spproved on %;,t.saber 19, 1939 did not fulPil1 the oonatl-
tutionsl.requirs~ttte, it oannot be quostloned but that it
wea tbs intentionof the mmtreotfng pcmtias that the pur-
oheee or the abrlitlonal 100,000,000strmpa should be g,ovorn-
cd by the tsrmc end contitfoae tf the contraot of July 6,
1937. Faragrerb VX of eel4 contract reatls~5 followr:
"That in considerationof the party OP the
second pbrt rully perPomfn3 and keepfaileach
an6 every oblfpatlon o&its :'art,enc.the dr-
livery of such staaps aithin the tiae antifa
the maoaer a8 provided in this contreot or
faemoronduarof egreemnsnt,toapather
with the
epcciffcsticna,the party 0r tts rirat yrt,
egrees tc :ey to tJm gwty of the eecon4 :iart
sl.svecacd ninety-fiveone hue6rsthe (11 CS/lOC)
oenta per tbousa& Por eaoh snd every thoueand
of said stam3a dellvccd by tbs ,partyof the
neoond sart to the party of the Plrst yart if
end ibon eccspted by ths Fart2 of the ftret?art
at i;ustln,Textlfi,end 5n ed4ltlonol $100.00 ror
esch abrnigeor 4ano5inatlonrm (:;,i%pheeieOWlI)
Honorable Ilarry Knox, Page 3
ft is &parent frca the above quoted prorlslon,
thst it ~88 the arutueL intentlenof the Boar% 0r Control orid
The Jteck Conpany, when tbr rsqulsitlon for the abdltioaal
1CO,OOO,OOOatmu?? w8a approved, that payment In aaah ma
oontenpl6te%upon cblirerp of the 8tampa *it sn% wbon lo-
cspted”. ::emuat look, tharoron to the rulea gorarnlng
aarh aales, (IIdlatin(ylahadfrom aaloa on ordlt ln order
to ascertainubare the tltls an% right of poaaoralon ef thaws
now rad%ea In the li@t of our ruIl&xgln Opinloa Ho.
~ataotps
O-8390 that the requirltloaof &ptmabrr 1939 ai% not fultill
the conrtitutlonelrequlrewnt8 for a contract tor printing.
Ja~ds, C.J. la Swing T. Qlraater, 04 Y.S. 408
(Ct. of Clril A~pala, 1906) aanounoeb the rulm relatlne to
parrage of title in oaah aalea mhioh baa baaa ooaalatmatly
follows% lo Tauar
9ibere mrronal propartjr la aold, a part
or the conaldaratlontQ be paid in oa6h aad tha
rest in a&r**% p*ymnta, no title psaaea~uqtil
tbc oaab imy#ientis aotua2ly a&s. #'bora8
ads la made on the aoadttlon #at a aaah py-
morrtshall be m%e, aad poaas~alon of the ?rO-
perty la obtalnee betor0 aeb pyrsmt, dtbout
the oeab paymnt being waived, hitie doer not
paaa. A ri+Or DU8t be MdO +Oi~&tdiy W&d
lt la a questlon'otiaat tbst mat be mabe to
aloarly an% plainly appear ... Woohap on
galas, sec. S48, ntataat 'Wltsra a adr ie thus
to be for oaah an% paymmt is loun% to be a
oondlttonprecedent, 1% ia char tbrt if the
buyer obtain,8 tbo good8 by gtivlngfor tha WriOO
a obaok or draft whloh la eubraquentlydi8-
bonorod, them la RO payfmnt, sad the tit18
does not :am.* ...*
In Pirat National Bank of Ltttl*fleldto 8081,
(Ct. of Clril appeals, marillo, lOZ3), 10 S.W. an% 4O&ths
oourt held thst title to 46 bales of ootton h8d BOt F8*a%
to buyer where the buyor's bank draft given in Pacot tbmo-
for -B not honored, even though the cotton had beea %Olirar-
atito buyer.
.
Honorable Rorry Knox, F-age4
“In ContinentalBank and Truat Company v.
Eartam (Tax. Civil ~ppea1.e)129 ::.K.179,
Tslbot, J. held that, where a cralaIs fos oaah,
a dsllvery aubJect to tba ;aaymentof the price
poaaaa no tltlo.”
Bon%, J. of the Uellaa Court ot Ciril Apwa$a in
Fillhas V. Oraer, 122 S.T. Bnd 047, at p. 249 quoted 4th
approval tho rollowIng proao~unoomentof the PennsylvanIa
Court in Frecb ‘I.Lewis, 216 Pa. 141, 67A. 46:
bouover, having paaaetlan% tbr bayor,
w.Foaseaalon,
by the sot of the seller, havine been internto%
with the ln%loIa or ownerablp,the ~llcy or our
law requires thst this altuatlon - the pouer$lon
in one and tbs right of property in anothor - ahall
contInus no longer them is nooea8arp ta -able
the 8sller to rooovar the good8 with wklch ~h4baa
perted. The law plvaa the 8alhr tbe right, In
euoh oaae, to reolslm him @ode& but ha mrt 40
so promptly; othrrrwlea ha wI11 be bald to hare
wplved his right, an% can only thbroarterlooktto
tha buyer for ths prle~.~
k quoatloo quite rirll8r to the em here preuat@d
we8 betore the Texas C~ia8ion Of Appe8la in Rtietf v. city
of 3ehakntonlo, 130 Ter. 894, 131 3.78.BInd~lo84.Thor., the
City of Can knti3niekad Pumhuaed 8 pi8RO irOa tba aa1thall
kiualcCompany for $lSOO ~?.a be p8id on dellvory ot the piano.
After the piano bad been delivered, tko City Aui?thr in
lc a o r da no with
o an ordbanco raturns%to $ermlt dellrsryof
the wurraat iarued In peymont thorafore for t&a reamon that
the Xolthell Was10 Company uua lndebte% to the City tor
oemtain taxaa.
Thorsattarthe Wdtball Mu%ie Colllpany wee a&&&j@
bankrupt, an% the ?Xisrf Co., who ha% ehlpped tbs lane to
tarsaolthaUCo. on ,walgaarentlaid claim to the pPano. Sal&
the court:
‘Tha olty, bsrlag tbua aoquirra gorrtwmtiion
of the piano, aesdrt.8the ri&bt to krap it wlth-
out pyiq ior lt, as it colWnly promlab% to
40. The elty MB not i&&e%, deOOll6d, or de-
Honorable Harry Xnox, i'sgo5
freuded; It received th% piano contractedfor.
The city hoa paid nothing, fiioanup Dothing,
euff8red c.0tblng. Thme is no ssmblancaof
un ssto;pel la favor of the.city against the
ftisnutaaturef,
the owner of the piano. Tku8
there is no gossibls groUntiUpon which t&d ofty
oan CIWE tke title or rigkt of ~ossraaioa of
the pls30.~*
3hsther the 3took Company hsa logal tltla at
this time or merely a right to re?orssrraion 18 raletlvoly
unkportclntaa iadlotntd by thhgfollowing quotationiroE
;;8OQlC8 Yt8t8 D8llk V. %W~ll, m &8nSa8 520, 109 PSC. 102,
2s t.ti.A. (N .S.) 024, 31 a.L.R. !%‘I:
"A8 a praotioalnoosed ty, to avoid th8
inoonr8nlaaO8of reguiring the sall8r of en
artlch to keep 0~1)band upon it until dth
th8 oth8r he graape the Ourrenoy tendered In
P4V==J t , th8r8 lW8t b8 8OPIOrSleX8tiCfl Of thi8
rtllil.Dalivcrryand paysmnt, 88 a praoti6al
Blttsr, CMDot be ebsohtrly SiPaUltSn8OW.
SOme slight intWve3 bStWS8n tk8 two 8otl i8
in8Vit8bla, and the eritarion upon wblch tha
CO-t8 bars agrq8d v!ithoubst8ntialUn%nirbity
illthat such hIt8l=V8l d068 ‘Dot CiOIlO1U81Vs1yPtOVc,
a tot81 8brndoOsent of title and the ri&kt of
po~eamrionby the seller, unle88, nubor aI1 the
ObKU48tanO84iOf thQIMb8, it in fEOt 8hoU8 that
result to b8va been intendell. S0m8 in680ufty
ha8 b8en exerai8ed wttk doubtful profit in de-
Sinlng the oharsotar of the rZgbt remalnlng La
the rsller 8tter delio*ry 8nb before pepant.
"'hether 1t 3.8lmre 2rop8rly dsroribed 85 a
lien, 12ratrrntlon OS title, or an option to
reroind tks awti%Ot, IS not Very impOrt8Dt SO
at 88 affeats the so3utfOn or tlm jirObl8m Pro-
seated here. xt 58 ~1right 0r the 8811~ to
reposaesa bimae2f of the (pob+ St the buyor
falls ia t&Q p8rfomanoe of tka 8&$W4tC8KIton
his part wSioh ~813 intended ta be ecnteP:porsD8OU8
with the delivery. It in 8 iwM.Lar right &DOW-
ing out of D peeullar situation, and it io not
nsceaemy to &ire it o name the iwe of wvnlohml&ht
11005to de0169 aontrov*r8iesgrowing out of othbr
re~latlon8.w
Ap?lyln(Sthe rules lnnounaed in the forr~ohg
authoritiesto the fast 8Ituatlon @reamted In your letter,
it is our opinion that the Steak Company has th6 rlgbt to
&emend rrturn 0: the clgarrtto tax atanpr reoently 6elIver-
ed to the stata Treasurer upon bring rdrlaed that the oon-
tract and requlsltlon undar whloh they were prerumablydo-
llvrred 1s lnvelld. Tha mller*s right or repommmlon or
gosde delivered but not paid for on a cash sale muat bo
exeralrsl within a reraonable time and nap be waived by
lack oE Qlllgsnao or agreement ot the :wrtls8.
Xe turn now E0 49oon8ldwatlon of your s*oontl
quertlon. As at&o& In our oplalon ISo.0-fS539,all ooatrbots
for printing,whether in aeuea of emergency or not mu& oon-
form to the requlrrfneatsof krtlala 16, ::eatIon21 of the
COLl~titUttODor 50x08, of which the :ertlnaatprovlri~a~
are that the prlntlng anhall b8 portormadunder Qontraat,
to be given to the loweet raaponslble blddmr, below ruah
maximum prloa and under mmh regulationa, as shall br pro-
sarlbd by law ... and all nuah aoatrsota shot1 be eubJeot
to the approval ot tha Governor, 9earetary of Stat.4 and
Comptroller.*
In the event of an emar~eaoy,krtlolr 61.8,8eri#od
Civil Statutes, 19E2, provldse:
“Ihs Board may In Ita dlsoretlonoaka 8~0h
temporcrryarrangement to suaat the aocrrgsnay
@a
the public interest may damafui."
ks~~~.lo~th,atthe Board of Contrcl, in the ex-
erctse of lta rcsa0nekl.edlaaretloa,deternIne that aii
smrgenoy now exlrstewhlcb lw:;uires til@ lmmedlat~putOhM
of o@rette tar stamps, it Is our oplnloo t?.atttm Tmard
may enter into a oontrsot for the Durollere ot uuah struPp8
rrom the loweet ne~oa6lble bidder atter eucb navrrtiif.inc
for bida as then3oard may deaa FroWr.
-- J
200
APPROVEDJUN 11, 1940
-.=&d
ATTORNEY GENERAL Or'TEXAS