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SILCO VENDING COMPANY v. CHARLES QUINN AND MARY QUINN (06/24/83)

filed: June 24, 1983.

SILCO VENDING COMPANY, APPELLANT
v.
CHARLES QUINN AND MARY QUINN, INDIVIDUALLY AND TRADING AS QUINN'S TAVERN



No. 1701 Philadelphia, 1981, Appeal From the Order of the Court of Common Pleas, Trial Division - Civil, of Philadelphia County, No. 3355 October Term, 1975

COUNSEL

Howard Wallner, Philadelphia, for appellant.

William L. Zeitz, Philadelphia, for appellees.

Johnson, Watkins and Lipez, JJ.

Author: Lipez

[ 315 Pa. Super. Page 368]

Silco Vending Company (Silco), plaintiff in this action in assumpsit, appeals from the lower court's order finding

[ 315 Pa. Super. Page 369]

    against Silco and in favor of defendants Charles and Mary Quinn, against whom suit had been brought as individuals and as the partnership trading as Quinn's Tavern. Silco argues that the lower court's decision, premised upon a finding that Mary Quinn had not been a partner with her deceased husband in the operation of the business, must be reversed because defendants admitted in pleadings and during trial that Mrs. Quinn was a partner in the operation of Quinn's Tavern. We agree and vacate the order of the lower court.

The contract sued on was headed, "Exclusive Contract -- Consideration For Term", and was executed on July 18, 1974. It recites that the agreement was made between Silco and Charles and Mary Quinn doing business under the name of Quinn's Tavern, and provides that in consideration of $500.00 cash and a commission on cigarettes sold at the location the Quinns would give Silco the exclusive right to sell cigarettes at Quinn's Tavern for a five-year period. It also provides that if the business were to be sold before expiration of the contract's term, the Quinns would notify Silco of the impending sale at least two weeks before settlement and would include in the agreement of sale a provision requiring the purchaser to assume the obligations of the contract with Silco. The final clauses of the contract set out a formula for determining the amount of liquidated damages to be awarded to Silco upon breach of the contract.

In July, 1975, after the death of Charles Quinn, Mary Quinn sold the business without notifying Silco or requiring the purchaser to assume the contract. Silco then brought this action, alleging that the sale constituted a breach of the agreement and seeking damages calculated according to the formula contained in the contract. In her answer, Mary Quinn denied any liability under the contract, alleging that she had not signed it,*fn1 and raised several affirmative defenses

[ 315 Pa. Super. Page 370]

    to its enforcement. Her answer also stated, "It is averred that Mary Quinn was formerly a partner with her late husband, Charles Quinn, in a business known as Quinn's Tavern. Said partnership was dissolved by the death of Charles Quinn." Answer to Complaint in Assumpsit, para. 2. Statements that Mrs. Quinn had been a partner in the tavern were also made in response to plaintiff's interrogatories and by defendant's counsel during the course of the trial.

The lower court found that Mary Quinn had not signed the contract, and that finding is not challenged in this appeal. It also found, however, that Mary Quinn had never been her husband's partner in operating the tavern, and therefore rejected Silco's contention that Mrs. Quinn might be bound by the contract under the provisions of the Uniform Partnership Act, 59 P.S. § 1 et seq., specifically 59 P.S. § 31.*fn2 Silco's sole contention ...


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