Omaha Hardwood Lumber Co. v. J. H. Phipps Lumber Co.

JOHNSEN, Circuit Judge.

Phipps Lumber Company, an - Arkansas corporation, sued to cancel a written contract for the purchase of a wood manufacturing plant, located at Little Rock, Arkansas, from Omaha Hardwood Lumber Company, a Nebraska corporation. The purchase price was $15,000, which was to be paid by deductions of ten per cent from the invoices on such lumber and wood products as Omaha Hardwood thereafter ordered from Phipps Lumber. The trial court decreed cancellation, on the ground that Phipps Lumber’s secretary and general manager had executed the contract without authority or knowledge…