OFFICE OF THE ATTORNEY GENERAL OF’IEXAS AUSTIN 0-O.NANN A--

HonorableEarry Knox, Chairman

state Board ot Control Aurtln, Texoa

Dear Elr:

4859, your departrt the repulaition Control to the istook
ttb tex ntempn,aWd~6 t iurrq1.tbe oollor ~n~e~~prlntln~

601~ oSor0, ths ‘hvoloea ior ot be legallyapprovod Sor of Control.

he tax atenpm mhtea under thie
ve been deliveredto 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 followingpus8- t1onma

“1. Doaa the 3tat.e of %&as t1ow here title anO the right of ponscsaionto the abovrmentionedtax mtaapm whioh hume heretofore bean bcllverrdto the 24iate Tmmmrer, but whloh beoe not yrst been u~eb8fionoreble Harry Knox, Pega 3

"2. Xii your answer to the above qusatlon is 'no',sna w3auming that no emergenay o~uaedby the i&ok of tax etampe for aele by the ,::tate

will therebybe ereatsd,whet for~elltlee

will have to be obeervsd by the Board OS Control. lr order to -oura legallya 6urricmt supplyor such star",pm to laet ror the dur8tion or said erergenoy?*

You have heratoforefurnirhedue for examinetlon the orlgineZ eontreatbetween the 2tat.e Board of Controland The nteok Corcpeny ereout6aJuly a, 1939, whereby The 6taok Cosgeny e&reed ta deliver 300,000,000cigarettetar atampa to the CigaretteTax ::tamg Board. You hove ala0 rurniahsa
us rith a photosteticcopy or the requisltlou aat04 Septmtiber 10, 1939 one oparoved Ssptesber19, 1934, whsreby the additional100,000,000cigerettetmx mtampu referredto ln your letter were pur,"ortcd to heve been omtraoted ror. hltbougb,as pointrdout in our o~lnion NO. O-3339, the contraotof July 6, 19W had sxplred, tan4 tbe requlsltion spproved on %;,t.saber 19, 1939 did not fulPil1 the oonatltutionsl.requirs~ttte, it oannot be quostlonedbut that it
wea tbs intentionof the mmtreotfng pcmtias that the puroheee or the abrlitlonal 100,000,000strmpa should be g,ovorncd by the tsrmc end contitfoaetf the contraot of July 6, 1937. FaragrerbVX of eel4 contractreatls ~5 followr:

"That in consideration of the party OP the second pbrt rully perPomfn3 and keepfail each an6 every oblfpatlono&its :'art, enc. the drlivery of such staapsaithin the tiae antifa the maoaer a8 providedin this contreotor faemoronduar

of egreemnsnt,

toapather

with the epcciffcsticna,

the party 0r tts rirat yrt, egrees tc :ey to tJm gwty of the eecon4 :iart sl.svec acd ninety-fiveone hue6rsthe (11 CS/lOC) oenta per tbousa& Por eaoh snd every thoueand of said stam3adellvccd by tbs ,party of 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 abrnige

or 4ano5inatlonrm (:;,i%pheeie OWlI)HonorableIlarry Knox, Page 3

ft is &parent frca the above quoted prorlslon, thst it ~88 the arutueL intentlenof the Boar% 0r Controlorid The Jteck Conpany,when tbr rsqulsitlonfor the abdltioaal 1CO,OOO,OOOatmu??w8a approved, that payment In aaah ma oontenpl6te%

upon cblirerp of the 8tampa *it sn% wbon locspted”

. ::e

muat look, tharoron to the rulea gorarnlng aarh aales, (II

dlatin(ylahad

from aaloa on ordlt ln order to ascertainubare the tltls an% right of poaaoralon ef thaws ~ataotps

now rad%ea In the li@t of our ruIl&xg ln OpinloaHo. O-8390 that the requirltloa of &ptmabrr 1939 ai% not fultill the conrtitutlonel requlrewnt8 for a contract tor printing.
Ja~ds, C.J. la Swing T. Qlraater, 04 Y.S. 408 (Ct. of Clril A~pala, 1906) aanounoebthe rulm relatlne to parrageof title in oaah aalea mhioh baa baaa ooaalatmatly follows% lo Tauar

9ibere mrronal propartjr la aold, a part or the conaldaratlon tQ **be** paid in oa6h aad tha rest in a&r**% p*ymnta, no title **psaaea~uqtil** tbc oaab imy#ient

is aotua2lya&s. #'bora 8 ads la **made** on the aoadttlon#at a aaah pymorrt shall be m%e, aad poaas~alon of the ?rOperty la obtalneebetor0 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 aloarlyan% 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 gtivlng for tha WriOO
a obaok or draft whloh la eubraquently di8- bonorod, them la RO payfmnt, sad the tit18 does not :am.*

...*

In Pirat NationalBank 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 tbmofor -B not honored,even though the cotton had beea %Olirarati to buyer.

.HonorableRorry Knox, F-age 4

“In Continental

Bank and Truat Companyv. Eartam (Tax. Civil ~ppea1.e) 129 ::.K.

179, Tslbot, J. held that, where a crala Is fos oaah,
a dsllvery aubJectto tba ;aayment of 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 quoted4th approvaltho rollowIngproao~unooment of the PennsylvanIa Court in Frecb ‘I.

Lewis, 216 Pa. 141, 67A. 46:
w.Foaseaalon,

bouover,having paaaetl an% tbr bayor, by the sot of the seller, havine been internto% with the ln%loIaor ownerablp,the ~llcy or our law requires thst this altuatlon - the pouer$lon in one and tbs right of property in anothor - ahall contInusno longer them is nooea8arp ta -able the 8sller to rooovar the good8 with wklch ~h4 baa 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 quoatlooquite **rirll8r** to the em here preuat@d we8 betore the Texas **C~ia8ion** Of Appe8la in Rtietf v. city of 3eha kntonlo, 130 Ter. 894, 131 3.78. BInd~lo84.Thor., the City of Can knti3nie kad Pumhuaed **8 pi8RO**  irOa tba aa1thall kiualc Company for $lSOO~?.a be **p8id** on dellvory ot the piano. After the piano bad been delivered,tko City Aui?thr in
lcao rdanoo

with an ordbanco raturns% to $ermlt 

### dellrsry of the wurraat iarued In peymont thoraforefor t&a reamon that the XolthellWas10 Companyuua lndebte% to the City tor oemtain taxaa.

Thorsattarthe Wdtball Mu%ie Colllpany wee a&&&j@ bankrupt,an% the ?Xisrf Co., who ha% ehlppedtbs lane to P tars aolthaUCo. on ,

walgaarentlaid claim to the p ano. Sal& the court:
‘Tha olty, bsrlag tbua aoquirra gorrtwmtiion of the piano, aesdrt.8 the ri&bt to krap it wlthout pyiq ior lt, as it colWnly promlab% to 40. The elty MB not i&&e%, deOOll6d,or de-HonorableHarry Xnox, i'sgo 5

freuded; It received th% piano contractedfor. The city hoa paid nothing, fiioan up Dothing, euff8redc.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 gossiblsgroUnti Upon 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 unkportclnt

aa iadlotntdby thhg followingquotationiroE ;;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 inoonr8nlaaO8

of reguiring the sall8r of en artlch to keep 0~1) band upon it until dth th8 oth8r he graape the Ourrenoytendered In P4V==J t , th8r8 lW8t b8 8OPIOrSleX8tiCfl Of thi8 rtllil. Dalivcrry

and 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 agrq8dv!ith oubst8ntial

Un%nirbity ill that such hIt8l=V8l d068‘Dot CiOIlO1U81Vs1y PtOVc, a tot81 8brndoOsent of title and the ri&kt of po~eamrionby the seller, unle88, nubor aI1 the ObKU48tanO84i

Of thQI Mb8, it in fEOt 8hoU8 that result to b8va been intendell.S0m8 in680ufty ha8 b8en exerai8edwttk doubtful profit in deSinlng the oharsotar of the rZgbt remalnlng La the rsller 8tter delio*ry8nb before pepant. "'hether 1t 3.8

lmre 2rop8rly dsroribed85 a lien, 12

ratrrntlon

OS title, or an option to reroind tks awti%Ot, IS not Very impOrt8Dt SO at 88 affeats the so3utfOn or tlm jirObl8m Proseated here. xt 58 ~1 right 0r the 8811~ to reposaesabimae2fof the (pob+ St the buyor falls ia t&Q p8rfomanoe of tka 8&$W4tC8KIt on his part wSioh ~813 intended ta be ecnteP:porsD8OU8 with the delivery. It in 8 iwM.Lar right &DOWing out of D peeullar situation,and it io notnsceaemy to &ire it o name the iwe of wvnloh ml&ht 11005 to de0169 aontrov*r8ies growing out of othbr re~latlon8.w
Ap?lyln(S

the rules l

nnounaed in the forr~ohg authoritiesto the fast 8Ituatlon@reamted In your letter, it is our opinion that the Steak Companyhas th6 rlgbt to &emend rrturn 0: the clgarrttotax atanpr reoently 6elIvered to the stata Treasurer upon bring rdrlaed that the oontract and requlsltlonundar whloh they were prerumablydollvrred 1s lnvelld. Tha mller*s right or repommmlon or gosde deliveredbut not paid for on a cash sale muat bo exeralrslwithin a reraonabletime and nap be waived by lack oE Qlllgsnaoor agreement ot the :wrtls8.

Xe turn now E0 49

oon8ldwatlon 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& oonform to the requlrrfneats of krtlala 16, ::eatIon 21 of the COLl~titUttOD

or 50x08, of which the :ertlnaatprovlri~a~
are that the prlntlng anhallb8 portormadunder Qontraat, to be given to the loweet raaponslbleblddmr,below ruah maximum prloa and under mmh regulationa, as shall br prosarlbd 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 temporcrry

arrangementto suaat the aocrrgsnay @a the public interest may damafui."

ks~~~.lo~

th,at the Board of Contrcl, in the exerctse of lta rcsa0nekl.e dlaaretloa,deternIne that aii smrgenoy now exlrste whlcb lw:;uires til@ lmmedlat~putOhM of o@rette tar stamps, it Is our oplnloo t?.at ttm 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 then

3oard may deaa FroWr.-- J 

### 200

APPROVEDJUN11, 1940

-.=&d ATTORNEYGENERALOr' TEXAS