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 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 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 abovrmentioned 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. Xii your answer to the above qusatlon 

is 'no', sna w3auming that no emergenay 

o~uaed by the i&ok of tax etampe for aele 

by the ,::tate will thereby be ereatsd, whet 

for~elltlee will have to be obeervsd by 

the Board OS Control. lr order to -oura 

legally a 6urricmt supply or such 

star",pm to laet ror the dur8tion or said 

erergenoy?* 

You have heratofore furnirhed ue for examinetlon 

the orlgineZ eontreat between the 2tat.e Board of Control and 

The nteok Corcpeny ereout6a July a, 1939, whereby The 6taok 

Cosgeny e&reed ta deliver 300,000,000 cigarette tar atampa 

to the Cigarette Tax ::tamg Board. You hove ala0 rurniahsa 

us rith a photostetic copy or the requisltlou aat04 Septmtiber 10, 1939 one oparoved Ssptesber 19, 1934, whsreby the 

additional 100,000,000 cigerette 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, tan4 tbe requlsltion 

spproved on %;,t.saber 19, 1939 did not fulPil1 the oonatltutionsl.requirs~ttte, it oannot be quostloned but that it 

wea tbs intention of the mmtreotfng pcmtias that the puroheee or the abrlitlonal 100,000,000 strmpa should be g,ovorncd by the tsrmc end contitfoae tf the contraot of July 6, 

1937. Faragrerb VX of eel4 contract reatls ~5 followr: 

"That in consideration of the party OP the 

second pbrt rully perPomfn3 and keepfail each 

an6 every oblfpatlon o&its :'art, enc. the drlivery of such staaps aithin the tiae anti fa 

the maoaer a8 provided in this contreot or 

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-five one hue6rsthe (11 CS/lOC) 

oenta per tbousa& Por eaoh snd every thoueand 

of said stam3a dellvccd 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) 
Honorable Ilarry Knox, Page 3 

ft is &parent frca the above quoted prorlslon, 

thst it ~88 the arutueL intentlen of the Boar% 0r Control orid 

The Jteck Conpany, when tbr rsqulsitlon for the abdltioaal 

1CO,OOO,OOO atmu?? 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 ascertain ubare the tltls an% right of poaaoralon ef thaws 

~ataotps now rad%ea In the li@t of our ruIl&xg ln Opinloa Ho. 

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) 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 conaldaratlon tQ be paid in oa6h aad tha 

rest in a&r**% p*ymnta, no title psaaea~uqtil 

tbc oaab imy#ient is aotua2ly a&s. #'bora 8 

ads la made on the aoadttlon #at a aaah pymorrt shall be m%e, aad poaas~alon of the ?rOperty 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'ot iaat 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 

oondltton precedent, 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 National Bank of Ltttl*fleld to 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. 

. 
Honorable Rorry Knox, F-age 4 

“In Continental Bank and Truat Company v. 

Eartam (Tax. Civil ~ppea1.e) 129 ::.K. 179, 

Tslbot, J. held that, where a crala Is fos oaah, 

a dsllvery aubJect to 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 quoted 4th 

approval tho rollowIng proao~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%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 ~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 thbroarter looktto 

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 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 

l c a o r da noo with an ordbanco raturns% to $ermlt dellrsry of 

the wurraat iarued In peymont thorafore for t&a reamon that 

the Xolthell Was10 Company uua lndebte% to the City tor 

oemtain taxaa. 

Thorsattar the Wdtball Mu%ie Colllpany wee a&&&j@ 

bankrupt, an% the ?Xisrf Co., who ha% ehlpped tbs lane to 

tars aolthaUCo. on , walgaarent laid claim to the p 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- 
Honorable Harry Xnox, i'sgo 5 

freuded; It received th% piano contracted for. 

The city hoa paid nothing, fiioan up Dothing, 

euff8red c.0tblng. Thme is no ssmblanca of 

un ssto;pel la favor of the. city against the 

ftisnutaaturef, the owner of the piano. Tku8 

there is no gossibls groUnti 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 iadlotntd by thhg following quotation iroE 

;;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 praotioal noosed 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 Ourrenoy tendered In 

P4V==J t , th8r8 lW8t b8 8OPIO rSleX8tiCfl 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 agrq8d v!ith oubst8ntial Un%nirbity 

ill that such hIt8l=V8l d068 ‘Dot CiOIlO1U81Vs1y PtOVc, 

a tot81 8brndoOsent of title and the ri&kt of 

po~eamrion by the seller, unle88, nubor aI1 the 

ObKU48tanO84i Of thQI Mb8, it in fEOt 8hoU8 that 

result to b8va been intendell. S0m8 in680ufty 

ha8 b8en exerai8ed wttk doubtful profit in deSinlng the oharsotar of the rZgbt remalnlng La 

the rsller 8tter delio*ry 8nb before pepant. 

"'hether 1t 3.8 lmre 2rop8rly dsroribed 85 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 

reposaesa bimae2f of 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 not 
nsceaemy 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 

authorities to 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 6elIvered to the stata Treasurer upon bring rdrlaed that the oontract and requlsltlon undar whloh they were prerumably dollvrred 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 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 :ertlnaat provlri~a~ 

are that the prlntlng anhall b8 portormad under Qontraat, 

to be given to the loweet raaponslble blddmr, 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 dlsoretlon oaka 8~0h 

temporcrry arrangement to 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 

APPROVEDJUN 11, 1940 

-.=&d 

ATTORNEY GENERAL Or' TEXAS