Anderson v. Howard

173 Iowa 4
CourtSupreme Court of Iowa
DecidedDecember 16, 1915
StatusPublished
Cited by3 cases

This text of 173 Iowa 4 (Anderson v. Howard) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Howard, 173 Iowa 4 (iowa 1915).

Opinion

Weaver, J.

For reasons hereinafter stated, the ruling and judgment of the court below cannot be sustained.

1. Brokers: commission when earned: disregard of authority: unwarranted assumption of implied authority. At the time in question, plaintiffs were residing and doing business at Union, Iowa, ánd Howard was living at Nampa, in the state of Idaho. Howard had a farm which he desired to sell, in Marshall County, Iowa, where he had formerly resided, and he had some communication with plaintiffs on the subject. The entire transaction between them was by correspondence, which we here set out in full. It was opened by a letter from Howard, and continued in the following order:

“Nampa, Idaho, May 3, 1910.,
“Mr. C. S. Anderson,
“Dear Sir: I see by the Star you have gone into the real estate business, well how do you like it. I wish you success, what commission do you have; been thinking of selling my place there as I am getting too lazy to farm any more -and I like the west O. K., think of going into the sheep business in the hills, if I can get $150.00 per acre net or a small commission believe I will let her go. We are having fine weather since the first of March, have prospects for a bumper crop. [8]*8Land is advancing all the time and things look good. Bullfrogs are doing a great job of singing in the ditches. All are well, hoping to hear from you.
“Yours respectfully.
“M. C. Howard.”
“Union, Iowa, May 9, 1910.
“Mr. M. C. Howard, Nampa, Idaho,
“Dear Sir: Your letter of May 3d received Saturday. We are glad to know things are looking so favorable in Idaho, but sorry to think there is less prospect of your returning to Iowa in the near future.
•“It is very dry here at present and we are very badly in need of rain, which will probably not come until it becomes warm enough to give us thunder showers. Farmers have had an ideal opportunity to get their spring work done, as there has hardly been a day since March 1 but has been fit to work in the fields.
“We shall be glad to have your place to sell and will go to work on it at once. Some rain would brighten our prospects. We have had a nice business this spring, having sold 1,200 acres so far, beside a number of city properties and mercantile outfits.
“We shall hope to accomplish something for you within a few weeks. We would like to have the exclusive sale for a time, because we then can afford to work other territories like Marshalltown, Grinnel and Oskaloosa for our buyers, wh’ile if the farm is placed with a number of real estate dealers, we might possibly go to a good deal of expense and another man reap the reward. If, however, for a time we have the sole sale, we shall not be afraid to venture.
“Begarding the matter of commission, we will be reasonable and charge you but one per cent. You have said nothing about terms, but suppose you want the money to use. We understand the place is clear and title perfect ? Please advise [9]*9if this is O. K. and we will go to work at once on the proposition.
“Yours very truly,
“Anderson & Rowley.
‘ ‘ We shall arrange to get Charley Lawrence to work with us on this farm and try to secure a sale early.”
“Nampa, Idaho, May 16, 1910.
“Anderson & Rowley,
“Dear Sirs: Yours of the ninth received; . . . Yes, my land in Iowa is all clear, have a first class abstract, would like it all cash, as I can get from 8 to 12 per cent, here and as one can get money 6 on real estate there I can’t afford to leave it for that, only for that I would leave part on the place. Your commission is right and will give you the sale for the place for sixty days without I should make sale myself, then you will get no commission, the place is rented till the first of March, 1911.
‘ ‘ Hoping you will be able to make sale soon I remain,
“Respectfully,
“M. C. Howard.”
“Nampa, Idaho, May 19, 1910.
“Anderson &' Rowley,
“Dear Sir: I think I forgot to state in my last letter that my place is a little short of 160 acres, 158 more or less being on the county line, so put it at even money $24,000.00, then there will be no cutting done on even money.
“Yours respectfully,
“M. C. Howard.”

On May 24, 1910, plaintiffs, working with Lawrence, secured from one Hathaway an offer of $150 per acre for the farm, payable in installments, and telegraphed Howard as follows:

[10]*10“Union, Iowa, May 24, 1910.
“M. C. Howard, Nampa, Idaho,
“Working with Anderson & Rowley secured following offer: one hundred fifty per acre, possession at once, cash eleven thousand seven hundred mortgage back for balance, ten years five per cent, optional payments, no better prospects answer at once. _ T ,,
_ T C. E. Lawrence.

One Gibbs, who had previously sought to purchase the land from Howard, appears to have heard of the pendency of these negotiations and, going to Lawrence, offered to buy at $150 per acre, all cash. Whereupon, plaintiffs sent Howard the following telegram:

1 ‘ Union, Iowa, May 25, 1910.
“M. O. Howard, Nampa, Idaho,
“Cancel our offer of 24th. Elza Gibbs authorizes us to offer one hundred fifty per acre all cash, possession now, wire answer.
“Anderson & Rowley.”
On same day, Howard replied to this telegram as follows:
“Nampa, Idaho, May 25, 1910.
“C. E. Lawrence, Union, Iowa,
‘‘Think I have sold for twenty-four thousand cash without possession till spring. Can’t consider your offer.
“M. C. Howard.”

It will be observed that, up to this time, no offer had been made or reported to Howard within the terms upon which plaintiffs were authorized to sell. The authority to sell was for cash, and the first offer submitted was for a sale on installments. The authority to sell was for the lump sum of $24,000 cash, and the second offer was “for $150 per acre possession now”; although the previous correspondence notified plaintiffs that the land was rented until March of the following year.

[11]*11On the following day, May 26, 1910, plaintiffs resumed negotiations with Gibbs and in Howard’s name entered into a written contract with him. The.

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173 Iowa 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-howard-iowa-1915.