Clinton Service Co. v. Thornton

100 So. 2d 863, 233 Miss. 1, 1958 Miss. LEXIS 349
CourtMississippi Supreme Court
DecidedMarch 10, 1958
Docket40699
StatusPublished
Cited by20 cases

This text of 100 So. 2d 863 (Clinton Service Co. v. Thornton) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clinton Service Co. v. Thornton, 100 So. 2d 863, 233 Miss. 1, 1958 Miss. LEXIS 349 (Mich. 1958).

Opinion

*6 Ethridge, J.

The issue is whether, on general demurrer to the bill of complaint, an option to execute a lease on a filling station is unenforceable in a suit for specific performance, on the ground that provisions of the lease would be harsh and oppressive.

Appellant, Clinton Service Company, filed a bill in the Chancery Court of the First Judicial District of Hinds County against C. D. Thornton and Robert Dennis Thornton for specific performance of an option to lease a filling station owned by defendant-appellees, and for damages. A general demurrer to the bill was sustained, and the bill dismissed. So on this appeal we must accept, as true the averment of facts in the bill and reasonable inferences from them.

I.

Clinton Service Company is a corporation domiciled in the City of Clinton, and engaged in the business of wholesale selling and distribution of petroleum products. Defendant, C. D. Thornton, proposed to the president of Clinton Service that the latter assist him in financing the construction of a filling station on land owned by defendant on U. S. Highway 80 in the community of Van Winkle, south of Jackson. On June 7, 1949, complainant *7 and Thornton entered into the contract which is the subject of this litigation. It was for a term of ten years with an option for an additonal ten years. For “mutual valuable considerations” Thornton agreed to advertise and sell, for a period of ten years, only Shell petroleum products handled and distributed by Clinton Service. The latter was to sell Thornton at its regular prices all petroleum products to be sold by him at retail at his filling station.

Clinton Service agreed to furnish and install pumps, underground tanks, a rotary lift, and other equipment, but it would retain title in this property. Clinton Service agreed to make certain repairs and improvements to the filling station as a “material inducement to the parties to irrevocably bind and obligate themselves to each other as herein provided.” Paragraph (3) of the contract then stated: “Should the buyer, during the life of this contract, decide to sell the above described site and property to another, or should he elect to discontinue the sale of such petroleum products thereat, then, in such event the seller is granted the irrevocable option within thirty days after written notice from the buyer to such effect to have the said buyer, or his grantee of said property, execute to the seller, or its nominee, a lease on said premises for a period of ten years with an option to extend the same on the same terms and conditions for a like period at a rental of $5.00 per month, payable monthly, in advance, during the life of such lease which shall otherwise be in the standard and usual and customary form in common use in such case in this state, plus 1‡ per gallon on all gasoline sold by the seller to the buyer.”

Thornton agreed to pay the taxes on the property and to pay all obligations of the business. The contract was recorded in the chancery clerk’s office. Complainant performed its obligations under the contract, installed the equipment and made the repairs. Thornton operated the filling station under this contract for more than seven *8 years prior to the filing of the suit in March 1957. In 1951, C. D. Thornton conveyed a half interest to defendant Eobert Dennis Thornton, but no question is raised here as to the liability of both parties under this contract.

In August 1956, defendant told various persons that they planned to discontinue the sale of complainant’s petroleum products. They erected on the property several buildings for business and professional uses as a small shopping center. They began construction of another filling station at a different location on Highway No. 80, with the purpose of discontinuing the sale of complainant’s products. In August 1956 complainant wrote defendants advising them that they had heard of the proposed change, stating its desire to continue the contract, but, if defendants did not desire to operate the filling station, complainant intended to exercise its option for a lease on the property.

On September TO, 1956, defendants replied: “We thought we had made it clear that we were going to tear it (the station) down, when we asked you about six weeks ago to try to get another location. In about ninety days from this date we plan to move the location of your pumps in a southerly direction about eighty-five feet. ’ ’

On September 13 complainant by letter gave the Thorn-tons notice that it desired to exercise its option for a lease under the contract and offered to prepare the necessary instrument. They then advised complainant that they would continue operation of the filling station; but, nevertheless, in December 1956, they began to move some of the equipment to another location, so on December 4 complainant requested that this equipment be placed back at the original station, protesting the violation of the contract, and again advising that it intended to exercise its option rights.

In January 1957 defendants closed the filling station and moved their operations to another location one block east across the highway. Théy ceased to purchase and sell petroleum products of complainant at this location.

*9 The bill charged that defendants therefore elected to discontinue the sale of petroleum products at the filling station, and, under paragraph (3) of the contract, complainant was entitled to a lease of the premises; and that defendants should be required to execute such lease. It was alleged that complainant had no adequate remedy at law, and it had sustained damages and loss of income from its business as a result of such breach of contract in the amount of $900 per month, plus the loss of good will and other stated damages. The bill sought a temporary injunction restraining defendants from removal of equipment from the premises, a final decree requiring the defendants to specifically perform the contract by executing a lease to complainant under the terms of paragraph (3), and also damages.

The defendants filed a general demurrer, setting up five grounds: No equity on the face of the bill; the contract is without mutuality of obligation or remedy, and hence unenforceable; the contract is so harsh and oppressive as to warrant a court of equity in refusing specific performance; the contract is vague and ambiguous; and complainant has an adequate remedy at law. The chancery court sustained this demurrer, and dismissed the bill of complaint.

II.

Appellees contend that the contract is unenforceable because of want of mutuality of obligation and remedy. Although consideration is essential, mutuality of obligation is not, unless the want of mutuality would leave one party without a valid consideration for his promise. 12 Am. Jur., Contracts, Section 14. The doctrine of mutuality is inapplicáble to unilateral contracts. If a promissor has received sufficient consideration, his promise is binding, even though the consideration is not a promise. Hence an option supported by a consideration is valid even though the holder is not obligated to exercise it. The essence of an option con *10 tract is that it is not mutual. 12 Am.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Marc L. Fairchild v. John Bilbo
166 So. 3d 601 (Court of Appeals of Mississippi, 2015)
Garrett J. Prestenbach, Jr. v. J. Gerald Collins
159 So. 3d 531 (Mississippi Supreme Court, 2014)
Caplin Enterprises, Inc. v. Arrington
145 So. 3d 608 (Mississippi Supreme Court, 2014)
Caplin Enterprises, Inc. v. Denise Arrington
Mississippi Supreme Court, 2011
First Franklin Corp. v. Barkley (In Re Anthony)
334 B.R. 780 (N.D. Mississippi, 2005)
New South Federal Savings Bank v. Anding
414 F. Supp. 2d 636 (S.D. Mississippi, 2005)
McKenzie Check Advance of Mississippi, LLC v. Hardy
866 So. 2d 446 (Mississippi Supreme Court, 2004)
MCKENZIE CHECK ADVANCE OF MS v. Hardy
866 So. 2d 446 (Mississippi Supreme Court, 2004)
Rotenberry v. Hooker
864 So. 2d 266 (Mississippi Supreme Court, 2003)
Raesly v. Grand Housing, Inc.
105 F. Supp. 2d 562 (S.D. Mississippi, 2000)
Pridgen v. Green Tree Financial Servicing Corp.
88 F. Supp. 2d 655 (S.D. Mississippi, 2000)
Osborne v. Bullins
549 So. 2d 1337 (Mississippi Supreme Court, 1989)
Busching v. Griffin
542 So. 2d 860 (Mississippi Supreme Court, 1989)
Voss v. Stewart
420 So. 2d 761 (Mississippi Supreme Court, 1982)
Clinton Service Co. v. Thornton
126 So. 2d 252 (Mississippi Supreme Court, 1961)
Pickett v. Boutwell
125 So. 2d 822 (Mississippi Supreme Court, 1961)

Cite This Page — Counsel Stack

Bluebook (online)
100 So. 2d 863, 233 Miss. 1, 1958 Miss. LEXIS 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clinton-service-co-v-thornton-miss-1958.