D'ANGELO v. Schultz

823 P.2d 997, 110 Or. App. 445, 1992 Ore. App. LEXIS 43
CourtCourt of Appeals of Oregon
DecidedJanuary 8, 1992
Docket86-CV-70; CA A66327
StatusPublished
Cited by7 cases

This text of 823 P.2d 997 (D'ANGELO v. Schultz) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D'ANGELO v. Schultz, 823 P.2d 997, 110 Or. App. 445, 1992 Ore. App. LEXIS 43 (Or. Ct. App. 1992).

Opinion

*447 JOSEPH, C. J.

Plaintiffs appeal from a judgment on a directed verdict on their claim for breach of a contract to purchase an apartment building. This case is before us for the second time. The first time, we dismissed the appeal as to defendant Javoric, affirmed the trial court’s dismissal of plaintiffs’ claims for fraudulent and reckless misrepresentations, reversed the summary judgment dismissing plaintiffs’ contract claim and remanded for further proceedings. D’Angelo v. Schultz, 89 Or App 339, 749 P2d 584, aff’d 306 Or 504, 760 P2d 866 (1988). Plaintiffs now assign error, after a retrial, to the trial court’s denial of their motion for directed verdict and its allowance of defendant Schultz’s motion for directed verdict.

Schultz, an attorney acting as the personal representative of an estate, solicited bids on the property by auction through a real estate agent, Morrison. Plaintiffs participated in the auction, but Javoric’s offer was accepted. On May 11, 1985, Javoric executed an earnest money agreement that fixed June 1 as the approximate date for the closing, but noted: “Buyer may need until 7-1-85 to complete transaction.” After June 1, the deadline was extended to July 15.

Late in June, Javoric expressed a desire to withdraw from the deal. On July 2, Morrison called plaintiff D’Angelo to ask whether plaintiffs wanted to purchase the property on the same terms as Javoric had offered. Plaintiffs said they would buy the property on those terms. Morrison then prepared an earnest money agreement for them to sign. They met with Morrison in his office on July 4. D’Angelo testified that Morrison spoke on the phone with Schultz and Javoric while plaintiffs were present. Plaintiffs signed the earnest money agreement before they left.

The record discloses conflicting testimony about what Morrison said during the telephone conversations with Schultz and Javoric and what he said to plaintiffs afterward. Plaintiffs testified that they understood that Javoric had agreed to relinquish her right to purchase and that Schultz had verbally accepted plaintiffs’ offer. 1 They testified that, *448 while Morrison was ort the phone, he asked Schultz whether to “sign them up” and that Morrison indicated that Schultz had answered in the affirmative. Plaintiffs also testified that Morrison indicated that he was going to take the earnest money agreement to Schultz and that Schultz was going to sign it. Morrison testified that he told plaintiffs that Schultz could not accept plaintiffs’ offer until Javoric had signed a written relinquishment of her rights.

. After the July 4 meeting, Schultz dictated to Morrison an agreement for Javoric to sign. That document provided that she would relinquish her right to buy the property in exchange for a promise that Schultz would refund $8,000 of the $10,000 on deposit if plaintiffs had completed their purchase by July 20. Schultz testified that he believed that he would be free to accept plaintiffs’ offer when Javoric signed the written relinquishment. Javoric signed it on July 9. Schultz signed plaintiffs’ earnest money agreement on July 7 or July 9. 2

On July 10, Morrison contacted D’Angelo and informed her that Javoric had obtained financing and would be following through with the purchase. Schultz then called D’Angelo and said that he was going to give Javoric until July 15 to complete the purchase. D’Angelo testified that she responded, “[N]o way, she’s relinquished her right to the property.” Plaintiffs went to Morrison’s office later that day and were shown Javoric’s relinquishment document. The next day, plaintiffs went to Schultz’s office and obtained a copy of their earnest money agreement, which Schultz had signed under the typewritten date “July 5.”

Plaintiffs argue that Schultz accepted their offer no later than July 9, when he signed their earnest money agreement. At that time, they claim, no conditions precedent had been attached to Schultz’s acceptance. Alternatively, they argue that his acceptance was without qualification, because no conditions precedent were reduced to writing. They assert that Schultz bore the risk that plaintiffs would discover that *449 he had signed the document and would understand his acceptance to be unconditional. Schultz argues that he did not intend to accept at any time, as evidenced by his failure to sign a transmittal memorandum drafted to accompany a copy of the document that would be delivered to plaintiffs. He argues, in the alternative, that the earliest that he accepted plaintiffs offer was July 11, when they obtained a copy of the agreement from his secretary, and that, by that time, plaintiffs were aware that he intended any acceptance to be contingent on Javoric’s failure to complete the sale by July 15.

The trial court granted the motion for directed verdict, reasoning that no material issues of fact were in dispute and that defendants were entitled to judgment as a matter of law, because, “before ever receiving the copy of the Earnest Money[,] plaintiffs knew that their offer had not been accepted and would not be accepted until either Mrs. Javoric withdrew or the 15th of July rolled around without her going ahead with the deal.”

The contract issues in this appeal are generally the same as those that were before us in the first appeal. In affirming our decision, the Supreme Court said:

“Whether other legal requirements regarding the formation of contracts have been fulfilled and whether the statute of frauds has been satisfied are two separate issues. They should not be merged by requiring delivery of a writing that is not necessarily an offer, an acceptance or the contract, but may be merely a memorandum. The statute requires only that a sufficient writing signed by the party to be charged be produced. Such a writing has been produced and the requirements of the statute therefore have been satisfied. ” 306 Or at 506. (Emphasis supplied.)

This time, the trial court erred in finding that, because plaintiffs first received a copy of the written earnest money agreement on July 11, the only possible date that a contract could have been formed was, as a matter of law, July 11.

The parties and the trial court apparently misunderstood the Supreme Court’s explanation of the relationship between the Statute of Frauds and the formation of a contract. The absence of a writing is a defense to enforcement of a contract; it is not a challenge to the existence of a contract. The statute does not establish any elements requisite to *450 making a contract. 3 Generally, neither the offer nor the acceptance need be in writing in order to make a contract — even one for the sale of real property. A writing need not be delivered in order to make a contract, if the acts for making a contract have been performed. Unless a different requirement is prescribed in the offer, one may accept an offer merely by signifying assent by signing a document, but the Statute of Frauds does not

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Cite This Page — Counsel Stack

Bluebook (online)
823 P.2d 997, 110 Or. App. 445, 1992 Ore. App. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dangelo-v-schultz-orctapp-1992.