Davison v. . Associates of the Jersey Company

71 N.Y. 333, 1877 N.Y. LEXIS 505
CourtNew York Court of Appeals
DecidedDecember 4, 1877
StatusPublished
Cited by23 cases

This text of 71 N.Y. 333 (Davison v. . Associates of the Jersey Company) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davison v. . Associates of the Jersey Company, 71 N.Y. 333, 1877 N.Y. LEXIS 505 (N.Y. 1877).

Opinion

Andrews, J.

The contract of May 25, 1858, between Davison and the defendants, was annulled by the express agreement of the parties, when the contract of December 8, 1858, was executed. The latter contract was a new and substituted agreement, covering the entire subject of the former one, and the legal and equitable rights of the parties in this action depend solely upon the contract of December 8, 1858, and the subsequent transactions between them. (Price *336 v. McGown, 10 N. Y.,465; Fry on Specific Performance, 201.) That contract was contained in two instruments of the same date, executed at the same time. By one, called' the building contract, Davison agreed to furnish the materials, and to complete the five houses on the five lots of the defendants in Jersey City on or before the first day of May, 1859, and the defendants agreed to pay him therefor $1,005 for each house, in installments, as the work progressed. By the other, the defendants agreed, upon the completion of the houses, to sell and convey the houses and lots to Davison, for the sum, in the aggregate, of $22,800, to be secured by the bonds of the purchaser, and by separate mortgages on the several lots, as stated in the agreement; and Davison agreed to purchase and pay for the property on the terms specified. The contract contained the provision that the buildings “ are to be completed, and said bonds and mortgages given, on or before the 1st day of August, 1859, or this contract and said building contract shall be void, at the option of the party of the first part ” (the defendants). The building contract, as will be observed, provided that the buildings should be completed on or before the 1st of May, 1859, and the other, that they were to be completed and the bonds and mortgages given on or before the 1st of August, 1859, or the contracts, at the option of the defendants, should be void. Construing the two instruments together, it seems to be clear that, if the purchaser completed the buildings by the latter date, and was then ready to give the bonds and mortgages specified, he would be entitled to a conveyance. In other words, a default on his part to complete the buildings by the 1st of May, 1859, according to the terms of the building contract, would not preclude him from enforcing the contract for a conveyance, if they were completed by the 1st of August next ensuing. This question is not, however, very material in this case, as it is found by the referee that the houses were substantially completed on the 1st of May, and the tender by the defendants of the deed on the 11th of August, 1859, and their offer to deliver it, upon the *337 execution by the purchaser of the bonds and mortgages according to the contract, was an admission on their part that the contract had been performed in respect to the completion of the buildings; or, at least, it operated as a waiver of any default by the purchaser prior to that date.

The effect of the tender by the defendants of the deed on the 11th of August, 1859, in connection with the contract and acts of Davison on that occasion, was the subject of considerable controversy on the argument. The court found, in respect to that transaction, that the defendants tendered to Davison a deed, and demanded the bonds and mortgages provided in the written contract, and that Davison replied that he did not accept or reject the deed, but could not deliver the mortgages until the amount was settled; and that the defendant’s agent made no reply, but withdrew. There was no uncertainty as to the amount of the bonds and mortgages, which the purchaser was to give, looking to the written contract only; but the explanation of Davison’sstatement, that he could not give the mortgages until the ■ amount was settled, is found in his previous acts and conduct. On the 80th of July, he tendered to the defendant’s-president bonds and mortgages upon the property, exceeding; by about $10,000 the amount specified in the written contract, and demanded a deed, and, also, that tlie defendants should advance him the excess of the mortgages beyond the - amount of $22,800, in money; and this advance as the complaint and proof shows, was claimed by Davison, on the ground, that the defendants, by an oral agreement made-subsequent to the written contract, in consideration of a. change made by him, at their request, in the plan of the buildings, which increased their cost, promised to advance this additional sum. This alleged oral agreement was not found, and the court, in substance, refused to find that-any agreement was made by the defendants to advance any sum beyond the amount specified in the original agreement. There was evidence, on the part of the plaintiff, tending to show an agreement for an additional advance of the sum of *338 about $3,500; but this was controverted by the defendants, and was a question of fact to be determined on conflicting proof. Upon the proof and findings, it must be assumed that the defendants did not agree to make advances to Davison beyond those specified in the contract of December 8th, and that he was not justified in refusing to accept the deed, and give the bonds and mortgages as required by the defendants. The defendants insist that their obligation to convey the land was terminated by the refusal of Davison to give the bonds and mortgages on the tender of the deed. The refusal of Davison would doubtless have justified the defendants in rescinding the contract, but we are of opinion that his qualified refusal to accept the deed, and give the bonds and mortgages demanded, on the ground that the original contract had been modified, did not alone forfeit his rights under the contract. Forfeitures are not favored, and a strict fulfillment in point of time of a contract for the sale and purchase of land by the party claiming specific performance, is not in general a condition precedent to relief. The qualified refusal of Davison was not equivalent to an absolute refusal to carry out the written contract, and the defendants, before they could insist upon a forfeiture by reason of the refusal of Davison, were bound, we think, to give him an opportunity to comply with the demand, after notice that a failure to do so would be treated by the defendants as a rescission. (Reynolds v. Nelson, 6 Mad., 18.)

Assuming, therefore, that Davison might, after the interview of August 11, 1859, have tendered performance and entitled himself to a conveyance, this right was nevertheless forfeited by his subsequent laches. The premises remained unoccupied until January, 1860. Davison apparently abandoned the possession. The houses were left partly unfinished and exposed to the weather. Davison took no steps to procure a-conveyance. He did nothing to indicate that he intended to complete the contract. The defendants in January, 1860, treating the contract as rescinded, advertised the lots, with others, for sale at public auction on the 18th of that month. • *339 Of this proceeding Davison had notice, and he appeared at the sale, and there demanded of the defendants a deed, and offered to execute mortgages according to the contract of December, 1858.

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Bluebook (online)
71 N.Y. 333, 1877 N.Y. LEXIS 505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davison-v-associates-of-the-jersey-company-ny-1877.