Edmundson v. Phenix

178 N.W. 893, 146 Minn. 331, 1920 Minn. LEXIS 619
CourtSupreme Court of Minnesota
DecidedJuly 16, 1920
DocketNo. 21,838
StatusPublished
Cited by6 cases

This text of 178 N.W. 893 (Edmundson v. Phenix) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edmundson v. Phenix, 178 N.W. 893, 146 Minn. 331, 1920 Minn. LEXIS 619 (Mich. 1920).

Opinion

Hallam, J.

Defendant, a resident of Illinois, owned 480 acres of land in Polk county, Minnesota. Plaintiff was his tenant. There is evidence tending to prove the following: In April, 1919, defendant went to visit his farm and was not pleased with the prospect. He urged plaintiff to buy it. Plaintiff said he had no money. Defendant said “your credit is good * * * and it don’t take much money to satisfy me.” Defendant then asked plaintiff to try and sell the farm. He offered the whole farm for $75 an acre, or a certain half section at $65 an acre. Plaintiff was to have 60 days to make a sale. Defendant said he would make easy terms, [333]*333“pay enough to secure the land,” enough to “secure him on the sale,” he said, and the balance “with five per cent interest for five years and maybe longer.. We don’t need the money,” he said, “we just want to sell the land.” Defendant agreed to pay a commission of $1,000 on sale of the half section, and, in addition, all plaintiff could get over $65 an acre. Plaintiff was to have the privilege of buying the land himself and was to receive the commission if he should either sell or buy. Defendant then gave plaintiff this memorandum:

“Apr. 34,1919.
Price 473 acres $75.00 per acre.
Com. on sale, $2,000.
Half section $65.00 per acre. Com. $1,000.
60 days option.
Dan J. Phenix to Neis Edmundson.”

Plaintiff negotiated a sale of one quarter to Wood Brothers at 468 an acre and agreed to take the other quarter himself at $65 an acre. On June 18 a banker at Warren, Minnesota, acting for plaintiff wrote defendant as follows:

“I am helping Mr. Edmundson finance the purchase of the NE^ and also the Wood Brothers’ purchase of the SE% to whom Mr. Ed-mundson has made sale. The way it can be handled by this is as follows:
“The NE14 at $65 per acre would be $10,400. Commission to Mr. Edmundson, $1,000. To be paid at once $2,400. December 1, 1920, cash payment, $1,000. December 1, 1921, cash payment, $1,000. December 1, 1922, cash payment $5,000. Interest, Mr. Edmundson says you agreed should be 5 per cent, the interest to start from date of contract and the same to be payable annually on the whole amount remaining from time to time unpaid. The first interest to be December, 1920.
“On the sale of the SE% the purchase price would be $10,400. Cash payment, $3,400. December 1, 1920, $1,000. December 1, 1921, $1,000. December 1, 1922, $5,000. Interest at the same rate and payable in the same manner.
“Now, Mr. Phenix, I can finance the deal for these boys and Mr. Ed-mundson as above indicated and of course the sale will be absolutely safe to you, having received as large an amount in cash, and given con[334]*334tract for deed for balance. There is no question but what the parties are A-l, and they will meet their payments without any question.
“Mr. Edmundson does not feel that he can handle, your quarter on section 20 just now; but later on, if he has reasonably good luck, he will undoubtedly want it. I would want in the contracts, also, the privilege of paying on or before, so that they could have a chance to, pay more than the payments due, if they wished. You, of course, would give deed and abstract showing good title, on December 1, 1922, when they meet their final payment. Taxes of 1918 would be for you to pay, but they would assume subsequent taxes and you would assign lease conveying your one-half of the crop.
“I trust I have made the matter plain to you, and if so, and satisfactory, please wire me immediately upon receipt of this and I will prepare contracts in duplicate in accordance therewith and mail to you at once, together with drafts covering initial payments, upon receipt of which you can execute, retaining one, and return duplicate to us, and the matter will be closed.
“Will you please wire immediately and give name of party you wish contract made to so that the matter can be definitely settled one way or the other? Yours truly,
“H. L. Wood,
“President.”

On June 28, not having heard from defendant, the banker wired defendant: “I wrote you June eighteenth, but have had no answer. Did you get my letter ? Wire.”

On June 30 defendant answered by mail that the terms were not satisfactory. In September, 1919, he sold the whole tract on land contract for $87.50 an acre, receiving $1,500 down.

The trial court submitted the case to the jury with this instruction:

“Inasmuch as there were no specific terms as to the amount and time of payments specified in said contract, the question arises, were the terms contained in H. L. Wood’s letter to the defendant a reasonable compliance with the contract ? In ease you find that the contract was made as claimed by the plaintiff, then the question that next faces you is this: Was the cash payment the purchaser agreed to make and were the terms [335]*335of the payments as to the balance of the purchase price, as contained in Mr. Wood’s letter, such as you would say and find were reasonably contemplated by the parties and complied with the said contract ?”

The jury returned a verdict for plaintiff.

1. Defendant contends that the facts proven fail to make a cause of ac-. tion, that the terms agreed upon between plaintiff and defendant were too indefinite to constitute a binding contract. The contract was an un-business-like one, but, with some hesitation, we have decided to hold that it was a valid one. That the parties intended an agency contract is virtually conceded. The compensation was fixed. The price at which plaintiff was authorized to sell was fixed. The only uncertainty was as to the amount *of the payment down, and as to the terms of payment of the balance. As to the first, the stipulation was that defendant would make easy terms, requiring only enough paid down “to secure him on the sale,” and as to the second he would give five years and maybe longer, saying “we don’t need the money; we just want to sell the land.” It is clear that defendant intended a binding contract and intended to bind himself to pay a commission, if plaintiff should procure a purchaser willing to pay down an amount reasonably calculated to “secure him on the sale” and on terms reasonably within the limits named. Good faith on his part would seem to have required that he speak up promptly, if the details of the proposed sale were not satisfactory, to the end that they might be made so if the purchaser were so minded, before the term of the “option” expired; The payment down was much more than the amount defendant actually accepted from another purchaser to whom he gave a contract of sale on long time. A broker earns his compensation when he performs all that he undertook ■to perform. Goss v. Broom, 31 Minn. 484, 18 N. W. 290. The jury were justified in finding that plaintiff substantially performed his contract.

A similar principle was involved in Smith v. Keeler, 151 Ill. 518, 38 N. E.

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Related

Real Estate Dynamics, Inc. v. Richards
392 N.W.2d 250 (Court of Appeals of Minnesota, 1986)
McDonald v. Stonebraker
255 N.W.2d 827 (Supreme Court of Minnesota, 1977)
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81 N.W.2d 798 (Supreme Court of Minnesota, 1957)
Johnston v. Jordan
258 N.W. 433 (Supreme Court of Minnesota, 1935)
Evans v. Heaton
233 N.W. 281 (South Dakota Supreme Court, 1930)

Cite This Page — Counsel Stack

Bluebook (online)
178 N.W. 893, 146 Minn. 331, 1920 Minn. LEXIS 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edmundson-v-phenix-minn-1920.