Eisenhower v. Brown

4 S.W.2d 627
CourtCourt of Appeals of Texas
DecidedFebruary 1, 1928
DocketNo. 7907.
StatusPublished
Cited by4 cases

This text of 4 S.W.2d 627 (Eisenhower v. Brown) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eisenhower v. Brown, 4 S.W.2d 627 (Tex. Ct. App. 1928).

Opinion

SMITH, J.

In the original disposition of this case the judgment of ,the trial court was ordered affirmed, in an opinion delivered on February 1, 1928. Upon consideration of the case in response to plaintiff in error’s motion for rehearing, we have concluded that we erred in affirming the judgment, which must therefore be reversed. The original-opinion will be withdrawn, and this one substituted therefor.

It appears from ,the record that H. W. Eisenhower owned lots 1 and 24, in block 1S8, in Edinburg, Hidalgo county, and on December 1, 1925, entered into the following contract with Thomas R. Patrick:

“I, the undersigned, in consideration of the services rendered and to be rendered by Thomas R. Patrick in disposing of the tract of land hereinafter described, do hereby agree 'to sell and convey said tract of land to any purchaser procured by him for the following price and on the following terms, * * * ($1,000.09 cash). * * * I agree to furnish an abstract of title to said tract brought down to date showing a good merchantable title in me. Said tract of land iS situated in Hidalgo county, Texas, and *628 described as follows: * * * I give and grant. to the said Patrick the exclusive right to sell said tract of land until February 1, 1926. The above mentioned price is to be net to me and I agree to give to the said Patrick as his compensation for procuring a purchaser all that is received for said tract of land over and above the foregoing mentioned price.”

On January 30, 1926—one day short of the termination of the agreement—Patrick, as Eisenhower’s agent or broker, entered into a contract by which he undertook to bind his principal to sell and convey the property to E. A. Brown at the price and upon the terms stipulated in the contract above set out at length. Later in the same day Eisenhower hunted up Patrick and told him the property was no longer on the market, whereupon Patrick told him he was “just a little late, I sold it this evening.” Eisenhower, however, repudiated the contract of sale made by Patrick, although' he paid the latter the $50 commission accruing by reason of the proposed sale. Subsequently Brown brought this suit to require Eisenhower to specifically perform the contract made in his name by Patrick for the sale of the property to Brown. The latter recovered judgment enforcing specific performance and Eisenhower prosecuted writ of error'. The point is made by plaintiff in error that the contract between Eisenhower and Patrick was not such as to authorize the latter to bind the former to a contract for the sale and conveyance of -the property to another ; that under the provisions of the contract Patrick’s authority was restricted to that of finding a “prospect” who was ready, able, and willing to purchase the land at the price and upon the terms stipulated by the landowner. The question presented is made difficult by apparent confusion among the authorities upon the subject.

The general rule more generally accept- | ed seems to be that unless the power thereto j is clearly given by the terms of his contract j of employment, a broker has no authority to i enter into á contrdct of sale of land binding upon his principal; that “the ordinary authority of a real estate broker employed to sell real estate is merely to find a purchaser who is ready, able, and willing to enter into a contract on the terms specified by, or acceptable to, the principal, and in the absence of such special authorization he has no authority to enter into a contract of sale, or to sell and convey, binding upon the owner.” O' O.' J. 526, § 28. Mr. Mechem, in his work on Agency, states the general rule to be, that “authority to sell real estate must ordinarily be conferred in clear and direct language; for, although -there are cases in which it may arise by implication, it is not lightly to be inferred from express power to do other acts, or brought within the operation of more gen-éral terms.” Mechem Agcy. §§ 802, 797, 798.

Texas'cases upon the direct question are scarce, and the decisions in those cases are not very satisfactory, except in the statement of the general principle, that the authority of the agent to bind the owner in a contract of sale must clearly appear from the contract of employment. It is true, of course, that the prior relations between the owner and broker, the dealings between them, local custom in such matters, and any other circumstance tending to establish an intention, on the part of the owner to invest the broker with the power to make a contract of sale binding upon the owner may be resorted to in determining the authority of the broker. By this process the decisions are reached through the application of the general principle to the facts peculiar to each case, and are of but little value in new cases where the facts differ in a particular detail from those in the reported cases. In the case of Colvin v. Blanchard, 101 Tex. 231, 106 S. W. 323, for instance, in the contract under which the broker was employed, it was provided that the land owner would pay the broker a specified commission “for making the sale.” The Supreme Court, in an opinion by Judge Brown, seems to have held that the language, “for malting the sale"' (italicized by that court), carried with it, under the peculiar circumstances of the case, an implication that the broker had authority to make a contract of sale binding upon the owner. That court, however, declined, upon other grounds, to require the owner to specifically perform the contract. In another case, Watkins, etc., Co. v. Campbell, 100 Tex. 542, 101 S. W. 1078. in which .also Judge Brown wrote the opinion, the writing under which the broker obtained his authority consisted in part of a letter from the owner to the broker, in which it was stated that “If you could get the amount of ‘your cash payment’ increased to $600 we would be willing to accept the offer.” The court held that this language restricted the authority of the agent against any power to contract a sale in behalf of the owner, and the decision in that case was explained by Judge Brown in his opinion in the Colvin v. Blanchard Case. In the latter Judge Brown quoted the above excerpt from the letter of authorization, italicized the phrase “your cash payment,” and held that by these expressions the broker was deprived of authority to contract. These decisions, because of the peculiar facts upon which they are based, are of but little value in determining the present case. In them it is held, in effect however, that the authority of the broker to contract for his principal must be clearly expressed in the contract of employment, or plainly inferred from other facts and circumstances clearly showing such to be the intention of the parties.

The case of Donnan v. Adams, 30 Tex. Civ. App. 615, 71 S. W. 580, decided by this court, and in' which writ of error was denied, seems to be the most satisfactory and reasonable expression upon the question in this state. *629 In that case the court approved the rule as expressed in Keim v. O’Reilly, 54 N. J. Eq. 418, 34 A. 1073, by the highest appellate court in New Jersey, in which that court quotes from an earlier New Jersey case, as follows:

“The mere employment' of an ordinary real estate broker to effect a sale of a parcel of land, even though the price and terms be prescribed, does not amount to giving present authority to such broker to conclude a binding contract for the same.

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