Franzke v. Fergus County

245 P. 962, 76 Mont. 150, 1926 Mont. LEXIS 86
CourtMontana Supreme Court
DecidedApril 10, 1926
DocketNo. 5,920.
StatusPublished
Cited by23 cases

This text of 245 P. 962 (Franzke v. Fergus County) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franzke v. Fergus County, 245 P. 962, 76 Mont. 150, 1926 Mont. LEXIS 86 (Mo. 1926).

Opinion

MR. JUSTICE HOLLOWAY

delivered the opinion of the Court.

The Maury ranch, situated in Fergus county, is owned by that county, but it is not material here to inquire just how this came about. It is sufficient to know that the ranch was not acquired for a public purpose, such as a poor farm or the like, but is held by the county in its proprietary capacity and represents an investment of $40,000. From the record, supplemented by oral admissions of counsel, it appears that the county desires to sell the ranch, but is not able to find a prospective purchaser who is willing to pay as much as $40,000 for it if the entire purchase price must be paid at once. It is able, however, to find a prospective purchaser who is ready, able and willing to contract to purchase the ranch for that amount, pay down at least twelve per cent of the price, and pay the balance in not to exceed ten equal installments, with interest on the deferred payments at six per cent per annum, and agree that the county shall retain the title to the property until the entire purchase price is paid. Confronted by this situation, the board of county commissioners determined to receive offers for the property upon the installment plan and to enter into a contract to sell it upon the most favorable terms obtainable, but not for less than $40,000, and to that end is now publishing a *153 notice for bids to be received on the twentieth day of this month.

A. A. Franzke, a resident taxpayer, instituted this suit on behalf of himself and all others similarly situated to secure an injunction' restraining the board from proceeding further in the matter, upon the theory that a county cannot dispose of its property in the manner here proposed, and the correctness of that theory is the sole question for solution.

In the notice published by the board, the proposed transaction is designated a “sale,” but it is not such in fact. “Sale is a contract by which, for a pecuniary consideration, called a price, one transfers to another an interest in property.” (Sec. 7581, Rev. Codes 1921.) “Transfer is an act of the parties, or of the law, by which the title to property is conveyed from one living person to another” (sec. 6835), and a voluntary transfer is an executed contract (sec. 6836). These sections, with section 4465, Revised Codes of 1921, leave no room for doubt that the term “sale” as used in our Codes implies that title to the thing sold passes immediately. Section 7582, Revised Codes, declares: “The subject of sale must be property, the title to which can be immediately transferred from the seller to the buyer.”

As distinguished from a sale, the transaction here contemplated, if consummated, will constitute: (1) An agreement to sell, defined by section 7584, Revised Codes, as follows: “An agreement to sell is a contract by which one engages, for a price, to transfer to another the title to a certain thing,”- or (2) an agreement to sell and buy, defined by section 7586: “An agreement to sell and buy is a contract by which one engages to transfer the title to a certain thing to another, who engages to accept the same from him and to pay a price therefor.” Under either of these latter sections the transaction is one which is frequently but erroneously designated a conditional sale. (State ex rel. Malin-Yates Co. v. Justice of the Peace, 51 Mont. 133, 149 Pac. 709.)

*154 The distinction between a sale, on the one hand, and an agreement to sell or an agreement to sell and bny, on the other, is recognized by all the authorities. (Ide v. Leiser, 10 Mont. 5, 24 Am. St. Rep. 17, 24 Pac. 695; Wright Land & Investment Co. v. Even, 57 Mont. 1, 186 Pac. 681; Benjamin on Sales (7th ed.), sec. 308.)

In Ide v. Leiser above, this court said: “There may be, first, a sale of lands; second, an agreement to sell land. * * * The first is the actual transfer of title from grantor to grantee, by appropriate instrument of conveyance. The second is a contract to be performed in the future, and, if fulfilled,' results in a sale. It is a preliminary to a sale, and is not the sale. Breaches, rescission or release may occur, by which the contemplated sale never takes place. * • * A present conveyance of lands is an executed contract. An agreement to sell is an executory contract.”

In 1 Williston on Sales, 2d ed., section 2, the author says: “The most fundamental distinction in the law of sales is between a contract to sell in the future and a present sale. The distinction is often expressed by the terms executory and executed sales. Whether a bargain between parties is a contract to sell or an actual sale depends upon whether the property in the goods is transferred. If it is transferred there is a sale, an executed sale, even though the price be not paid. Conversely, though the price be paid there is but a contract to sell (not very happily called an executory sale) if the property in the goods has not passed.”

The board does not intend to transfer the Maury ranch on the 20th of this month. It does not intend to sell it at that time, but it does intend that the agreement then made shall ripen into a sale at the conclusion of the contract period; in other words, a sale is the ultimate purpose sought to be accomplished, and therefore the inquiry: May a county dispose of its property in the manner contemplated here?

A county is merely a subdivision of the state for governmental purposes, and as such is subject to legislative *155 regulation and control, except to tbe extent that tbe Constitution bas restricted tbe law-making body. Within those limitations tbe legislature may circumscribe or extend tbe powers to be exercised by a county as it sees fit (Edwards v. Lewis and Clark County, 53 Mont. 359, 165 Pac. 297), and since our Constitution bas not limited tbe authority of tbe legislature to regulate or control tbe disposition of county property, tbe right of tbe legislature to say that such property may be sold only under tbe restrictions and in tbe manner indicated by tbe statutes cannot be questioned; for while a county is a body politic and corporate, whose business, generally, is transacted by its board of county commissioners, it bas only such powers as are conferred by law, either expressly or by necessary implication. (See 4441, Rev. Codes, 1921; Independent Publishing Co. v. County of Lewis and Clarke, 30 Mont. 83, 75 Pac. 860; Hersey v. Neilson, 47 Mont. 132, Ann. Cas. 1914C, 963, 131 Pac. 30; Bignell v. Cummins, 69 Mont. 294, 36 A. L. R. 634, 222 Pac. 797.)

It is suggested by defendants that a liberal construction of our statutes will justify tbe action now sought to be taken; but, if any doubt could exist as to tbe intention of tbe lawmakers with respect to tbe subject, that doubt is dispelled by a reference to tbe history of tbe pertinent legislation.

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Bluebook (online)
245 P. 962, 76 Mont. 150, 1926 Mont. LEXIS 86, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franzke-v-fergus-county-mont-1926.