Gordon v. Darnell

5 Colo. 302, 1 Colo. L. Rep. 204
CourtSupreme Court of Colorado
DecidedDecember 15, 1880
StatusPublished
Cited by23 cases

This text of 5 Colo. 302 (Gordon v. Darnell) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon v. Darnell, 5 Colo. 302, 1 Colo. L. Rep. 204 (Colo. 1880).

Opinion

Beck, J.

The plaintiffs below, appellants here, were original locators of the Good'Neighbor mining claim, at Silver Cliff. On the 23d day of August, 1879, they executed and delivered to one John W. Lawrence, a bond in the penal sum of one thousand dollars, conditioned to convey tbe claim to him on payment to them, or upon the deposit by Lawrence in the Custer County Bank, in Silver Cliff, on or before the 23d day of October, 1879, the sum of four hundred and fifty dollars. The bond was not signed by Lawrence contains np clause granting him the possession during the option, and no consideration is expressed for the option given.

Lawrence went upon the claim about the 2d of September, built an ore-house and commenced to sink shafts thereon. . On the 9th of September he executed a title bond to the defendants, Darnell and flodson. This instrument was conditioned [303]*303to execute to them a deed upon payment on or before December 8, 1879, of the sum of $25,000. Lawrence thereupon admitted Darnell to enter upon the claim and occupy it jointly with himself.

On the 12th day of September, two of the plaintiffs, Heister and Gordon, entered and commenced digging, when Lawrence and Darnell objected, and expelled them from the ground, Darnell claiming under his bond from Lawrence, and Lawrence claiming under his bond from the plaintiffs.

This suit against Darnell and Hudson was instituted the next day, September 13th. Hodson was not served with process, and Darnell only appeared to the action.

The cause was tried at the October term of the District Court of Ouster County, before the court and a jury, the trial resulting in a verdict for the defendant, Darnell.

The plaintiffs bring the cause here by appeal, assigning for error, inter alia, certain rulings of the judge in admitting and rejecting testimony, the granting and refusing of instructions, and the denying of plaintiff’s motion for a new trial.

We will observe in the first instance, that we are precluded from reviewing the judgment upon the evidence, by a familiar and oft repeated rule of this court. The bill of exceptions does not purport to contain all the evidence. Hence, we cannot inquire whether the verdict of the jury is supported by the evidence or not.

Some important questions however arise upon the record respecting the rulings of the court upon the'trial, which we will examine.

The district judge appears to have taken an erroneous view of the legal effect of the title bond executed by the plaintiffs to Lawrence, and this evidently led him into the commission of sundry erroneous rulings during theprogressof the trial.

A bond of this nature is, in the first instance, a mere option to the obligee, to purchase at any time within the period therein limited, upon simple compliance with the terms stated. Until such acceptance by the obligee, there being neither mut[304]*304uality nor consideration, it imposes no obligation whatever on either party, and for that reason is subject to revocation by the maker at any time prior to acceptance. Such.a bond lacks the elements of a valid and binding contract. It is not signed by the purchaser, and no consideration is expressed for the option given. Not being enforceable to any degree against the purchaser, he is equally incapable of enforijing it against -the seller, for contracts to be obligatory upon either party must be mutual. Until acceptance by the obligee, or the performance of some act equivalent to an election to purchase under the terms mentioned therein, it is a nudum factum. Its legal effect is that of a continuing offer to sell, which is capable of being converted into a valid contract b}7 a tender of the purchase-money, or performance of its conditions, whatever they may be, within the time stated, and before the seller'withdraws the offer to sell. But if the offer be withdrawn before such election and tender of performance, it ceases to have any legal force whatever.

Where a money consideration for the option is expressed, or where the bond to convey requires the purchaser to improve and develop the property as a consideration of the option, or in part performance of the conditions of sale, and these terms have been duly complied with, a totally different case is presented from that where, by the terms and conditions of the instrument, nothing is to be paid and nothing done under it on the part of the purchaser until he makes his election to purchase. The former case contains all the elements of a binding contract, and the purchaser, although free to reject the offer of sale, may elect to accept within the time lifnited. In the latter case the offer must not only be accepted within the time mentioned, but before the option is withdrawn. Such acceptance, together with a tender of performance, renders the remedy mutual, and entitles the purchaser to a specific performance. The minds of the contracting parties are said to meet on the happening of these events, and the offer to sell ripens into a valid contract, just as it would if made and con-[305]*305eluded ai the time of acceptance. The B. and M. R. R. v. Bartlett, 3 Cush. 224; Corson v. Mulvany, 49 Pa. St. 88; Perkins v. Hadsel, 50 Ill. 216; Esmay v. Gorton, 18 Ill. 483; Estes v. Furlong, 59 Ill. 300; Vassant v. Edwards, 43 Cal. 458; Stevenson v. McLean (Queen’s Bench), 11 C. L. J. 229; Rutledge v. Grant, 4 Bing. 653; Cook v. Oxley, 3 T. R. 653; Eliam v. Henshaw, 4 Wheaton, 226; Carr v. Duval, 14 Pet. 76; Fry on Specific Perf. Secs. 64, 166, 167, 177-179.

Upon the trial plaintiffs offered to introduce in evidence what purported to be a notice which had been served upon Lawrence, rescinding the contract. The defendants’ counsel admitted that the notice was served on the defendants upon the day this action was instituted, but objected to the introduction in evidence of the notice, and the court sustained the objection. The notice not having been incorporated into the record, we are not informed of its contents, and can, therefore, only say that testimony of this character was pertinent to the issue before the jury. It is not pretended that a tender or deposit of the purchase-money was made until three days afterwards, and whether there had previously been such part performance, as to render the bond irrevocable was a question of fact, which was being tried.

When Lawrence was upon the stand as a witness for the defendant, plaintiffs’ counsel asked him the question, “Did you, or did you not, previous to making the deposit mentioned, receive notice from plaintiffs, or any of them, that they had rescinded the contract, and that you need not deposit the money to their credit ? ”

This question was likewise objected to, and the objection sustained. This was clearly error, for the reasons above mentioned. As before observed, the judge evidently placed an erroneous construction on the bond itself, treating it as irrevocable.

Counsel for appellees attempt to sustain these rulings, and likewise certain instructions given to the jury, on the ground that Lawrence had entered under the bond and made valuable [306]

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Bluebook (online)
5 Colo. 302, 1 Colo. L. Rep. 204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-darnell-colo-1880.