Haldeman v. Chambers

19 Tex. 1
CourtTexas Supreme Court
DecidedJuly 1, 1857
StatusPublished
Cited by45 cases

This text of 19 Tex. 1 (Haldeman v. Chambers) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haldeman v. Chambers, 19 Tex. 1 (Tex. 1857).

Opinion

Wheeler, J.

The proof shows very satisfactorily that the defendant Chambers had a special object in view in making the,con tract, by which he obligated himself to make title to the land, in consideration of the assignment to him of the audited certificate of public debt. It was that'he might sell or hypothecate the certificate for a loan of money to meet his present, urgent necessities. And this was well known to the other contracting party, who acted, in making the contract, for himself, and as agent for these plaintiffs. The latter undertook and guaranteed that he had full power and authority from the plaintiffs to assign and transfer the certificate by his deed of assignment of the 4th of March, 1853. The obligation to make title, on which this suit is brought, states the fact of th& assignment and guaranty of authority to assign, and expresses that it is given in consideration thereof, and of the “ engagement of the said David Haldeman to cause the said “ certificate to be delivered to me within sixty days, and the “full amount of any loan which may have been negotiated “ thereon.” The certificate had been sent to Brower & Co., of [39]*39New York, to negotiate a loan of money. The manifest intention of the parties was, to pass the property in the certificate, by the assignment, so as to enable the assignee, Chambers, to use it, and its proceeds, as his own ; and if the assignment was not effectual for that purpose, to make it so within sixty days, from that date. No other delivery of the certificate by Haldeman was necessary, or contemplated, than such as would be effected by the assignment and power to demand and receive it, and any loan which might be negotiated upon it, from the hands of Brower & Co., if the power under which Haldeman acted, was sufficient to enable him to make the assignment, and empower the assignee to demand and receive the certificate. If these were sufficient, nothing more was required of him. If not sufficient, his undertaking bound him to make it sufficient within sixty days. This is the only sensible construction which can be put upon the terms of the contract; and it accords with the testimony of the witness Larkins, as to the actual understanding of the parties. The limit of sixty days could not have reference to the assignment, which was made at the time. It had not reference to the mere manual tradition of the certificate ; for that, without the ability to use it, would have been of no avail to the defendant ; besides, that was to be effected by the power accompanying and coupled with the assignment. It had reference to the perfecting of the assignment and transfer within that period (in case it needed anything to perfect it), so as to render the certificate available to the defendant/ for the purpose for which he had purchased it. It can have had reference to nothing else. This, then, was the undertaking of David Haldeman, for himself, and as agent for the plaintiffs. But there was an utter failure on the part of the plaintiffs and their agent, to comply with their undertaking. The agent had no power to make the necessary assignment; and the principals did not make it. The former could not, and the latter have not performed that undertaking. The defendant was delated, [40]*40and finally defeated, in accomplishing the object he had in view, in making the purchase, without any fault of his own, but by the fault of the plaintiffs, or their agent; and it is immaterial which, the consequences to him were the same, and so are they upon the right of the plaintiffs, to have a specific performance of the contract. Surely it cannot be supposed that the plaintiffs are in a condition to claim the specific performance of the contract by the defendant, when they have wholly failed to perform on their part; or, that any transactions between themselves and their agent, as to the purchasing of his-interest in the contract, can give them that right.

It is said the plaintiffs ratified the contract made by their agent. But that was not enough. They were bound, not merely to ratify, but to perform the contract. If they adopted the contract of their agent, they took it with all its obligations and consequences ; and were obliged to perform its stipulations. If they ratified the act of sale, it became their contract, and they were bound to its performance, in like manner as if they had personally made it. (Story on Agency, Sec. 250, 419 ; Story on Con. Sec. 164 ; Henderson v. The San Antonio and Mexican Gulf R. R. Co., 17 Tex. R. 560.) Their ratification of the acts of their agent can be of no avail to the plaintiffs in this action; because they did not perform the undertaking with the defendant, to the performance of which, their agent, by his contract, had bound them.

It is immaterial whether the agent had authority or power to rescind the contract or not. When the plaintiffs failed to perform it, and the defendant Chambers was thereby prevented from deriving the benefits it was intended to confer, he had the right to treat it as at an end ; and to have it rescinded, without the consent of the plaintiffs, or their agent. Instead of sixty days, for which they had contracted, he gave them nearly twelve months, within which to perform their undertaking; and when they still failed to do so, undoubtedly he was entitled to a rescission of the contract.

[41]*41It is objected that the defendant had put it out of his power to rescind the contract, because he had drawn drafts on Brower, the holder of the certificate, payable out of the proceeds of its sale. This, it is insisted, was an equitable assignment by Chambers of the certificate. If Chambers had been the owner of the certificate, or had been legally empowered to assign it, the argument would be entitled to much consideration, though it does not appear that the drafts were- accepted by Brower. But the giving of the drafts manifestly did not have the effect to operate an assignment of the certificate, for the plain reason that Chambers had not the power to assign it. Neither he nor Brower possessed competent authority to assign it to effect that object, by any act or deed of theirs, either equitably or legally. The drafts, though they had been accepted, could not effect an assignment, which neither the drawer nor acceptor had power to make. Moreover, the deposition of Brower, shows that the certificate is in his hands subject to the event of this suit; and that the title to it is not affected by any lien, or other incumbrance. Had the plaintiffs assented to the rescission of the contract, instead of bringing suit to enforce it, there is no reason to suppose that any one would or could have contested their title to the certificate. There would be more force in the argument for the appellants on this branch of the case, if they had charged the defendant with having converted the certificate to Ms own use, and had shown that he had it in his power to do so, in consequence of any act of theirs, done in fulfillment of their contract to convey it to him. But they have neither averred, nor offered to proye, a compliance with their contract to make good the transfer. They have not put it in the power of the defendant to use the certificate. On the contrary, the plaintiff Thomas J. Haldeman, before instituting suit, gave notice to Brower not to deliver the certificate to the defendant; and then, while thus withholding, or causing ■ to be withheld, the consideration moving to the defendant, he brings suit to com[42]*42pel him to the performance of the contract.

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Bluebook (online)
19 Tex. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haldeman-v-chambers-tex-1857.