Hecht v. Marsh

181 N.W. 135, 105 Neb. 502, 17 A.L.R. 1, 1920 Neb. LEXIS 76
CourtNebraska Supreme Court
DecidedDecember 31, 1920
DocketNo. 21142
StatusPublished
Cited by17 cases

This text of 181 N.W. 135 (Hecht v. Marsh) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hecht v. Marsh, 181 N.W. 135, 105 Neb. 502, 17 A.L.R. 1, 1920 Neb. LEXIS 76 (Neb. 1920).

Opinion

Horsey, C.

The plaintiff, Theron C. Hecht, recovered judgment upon a directed verdict against the defendant, Albert F. Marsh, upon a real estate broker’s written contract for the sale of the defendant’s land in Arthur county, which provided for the payment of a stipulated cash commission “if a sale is made, or a purchaser therefor found, at the price and upon the terms specified herein, or at any other price or terms which I may hereafter authorize or accept.” The terms specified were that the land might be sold for $9,600, of which $2,920 was to be paid in cash, $2,100 by the purchaser assuming incumbrances in that amount, and the remainder to be arranged “to suit purchaser.”

The plaintiff brought the defendant and one Jack Baker together, and on April 25, 1917, a written sale contract was executed whereby Baker agreed to purchase the land at $9,600, to be paid by his deeding to the defendant a quarter section in Perkins county, assuming existing mortgages on defendant’s land in the sum of $2,100, and giving a new mortgage back to the defendant on the land conveyed to Baker in the sum of $3,500. This contract called for the furnishing of good and sufficient deeds and abstracts of title mutually by the parties not later than May 10, 1917. But about May 1, 1917, Baker notified the defendant by letter that he would not fulfil the contract, and it was never carried out, the defendant taking no steps to enforce it.

In his petition the plaintiff set out the broker’s contract and alleged that the sale contract above mentioned was entered into through his efforts pursuant thereto; that he had fully performed and was entitled to the stipulated commission, for which he prayed judgment.

[504]*504The answer set up Baker’s failure to comply with the terms of the sale Contract, and averred that at the time of the negotiations with Baker the defendant insisted that a forfeit be deposited' and stated that he would not sign a contract without such forfeit; and that, in order to secure his signature to the contract, the plaintiff orally agreed with the defendant to waive any claim to commissions unless the sale should be completed .in accordance with the terms of the contract. These allegations were put in issue by reply.

The defendant offered parol evidence at the trial to prove, in substance, that after the negotiations between Baker and himself were about to fail because of Baker’s inability to.post forfeit money, the plaintiff, in order to prevent a failure of negotiations and to induce the execution of a contract of sale, orally agreed to make his claim for commissions in the transaction contingent upon the purchaser’s compliance with the contract. The offered evidence was excluded, and an issue of law is thus squarely presented as to whether a contract between a landowner and a broker required by. the statute to be in writing is susceptible of subsequent parol modification with respect to the compensation provided for therein.

It has been held by this court that the general rule prohibiting the subsequent oral modification of contracts required by the statute* to be in writing applies only with respect to those provisions which the statute expressly requires to be contained in the writing in order to make it valid. Hetzel v. Lyon, 87 Neb. 261; Rank v. Garvey, 66 Neb. 767. Two provisions only are specifically mentioned in section 2628, Rev. St. 1913, as essential to contracts employing brokers to sell land, namely, that the land be described and the compensation set forth. The modification which the defendant set up in his answer and offered to prove in the instant case relates to the compensation; the plea is that the defendant’s agreement under the written contract to pay the stipulated commission, in case the plaintiff made a sale on terms satisfactory to the [505]*505defendant, was changed by subsequent oral agreement into a promise to pay it only in the event that the purchaser should perform his contract. If, therefore, the rule of the cases last cited is to be rigorously applied, there was no error in the exclusion of the offered evidence.

If there is any factor in the instant case which removes it from the operation of that.rule, it must be found in the fact that when, according to the defendant’s offered proof, the negotiations were about to- fail because of Baker’s inability to meet the defendant’s terms, the plaintiff interposed between the parties, and" offered the defendant an inducement to waive his right to insist upon those terms by promising not to claim commissions if Baker did not perform. Taking the defendant’s offer of proof as true, the situation was that Baker was not ready to deal upon the terms upon which the defendant had authorized the plaintiff to sell his land. Instead of $2,920 in cash, he proposed to pay no cash at all, but to put in his land in Perkins county as the equivalent of $4,000 of the purchase price. Not only was Baker’s proposition a material departure from the terms upon which the defendant had authorized his land to be sold, but Baker was unwilling or unable to comply with the custom in such transactions and to put up forfeit money as an evidence of good faith. Under those conditions it would not be unlikely that the defendant was reluctant to approve the proposition and to enter into a contract for the sale of his land, thus subjecting himself to- the payment of commissions, without adequate assurance that Baker would perform on his part.

It was, moreover, the defendant’s absolute right to stand upon the terms embodied in his authority to the plaintiff to sell the land, and to refuse to negotiate with Baker upon other terms. According to the defendant’s offered proof, that was his attitude until the plaintiff intervened with his offer to claim no commissions if Baker should fail to carry out his contract.

If the defendant had persisted in his refusal to deal with Baker on the altered terms, it will not be contended [506]*506that the plaintiff would, have been entitled to commissions, because the latter would have failed in the primary condition of his right to commissions, which was to produce a purchaser able, ready and willing to buy upon the terms of the contract or upon any others that the defendant might approve. And if the defendant had consented to the altered terms without any inducement being held out to him by the plaintiff, his liability for commissions would be unquestionable. But in the instant case we have the additional element of persuasion or inducement utilized by the plaintiff to overcome the defendant’s objections to the altered terms, in the form of an express promise to relieve the defendant of any liability to him if Baker did not perform. The question.is whether such a waiver, not in writing, under the accompanying circumstances of influence exerted upon the defendant to overcome his resistance and/induce him to execute a contract that he would not otherwise have entered into, will operate to modify the plaintiff’s right to commissions under the written broker’s contract..,

Aside from the special circumstance that the writing was one within the statute of frauds, we should instantly say that the situation presented was such as general considerations of equity ought to preclude the plaintiff from taking advantage of. ■ Yielding to the influence of the plaintiff’s offer to waive commissions if the purchaser failed to perform, the defendant waived the terms upon which he had the right to insist and entered into a contract which, within a week, the purchaser expressly repudiated and refused to fulfil.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Loomis v. Messersmith
Nebraska Court of Appeals, 2015
168th and Dodge, LP v. Rave Reviews Cinemas, LLC
501 F.3d 945 (Eighth Circuit, 2007)
Carey v. Carey, Unpublished Decision (2-20-2004)
2004 Ohio 770 (Ohio Court of Appeals, 2004)
Berube v. Montgomery
463 A.2d 158 (Supreme Court of Rhode Island, 1983)
Albracht v. Prudential Insurance Co. of America
267 N.W.2d 511 (Nebraska Supreme Court, 1978)
Farmland Service Coop, Inc. v. Klein
244 N.W.2d 86 (Nebraska Supreme Court, 1976)
Yrisarri v. Wallis
418 P.2d 852 (New Mexico Supreme Court, 1966)
Wiskocil v. Kliment
50 N.W.2d 786 (Nebraska Supreme Court, 1952)
Ford v. Luria Steel & Trading Corp.
192 F.2d 880 (Eighth Circuit, 1951)
Swanson v. Madsen
18 N.W.2d 217 (Nebraska Supreme Court, 1945)
Doran v. National Surety Co.
250 N.W. 82 (Nebraska Supreme Court, 1933)
Zannis v. Freud Hotel Co.
240 N.W. 83 (Michigan Supreme Court, 1932)
Ridgell v. Farmers' Nat. Bank of Rockwall
275 S.W. 858 (Court of Appeals of Texas, 1925)

Cite This Page — Counsel Stack

Bluebook (online)
181 N.W. 135, 105 Neb. 502, 17 A.L.R. 1, 1920 Neb. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hecht-v-marsh-neb-1920.