Hicks v. Christeson

164 P. 395, 174 Cal. 712, 1917 Cal. LEXIS 856
CourtCalifornia Supreme Court
DecidedMarch 28, 1917
DocketS. F. No. 7894.
StatusPublished
Cited by27 cases

This text of 164 P. 395 (Hicks v. Christeson) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hicks v. Christeson, 164 P. 395, 174 Cal. 712, 1917 Cal. LEXIS 856 (Cal. 1917).

Opinion

MELVIN, J.

Defendant appeals from the judgment and from an order denying his motion for a new trial.

The action was one by which plaintiff sought to recover, $893.90 as damages for defendant’s failure to carry into effect an alleged agreement for the sale of real property located in Texas. It was the contention of respondent that defendant was bound under the terms of a written contract of employment to pay to him the amount sued for, by reason of Christeson’s failure to carry out an arrangement negotiated by plaintiff for the sale of the property to one McCrory.

The date of the original contract between the parties to this action was December 4, 1907. On that day defendant signed a writing by the terms of which he appointed plaintiff his agent to procure a purchaser and to enter into a contract to sell 1,365 acres of land in the “Edward Beaty League.” in the state of Texas. The agreement was mailed to plaintiff at Victoria, Texas, and was delivered, accepted, and signed by him there. By this writing defendant appointed plaintiff his exclusive agent for twelve months to sell the land at four dollars per acre net to the vendor, and (to quote directly from the instrument), “thereafter until said agency is by me terminated in writing with full authority to execute a con *714 tract for the sale of said land in accordance herewith in my name and behalf. % of the amounts to be received by us for said land shall be paid in cash and the balance % within 1, 2 and 3 years shall be secured by the vendor’s lien 7% interest in the. warranty deed to said land to be executed as soon as purchaser is found and to recite as consideration therein such amount as said agent shall designate.” The. other parts of the contract had reference to the furnishing of an abstract of title and to other matters which need not be discussed here.

After entering into the said contract, the plaintiff, on May 23, 1908, executed an agreement signed by himself, and one W. W. McCrory, wherein it was provided that in consideration of $333% paid by McCrory to plaintiff the former should have the option from the date of the agreement to November 1,1908, to purchase the property upon the following terms: $1.50 cash per acre and notes in the sum of three dollars per acre bearing interest at seven per cent and secured by a vendor’s lien. These notes were to provide for the payment of the balance of the purchase price in three equal sums two, three, and four years after date. The amount paid on the execution of the option agreement was to apply on the purchase price if the option should be exercised, and plaintiff, as the agent of Christeson, promised to convey the land to McCrory or to whomsoever he might name by a good and sufficient deed of warranty in the event of the exercise of the option. This contract also provided for the tender of a deed or deeds from Christeson to McCrory upon compliance with the terms of the sale. The writing itself was not sent to Mr. Christeson, but he was notified by a letter dated May 27, 1908, that Mr. Hicks had made a “tentative” contract with some person. The letter contained the following sentence: “He is to pay one third cash and give vendor lien notes for the balance payable in equal payments on the deferred in 2, 3 & 4 years. That is you will receive one dollar per acre cash and three dollars per acre in notes.” On June 10, 1908, a letter was written by Christeson to Hicks informing him that Sarah A. Christeson had owned a half interest in the land for three years but. undertaking to get her agreement, signature, and acknowledgment to the deed at the proper time if the sale were made. Answering the part of the letter from Hicks to the effect that *715 the latter’s commission would be fifty cents per acre, the defendant wrote:

“I observe, in this connection, you indicate that the warranty deed is to recite a consideration of $5.00 per acre, which I take to mean that you are selling the land for $5.00. If so and your commission being 50 cents, while of course I agreed to accept $4.00 to me net, but under the circumstances don’t you think it would be about fair to divide the other half dollar, giving me 25 cents, or rather $4.25 per acre and you retaining the balance?
“The payment of $1.00 down of course is satisfactory and is in accordance with previous understanding, the balance to be covered by vendor lien notes, payable in two, three and four years, and if sale is made you can have deed drawn, and send to me for signature and execution.”
On September 21, 1908, A. Christeson wrote advising Mr. Hicks that he had transferred all of his interest in the land to Sarah A. Christeson, formerly his wife. ‘ Of course, ’ ’ wrote defendant, “any further negotiations in regard to this land will have to be carried on with her. ’ ’'

Appellant calls attention to the fact that the contract of option itself was never sent to him for his inspection, and he attacks the court’s finding that there had been a ratification of the optional agreement. We agree with appellant that no such ratification ever took place. There was nothing in the letter of respondent to Christeson dated June 10, 1908 (upon which the court based its conclusion that Christeson had consented to a modification of the original contract), by which Christeson authorized or ratified any option by which the land might be held out of the market and subjected to the whim of any prospective purchaser. The only effect of that letter was to enlarge the authority of the agent with reference to the deferred payments. The writer did not give him further power to accept an agreement different in its essence from the contract for the sale of Christeson’s land which he was empowered to execute. He was not informed by the agent regarding the name of the other party to the “tentative contract, ’ ’ or the payment for the option, or the arrangement that, upon default of the option-holder, such sum should be forfeited not to Christeson, but to Hicks, and unless we can say that these were matters which, under the original contract of agency, were left to the discretion of Hicks, we *716 must hold that the option was not binding upon Christeson. The agreement which is the fountain-head of any authority possessed by plaintiff gave him the right to contract for a sale. An option is by no means a sale of property, but is the sale of a right to purchase. (Dreyfus v. Richardson, 20 Cal. App. 800-805, [130 Pac. 161]; Pehl v. Fanton, 17 Cal. App. 247, [119 Pac. 400]—cases which this court approved by declining to review the decisions.) Therefore, if we seek to justify the court’s finding upon the letter written by the vendor to his agent, we see that there was no meeting of the minds of Hicks' and Christeson except upon the one question of the modification of the terms of the sale.

But respondent insists that he furnished a buyer who was able, ready, and willing to purchase the land on the terms proposed, and that he is therefore entitled to his commission. The most complete answer to this contention is found in the fact that so far as the evidence shows, McCrory nevér agreed to purchase the property upon the terms of the option. Since a contract for the sale of real property must be in writing (Civ. Code, sec. 1624, subd.

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Bluebook (online)
164 P. 395, 174 Cal. 712, 1917 Cal. LEXIS 856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hicks-v-christeson-cal-1917.