Hoots v. Calaway

190 S.E.2d 328, 15 N.C. App. 346, 1972 N.C. App. LEXIS 1917
CourtCourt of Appeals of North Carolina
DecidedAugust 2, 1972
DocketNo. 7221SC445
StatusPublished
Cited by1 cases

This text of 190 S.E.2d 328 (Hoots v. Calaway) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoots v. Calaway, 190 S.E.2d 328, 15 N.C. App. 346, 1972 N.C. App. LEXIS 1917 (N.C. Ct. App. 1972).

Opinion

MORRIS, Judge.

Plaintiff, Allen Hoots, testified, out of the presence of the jury, with respect to: Calaway’s offer to sell the land for $300 per acre or $120,000 and his counter offer of $275 per acre or $110,000 which was accepted by Calaway; Calaway’s guarantee of 400 acres and agreement to refund at the rate of $275 per acre if there was any deficiency in acreage; his payment to Calaway of $500 as good faith money and a meeting a few days thereafter at which $30,000 was paid as a down payment; and a memorandum of the transaction which was prepared [348]*348by Calaway’s son, signed by Calaway and given to plaintiff Allen Hoots. Defendant objected to testimony of the alleged agreement as to acreage on the ground that it violated the parol evidence rule. The record contains no ruling by the court but it is obvious the court ruled it admissible because the testimony continued before the jury in the same vein.

Plaintiffs’ evidence tended to show: Plaintiff, Allen Hoots (Hoots), approached Calaway with respect to purchasing two farms owned by defendants. Calaway offered to sell them for $300 per acre or a total of $120,000. Hoots offered to pay $275 per acre or a total of $110,000. This offer was accepted by Calaway who guaranteed that the two farms contained a total of 400 acres. Hoots gave Calaway a check for $500 “for good faith.” A few days later, they met at the farm and with Mr. Cecil Robertson, who worked for Calaway, went in a jeep over both farms for the purpose of showing Hoots the boundary lines and corners. Coming back from “looking at the northwest corner up the branch on the big farm,” Hoots asked Calaway how he wanted to handle the transaction in the event of any shortage in the land and whether he wanted to go to a lawyer and draw up an agreement. Calaway replied there was only one way to handle it and that was the same way he had handled the piece of land they just looked at, the upper tract. He said he bought it from Mr. Lester Riley and thought he was getting 77 acres called for by the deed. He later had it surveyed and it was only 65 acres; that Riley brought the money back and gave it to him. Calaway said that was the only way to handle this deal — in the event there is a shortage, he would refund to Hoots at the rate of $275 per acre. This testimony came in before the jury without objection. They returned to the house, and Calaway gave Hoots some “maps and plots of the farm.” They agreed to meet Saturday for the payment of the down payment. On Saturday Calaway brought his son, a lawyer. The lawyer, in his own handwriting, prepared a memorandum which Calaway signed and this was delivered to Hoots. The memorandum is as follows:

[349]*349“North Carolina Davie County Memorandum of Sale

H. R. Calaway — Seller

Allen F. Hoots — Buyer

Farm

Total Sales Price 110,000.00

Down payment 30,000.00

Time Balance 80,000.00

Financed 5 years 16,000.00 annually

Interest 5%

Notes as follows:

dated interest due interest payable

Note 1 Note 2 Note 3 Note 4 Note 5 w SB Ü* SO CD O H» „ £5 Cm i CD CD “ BO so £ w M «O 05 rt-o » Oí O H (M CO C£> t- t> OÍ Cl 05 Oí 05 rH tH t-H rH tH H H H r-1 i — ! I — | I — I 7 — t T — f P“H ¡3 3 3 C ¡0 I cn ÜT Ol <31 ox HHKHH CO CO O ÍO 50 Oí Oí Oí Oí Oí 00 00 00 00 00 d_( Ü-H C_| tí si SO tí tí

Default m one cause others to fall due —

escrow priviledge (sic) re substitution of collateral to clear title —

purchase money mortgage — release if sell 65 acre lester place —

Received of Allen F. Hoots the sum of $30,000.00 as down payment on purchase price of 2 farms in Advance, N. C. (400 acres more or less). The total price of farm is $110,000.00. The balance of $80,000.00 on purchase price will be financed for 5 years at 5% interest. The notes, deed of trust, and deed will be executed on July 1, 1968 or as soon thereafter as attorneys for both parties hereto can complete arrangements.

Allen F. Hoots H. R. Calaway Signed H. R. Calaway”

[350]*350Hoots gave Calaway his check for $30,000 payable to H. R. and Alice Calaway. They then discussed the personal property involved in the transaction and agreed to meet at Calaway’s office “as soon as the papers could be drawn up.” They did so meet, with all parties present, and the plaintiffs executed the notes and deed of trust, and defendant executed and delivered a deed conveying to plaintiffs 400 acres, “more or less.” The deed, deed of trust and notes all were dated 2 July 1968. At the same time, the parties signed a contract with respect to some of the personal property involved in the transaction. Some eleven months later Hoots had the farm surveyed, and the survey revealed that there was a deficiency in acreage of 42 acres. Plaintiff testified the memo of the transaction was not intended to contain the entire agreement and did not contain the entire agreement.

Defendant’s evidence tended to show that there was no per acre agreement and no agreement to refund. Both Calaway and his son testified that the memorandum prepared by the son did not and was not intended to contain the entire transaction but was for the purpose of binding Calaway and assisting the son in the drafting of instruments to close the transaction. Defendant’s evidence tended to show that Hoots was given maps of the property and was taken over the property to see the lines; that the surveys he had made revealed over 400 acres in the two farms. Robertson testified he did not hear any conversation with respect to acreage. Calaway testified he agreed to sell the land for $110,000 and no per acre discussion was had.

On appeal defendant appellees contend that the court’s rulings were correct because the evidence with respect to a per acre agreement and refund for shortage of acreage on a per acre basis was not admissible in violation of the parol evidence rule, and plaintiffs are bound by the written memorandum accepted by Hoots and kept by him for some eleven months without requesting any change in it. This appears to be the view of the trial judge. In allowing the defendant’s motion the court said:

“Gentlemen, as you may know, at the end of the evidence in this case I was tempted to direct a verdict, but we had so much time and energy invested in the case I wanted to submit the case to the jury in the event it would be er[351]*351roneous to direct a verdict so there would be an alternate verdict which might prevent the retrial of the case.
I am still of the opinion that the verdict should have been directed; that though the plaintiff did not sign the memorandum, that he took it, kept it, took a deed drawn in those terms and did not complain until some eleven months later; that under those circumstances the plaintiff was not entitled to introduce evidence as to a per acre contract. For that reason, I will enter judgment notwithstanding the verdict, and hopefully it could be resolved without another trial.”

We agree that determination of this appeal rests upon application of the parol evidence rule.

“The parol evidence rule, as customarily phrased, prohibits the admission of parol evidence to vary, add to, or contradict a written instrument. Notwithstanding this mode of expression, the rule is in reality not one of evidence but of substantive law.

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

Related

Hoots v. Calaway
193 S.E.2d 709 (Supreme Court of North Carolina, 1973)

Cite This Page — Counsel Stack

Bluebook (online)
190 S.E.2d 328, 15 N.C. App. 346, 1972 N.C. App. LEXIS 1917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoots-v-calaway-ncctapp-1972.