In Re Industrial Homestead Ass'n

198 So. 528
CourtLouisiana Court of Appeal
DecidedNovember 18, 1940
DocketNo. 17294.
StatusPublished
Cited by20 cases

This text of 198 So. 528 (In Re Industrial Homestead Ass'n) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Industrial Homestead Ass'n, 198 So. 528 (La. Ct. App. 1940).

Opinion

JANVIER, Judge.

Charles Kirsch, in opposing a provisional account of the liquidator of the Industrial Homestead Association, claims that on the said account he should have been recognized as a creditor for $500. He alleges that he sustained damage in- that amount because of the fact that, although the said Association had contracted with him for the sale to him of a certain piece of real estate in the City of New Orleans and though .he was ready and willing to take title and to pay the agreed price, the liquidator sold and delivered the property to another person for $500 more than the price at which it had been agreed that it would be delivered to him.

There was judgment in his favor as prayed for and the liquidator has appealed.

Kirsch is a duly licensed and qualified real estate agent in New Orleans, conducting his business under the trade name, *529 “Charles Kirsch & Company”. When the liquidator of the Homestead Association was appointed, he found in the possession of the Homestead certain real estate, including that involved here. In an effort to dispose of this piece of real estate, the Association had solicited the services of various real estate agents, including Kirsch. On January 9, 1937, Kirsch, through his representative,' L. N. Goll, presented to the Association a written offer to purchase the said property for $6,500. At' the bottom of the offer, in typewriting, appeared the words “Charles Kirsch & Co., Agents for Purchaser”, and in ink, across the typewritten name above mentioned, was the signature “L. N. Goll”, who, it is admitted, was a representative of Kirsch.

The offer contained a paragraph reading as follows:

“This offer remains binding and irrevocable through January 14, 1937.”

It also contained a stipulation that, on acceptance of the offer, the prospective purchaser would deposit $650. The offer was presented to the Association through Emile Wagner, its secretary-treasurer. It was not accepted on or before January 14th, but was accepted in writing by Wagner, on behalf of the Association, under date of January 16, 1937. The acceptance stipulated that no commission should be paid by the Association to the real estate agents. No deposit was ever made.

It is the contention of Kirsch that, though the said offer purports to have been made on behalf of an undisclosed principal, it was, in fact, an offer of Kirsch himself, and that the officials of the Association knew this and that, therefore, when they sold the said property to another person for a higher price, they knew that they were depriving him of the opportunity of making a profit on the resale of the said property.

The liquidator presents several contentions, any one of which, it is argued by counsel, should defeat the claim of Kirsch:

(1) It is maintained that no contract ever came into existence for the reason that the offer, by its own terms, had expired when the written acceptance was executed.

(2) That, even if a contract ever came into existence, the stipulation that a deposit should be made was not complied with.

(3) That the offer to purchase, though purporting to have been made, by Charles Kirsch & Company, as agents for an undisclosed purchaser,' was not signed by Kirsch, but by L. N. Goll, and that there appears no written authority for Goll to represent Kirsch. It is contended that no offer binding upon Kirsch was ever made since, as counsel express it, “an agency to buy or sell immovables cannot be proved by parol”.

(4) It is contended that Kirsch did not comply with his contract even if such a contract came into existence because, though the prospective purchaser — if Kirsch was that prospective purchaser— bound himself to apply to Industrial Homestead Association for the necessary loan, no such application was ever made.

(5) It is contended that, even if a contract came into existence and even if Kirsch’s failure to comply with the above-mentioned stipulations did not abrogate that contract, still Kirsch cannot recover because he was employed by the Association to sell the property and therefore could not purchase it himself without fully disclosing the fact that he was acting for himself.

The fact that no deposit was made is fatal to Kirsch’s claim. In State ex rel. Bond v. Register of Conveyances et al., 162 La. 362, 110 So. 559, 560, our Supreme Court, having found that the deposit stipulated for had not been made, said: “Until it was made, there was no contract between the parties, and relator was at liberty to withdraw from the incompleted transaction.”

It is argued on behalf of Kirsch that, since he is a duly qualified, licensed and bonded real estate agent, it was not necessary that he make such a deposit since it would have been made by himself individually to himself as agent. Assuming, fox the moment, that there was no impropriety in Kirsch, — if, in truth, he was acting for himself — in representing himself —this fact would not have relieved him of the necessity of making such a deposit as the contract required.

The principle which is involved cannot be distinguished from that considered in Tucker v. Rogers, 172 La. 445, 134 So. 388. There one real estate agent, desiring *530 to purchase for himself immovable property listed by the owner with another agent, made an offer which was accepted, and, in the offer, agreed to make the necessary deposit. It was agreed between the two agents that the purchaser would be entitled “to split the commission of $250.” When the deposit was made, the prospective purchaser deducted from his deposit his half of the commission. The Supreme Court' held that in doing so he had failed to comply with his obligation to make the necessary deposit and that, as .a result, the other party was within his rights in withdrawing from the contract.

We are unable to see why. a real, estate agent, desiring to purchase for himself, should be permitted to deal with himself and fail to carry out the stipulation requiring a deposit. He, above all others, should recognize the necessity of comply-’ ing in detail with an agreement to purchase real estate and should not be heard to say that, since he is in the real estate business, he 'need not make the deposit which every other purchaser must make. Even if the contract ever came into existence, when Kirsch failed to make the stipulated deposit he lost the right to insist on its enforcement.

We have been urged to rest our decision on the first contention made,—that is to say, on the ground that the acceptance came too late and that there can be no oral- evidence to show that the offerer agreed that the acceptance might be executed after the expiration of the time set in the original offer.

We readily concede that it is well established that parol evidence is inadmissible to vary, contradict, or add to a written contract (Revised Civil Code, art. 2276), and that, though this rule does not, where any ordinary contract is concerned, prevent the introduction of parol testimony to prove a subsequent verbal agreement, it does prevent the introduction of such testi-' mony if the contract is one which is required to be in writing. This has been recognized in many cases and is clearly stated in Conklin v. Caffall et ux., 189 La. 301, 179 So. 434, in Salley v. Louviere, 183 La. 92, 162 So.

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198 So. 528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-industrial-homestead-assn-lactapp-1940.