Isaacson v. G. D. Robertson & Co.

192 P.2d 486, 85 Cal. App. 2d 71, 1948 Cal. App. LEXIS 874
CourtCalifornia Court of Appeal
DecidedApril 19, 1948
DocketCiv. 16105
StatusPublished
Cited by5 cases

This text of 192 P.2d 486 (Isaacson v. G. D. Robertson & Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Isaacson v. G. D. Robertson & Co., 192 P.2d 486, 85 Cal. App. 2d 71, 1948 Cal. App. LEXIS 874 (Cal. Ct. App. 1948).

Opinion

WHITE, J.

Plaintiffs brought an action for specific performance of a contract for the sale of real estate. After trial before the court upon an agreed statement of facts, judgment was entered for the defendants, from which judgment plaintiffs prosecute this appeal. The sole question presented is whether certain provisions for termination of the contract were for the benefit of plaintiff purchasers alone and could be waived by them, or whether such provisions were for the benefit of the sellers as well.

The facts are as follows:

Defendant Title Insurance & Trust Company, as trustee, was the owner of the property in question, a vacant lot on Crenshaw Boulevard in Los Angeles, and also owned as such trustee, adjacent lots in the block on Crenshaw Boulevard between 39th Street and Coliseum Place. Defendant G. D. Robertson & Company, Incorporated, was the exclusive agent for the property. On May 4, 1945, plaintiffs, husband and wife, delivered a cashier’s check for $4,320, payable to Title Insurance & Trust Company, to an employee of the agent, G. D. Robertson & Company, Incorporated, and received a 11 deposit receipt” reading as follows:

“May 4th, 1945
“Received from Carl F. and Hazel K. Isaacson the sum of $4,320.00 (Four Thousand Three Hundred Twenty Dollars *73 and no/100), issued in the name of the Title Insurance and Trust Company, down payment on Lot 15, tract 12120.
“The total purchase price of this lot is $21,600.00 (Twenty One Thousand Six Hundred Dollars and no/100). The balance is to be paid at the rate of $100.00 or more per month, due and payable in five years.
“Sales agreement will be given in lieu of this deposit receipt.
G. D. Robertson & Co.,
By, T. F. Doran.”

A few days after the execution of the deposit receipt, the following language was indorsed thereon by the agent, with the knowledge and approval of plaintiffs: “This sale has been made subject to Lot 15 Tract 12120 being zoned for business. T.F.D. G. D. Robertson & Co.”

On August 17, 1945, Title Insurance & Trust Company transmitted to plaintiffs a “Sales Agreement and Deposit Receipt” and an “Agreement of Sale,” with the request that if the documents were satisfactory the plaintiffs execute and return them, whereupon the title company would forward the “Sales Agreement and Deposit Receipt” for execution by the agent and would return to plaintiffs a copy of the “Agreement of Sale” after its execution by the title company. Plaintiffs executed and returned the documents, and the agent executed the “Sales Agreement and Deposit Receipt,” but the title company never executed the “Agreement of Sale.”

“The Sales Agreement and Deposit Receipt” executed by plaintiffs and defendant agent, and dated May 5, 1945, contained the following provisions:

“2. By their written acceptance of this sales agreement and deposit receipt, which . acceptance shall be in duplicate, purchasers acknowledge that they enter into this agreement with the knowledge that the above described real property is now zoned ‘RDO’, (meaning subject to a Los Angeles residence zoning ordinance) but purchasers are desirous of having the property rezoned into ‘C-l’ (business) or its equivalent. The purchasers are also aware of the fact that certain municipal authorities for the City of Los Angeles have prepared and are preparing new zoning maps covering property in the City of Los Angeles, and contemplate enacting certain zoning ordinances in connection therewith. The purchasers are also aware of the fact that the maps which are now in the course of being prepared include at the present time a proposal for the rezoning of the property hereinabove de *74 scribed from its present zoning of ‘RDO’ to zone ‘C-l’ or its equivalent.

“3. In view of the facts above set forth with reference to such zoning procedure, and in view of the uncertainties which exist in connection therewith, it is understood and agreed that in the event the above described property has not definitely been zoned ‘C-l’ or its equivalent by the proper municipal authorities of the City of Los Angeles, through a valid, effective ordinance duly and regularly adopted by the City Council of the City of Los Angeles as provided by law, within six (6) months from the date hereof, this agreement shall ipso facto cease and terminate, in which event neither party shall be under any further obligation to the other hereunder, excepting that G. D. Robertson & Company shall refund to purchasers any amounts theretofore paid to G. D. Robertson & Company by said purchasers, including the sum of $4,320.00 heretofore paid as above set forth.

“5. In the event this agreement is not terminated upon the expiration of six months from the date hereof as herein-above provided, the Title Insurance and Trust Company will, upon the expiration of said six months period, issue to the purchasers, a contract purchase agreement in form substantially as set forth upon the document attached hereto, made a part hereof and marked exhibit A, and purchasers agree that if this agreement is not terminated as hereinabove provided within six months from the date hereof, that upon presentation of such contract purchase agreement they will execute the same and fulfill the terms hereof, in default of which, this agreement shall terminate and be of no further force or effect, and neither party hereto shall be under any further obligation one to the other.”

The six months ’ period referred to in the above-quoted paragraph 3 expired November 5, 1945, and on that date the property had not been rezoned. In October, 1945, plaintiffs advised defendants that they were satisfied with the zoning as it stood and requested that the title company execute the “Agreement of Sale.” This defendants declined to do, and on November 9, 1945, the agent returned to plaintiffs the cashier’s cheek for $4,320 theretofore deposited by them, advising plaintiffs that the contract “ipso facto terminated upon the expiration of six months from May 5, 1945.” Plaintiffs thereupon commenced the present action.

Appellants submit that the judgment should be reversed upon the grounds (1) that the termination clause was inserted *75 in the contract for the benefit of the vendees, who expressly waived its provisions, thereby continuing the contract in effect; (2) that a vendee may compel a vendor to convey such title as he may have, though it be less than that contracted for; (3) that the title company, by transmitting the “Sales Agreement and Deposit Receipt” and “Agreement of Sale” on August 17 and requesting their execution by the vendees, made an offer of a new contract which was accepted; and (4) that one who has been offered all the benefits he bargained for under a contract cannot withhold his own defective performance if such performance is acceptable to the other party.

It is, of course, well settled that a contracting party may waive provisions placed in a contract solely for his benefit. (25 Cal.Jur.

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192 P.2d 486, 85 Cal. App. 2d 71, 1948 Cal. App. LEXIS 874, Counsel Stack Legal Research, https://law.counselstack.com/opinion/isaacson-v-g-d-robertson-co-calctapp-1948.