Johnson v. Lennox

55 Colo. 125
CourtSupreme Court of Colorado
DecidedApril 15, 1913
DocketNo. 7626
StatusPublished
Cited by7 cases

This text of 55 Colo. 125 (Johnson v. Lennox) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Lennox, 55 Colo. 125 (Colo. 1913).

Opinion

Mr. Justice Scott

delivered the opinion of the court

In April, 1908, the defendant, Fred W. Chase, was the owner of certain lots and buildings in the city of Colorado Springs, El Paso County. There was at the time a mortgage on the premises in the sum of $5,000, and upon which there were certain defaulted interest payments and foreclosures was threatened. Chase was at the time residing in Seattle, Washington, and had so resided for two or three years prior. Martin Drake, who acted for Chase in the matter, was his brother-in-law, and resided at Colorado Springs. On the 29th day of November, 1907, Chase wrote Drake a letter upon which the latter assumed to act, in the matter of a negotiation for the sale of the property. This letter is as follows:

“Seattle, 11-29-09.
Martin Drake,
Colo. City, Colo.
Dear Martin:
I am strictly up against it as far as the mortgage on that Colorado Springs property is concerned. I have got myself so tied up here on property that I haven’t a dollar, and until times pick up a little it will be impossible to see a thing. Do you suppose there would be a chance to sell the property so that I could get a little money out of it; or if you are so situated that you could take care of it for me I will deed the property to you and that would give you a chance to sell it and I will divide any money with you that you can get over the mortgage and interest, or I will take it off your hands just as soon as I can dispose 'of some of my property here. In fact I am willing to do almost anything rather than have them foreclose. I enclose their letter and statement. See what you can do and oblige.
It has been a long time since I have heard from any of you; hope you are all well; love to all. I will write you again very soon and give you the news. This is a [127]*127business letter. Now see what you can do. Bennett has not sent me a statement for six months and I have a credit there for rent.
Yours very truly,
Fred W. Chase. ’ ’

Drake immediately set about to find a purchaser for the premises. Among others with whom he endeavored • to effect' a sale was the defendant, Mary Ellen M. Johnson, acting* through her son and authorized agent.

On the 16th day of April, 1908, Drake closed a deal with the defendant in error, William Lennox. This was in the form of a written proposition and acceptance as follows:

“Mr. Martin Drake,
Colo. Springs, Colo.
Dear Sir:
Pursuant to our conversation of this morning, I hereby offer, for immediate acceptance, the sum of $6,700 net to me for the N. y2 of Lot No. 1, Block 201, Colorado' Springs Company’s Addition No. 1, situate on the corner of Yampa and Nevada Avenues, this city. The above offer is made with the understanding that you furnish abstract showing perfect title, subject to my approval.
Yours very truly,
Wm. Lennox.
Accepted.
Fred W. Chase,
By Martin Drake, Agent. ’ ’

Before closing with Lennox, Drake had some negotiation with Johnson, son and agent of defendant, and endeavored to find him before closing with Lennox, but failing to see him, and later in the day accepted’the proposition of Lennox and afterward and at about one o ’clock in the afternoon of the same day, Drake told Johnson that he had sold the property to Lennox. The proposition and acceptance was filed for record with the county Clerk and Recorder.

[128]*128On the same day that Drake accepted the offer from Lennox, the defendant Johnson telegraphed Chase as follows:

“Colo. Springs, Colo., Apr. 16, ’08.
Fred W. Chase,
201 Pacific Block, Seattle.
I will pay you twelve hundred fifty dollars for equity and also pay interest and taxes north half lot one block two hundred one wait for letter.
Mary E. Johnson.”
On April 17th, 1908, Drake telegraphed Chase:
“Fred "W. Chase,
1707, 38th Ave., Seattle, Wash.
Have sold your corner deal with no one have written.
Martin Drake. ’ ’

On April 17th Chase wired Drake, “Do nothing about property, wait for letter explaining.” Chase then executed a deed for the premises to the defendant Johnson and forwarded it to a bank in Colorado Springs to be delivered upon the payment of the sum offered for his equity. The deed was delivered to the defendant Johnson who entered into possession of the premises, and made valuable improvements thereon.

Prior to the delivery of the deed to Johnson, Lennox tendered to Drake the agreed purchase price of $6,700. This suit was instituted by Lennox to compel specific performance.

The trial court found in favor of Lennox and decreed a deed from Johnson to Lennox. Under supplemental pleadings and pending the litigation, the court appointed a referee to make an accounting as to the receipts and expenditures upon the part of Johnson, subsequent to her purchase. Upon this report the court made his findings and entered an order accordingly, but no error is assigned as to the correctness of this.

The contentions of the plaintiff in error are that the [129]*129judgment of the court is erroneous, because (a) the alleged contract is not a contract but an option, (b) Drake ■ had not sufficient authority in writing from Chase to enter into a contract to sell in his behalf, (c) the alleged contract is without consideration, (d) the alleged contract lacks mutuality. The contract was signed by both parties and it is therefore mutual in that it is an express agreement to sell upon the one part and to purchase on the other. There was likewise sufficient consideration. Hoagland v. Murray, 53 Colo., 50, 123 Pac. 664. The sole question in this case turns upon the point as to whether or not Drake had sufficient authority to enter into the contract of sale in behalf of Chase. The letter from Chase to Drake must be considered as the sole evidence of authority from Chase to Drake. The testimony indicates that Chase intended thereby to confer such authority.

But the defendant in error had a right to rely on the instrument purporting to confer authority and can not be bound by the unexpressed intention of the parties thereto, even though both Drake and Chase may have treated this correspondence as constituting authority to Drake, to contract a sale of the premises, and though Johnson had actual knowledge of the contract between Drake and Lennox before telegraphing her proposition to purchase.

The statute in such case and the decisions of the ' courts relating to the form and sufficiency of authority of agents must be controlling, as against third parties.

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Cite This Page — Counsel Stack

Bluebook (online)
55 Colo. 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-lennox-colo-1913.