Keating v. Price

58 Md. 532, 1882 Md. LEXIS 54
CourtCourt of Appeals of Maryland
DecidedJuly 12, 1882
StatusPublished
Cited by13 cases

This text of 58 Md. 532 (Keating v. Price) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keating v. Price, 58 Md. 532, 1882 Md. LEXIS 54 (Md. 1882).

Opinion

Ritchie, J.,

delivered the opinion of the Court.

The question presented by this appeal is, whether the property for which it is sought to hold the appellee liable as purchaser, differs so materially from that contemplated by the parties in their negotiations, and described in the contract of sale, as to entitle the appellee to a rescission of the contract; or, whether the difference is so slight that the sale should be ratified, and the purchaser compensated by an abatement of the purchase money equivalent to the loss sustained.

The bargaining, which extended over only a day or twn, was between 0. J. B. Mitchell, the cestui que trust, and the appellee, and their agreement reduced to writing, was signed by themselves and the trustees of Mitchell, T. J. and B. P. Keating, Esqrs. Shortly afterwards a survey, as provided by the agreement, was made to ascertain the precise quantity of land, which was found to be about twenty acres.

The survey disclosed that a portion of the land, about one-fourth oí an acre on the Queenstown road, and near the angle made by the road and Queenstown Creek, and which Mitchell had pointed out to the appellee as part of the property to be sold the latter, and which was then enclosed by Mitchell’s fence and in his occupancy, belonged to the Chester River Steamboat Company as part of a lot [534]*534extending1, to the water front which Mitchell had deeded to them some years before. The survey further disclosed that there was less water front by a few feet to the land sold Price than Mitchell had designated. These misrepresentations on the part of Mitchell are not claimed to have been fraudulently made, but they were relied on by Price, and both Mitchell and his trustees supposed them to be correct, until reminded or apprised of their mistake by the survey.

It further appears that Mitchell stated to Price, as one of the inducements to buy, that he had merely made a lease to the Steamboat Company of the lot, which he had actually granted them, and that he had reserved certain rights and privileges in it as adjacent to the wharf, with a right of way over the same from Queenstown, which were appurtenant to the land offered to Price. In these statements he was mistaken; though proof was offered showing that one of the trustees had controverted these claims in the presence of Price at the time the agreement was signed, on his. recollection of the deed the company had received from Mitchell; Tout the deed itself was not .at hand nor exhibited.

Immediately upon the discovery of Mitchell’s errors as to the “boundaries, through the survey, Price declined to receive the property as not being what he had purchased. The trustees, however, reported the sale for ratification, the terms of the agreement also expressly providing it was made subject. to the, approval of the Court; but the sale having been rejected in accordance with the exceptions of the appellee, and a decree passed setting aside the contract, the trustees took the present appeal.

The law applicable to cases of sale where the property is not exactly identical with that described in the contract of purchase is well settled.

It is laid down in Kent’s Com., vol. 2, sec. 476: “The good sense and equity of the law on this subject is, that if [535]*535the defect of title, whether of lands or chattels, he so great as to render the thing sold unfit for the use intended, and not within the inducement to the purchase, the purchaser ought not to he held to the contract, but he left at liberty to rescind it altogether. This is the principle alluded to hy Pothier and repeated hy Lord Erskine and Lord Kenton.” And, further on in the same section, the author says, “If there he a failure of title to part, and that part appears to he so essential to the residue that it cannot reasonably he supposed the purchase would have been made without it, as in the case of the loss of a mine, or of water necessary to a mill, or of a valuable fishery attached to a parcel of poor land, and hy the loss of which the residue of the land was of little value, the contract may he dissolved in toto.”

The equitable rule as given hy Story in his Eq. Juris., vol. 1, secs. Ill and IIS, is, “If the circumstances of the quality or quantity of land are not correctly described, and the misdescription is not very material, and admits of complete compensation, Courts of equity will decree a specific performance. In all such cases Courts of equity loot to the substance of the contract, and do not allow small matters of variance to interfere with the manifest intention of the parties, and especially when full compensation can he made to the party on account of any false or erroneous description.

“ But where there is a substantial defect in the estate sold, either in the title itselfj or in the representation or description, or the nature, character, situation, extent or quality of it, which is unknown to the vendee, and in regard to which he is not put upon inquiry, there a specific performance will not he decreed agaist him.”

And so in the case of Gunby vs. Sluter, 44 Md., 247, this Court, adopting the language of leading authorities, lays it down: “The vendor must he prepared and able to convey and transfer to the purchaser an estate or'inter[536]*536est substantially corresponding with that bargained for and agreed to be sold, both as regards the tenure and the situation and- condition and natural advantages of the property. Any misdescription of the estate or interest, or extent or value of the property in a material and substantial point, so far affecting the subject-matter of the contract, that it may reasonably be supposed that but for such.misdescription the contract would never have been made, at once releases the purchaser from the bargain.” Of similar purport is the decision in Foley vs. Crow, 37 Md., 60, where the rule is fully considered, and in the cases of Ellicott vs. White, 43 Md., 135, and Rayner vs. Wilson and Hunting, 43 Md., 440.

It is obvious from these citations, that a purchaser is compellable to accept property not strictly corresponding to that described in the sale, only when the variance is so immaterial that he is considered as getting substantially what he intended to buy and what constituted the object and inducement of his purchase. If Courts undertook to go beyond this, the right of parties to determine for themselves what they would buy and what they would sell, would be practically annulled. It would be in effect to impose contracts upon parties, at the discretion of Judges, into which they never entered. Bargains would be clouded with uncertainty, and much hardship would result.

While the .rule is a salutary one, that sales solemnly made shall not be cancelled for trivial deficiencies or variations in the property sold, Courts are solicitous to give effect to the real purpose of the contracting parties, and will not sanction such misdescriptions as would defeat or essentially impair the very objects which impelled them to the transaction.

■ And while it is incumbent on the buyer to show that a misdescription, not obviously injurious, relates to a fact which materially induced him to make the purchase, when this is' made apparent much weight should be given to [537]

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Bluebook (online)
58 Md. 532, 1882 Md. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keating-v-price-md-1882.