Krah v. Wassmer

71 A. 404, 75 N.J. Eq. 109, 5 Buchanan 109, 1908 N.J. Ch. LEXIS 14
CourtNew Jersey Court of Chancery
DecidedNovember 11, 1908
StatusPublished
Cited by11 cases

This text of 71 A. 404 (Krah v. Wassmer) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krah v. Wassmer, 71 A. 404, 75 N.J. Eq. 109, 5 Buchanan 109, 1908 N.J. Ch. LEXIS 14 (N.J. Ct. App. 1908).

Opinion

Howell, V. C.

The bill in this case is filed against Wassmer and Radcliffe to compel the specific performance of an alleged contract to convey lands. The so-called contract, a copy of which is given below, was signed by Wassmer, although the title to the lands in question was in Radcliffe. It was testified at the hearing that Wassmer and Radcliffe had some sort of a joint interest in a number of lots of land of which the one in question was one, although their titles were separate and distinct, and that Wassmer had authority from Radcliffe to make the contract in question. The bill does not state whether the agreement was in writing or not. The answer alleges that it was oral, and it sets out what the defendants claim the contract was. The difference between the two consists in this: the defendants, who are the vendors, claim that it was agreed that the land should be conveyed with certain [111]*111covenants restricting its use; the complainant, who is the vendee, claims that there was no such agreement.

The agreement between the parties was made in September, 1907, at which time the vendee paid $50 on account of the purchase-money and took a receipt therefor which has been destroyed. On October 3d, 1907, he paid $750 more, -making $800 up to that time, and some time prior to October 19th, 1907, he paid the further sum of $302, these three payments aggregating the total amount of the purchase-money that was to be paid in cash. The land was subject‘to a mortgage held by a building and loan association on which the vendors were liable as bondsmen. Some time between the first and last payment of the purchase-money installments the vendee executed a new bond and mortgage in his own name to take the place of the ones previously executed by the vendors and held by the building and loan association, these being steps preliminary to the taking of the title. At the time the vendee made the payment of the seven-hundred-and-fifty-dollar installment of the purchase-money he received a receipt for it of which the following is a copy:

'Tbvinqtow, N. J., Oct. 3d, 1907.
“Received from J. L. Krah the sum of eight hundred dollars on account of purchase price of Smith street property, purchase price to be thirty-five hundred and fifty dollars, two hundred and two dollars to be paid on or before Oct. 19th, 1907. The balance to be paid by said J.. L. Krah assuming and agreeing to pay a present Building and Loan mortgage now upon the above premises for twenty-five hundred and forty-eight dollars.
“John Wassmeb.”

On October 4th, 1907, the vendee, with the knowledge and consent of the vendors, took possession of the said premises and with his wife and family has actually resided thereon until this time. About the time the complainant entered into possession the defendant Radeliife and his wife executed in due form of law and properly acknowledged a deed of conveyance to the complainant and his wife for the lands in question, which deed did not contain the restrictive covenant that the vendors now insist upon.

The defendants claim that the receipt above set out is not a contract,* or, at least, if it is a contract, it belongs to that class [112]*112which is known as unilateral contracts and is not specifically enforceable in equity. The law in relation to contracts of this class has received a great deal of judicial attention in this state. In Cramer v. Mooney, 69 N. J. Eq. (14 Dick.) 164, it was held that a contract for sale of lands, though signed only by the vendor, would not be held to be unilateral in a ease where the vendee had paid nine-tenths of the purchase-money and had tendered the balance thereof and had entered into possession of the lands. Vice-Chancellor Grey says: “The defendant has not only paid to the vendor complainant the gieater part of the purchase-money, but has actually entered into possession of the premises and tendered the balance of the agreed price and demanded a deed and the clearing of the title, and tire complainant has accepted him as a purchaser and tendered him a deed, and now files his bill to enforce payment. These acts of part performance are sufficient to' establish a contract between the complainant and defendant which would be enforced in equity even if entirely by parol.” Even if the case stood upon this so-called unilateral contract it ceased to be unilateral the very moment the vendee filed his bill for the specific performance of the contract. Richards v. Green, 23 N. J. Eq. (8 C. E. Gr.) 536. In that case Chief-Justice Beasley, in the opinion in the court of errors and appeals, says: “But it will be observed that when such contracts come to be enforced in equity they cease to be unilateral, for upon filing the bill.the party who was before un-' bound puts himself under all the obligations of the contract. By.his own act he makes the contract mutual and the other party is enabled to enforce it. The consequence is that in every case that I can find where specific performance has been ordered a mutual remedy existed upon it at the time of the rendering of the decree.” I must therefore hold that this objection is untenable.

The vendors next claim that inasmuch as the bill does not set out the fact that the agreement was in writing the vendee cannot have a decree because of the statute of frauds, the benefit of which the vendors claim, and that it was competent for the defendants, by an answer in such case to set up their version of the oral agreement, and that the agreement so set u¡5 without [113]*113any evidence or proof of any nature is binding on the complainant. In Ashmore v. Evans, 11 N. J. Eq. (3 Stock.) 151, the bill alleged a parol contract which it prayed might be -specifically performed. The defendant denied the agreement alleged in the bill, but admitted an oral agreement which did not substantially differ from the one set out in the bill. The defendant failed to insist upon the benefit of the statute and the court held that the agreement was sufficiently admitted. It has been a constant practice to decree the specific performance of oral contracts to convey land in cases in which the contract in the bill is admitted or substantially admitted by the answer. The insistment of the vendors in this case, however, goes considerably beyond the ruling in any case that I have been able to find. They maintain that they may admit that there was a contract and that they may then set out a very different contract from the one alleged in the bill, and that such contract so sot out in the answer is binding upon the complainant and must be taken as the contract which was made between the parties. This statement hardly needs argument to show its fallacy. It would'permit a fraudulent defendant to impose upon the complainant any sort of contract that he might choose to put in his answer ánd would drive the complainant to an abandonment of his suit or compel him to submit to a possibly outrageous fraud. The parties are bound by statements made by the defendants in their answer in so far as they are admissions, or admissions without srrbstantial variation of the charges in the bill, and where the defendants admit a substituted contract the complainant is entitled to have a decree for the specific performance of the substituted contract if he chooses to perform it on his part and he can have such relief in his suit on the original contract. Ryno v. Darby, 20 N. J. Eq. (5 C. E. Gr.) 231. If, on the whole case, the terms of the oral contract are uncertain, the bill will be dismissed. Clow v. Taylor, 21 N. J. Eq. (12 C.

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

Related

K & J Clayton Holding Corp. v. Keuffel & Esser Co.
272 A.2d 565 (New Jersey Superior Court App Division, 1971)
Gottlaub v. Cohen
51 A.2d 254 (New Jersey Court of Chancery, 1947)
Bondarchuk v. Barber
38 A.2d 872 (New Jersey Court of Chancery, 1944)
Buttinghausen v. Rappeport
24 A.2d 877 (New Jersey Court of Chancery, 1942)
Miller v. Headley
158 A. 118 (New Jersey Court of Chancery, 1932)
Rapps v. Tulenko
140 A. 244 (New Jersey Court of Chancery, 1928)
Hollander v. Abrams
132 A. 224 (New Jersey Court of Chancery, 1926)
Franklin v. Welt
98 N.J. Eq. 602 (New Jersey Court of Chancery, 1926)
Wheeler v. Sullivan
90 Fla. 711 (Supreme Court of Florida, 1925)
Adams v. Manning
148 P. 465 (Utah Supreme Court, 1915)

Cite This Page — Counsel Stack

Bluebook (online)
71 A. 404, 75 N.J. Eq. 109, 5 Buchanan 109, 1908 N.J. Ch. LEXIS 14, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krah-v-wassmer-njch-1908.