Lambert v. Krum

121 Misc. 170
CourtAppellate Terms of the Supreme Court of New York
DecidedJune 15, 1923
StatusPublished
Cited by13 cases

This text of 121 Misc. 170 (Lambert v. Krum) is published on Counsel Stack Legal Research, covering Appellate Terms of the Supreme Court of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lambert v. Krum, 121 Misc. 170 (N.Y. Ct. App. 1923).

Opinion

Lazansky, J.

Plaintiff and defendant entered into a contract by which plaintiff agreed to buy from defendant and defendant agreed to sell to plaintiff certain property in Brooklyn at a price therein stated, subject to a first mortgage of $3,750 and to a second mortgage of $2,250, the latter payable in quarterly installments of $75 or more until the principal sum is paid. It thus appears that the final payment on the second mortgage would not have to be paid until the lapse of over seven years. At the time of closing of title a deed was delivered by the defendant to plaintiff which, after the habendum clause, recites: subject to mortgages aggregating the sum of $6,000 and interest.” It was afterwards disclosed to plaintiff that the mortgage which had been recorded was not payable, as set forth in the contract, but that the balance was due a little over three years from the date of the contract. Because of the difference in the dates of the expirations of the two mortgages, plaintiff sues for a breach of thé contract. The question involved is whether or not the contract was merged in the deed. Before attempting to formulate a rule that may be applicable, it would be well to consider the authorities which have a bearing on this subject.

In Houghtaling v. Lewis, 10 Johns. 297, plaintiff and defendant [172]*172entered into an agreement by which defendant agreed to convey to plaintiff by warranty deed a certain farm which defendant warranted to contain no less than fifty-eight acres. It afterwards developed that there were only fifty-five acres. The opinion indicates that it was found as a fact that at the time the deed was delivered it was unconditionally accepted and declared to be in satisfaction of the articles of agreement, and that the latter were null and void and were to be canceled. The following is stated in the opinion: “ Articles of agreement for the conveyance of land are, in their nature, executory, and the acceptance of a deed, in pursuance thereof, is to be deemed, prima facie, an execution of the contract, and the agreement thereby becomes void, and of no further effect. Parties may, no doubt, enter into covenants collateral to the deed, or cases may be supposed when the deed would be deemed only a part execution of the contract, if the provisions in the two instruments clearly manifested such to have been the intention of the parties. But the prima facie presumption of law arising from the acceptance of a deed, is that it is an execution of the whole contract; and the rights and remedies of the parties, in relation to such contract, are to be determined by such deed, and the original agreement becomes null and void. This appears to me to be a sound and salutary rule, and conformable to the doctrine of this court in the case of Howes v. Barker (3 Johns. Rep. 506). The Chief Justice, in that case, said he could not surmount the impediment of the deed which the plaintiff had accepted from the defendant; and that he thought himself bound to look to that deed as the highest evidence of the agreement of the parties. But in the case before us, we are not left to determine the legal effect and operation of a bare acceptance of a deed; for the parties, by their pleading, have put it in issue, as matter of fact, whether such acceptance was in full performance, satisfaction and discharge of the agreement; and the proof is, in my opinion, conclusive that the deed was so accepted; and the defendant, of course, is entitled to judgment.”

In Witbeck v. Waine, 16 N. Y. 532, it was held that the execution and delivery of a deed by the vendor, under the terms of the contract for the sale of land, a portion of the purchase money remaining unpaid, and no fresh security therefor being taken, did not extinguish the contract in respect of a provision for an increase or rebate of the purchase money in proportion to any excess or deficiency which might exist in the land. The contract in that case provided that if the farm did not contain 130 acres the vendor would make a deduction of what the average price per acre is to the cost of the whole farm, and the purchaser agreed to pay in the same ratio [173]*173per acre to the seller if the farm should exceed 130 acres. The agreement provided for a bond and mortgage for the balance over and above the cash to be paid, and on the day of the delivery all the cash that was to have been paid was not paid and the mortgage was not delivered. The balance of the purchase money, however, was paid within a few days after the delivery of the deed. The court said (at p. 535): “ Unless there is a sound distinction between the present case and those which were referred to by the defendant’s counsel, we must hold the law to be that the delivery and acceptance of the conveyance canceled and extinguished the prior executory agreement, and that it cannot be any longer resorted to to ascertain the terms upon which the land was sold. It is a general rule of evidence, as well settled as it is salutary, that a written contract executed between parties supersedes all their prior negotiations and agreements upon the same subject. This is especially true where the final contract is an executed one, and those which preceded it were in their nature executory and looked for their consummation to a conveyance afterwards to be made. The rule, however, is not applicable where the last contract covers only a part of the subjects embraced in the prior one. Where, for example, one contracts, for a specified consideration, to convey land at a future time, and to do, at a still later period, other acts for the benefit of the other contracting party, or where the contract is for a series of acts to be performed at successive periods, it is plain that the prior contract is superseded only as to such of its provisions as are covered by the conveyance made pursuant to its terms. The agreement remains in full force as to all its other provisions.”

The court refers to Bogart v. Burkhalter, 1 Den. 125, where a contract provided that the vendee should erect a particular kind of building and would not erect one which would be a nuisance to the adjoining property, and it was held That the vendee could maintain an action for a breach of this agreement, though before the acts complained of he had conveyed the land to the vendee.”

In the Witbeck case the court also states: “It is true, a bond and mortgage was to be given by the plaintiff for the unpaid purchase money when he should receive his deed. If these securities had been executed at the time the deed was delivered, and they had not contained a provision, respecting deficiency, like that in the contract, a different question would have arisen from the one now presented. No bond or mortgage being, in fact, given, the articles remained unperformed so far as the payment of the residue of the consideration was concerned. I am of opinion that they continued in force as to that residue. The provision for [174]*174reducing or increasing the amount of the purchase price, if the farm should fall short of or overrun one hundred and thirty acres, was a modification of the covenant to pay $7,200 for the farm. While that covenant remained unperformed it was subject to the influence of the clause by which it was qualified. The sum of $2,750 continuing unpaid after the deed was given, on the assumption that the land would hold out one hundred and thirty acres, it was liable to be increased or diminished according to the result of the measurement of the land.

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Bluebook (online)
121 Misc. 170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lambert-v-krum-nyappterm-1923.