Levin v. . Dietz

87 N.E. 454, 194 N.Y. 376, 1909 N.Y. LEXIS 1288
CourtNew York Court of Appeals
DecidedFebruary 23, 1909
StatusPublished
Cited by34 cases

This text of 87 N.E. 454 (Levin v. . Dietz) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Levin v. . Dietz, 87 N.E. 454, 194 N.Y. 376, 1909 N.Y. LEXIS 1288 (N.Y. 1909).

Opinion

Hiscock, J.

Respondents as vendees are seeking to compel the appellant as vendor to specifically perform a contract for the sale of real estate and he is resisting on various grounds. We deem it unnecessary to discuss more than two of the questions involved in the controversy. We shall assume simply for the purposes of this discussion that the letters signed by the appellant and set forth in the findings already quoted constituted a sufficient compliance with the requirements of the Statute of Frauds. After making this assumption, however, there remain the other questions whether there was any contract binding respondents to buy the real estate which it is claimed appellant agreed to sell, and if not, whether a court - of equity at the suit of a party not himself bound will enforce. performance by his adversary. We think that both of these questions must be answered in the negative and that it must be held that the respondents were not under any obligation to buy appellant’s land and that, therefore, there was lack of consideration for the latter’s contract and lack of that mutuality of obligation which are both essential to the successful prosecution of this action.

It has sometimes been intimated in earlier cases in other jurisdictions, if not in this state, that the mere physical acceptance and attempted enforcement by one party of a contract unilateral in form executed by another made the former a party to and bound by the contract. This doctrine, however, has not been adopted or affirmed by later decisions in this state even if elsewhere. :

In certain cases cited by the respondents the court has enforced a contract signed by only one party, but in these cases it expressly appeared where the agreement sought to be enforced was one to buy, that the seller had agreed by parol to sell upon the terms mentioned in the paper signed by the *379 purchaser (Mason v. Decker, 72 N. Y. 595); or that the written agreement sought to be enforced gave an option which the party seeking to enforce had expressly accepted within the term of its life (Pettibone v. Moore, 75 Hun, 461; Jones v. Barnes, 105 App. Div. 287), and under these circumstances it was held that there was a “ binding agreement ” or a “ completed bargain,” and that the written contract although unilateral in form could he enforced.

We regard those cases as decided on principles not applicable to this one where there is not claimed to have been any express agreement by the vendees to buy, and where there has heen no acceptance by them of the promise of the vendor except such as was involved in their offer to perform at a time when he had withdrawn from his promise. On such facts we see no opportunity to claim that the respondents were under any obligation to buy appellant’s land or that there was any mutuality of obligation, and thus we come to the remaining question.

The decision in this state of the question whether equity will enforce against one party performance of a contract not imposing mutual obligations on the other has been attended by more or less confusion and conflict of authorities. This was early exemplified by the opinions of Chancellor Kent in two cases. In the early case of Benedict v. Lynch (1 Johns. Ch. 370, 373) he wrote in an action for specific performance of a contract relating to the sale of real estate, “ I need not stay to examine how far the objection of a want of mutuality is applicable to this contract, since the decision can be placed with more satisfaction upon the intrinsic merits of the case. But the point being stated by the counsel, I am unwilling to pass it by, without observing that it has been ruled in several cases (citing them) that a bill for a specific performance will not be sustained, if the remedy be not mutual, or where one party only is bound by the agreement. This doctrine received a very clear illustration, and an explicit sanction, in a late decision by Lord Redesdale, * * *. Though there are other cases in which an agreement has not been deemed within the *380 Statute of Frauds, and a specific performance has been decreed, when the contract was signed only by the party sought to be charged, * * * yet the contrary opinion appears, from the most recent decisions, to be now prevailing.” Later, in the case of Clason v. Bailey (14 Johns. 489), the chancellor again writing on this subject said : “ I have thought, and have often intimated, that the weight of argument was in favor of the construction that the agreement concerning lands, to be enforced in equity, should be mutually binding, and that the one party ought not to be at liberty to enforce, at his pleasure, an agreement which the other was not entitled to claim. * * * But, notwithstanding this objection, it appears from the review of the cases, that the point (that a contract not mutual would be enforced) is too well settled to be now questioned.”

And cases may be found in this state sustaining this later view of the chancellor. (Matter of Hunter, 1 Edw. Ch. 1; M’Crea v. Purmort, 16 Wend. 460-465; Justice v. Lang, 42 N. Y. 493.)

One case is especially relied on by respondents as deciding that a contract may be enforced notwithstanding lack of mutual obligations and resulting consideration which cannot fairly be cited as authority for that doctrine, and that is the case of Worrall v. Munn (5 N. Y. 229). Because of its apparent direct conflict with the later cases hereafter to be referred to, this case deserves especial attention. It was brought by plaintiff to compel the specific performance by defendants of a contract for the sale of real estate. The defendants had executed an agreement to convey the lands in question. A counterpart of the agreement was executed by “ Henry Worrall for Hoali Worrall,” the plaintiff, the seal being affixed at the end of the agent’s name. It was. contended, amongst other things, that the agreement was not properly executed in behalf of the vendee and plaintiff Worrall by his agent, and that, therefore, the agreement not being binding on him was not binding on defendants for want of mutuality; Judge Paige finally reached the conclusion that the contract executed by the agent was binding on his principal, and this determination *381 established the proposition that there was an agreement executed by both vendor and vendee and, therefore, free from the vice of lack of mutuality. Having done this, he then proceeded further and reached the view that even if the. agreement was void as to the vendee because of lack of proper execution, still it could be enforced notwithstanding the lack of mutuality. Thus he placed his opinion on two grounds, and this being so, the concluding paragraph of the opinion does not make it plain on which ground the majority of the court concurred with him in his conclusion that specific performance should be enforced.

However, whatever conflict and uncertainty may have been created by earlier decisions, in comparatively recent years a series of cases have come to this court, finally leading up to that of Wadick v. Mace (191 N. Y.

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Bluebook (online)
87 N.E. 454, 194 N.Y. 376, 1909 N.Y. LEXIS 1288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levin-v-dietz-ny-1909.