Lyon v. Gray

288 S.W. 545
CourtCourt of Appeals of Texas
DecidedNovember 3, 1926
DocketNo. 2716.
StatusPublished
Cited by7 cases

This text of 288 S.W. 545 (Lyon v. Gray) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyon v. Gray, 288 S.W. 545 (Tex. Ct. App. 1926).

Opinion

HALL, C. J.

On the 6th day of October, 1921, Wm. Gray, as party of the first part, and J. W. Lyon, as party of the second part, entered into a written contract which contains preliminary recitals to the effect that theretofore, on the 31st day of December, 1918, “by a proper deed of conveyance,” one W. M. Gray sold and conveyed to Lyon certain premises situated in Wheeler county and described in the contract; Lyon, as part payment for said land, executed and delivered to W. M. Gray 7 certain vendor’s lien notes, containing the usual stipulation for 8 per cent, interest, 10 per cent, attorney’s fees, and an acceleration clause; that afterwards W. M. Gray transferred the notes and the vendor’s lien to Dr. Wm. Gray (the appellee in this suit), who was at the time of the execution of the contract the owner and holder of the notes, together with the superior vendor’s lien; that Dr. Gray had instituted suit in the district court of Wheeler county against Lyon, praying for, judgment upon the notes and foreclosure of the vendor’s lien; that whereas, Lyon had, found himself unable to pay the notes, and because both parties were desirous of effecting a compromise of the matters involved and dismissing the suit:

“Now, therefore, in consideration of the said Dr. Wm. Gray withdrawing and dismissing the above-mentioned suit, and in consideration of the premises hereinafter set out, the said party of the second part hereto, joined by his wife, Mary E. Lyon, has this day, by a proper deed of conveyance, sold and conveyed the land above described to the party of the first part hereto, in consideration of the cancellation and release of the above-described notes, and of the further consideration of the said party of the first part assuming the payment of a loan of approximately $3,300, heretofore secured from the Federal Farm Loan Bank at Houston, Tex. [less any payments as may have been heretofore made to this date], according to the face of said loan, and by virtue of said deed the title to said land above described is now vested in the party of the first part hereto, subject to' the amount due on the said above-mentioned Federal loan.
“Now, therefore, in consideration of the premises above set out, the said Dr. Wm. Gray hereby agrees to keep and.retain the title to the above-described property vested in himself for a period of 8 months from this date, unless a sale of same-is effected within said period of 8 months, by the mutual agreement of himself and the party of the second part hereto, and the said Dr. Wm. Gray further agrees that if the party of the second part hereto, at any time during said 8-month period from this date, secures a purchaser for the land above described, who will pay to the party of the first part hereto, the sum of $2,082.76 in cash and further ex *547 ecute and deliver to the party of the first part hereto the three promissory vendor’s lien notes for the sum of $500 each, bearing interest from date until paid at the rate of 8 per centum per annum, and being vendor’s lien notes against the land above described, and due one, two, and three years after date of said sale, and provided, said purchaser shall further agree and assume the balance due on the Federal loan heretofore mentioned, as being a first lien against the land above described, and release the said Dr. Wm. Gray from liability thereon, then and in such event the said party of the first part hereto binds himself to convey the property above described by a proper deed to such purchaser as party of the second part may secure and direct. Or, if the said party of the second part shall fail to secure a purchaser for the land above described within said period of 8 months from this date, according to the terms as set out above, but shall be able to negotiate a loan upon the land above described, from any source, within 8 months from this date, then the said party of the first part hereto further binds and obligates himself, in the event the party of the second part'hereto is able to negotiate and make a loan against the land above described within 8 months from this date, and shall be able from the proceeds of said loan to pay off and satisfy the Federal loan above described as being a first lien against the land hereinabove described, and shall be able further out of the proceeds of said loan to pay and shall actually tender and offer to pay to the said party of the first part hereto $2,082.76 cash, then the party of the first part agrees to accept said sum of $2,082.76 in cash, and agrees to convey, by proper deed of conveyance, the land above described to the party of the second part, and the party of the second part further, in such event, agrees in addition to making said payment of such principal, interest, attorney’s fees, and court costs, as above set out, to make, execute, and deliver to the party of the first part three vendor’s lien notes for the sum of $500 each, due one, two, and three years after date of such sale, bearing interest at'the rate of 8 per centum per annum, payable to the party of the first part, and retaining a lien against the land above described, and the party of the first part agrees to accept said notes as part payment upon said land and agrees to accept the same subject to whatever loan the party of the second part may negotiate in order to effect these premises.
“As a further consideration to the performance by the party of the first part hereto of either of the stipulations last set out, the party of the second part hereby, as a further consideration for his sale or his purchase of the land above described under the conditions last set out, agrees to pay all taxes due against the land, and also agrees to pay the interest and .annual payments upon the Federal loan above mentioned, according to the tenor and reading of said loan.
’ “It is further agreed and understood by and between the parties hereto that if neither of the conditions to this contract are performed within the said period of 8 months, that is, if the party of the second part hereto does not procure a purchaser for said land under the conditions herein set out or does not secure a loan and thus become able to repurchase the land himself, under the conditions set out, within said 8 months, then, at the end of said 8 months from this date, this contract shall become null and void and all of the obligations upon either party hereto shall be at an end.
“It is further agreed that, if the’said party of the second part fails to comply with any portion of this contract, the same shall be void, and all obligations on the party of the first part hereto shall cease and be of no effect.

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Cite This Page — Counsel Stack

Bluebook (online)
288 S.W. 545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyon-v-gray-texapp-1926.