Matthes v. Wier

84 A. 878, 10 Del. Ch. 63, 1912 Del. Ch. LEXIS 37
CourtCourt of Chancery of Delaware
DecidedSeptember 18, 1912
StatusPublished
Cited by23 cases

This text of 84 A. 878 (Matthes v. Wier) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matthes v. Wier, 84 A. 878, 10 Del. Ch. 63, 1912 Del. Ch. LEXIS 37 (Del. Ct. App. 1912).

Opinion

The Chancellor.

The bill sets up a right to specific performance of an agreement to lease to the complainant a lot of land, with a store thereon erected, for a term of years with the [65]*65right of the lessee to purchase the demised premises during the term. It is alleged and shown that the defendant, Margaret Wier, owned a lot of land and store in Wilmington, known as No. 811 King Street, and that her brother, Thomas M. Wier (as her agent), on or about December 16, 1909, made a paroi agreement with the complainant to lease to him the premises, No. 811 Bang Street, for five years, commencing March 25, 1910, at a rent of'three hundred and sixty dollars per annum, payable in monthly installments of thirty dollars per month, the first payment to be made April 25,1910, the lessor agreeing that the lessee during the term could purchase the premises for sixty-five hundred dollars, and that upon payment of the purchase money the premises should be conveyed to the lessee and the lease be thereby determined. Subsequently-the complainant submitted to Thomas M. Wier a draft of a lease embracing the above terms to be executed by the owner and at the same time delivered to Thomas M. Wier a certified check for one hundred dollars as a payment on account of the purchase price. The lease was not at that time signed by either party, but Thomas M. Wier then stated he was satisfied,but wanted to submit the draft of agreement to a lawyer and would send to the complainant a receipt for the money paid. A few days later the complainant was given a receipt for the money, as follows:

“Received December 16th, 1909, from Arthur M. Matthes a check for one hundred dollars, in payment on account of purchase of property 811 King St.
“$100. Received payment.
Thomas M. Weir,
“M. W.”

It was admitted that the whole of the receipt was written by the defendant, Margaret Wiér, by the direction of her brother. Thomas M. Wier. She so testified, and further testified that she'had received the money and. deposited it to her own credit; that she had seen the draft of the lease, had consulted her attorney concerning it, but could not say whether the consultation was before or after she wrote the receipt, or before or-[66]*66after it had been sent to the complainant. It was shown by the testimony of George E. Miller, a witness having no interest in the matter, that Margaret Wier admitted that Thomas M. Wier was her agent “partly,” and that she had been satisfied with the terms of the lease until she consulted her attorney. ■ Margaret Wier retained the one hundred dollars for nearly four months and then endeavored to return it to the complainant, who refused to accept it. The testimony of Margaret Wier and her explanations are unsatisfactory, but it does appear therefrom that when she took the one hundred dollars and wrote .the receipt she knew that it was a payment on account of the purchase price of the premises, No. 811 King Street, and that according to the arrangement made by her brother for her, and the draft of the lease, the complainant had the right to purchase the property at the price therein stated. When she signed the receipt she knew that the form of agreement which the complainant submitted involved a possible purchase of No. 811 King Street.

It is not denied that the draft of the lease stated the agreement made between Thomas M. Wier and the complainant, but the agency of Thomas M. Wier to act for Margaret Wier was denied, and it was urged further, as a defense, that there was no written evidence of the agency.

The prayer of the bill is that the defendant be decreed to specifically perform the agreement and be required to grant a lease pursuant thereto.

The jurisdiction of the Court of Chancery to require a vendor to specifically perform an executory contract to sell land is well established and based on the broad principle that to do so would do more perfect and complete justice than by remitting the vendee to the recovery of damages at law. Inadequacy of the legal remedy is always assumed. But a surer ground for the remedy is the consideration, that the vendee by reason of the contract acquires an equitable interest in the land, which the court perfects by requiring the transfer to him of the legal estate. Therefore the right to specific performance of a contract for the sale of land depends not merely upon the inadequacy of the legal remedy of damages, but also on the [67]*67equitable interest which he acquires by the contract. 1 Pomeroy on Equity Jurisprudence §221, note.

In this State the equitable interest which a vendee acquires under a valid contract for sale of land has been recognized. Flanagin v. Daws, 2 Houst. 476. But the existence of this equitable interest has not here been regarded as the basis for relief of specific performance to the vendee, and the prevention of fraud has generally been regarded here as the origin of the jurisdiction.

In a sense the making of a decree is discretionary; but this should be taken to mean that if the elements, conditions and incidents which equity regards as essential to the administration of its peculiar modes of relief are present, the remedial right is perfect in equity. With respect to the remedy of specific performance of executory contracts, the elements are thus stated by Pomeroy:

“The contract must be concluded, certain, unambiguous, mutual and upon a valuable consideration; it must be perfectly fair in all its parts; free from any misrepresentation or misapprehension, fraud or mistake, imposition or surprise; not an unconscionable or hard bargain; and its performance not oppressive upon the defendant; and finally it must be capable of specific execution through a decree of the court.” 3 Pomeroy on Equity Jurisprudence (2d Ed.) §1404, note 1, p. 2162.

This summary is in accord with the decisions of the courts of this State. Where the defendant alone has signed the memorandum required by the Statue of Frauds, the requisite mutuality is supplied by the complainant filing his bill. 3 Pomeroy on Equity Jurisprudence (2d Ed.) §1405, note 1, p. 2163; Clason v. Bailey, 14 Johns. (N. Y.) 484; Hodges v. Rowing, 58 Conn. 12, 18 Atl. 979, 7 L. R. A. 87; Moses v. McClain, 82 Ala. 370, 2 South. 741; Docter v. Hellburg, 65 Wis. 415, 27 N. W. 176; Mastin v. Grimes, 88 Mo. 478.

The paroi contract set up by the bill meets all these requirements. The requisites stated by Chancellor Saulsbury in Connaway v. Wright’s Admr., 5 Del. Ch. 472, are present, viz.: “A valuable consideration, particularity, certainty, mutuality and a necessity for performance.” All these appear [68]*68in the draft of the proposed lease submitted to the defendant for execution as containing all the terms agreed upon—the premises to be demised, the terms, and the rent and the terms of the purchase, including the price to be paid, and the time within which the purchase could be made. • No inequitable elements appeared to impeach the fairness of the bargain, or mistake, imposition or hard bargain, or even inadequacy of rent or purchase price. Mutuality is supplied by the filing of the bill.

In this case there is not in the memorandum signed by the vendor such full statement of the terms of the contract as is required.

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

Related

Wolf v. Crosby
377 A.2d 22 (Court of Chancery of Delaware, 1977)
Cook v. Fusselman
300 A.2d 246 (Court of Chancery of Delaware, 1972)
Acierno v. McCall
264 A.2d 513 (Supreme Court of Delaware, 1970)
Chavin v. H. H. Rosin & Co.
246 A.2d 921 (Supreme Court of Delaware, 1968)
Esso Standard Oil Co. v. Cunningham
114 A.2d 380 (Court of Chancery of Delaware, 1955)
Esso Standard Oil Company v. Cunningham
114 A.2d 380 (Court of Chancery of Delaware, 1955)
Lee Builders, Inc. v. Wells
95 A.2d 692 (Court of Chancery of Delaware, 1953)
Lee Builders v. Wells
95 A.2d 692 (Court of Chancery of Delaware, 1953)
Hamilton v. Traub
51 A.2d 581 (Court of Chancery of Delaware, 1947)
Greer v. Moore
166 A. 403 (Court of Chancery of Delaware, 1933)
Cartmell v. Nigro
165 A. 625 (Court of Chancery of Delaware, 1933)
Simms v. Schwartz
134 A. 99 (Court of Chancery of Delaware, 1926)
Sussex Investment Co. v. Clendaniel
129 A. 919 (Court of Chancery of Delaware, 1925)
Cieniewicz v. Sliwka
128 A. 527 (Court of Chancery of Delaware, 1925)
Shepherd v. Niles
125 A. 669 (Court of Chancery of Delaware, 1924)
Schwartsman v. Wilmington Stores Co.
123 A. 343 (Superior Court of Delaware, 1924)
Kahn v. Orenstein
114 A. 165 (Court of Chancery of Delaware, 1921)
Commissioners of Lewes v. Breakwater Fisheries Co.
112 A. 376 (Court of Chancery of Delaware, 1921)
F. B. Norman Co. v. E. I. duPont deNemours & Co.
108 A. 743 (Court of Chancery of Delaware, 1920)
Clark v. City of Bradford Gas & Power Corp.
98 A. 368 (Court of Chancery of Delaware, 1916)

Cite This Page — Counsel Stack

Bluebook (online)
84 A. 878, 10 Del. Ch. 63, 1912 Del. Ch. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matthes-v-wier-delch-1912.