Morgan v. Firestone Tire & Rubber Co.

201 P.2d 976, 68 Idaho 506, 1948 Ida. LEXIS 153
CourtIdaho Supreme Court
DecidedDecember 2, 1948
DocketNo. 7447.
StatusPublished
Cited by61 cases

This text of 201 P.2d 976 (Morgan v. Firestone Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan v. Firestone Tire & Rubber Co., 201 P.2d 976, 68 Idaho 506, 1948 Ida. LEXIS 153 (Idaho 1948).

Opinion

*510 HYATT, Justice.

In July, 1943, appellant, a married man, contemplating an investment with community funds, and The Firestone Tire and Rubber Company (Ohio corporation), desiring to dispose of its business real estate in Pocatello but retain possession and use of the same by lease for a period of years, entered into the following agreement (being the latter’s standard form but deletion and italics ours), without appellant’s wife joining therein:

“The Firestone Tire & Rubber Company, an Ohio Corporation, hereby agrees to sell, and The Undersigned hereby agrees to purchase the following described real estate, as described herein, in fee simple, on the terms stated below, conveyance to be made by warranty deed:
“Said real estate being described as follows :
“Lots One (1), Two (2), and Three (3) inclusive of Block Four Hundred Fifty-four (454) of the City of Pocatello, Bannock County, Idaho, according to the official survey thereof,......Subject to conditions, reservations and restrictions of record.
“The purchase price is to be Thirty-eight Thousand Dollars ($38,000.00) payable One Thousand Dollars ($1,000.00) as earnest money and part of the purchase price.
“Upon the execution of this contract by Purchaser said earnest money shall be deposited in escrow with Pocatello Branch, First Security Bank of Idaho as escrow holder. The remaining Thirty-seven Thousand ($37,000.00) Dollars (cash) shall be paid to Seller through escrow upon the *511 passing of the title as hereinafter specified.
“The Seller shall furnish the Purchaser an Abstract of Title brought down to date, covering the property hereinabove described and the said title shall be good and merchantable subject to conditions, reservations and restrictions of record: otherwise, this Contract shall be void and earnest money refunded if Seller fails to provide good title as hereinafter provided.
"As an inducement to the Purchaser to purchase this property, amd as part of the consideration thereof, the Seller agrees to lease the above described premises from the Purchaser, said lease to be entered into contemporaneously with the passing of title under this Contract. Said lease to be for a term of ten (10) years at a ‘net rental’ of Two Thousand Two Hundred Eighty Dollars ($2,280.00) per annum, payable One Hundred Ninety Dollars ($190,00) per month on the first day of each month in advance; ‘net rental’ meaning that the Lessee (the Seller herein) shall pay taxes and assessments accruing during said term; shall maintain the premises in good repair at its own cost and expense. Said lease shall provide that at the expiration of the lease, Lessee will return said premises toj the Lessor in as good order and condition as when leased, occupational and ordinary wear and tear excepted. Said lease shall further provide that in the event of fire and other casualty, the Lessee shall restore the premises to its former condition at its own cost amd expense. Said lease as to-form, taxes and assessments, restoration in event of fire and other casualty, and other terms and conditions shall be subject to the approval of both parties hereto.
“Lease to be executed by Lessee, viz r The Firestone Tire & Rubber Company, an Ohio corporation. (Being the parent corporation.)
“The sale shall be closed within thirty (30) days from date of delivery of Abstract of Title or as soon thereafter as marketable title can be investigated and furnished. It is agreed that the Seller shall furnish, and Purchaser shall have a. reasonable time in which to investigate, good and marketable title to said property.. In the event the title is objected to, the Seller shall be furnished with a written statement of all objections. If title is not marketable and cannot be made so within One Hundred Twenty (120) days after receipt of such objections, this agreement shall be void, in which case neither party shall be liable for damage hereunder and all money theretofore paid by the Purchaser shall be refunded.
“The undersigned Sellers agree to pay to Bryan & Company, Box 1187, Pocatello, Idaho, as Real Estate Broker, through said escrow, the regular prevailing commission for said sale as provided under the schedule of commissions of the Real Estate Board where the property is located if and when the deal is fully consummated as evidenced by delivery of Deed to Purchaser.
*512 “Should the Purchaser fail to carry out this Contract, in accordance with all of its provisions, the earnest money as shown herein shall be forfeited as liquidated damages, at the option of the Seller, and the earnest money so forfeited shall be divided equally between the Seller and said Broker.”
“s/ Nate Morgan
Purchaser
“The Firestone Tire & Rubber Company
“s/ R.L.C. s/ By H, E. Ludwick
“Attorney in Fact
“Seller”
“Witnesses:
■ “s/ P. M. Bryan

After title was found satisfactory to appellant, the company submitted its standard printed form of lease, which he rejected as containing matters not in the agreement and therefore detrimental to his interests. Thereafter, appellant’s attorney and the company’s agent satisfactorily revised another of the latter’s printed lease forms except that appellant, through his attorney, requested the company to carry “outside” insurance for fire or other casualty instead of him accepting the company’s responsibility therefor as provided by the contract.

Appellant and the agent then met, personally, on this matter and the latter wired appellant’s attorney that it was tentatively agreed Firestone would carry “outside” insurance and he was making such recommendation to the home office at Akron. Shortly thereafter the agent notified appellant’s attorney by wire that the company would not obtain such insurance, that it had gone as far as it could in attempting to reach mutually satisfactory terms and conditions on the lease, and was terminating negotiations and cancelling the contract. It refused thereafter to negotiate further and appellant then brought this suit in his name alone for specific performance of the agreement.

The vendor by its answer admitted the execution of the agreement and by way of defenses set up that it submitted a standard form of lease, but by reason of plaintiff’s demands, conclusion of the agreement was impossible, and it cancelled negotiations and declared the transaction at an end; further, that the agreement being entire and indivisible was not specifically enforceable because of its indefiniteness and uncertainty as to the terms of the lease and the invalidity of the lease provision for failure of appellant and wife to join in the execution and acknowledgement of the agreement.

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Bluebook (online)
201 P.2d 976, 68 Idaho 506, 1948 Ida. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-firestone-tire-rubber-co-idaho-1948.