Nason v. MORRISSEY

67 So. 2d 506, 218 Miss. 601, 41 Adv. S. 26, 1953 Miss. LEXIS 576
CourtMississippi Supreme Court
DecidedNovember 2, 1953
Docket38911
StatusPublished
Cited by12 cases

This text of 67 So. 2d 506 (Nason v. MORRISSEY) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nason v. MORRISSEY, 67 So. 2d 506, 218 Miss. 601, 41 Adv. S. 26, 1953 Miss. LEXIS 576 (Mich. 1953).

Opinion

*605 Holmes, J.

The appellant sued the appellees in the Chancery Court of Monroe County seeking the specific performance of an alleged agreement granting him the option to purchase land, and, in the alternative, to recover of the appellee damages for the claimed breach of the alleged agreement. The appellees demurred to the original bill and their demurrer was sustained. The appellant declined to plead further and his original bill was dismissed and from this action of the court, he appeals.

We state only such material allegations of the bill as are necessary to a decision of the case on the demurrer, and they are as follows: That on January 13, 1950, the appellee, Mike T. Morrissey, executed to the appellant a' written instrument whereby he agreed to sell to the appellant certain land which he owned in Monroe County known as the McKee place for the sum of $15,000, at the option of the appellant to be exercised within ten days beginning January 13, 1950; that as a consideration for said option, the said Morrissey required that appellant pay in escrow the sum of $2,000 to bind the option, which appellant did; that before the option expired, the said Morrissey, in a telephone conversation with appellant, orally agreed to renew the option for a period of six months and required appellant to increase the escrow deposit from $2,000 to $5,000, which appellant did on *606 February 18, 1950, and that such escrow deposit since said date has remained in the Monroe Banking and Trust Company of Aberdeen, Mississippi; that during said period of six months and subsequent thereto, the full amount of $15,000 was on hand available to be paid the said Morrissey and the appellant offered repeatedly during the time the option was in force to pay to the said Morrissey the sum of $15,000 upon the execution and delivery to him of a deed conveying said property; that the reason the said Morrissey did not execute the deed was that the Internal Revenue Department of the United States had made a claim against him for $267,278.89 for delinquent income taxes, and that in negotiations for a settlement of said claim he had rendered a financial statement to the Government in which he had valued the land in question at $8,000, and that he did not want to execute the deed for a consideration of $15,000 and thereby disclose to the Government that he had undervalued the property; that on March 2, 1950, the Government filed a lien against said land for the claimed delinquent income taxes; that while the option as renewed was in force and effect, the appellant had repeated personal and telephone conversations with the said Morrissey in which the said Morrissey agreed to convey the property as soon as the Government’s claim was settled and the lien removed; that relying upon the oral agreement for the renewel of the option, the appellant contracted to sell the land to J. L. Johnson for $20,800, and that when the said Morrissey was advised of this, he told appellant to let Johnson go into possession of the land and occupy it free of rent until the tax liability was settled and the lien removed and the deed executed; that the tax claim was settled and the lien removed on July 9, 1950, and that on July 10, 1950, the said Morrissey conveyed the land to his mother, the other appellee herein, for a recited consideration of $25,000, and advised appellant that he would *607 have the land conveyed to him if he would pay $25,000 therefor; that the conveyance of the land by the said Morrissey to his mother was for the fraudulent purpose of defeating the option and that appellee, Mrs. Josephine ft. Morrissey, accepted the conveyance to her with full knowledge of the option and of the fraud attempted to be perpetrated upon appellant.

The bill prayed cancellation of the conveyance to appellee, Mrs. Josephine ft. Morrissey, the specific performance of the alleged option agreement as renewed, and, in the alternative, the recovery of damages for the alleged breach of the option agreement in the sum of $5,800, being the difference between the purchase price as recited in the option and the amount for which appellant claimed he had agreed to sell the land to Johnson.

ft is conceded that the appellant did not exercise the original written option within the period of ten days therein provided. He relies upon the oral agreement to extend the option for a period of six months, which is alleged to have ,been made during the óriginal period of ten days. The contract under review is one for the sale of land, ft is one, therefore, which, under the statute of frauds, is required to be in writing. Sec. 264, Miss. Code of 1942. Hence the question is presented as to whether or not a contract required by the statute of frauds to be in writing can be validly changed or modified as to any material condition therein by subsequent oral agreement so as to make the original written contract as modified an enforceable obligation. It is our conclusion that this question must be answered in the negative, and such conclusion renders unnecessary any discussion of other questions raised on this appeal, such as the presence or absence of a consideration for the original or renewal agreement or the sufficiency of tender.

It should be emphasized in the outset that we are not dealing with a contract not required to be in writing by statute. It is generally recognized that the rule that a *608 written, contract cannot be changed or modified by parol evidence of what was said and done by the parties at the time of the making of the contract does not preclude the subsequent parol modification of the written contract, provided the contract is not one which under the statute is required to be in writing. 49 Am. Jur., Sec. 301, page 609. Neither are we dealing here with a parol agreement to waive or modify a particular condition in a written contract where the parol agreement has been fully executed or fully performed. Such was the case of Lee v. Hawks, 68 Miss. 669, 9 So. 828, reaffirmed in the case of McDonnell Construction Company v. Delta and Pine Land Company, 163 Miss. 646, 141 So. 757. These cases are relied upon by the appellant, but are not applicable to the question here presented. We are not dealing either with a subsequent parol agreement to modify a written contract which is asserted by way of defense to an action for a breach of contract. Such are the cases of Perry v. McLain, 66 Miss. 145, 5 So. 518, Higgins, et al. v. Haberstraw, 76 Miss. 627, 25 So. 168, and Albert Mackie and Co. v. S. S. Dale & Sons, 122 Miss. 430, 84 So. 453. These cases are, therefore, not applicable. We are dealing here with a suit in which the appellant is seeking to enforce a parol agreement to modify a written contract which is required by our statute of frauds to be in writing. This presents an entirely different question and one on which the authorities are not agreed. Most of the authorities, however, and the implications of our own decisions, approve the general doctrine that a contract required by the statute of frauds to be in writing cannot be validly changed or modified by subsequent oral agreement so as to render the original written contract as so modified an enforceable obligation.

In 49 Am. Jur., Sec. 301, pp.

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Bluebook (online)
67 So. 2d 506, 218 Miss. 601, 41 Adv. S. 26, 1953 Miss. LEXIS 576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nason-v-morrissey-miss-1953.