Noyes v. Brown

171 N.W. 803, 142 Minn. 211, 1919 Minn. LEXIS 597
CourtSupreme Court of Minnesota
DecidedApril 11, 1919
DocketNo. 21,152
StatusPublished
Cited by16 cases

This text of 171 N.W. 803 (Noyes v. Brown) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noyes v. Brown, 171 N.W. 803, 142 Minn. 211, 1919 Minn. LEXIS 597 (Mich. 1919).

Opinion

Lees, C.

This action was brought to recover all deferred payments of the purchase price of 40 acres of land in Saskatchewan, Canada, sold to de[213]*213fendants by one Upton under a written contract, thereafter assigned to plaintiff.

The answer interposed by defendant Brown, upon whom alone the summons was served, was a general denial.

There was a trial by jury and a directed verdict for defendant. Plaintiff appeals from an order denying his motion for a new trial. Defendant has not appeared in this court and the case has been submitted on the brief and oral argument of plaintiff’s counsel.

The motion for a directed verdict was based on three grounds, which may be stated as follows: That an action at law on a contract for the sale of land to recover the purchase price will not lie; that plaintiff failed to plead or prove that he had tendered a deed to defendant or was able and willing to convey the land to him, and that defendant was entitled to a deed from Upton, his immediate vendor, who had disabled himself from conveying by transferring his interest in the land to plaintiff.

Unaided by brief or argument by defendant’s counsel, we have attempted to discover a theory' upon which the ruling of the trial court might be sustained.

1. In Freeman v. Paulson, 107 Minn. 64, 119 N. W. 651, 13 Am. St. 438, it was held that a vendor of land is not entitled to recover the purchase price from his vendee in an ordinary action at law, but is limited to a recovery of the damages he has sustained by reason of the breach of the contract, if legal as distinguished from equitable relief is sought.

In that case, the vendee was to make an initial payment when the contract was executed, and final payment upon the delivery of the deed. In the ease at bar, the contract provides for the payment of' $1,000 on the day of its execution and of $4,000 in four equal semiannual instal-ments. It recites that the times of such payments shall be “a condition precedent and of the essence of this agreement;” that the vendee will “punctually pay the sums of money above specified as each of the same becomes due;” that if he makes the payments as stipulated, then “upon request, at the office of the vendor, * * * at the city of Saskatoon, and the surrender of this agreement (he) shall be entitled to a conveyance of said land in fee simple;” that if he fails in the strict performance of his part of the agreement, the vendor shall have the right to declare the contract null and void by notice in writing to that effect, ‘Tut no for[214]*214feiture shall take away the right of the vendor to recover the said purchase money;” that the vendee “accepts the title of the vendor, and the said vendor * * * or assigns, as the case, may be, shall not be bound to furnish any abstract of title, nor to produce any title deeds nor other evidence of title whatever, or to answer any requisition on title;” and that the vendee, after the execution of the contract, shall have the right of possession of the land. ,

Appellant contends that these provisions distinguish this contract from the one considered in Freeman v. Paulson, supra. We are of the opinion that this contention must be sustained.

In the Freeman case, final payment of the purchase price and the execution of the deed were to be concurrent acts. Here, payment of the purchase price is expressly made a condition precedent to the right of the vendee to a conveyance. In the ordinary contract for the sale of land, the vendee’s covenant to pay and the vendor’s to convey are mutual and dependent, but here the covenant to pay is to be performed before the vendor’s covenant to convey becomes operative. When final payment is made, the vendee is to get his deed, “upon request, at the office of the vendor” and the surrender of the contract.

In a contract to convey as soon as the vendor obtained title to the land, this court held that “where, by the terms of a contract, the time to perform the covenant on the one side is to happen * * * before the time for the performance of the covenant on the other side, the former is not dependent on the latter.” State v. Winona & St. Peter P. Co. 21 Minn. 472. Where the contract provided that the time for paying the consideration was a date prior to that for the transfer of the property, it held that the payment of the consideration was intended to be a condition precedent to the obligation to transfer. Robson v. Bohn, 27 Minn. 333, 344, 7 N. W. 357. It has also held that “the question whether covenants are to be held to be dependent on or independent of each other turns upon the intention of the parties, to be ascertained from the subject matter and terms of their contract. Such intention is paramount, to which, when once discovered, all technical forms of expression must yield.” Reynolds v. Lynch, 98 Minn. 58, 107 N. W. 145.

The doctrine of these three cases is fully supported by the decisions of other courts. Early cases recognized nice and .refined distinctions [215]*215in determining tbe character of covenants. The rule is now thoroughly settled, that the intention of the parties is the vital thing — that it is to be ascertained from the sense of the entire contract rather than from any particular form of expression, and that the order of time in which it is intended that performance shall take place is a controlling circumstance. Rules were formulated long ago in a note to Pordage v. Cole, 1 Saund. [See page 320b, 6th Am. ed. 1846]. This is one of them:

“If a day be appointed for payment of money, or part of it, * * * and the day is to happen, or may happen, before the thing which is the consideration of the money * * * is to be performed, an action may be brought for the money * * * before performance; for it appears that the party relied upon his remedy, and did not intend to make the performance a condition precedent; and so it is where no time is fixed for performance of that, which is the consideration of the money or other act.”

In Paine v. Brown, 37 N. Y. 228, this rule was cited with approval. Following the lead of New York, the courts in many other states have since given their approval to the rule. It is unnecessary to rehearse the cases here. They are collected in 13 C. J. § 540.

The following language quoted from Collins v. Schmidt, 126 Wis. 227, 105 N. W. 671, exactly fits the case at bar:

“Under a contract like this, where conveyance is only to be made upon demand after completed payment, the promise of payment is absolute and may be enforced by suit .without tender of conveyance. The duty of the vendor to convey is neither a condition precedent to payment nor an act which may be demanded concurrently therewith.”

2. The consideration which led to the adoption of the rule that an action at law to recover the purchase price in an executory contract for the sale of land will not lie, was first stated in the early case of Laird v. Pirn, 7 M. & W. 474, as follows:

“The question is, how much worse off is the plaintiff by the diminution in the value of the land, or the loss of the purchase money, in consequence of the nonperformance of the contract? It is clear that he can not have the land and its value too.”

We find this thought expressed in substantially the same language in subsequent cases and by text writers. Porter v. Travis, 40 Ind. 556; [216]*216Prichard v. Mulhall, 127 Iowa, 545, 103 N. W. 774, 4 Ann. Cas. 789; Hogan v. Kyle, 7 Wash.

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Bluebook (online)
171 N.W. 803, 142 Minn. 211, 1919 Minn. LEXIS 597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noyes-v-brown-minn-1919.