Olson v. Rogness

173 Iowa 331
CourtSupreme Court of Iowa
DecidedDecember 18, 1915
StatusPublished
Cited by10 cases

This text of 173 Iowa 331 (Olson v. Rogness) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olson v. Rogness, 173 Iowa 331 (iowa 1915).

Opinion

Weaver, J.

On October 10, 1912, the defendant, Charles T. Rogness, residing in Humboldt County, Iowa, entered into a written contract with plaintiffs, by which he undertook to purchase from them a farm of 280 acres in Winnebago County, at the agreed price of $37,800, payable as follows: $1,800 in hand upon the execution of the agreement; $8,200 on March 1, 1913; and the further sum of $27,800 on March 1, 1918, with interest at 5% per cent, to be secured by mortgage on the land. Deed was to be made and delivered, with abstract showing good, merchantable title of record in the ■plaintiffs, on March 1, 1913. Time was made of the essence of the contract. On the same day, through the agency of the plaintiffs, the defendant, Charles T. Rogness, entered into another written contract to sell and convey a farm owned by him in Humboldt County to A. DeSmidt, for the sum of $16,800, to be paid $800 in hand, $5,200 on March 1, 1913, and $10,000 on March 1, 1918, with interest at 5 per cent, to be secured by mortgage on the land. Deed was to be made on March 1, 1913, time being of the essence of the contract. The wife of Rogness was not present at the making of these contracts and signed neither of them. The cash payment of $1,800 due from Rogness was not in fact made on that day] [334]*334but it was to be arranged on the following day, or soon thereafter. After executing the writings, Rogness returned to his. home in Humboldt County and reported to his wife what he had done. Within a few days thereafter, Rogness, accompanied by his wife, went to the town of Thor, where he was to meet Nessa, one of the plaintiffs, and make the first payment. He there obtained the sum of $1,000, which he paid over to Nessa, the remaining $800 being satisfied by the $800 which plaintiffs were supposed to have received from DeSmidt, on his purchase of the Humboldt County property. Mrs. Rogness knew of the purpose of the meeting of the parties at Thor and of the payment there made and raised no objection thereto, except as she claims that the contract was tentative only and conditioned upon her examining the Winnebago County property and finding the same satisfactory.

In our foregoing statement of the contract, we omitted mention of the fact that plaintiffs reserved the right to cancel the same at any time before October 15, 1912, but never at any time undertook to exercise that option. As a matter of fact, when the contract was made, plaintiffs did not own the Winnebago County property, the title thereto being then in one Ferguson; but they evidently believed they could secure a conveyance thereof to themselves in time to carry out their agreement with Rogness. On October 14, 1912, plaintiffs did obtain a contract with Ferguson for a conveyance of the land at an agreed price of $34,657.50, to be paid $1,000 in hand, $6,657.50 on March 1, 1913, and $27,800 on March 1, 1923, with interest at Sy2 per cent, to be secured by mortgage on the land.

On the day following the meeting at Thor and the settlement of the cash payment, Mrs. Rogness went to Winnebago County, and for the first time saw the land. Having examined it, she returned to plaintiffs’ office in Forest City, for the alleged purpose of declaring her dissatisfaction with the land; but, neither of the partners being at home, she made her statement to the clerk or employe in charge of the office. [335]*335She then returned to her home in Humboldt County, and on the next day wrote a letter to the plaintiffs’ employe with whom she had talked, reiterating her dissatisfaction, though not stating its nature, and signed the same with her own and her husband’s names. On October 24, 1912, Price & Joyce, as' attorneys for Rogness, addressed a letter to plaintiffs, stating that their client, Charles T. Rogness, claimed that plaintiffs had taken advantage of his unfamiliarity with the English language; that the contract “was obtained by methods the propriety of which he seems to question”; and that he further complained that the written contract omitted ‘ ‘ certain essential features” which'had been agreed upon, and which, it wa& understood between them, should be made a part of the writing. Upon this statement, an interview with plaintiffs was suggested, looking to an adjustment of the matter. Whether this letter was answered does.not appear; but,-on December 6, 1912, the defendant, Charles T. Rogness, served upon plaintiffs and upon DeSmidt a written notice of rescission, in the following words:

“To Olson & Nessa and A. DeSmidt:—
“You are hereby notified that the undersigned, Charley T. Rogness, who is alleged to have signed, on the 10th d^y of October, 1912, one certain contract for the sale of the W]/2 of NE14 and the SE14 of NW14, Section 36, Township 91 North, Range 28 West of the 5th P. M., to one A. DeSmidtof Pocahontas County, Iowa, and who is also alleged to have signed, on the 10th day of October, 1912, a certain contract by the terms of which Olson & Nessa purport to convey to the said undersigned the NEi^ and EV2 of NWV4 of Section 21 and the NW14 of NW]4 of Section 22, all in Township 97, Range 23, West of the 5th P. M., hereby elects to, and does* hereby .rescind, cancel, and declares to be null and. void each of the said several contracts for the reasons hereinafter set forth:
“That the alleged execution of the said contracts by the said undersigned, together with the payment of $1,000 [336]*336in cash to Olson & Nessa by the said undersigned, was and constituted but one single transaction. That the said contracts were contemporaneously executed, at which time the said payment of $1,000 was made by the said undersigned to the said Olson & Nessa. -
‘ ‘ That the whole transaction, at the time of the execution of the said contracts, and the payments of the said money was made upon the express condition that the said transaction as a whole should receive the acceptance and approval of the wife of the said Charley T. Rogness, without whose signature the conveyance of the first of the above described premises would be impossible, and that it was the understanding by and between all of the parties thereto that the said transaction should be conditional and incomplete until such time as her approval and acceptance had been obtained, and until she had affixed her signature to the same joint instrument for the conveyance of the said first described premises, which constitute the homestead'of the said Charley T. Rogness and his said wife. That the said wife of the said undersigned absolutely and unconditionally refused and still refuses to accept or approve the said transaction, and refuses to join in the execution of a conveyance for the same. That" by reason of the failure of the said condition upon which the said transaction is founded, the same becomes null and void and of no effect.
‘ ‘ The rescission of the said transaction by the said undersigned is also made for the reason, among others, that his signature was obtained to said contract through collusion on the part of the said Olson & Nessa; that the said Olson & Nessa were guilty of fraud and misrepresentation both in law and in fact. That the said Charley T. Rogness relied upon the false and fraudulent misrepresentations of the said Olson and Nessa, and was deceived and misled thereby; that, but for the said fraud and misrepresentations of the said Olson & Nessa and the reliance thereon by the said Rogness, his signature would not have been affixed to the said contracts.
[337]

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Bluebook (online)
173 Iowa 331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olson-v-rogness-iowa-1915.