Payne v. Jennings

131 S.E. 209, 144 Va. 126, 48 A.L.R. 628, 1926 Va. LEXIS 235
CourtSupreme Court of Virginia
DecidedJanuary 14, 1926
StatusPublished
Cited by7 cases

This text of 131 S.E. 209 (Payne v. Jennings) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Payne v. Jennings, 131 S.E. 209, 144 Va. 126, 48 A.L.R. 628, 1926 Va. LEXIS 235 (Va. 1926).

Opinion

West, J.,

delivered the opinion of the court.

. On February 16, 1922, T. A. Jennings, appellee, who resided at the corner of Fifteenth and Federal [128]*128streets, in the city of Lynchburg, listed his residence-lot and three other adjoining lots for sale with Walker, Mosby & Calvert, Inc., real estate agents. The agency contracts, signed by Jennings, were under seal and in the form generally used by the agents in such cases. There was a separate contract for each lot, and the contract covering the residence lot read, in part, as follows: “In consideration of your listing for sale and endeavoring to sell the real estate described * * * I hereby authorize you to sell the same at the price of $12,000.00. Terms: $3,000.00, balance one, two and. three years. Deferred payments to bear interest and be secured by a deed of - trust upon the property.”" The contract gave the agents the exclusive right to sell the property for six months and provided further, “upon your securing a purchaser, ready, able and willing to buy said property at said price and terms, or any other price and terms which I may hereafter-accept, or agree to accept, I agree to pay you a commission on the gross price at which the same is sold,, or exchanged for other property, of five per cent, on the-first $10,000.00 and two and a half per cent, on the-balance, and convey or cause to be conveyed with good, title, by general warranty deed, said property to any purchaser designated by you.” (Italics ours.) The-clause touching the delivery of possession of the-property read, “to be agreed.”

On April 26, 1922, W. E. Graves, president of board of trustees, of Marshall Lodge Memorial Hospital, Inc., agreed to purchase the property in his own name-upon his own responsibility, at the price and upon the terms above stated, intending to turn his contract of' purchase over to the hospital if it wanted the property.

At Graves’ request the contract of sale was made in. the name of D. A. Payne.

[129]*129The contract was put in writing, under seal, and executed on April 26, 1922, on behalf of Jennings by his agents, Walker, Mosby & Calvert, Inc., and by D. A. Payne. The contract provides that the party of the first part has sold to Payne, party of the second part, the property mentioned for “$12,000.00, payable $3,000.00 cash on delivery of the deed, balance in equal payments of one, two and three years, deferred payments to bear six per cent, interest from date of deed, secured by deed of trust upon the property.” It further provides “that the party of the first part covenants that he will execute a proper deed of conveyance for said property, with the usual covenants of title, whenever the party of the second part complies with the terms of sale as above set forth;” that “the party of the first part acknowledges the receipt of $500.00 on the purchase money,” and agrees that the “party of the second part shall have fifteen days from the date hereof within which to have the title of said property examined, and should same not prove good then this contract shall be void, and the money paid as aforesaid shall be returned.”

The board of directors approved the action of its president, and it was agreed that Payne was to deed the property to the hospital.

Upon learning that the agents had agreed to sell the property to D. A. Payne, Jennings refused to approve the contract, denied the authority of his agents to make it, and declined to accept the $500.00. Later, when the balance of $2,500.00 was tendered to him on the cash payment he declined to accept it.

On April 28, 1922, Walker, Mosby & Calvert, Inc., had the contract of sale recorded in the clerk’s office of the city of Lynchburg.

On the third Monday in April, 1924, T. A. Jennings [130]*130filed Ms Mil against D. A. Payne, Marshall Lodge Memorial Hospital, Xnc., and Walker, Mosby & Calvert, Inc., charging that Walker, Mosby & Calvert, Inc., were without authority under the agency contract to execute, on his behalf, the contract of sale to D. A. Payne; that at the time of signing the agency contract it was agreed that a sale of the residence lot would not be negotiated with the hospital at the list price, unless his adjoining property had then been sold and that no. sale to any purchaser, of either parcel, would be contracted for by the agents without his consent; that all the parties knew he was unwilling to sell the property to the hospital at the price named, and conspired to deceive him by securing D. A. Payne as a purchaser in his own name when he was in fact buying the property for the hospital; that his wife was not a party to the listing contract and refused to confirm the contract of sale; and that the contract of sale to D. A. Payne constitutes a cloud upon his title.

The prayer of the bill is that the contract of April 26, 1922, between D. A. Payne and the complainant, by his. agents, be annulled, cancelled and delivered to the complainant.

The defendants, D. A. Payne and Memorial Hos.pital, Inc., filed their answer and cross-bill. They deny the charge of conspiracy to defraud and allege that they are bona fide purchasers, at all times since said purchase able, ready and willing to accept and pay for the property. They further charge that under the act of the General Assembly of 1922, granting all courts of record jurisdiction to make binding declarations of right, they are entitled to have their right, title and interest in the property fixed and determined by a decree of the court in the instant case.

The defendant, Walker, Mosby & Calvert, Inc., [131]*131filed its answer denying that their authority to sell the property under the agency contract was in any manner limited by the complainant by any parol instructions or agreements and emphatically denying the charge of conspiracy to defraud the complainant.

The case was heard upon the pleadings and depositions of witnesses, and the court entered the decree complained of, cancelling and annulling' the contract of April 16, 1922, and directing that the same be surrendered to the complainant.

The assignments of error involve the following questions :

1. Did the defendants conspire to deceive and defraud the complainant?

2. Was there a contemporaneous parol agreement between the complainant and his agents, and if so, was evidence of it admissible to abrogate or modify the authority given under the written contract of agency?•

3. Did Walker, Mosby & Calvert, Inc., have authority under the agency contract to execute the contract of sale binding Jennings to convey the property to Payne or the hospital?

4. Were the defendants, Payne and the lodge, entitled to the declaratory decree prayed for in their answer and cross-bill?

A real estate agent is generally a special agent of limited powers, and those dealing with him deal at their peril. Usually his only authority is to secure a purchaser who will take the property at a price fixed by the owner. He cannot, unless expressly or impliedly authorized, execute a contract of sale on behalf of his principal. Kramer v. Blair, 83 Va. 462, 13 S. E. 258; Halsey v. Monteiro, 92 Va. 581, 24 S. E. 258; Davis v. Gordon, 87 Va. 559, 13 S. E. 35.

[132]*132For authority to execute a contract of sale» binding on his principal, the agent must look to his agency contract.

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Bluebook (online)
131 S.E. 209, 144 Va. 126, 48 A.L.R. 628, 1926 Va. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/payne-v-jennings-va-1926.