Podany v. Erickson

49 N.W.2d 193, 235 Minn. 36, 1951 Minn. LEXIS 743
CourtSupreme Court of Minnesota
DecidedSeptember 14, 1951
Docket35,510
StatusPublished
Cited by10 cases

This text of 49 N.W.2d 193 (Podany v. Erickson) 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
Podany v. Erickson, 49 N.W.2d 193, 235 Minn. 36, 1951 Minn. LEXIS 743 (Mich. 1951).

Opinion

Christianson, Justice.

Suit for specific performance of an alleged contract for the sale of real estate. Plaintiff appeals from a judgment of dismissal entered pursuant to findings in defendants’ favor on the ground that no cause of action had been proved.

By an instrument dated January 25, 1945, defendant Sadie U. Erickson (hereinafter referred to as defendant) leased to plaintiff, *37 Martin Podany, a building located in Minneapolis, Minnesota, for a five-year term commencing January 1, 1945, for use in plaintiff’s commercial printing business. Thereafter, plaintiff entered the prem.: ises pursuant to the lease and was in possession thereof at the time the instant suit was commenced.

One of the terms of the lease provided plaintiff with—

“a continuing option, * * * to purchase said premises * * * for the consideration of the sum of Twenty Thousand Dollars ($20,-000.00) in cash, * * *; by giving to the Lessor a thirty days notice in writing of Lessee’s intention to so purchase; provided, however, that if prior to giving of said written notice by Lessee to purchase and/or the consummation of said purchase by the Lessee, the Lessor receives a bona fide offer from any other person or party to purchase said property for Twenty Thousand Dollars ($20,000.00) or more and Lessor so notifies Lessee in writing, then Lessee’s right and option to so purchase said premises for the sum of $20,000 shall thereupon terminate, • * *

On March 19,1949, plaintiff, intending to exercise the option, sent defendant a written notice, the pertinent part of which read as follows:

“Notice is hereby given -that I have elected under the option provision on page 3 of said lease, to purchase the said property, for the sum of $20,000.00 within 30 days from the date of this notice and shall pay for the property with cash.
“Will you please furnish me with your abstract or registration certificate, brought down to date, so that I may have the title examined before completing the transaction and paying the money for it.”

April 16, 1949, defendant notified plaintiff in writing that she had received an offer of $38,000 for the property and that plaintiff might purchase the property on the same terms as the named offer. The offer was in the form of an earnest money contract between defendant and three of her children. Plaintiff did not meet this offer, and thereafter the sale to said children was completed, subject *38 to the outcome of the instant suit. 2 The trial court found the reasonable cash market value of the property in April of 1949 to be $34,000 to $35,000.

Our first question is whether plaintiff’s letter of intention to purchase constituted an unconditional acceptance of the offer contained in the option clause of the lease. The trial court found this letter to be conditional, apparently because, although no such provision appeared in the offer, the letter of acceptance contained a request for an. abstract.

It is. a settled rule of law 'that, in order to form a contract, an acceptance must be coextensive with the offer and may not introduce additional terms or conditions. An acceptance which qualifies the terms of the offer amounts in legal contemplation to a rejection of the offer and is regarded as merely a counteroffer. 3 However, it is equally well settled that requested or suggested modifications of the offer will not preclude the formation of a contract where it clearly appears that the offer is positively accepted, regardless of whether the requests are granted. 4 Since no provision for an abstract was made in the lease and since defendant was under no legal duty to furnish an abstract, 5 our only question is whether it appears that the furnishing of an abstract by defendant was intended as a condition precedent to plaintiff’s acceptance of the offer.

The language of the controversial paragraph of plaintiff’s letter is that of a request rather than a command. Nevertheless, where acceptance is expressly conditioned on acquiescence in the requested *39 modification, or that is the necessary inference from the language employed, no contract is formed, even though precatory words of request precede the condition. 6 However, plaintiff’s letter does not make the request an express condition, nor do we find the necessary inference of a condition. Instead, it appears clear to us that asking for an abstract was merely a request or suggestion on plaintiff’s part looking toward performance of the contract of sale, and not a qualification of the acceptance of the offer. 7 Therefore, we hold as a matter of law that plaintiff’s letter of intention to purchase was an unconditional acceptance.

The next question raised is whether the failure to meet the higher offer received by defendant terminated plaintiff’s rights under the provisions of the option. Plaintiff argues that the notice from defendant of receipt of a higher offer was ineffective for that purpose because it came too late. This follows, he contends, from the proper construction of the phrase “and/or the consummation of said purchase” appearing in the lease. In context, the phrase appears as follows:

“* * * the Lessor hereby grants to the Lessee a continuing option, * * * to purchase said premises * * *; by giving to the Lessor a thirty days notice in writing of Lessee’s intention to so purchase; provided, however, that if prior to giving of said written notice by Lessee to purchase and/or the consummation of said purchase by the Lessee, the Lessor receives a bona fide offer from any other person * * * to purchase said property for Twenty Thousand Dollars ($20,000.00) or more and Lessor so notifies Lessee in writing, then Lessee’s right and option to so purchase said premises for the sum of $20,000 shall thereupon terminate, * * (Italics supplied.)

*40 It.is plaintiff’s theory that the italicized phrase must he .Construed as merely repeating and emphasizing the preceding phrase “giving of said written notice by Lessee to purchase.” He contends that his giving of notice amounted to a consummation of the purchase as contemplated in the lease. In other words, he argues that the giving of notice of intention to purchase and the consummation of the purchase are one and the same act. This being so, the notice of defendant’s subsequent higher offer, having come after plaintiff’s notice of intention to purchase, was too late to affect his rights.

On the other hand, defendants urge that the consummation of purchase referred to in the lease was entirely separate and distinct from plaintiff’s notice of intention to purchase; that “consummation” contemplated the actual transfer of the deed; therefore that defendant’s notice of the higher offer was timely and terminated plaintiff’s option.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Thomas B. Olson & Associates, P.A. v. Leffert, Jay & Polglaze, P.A.
756 N.W.2d 907 (Court of Appeals of Minnesota, 2008)
McLaughlin v. Heikkila
697 N.W.2d 231 (Court of Appeals of Minnesota, 2005)
Gresser v. Hotzler
604 N.W.2d 379 (Court of Appeals of Minnesota, 2000)
Ellison v. Premier Salons International, Inc.
981 F. Supp. 1219 (D. Minnesota, 1997)
Alpha Venture/Vantage Properties v. Creative Carton Corp.
370 N.W.2d 649 (Court of Appeals of Minnesota, 1985)
Overboe v. Overboe
160 N.W.2d 650 (North Dakota Supreme Court, 1968)
Blumberg v. Palm
56 N.W.2d 412 (Supreme Court of Minnesota, 1953)
Minar v. Skoog
50 N.W.2d 300 (Supreme Court of Minnesota, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
49 N.W.2d 193, 235 Minn. 36, 1951 Minn. LEXIS 743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/podany-v-erickson-minn-1951.