Price v. Taylor

466 S.E.2d 87, 251 Va. 82, 1996 Va. LEXIS 11
CourtSupreme Court of Virginia
DecidedJanuary 12, 1996
DocketRecord 950802
StatusPublished
Cited by21 cases

This text of 466 S.E.2d 87 (Price v. Taylor) 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
Price v. Taylor, 466 S.E.2d 87, 251 Va. 82, 1996 Va. LEXIS 11 (Va. 1996).

Opinion

JUSTICE LACY

delivered the opinion of the Court.

This appeal arises out of a contract for the sale of land between Kyle R. Taylor and Fay L. Mirman, the buyers, and Joyce C. Price, executrix of the Wallace V. Lankford Estate, the *84 seller. Taylor and Mirman filed a motion for judgment seeking damages for Price’s alleged failure to perform the contract for sale dated April 2, 1993. Price filed a response asserting that the contract was invalid because it was procured by fraud, because it was subject to a condition precedent, and because it lacked consideration. Following a two-day hearing, the trial court entered judgment on a jury verdict awarding the buyers $35,000 in damages.

On appeal, Price assigns error to the trial court’s rulings (1) holding that, as a matter of law, the contract on its face recited sufficient consideration; (2) excluding jury instructions on fraud in the procurement of a contract; (3) admitting certain expert testimony; and (4) prohibiting parol evidence that the contract was subject to a condition precedent. For the reasons set out below, we will reverse the judgment of the trial court and remand the case for a new trial.

I.

Price first assigns error to the trial court’s ruling that the contract recited consideration on its face. 1 The relevant portion of the contract states:

WITNESSETH: That for and in consideration of the sum of N/A Dollars ($N/A) by N/A in hand, paid receipt of which is hereby acknowledged, the Buyer agrees to buy and the Seller agrees to sell for the sum of Twenty thousand Dollars xx/ 100 Dollars ($20,000), all that certain piece, parcel or lot of land ....

The italicized portions were handwritten insertions made by Taylor in blanks on a prepared form. Price argues that the language “in consideration of the sum of N/A Dollars” clearly and unambiguously states that the contract required a payment in cash as a form of consideration and that no such cash was tendered by the *85 buyers or received by the seller. Thus, Price concludes, the contract did not recite consideration on its face. We disagree.

First, the terms of the contract do not require that consideration be paid in cash to create the agreement. More importantly, it is well established that mutual promises in a contract constitute valuable consideration. Adams, Payne & Gleaves, Inc. v. Indiana Wood Preserving Co., 155 Va. 18, 29, 154 S.E. 558, 562 (1930); Bernstein v. Bord, 146 Va. 670, 677, 132 S.E. 698, 699-700 (1926); see also Brewer v. First Nat’l Bank of Danville, 202 Va. 807, 815, 120 S.E.2d 273, 279 (1961). The contract recites that “the Buyer agrees to buy and the Seller agrees to sell for the sum of Twenty thousand Dollars.” This language reflects the mutual exchange of promises and alone is sufficient to constitute consideration for the contract. Accordingly, the trial court’s ruling on this issue was not erroneous.

II.

Price submitted five jury instructions which addressed her contention that the contract was obtained by fraud. Price asserts that there was sufficient evidence to support instructions on this issue and that the trial court erred in refusing to give them.

A litigant is entitled to jury instructions supporting his theory of the case if sufficient evidence is introduced to support that theory. Bowers v. May, 233 Va. 411, 413-14, 357 S.E.2d 29, 30 (1987). While a litigant must carry his burden to show fraud in the procurement of the contract by clear and convincing evidence, the trial court must give the jury instruction on fraud unless the evidence is “clearly insufficient to support the theory.” Provident Life & Accident Ins. Co. v. Walker, 190 Va. 1016, 1028, 59 S.E.2d 126, 131 (1950). 2

Price testified that she signed a contract on January 9, 1993, agreeing to sell the property to Taylor and Troy M. Evenson. She then testified that sometime in late February or early March, Evenson approached her and asked her to sign three blank contracts because coffee had been spilled on the January contract. Price stated that she did not sign a contract dated April 2, 1993, and that her signature on that contract was forged. Finally, Price *86 testified that she never negotiated with Mirman for the sale of the property.

Applying the principles set out above, we conclude that the evidence produced by Price to show fraud was sufficient to support jury instructions on the issue. Therefore, we hold that the trial court erred in refusing to instruct the jury on Price’s theory of fraud in the procurement of the contract. 3

III.

Over Price’s objection, Taylor and Mirman introduced testimony of three attorneys as rebuttal witnesses. Each of these attorneys testified that the contract was valid on its face because it recited legally adequate consideration. Price assigns error to the admission of this evidence, claiming that the testimony was improper because the attorneys’ statements were conclusions of law prohibited by Code § 8.01-401.3(B). We agree. This testimony that a contract was valid on its face is not evidence regarding the existence of an offer, acceptance, or consideration, but purports to state the legal consequences of those factual predicates. Thus, the testimony of these three witnesses was improper because it constituted conclusions of law in violation of Code §8.01-401.3.

IV.

Our conclusions regarding instructing the jury on fraudulent procurement and admission of the attorneys’ testimony require reversal of the judgment of the trial court and remand of the case. We note that one of the issues at trial, the admissibility of parol evidence to show a condition precedent, may arise again on remand.

The general rule in Virginia is that parol evidence of prior stipulations or oral agreements is inadmissable to vary, contradict, or explain the terms of a complete, unambiguous, unconditional written contract. Shevel’s, Inc. v. Southeastern Assocs., 228 Va. 175, 182, 320 S.E.2d 339, 343 (1984). When a claim is made under an unambiguous written instrument, however, a sig *87 natory to the instrument may introduce parol evidence to establish a defense based on such doctrines as partial integration, collateral contract, fraudulent procurement, mutual mistake, or condition precedent. Id. at 182-83; 320 S.E.2d at 343-44; J.E. Robert Co. v. J. Robert Co., 231 Va.

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Bluebook (online)
466 S.E.2d 87, 251 Va. 82, 1996 Va. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-v-taylor-va-1996.