Rebman v. Reed

335 So. 2d 37
CourtLouisiana Court of Appeal
DecidedOctober 27, 1976
Docket6945
StatusPublished
Cited by22 cases

This text of 335 So. 2d 37 (Rebman v. Reed) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rebman v. Reed, 335 So. 2d 37 (La. Ct. App. 1976).

Opinion

335 So.2d 37 (1976)

William H. REBMAN and Gertrude Gardner, Inc.
v.
C. Espy REED.

No. 6945.

Court of Appeal of Louisiana, Fourth Circuit.

June 9, 1976.
Concurring Opinion On Denial of Rehearing July 29, 1976.
Writ Refused October 27, 1976.

*39 Polack, Rosenberg & Rittenberg, Leon H. Rittenberg, Jr., New Orleans, for plaintiffs-appellants.

Hammett, Leake & Hammett, Robert E. Leake, Jr., New Orleans, for defendant-appellee.

Before LEMMON, GULOTTA and BEER, JJ.

LEMMON, Judge.

In this suit for damages based on the alleged breach of a written contract to sell immovable property, the principal issue is whether a contract was struck which was binding on the seller. On September 20, 1970 William Rebman, the prospective purchaser, signed a standard form offer to purchase the property, and on September 21 Mrs. Gertrude Gardner, a real estate broker, accepted as agent for C. Espy Reed, the owner. When Reed repudiated the agent's acceptance, Rebman and Mrs. Gardner's corporation filed this suit, seeking damages in the amount of the deposit and of the commission respectively. The trial court found, after a trial on the merits, that Reed had ratified Mrs. Gardner's acceptance of Rebman's offer and awarded contractual damages. We reverse.

I

A contract to sell immovable property, to be enforceable, must be in writing and must be signed by the buyer and the seller, and if an agent executes the contract on behalf of the buyer or the seller, the agent's authority must be express and in writing. C.C. art. 2275, 2776, 2992, 2997; Turner v. Snype, 162 La. 117, 110 So. 109 (1926); Krupp v. Nelson, 50 So.2d 464 (La.App.Orl.1951). In the present case it is undisputed that at the time Mrs. Gardner executed the acceptance, she had no written authority to do so. Therefore, plaintiffs in order to prevail had to prove Reed ratified Mrs. Gardner's acceptance on his behalf.[1]

In reviewing the record, we accord no weight whatsoever to the testimony of Mr. and Mrs. Reed, which was completely rejected by the trial judge. We conclude, nevertheless, that plaintiffs failed to bear the burden of proving ratification of the September 20 offer as written.

II

When Reed employed the Gardner agency to sell the home, he signed a listing agreement which set the price and terms at $129,000.00 cash, including all draperies and some listed appliances.[2] Reed's wife, *40 a salesperson with the Gardner agency, was the listing agent named in the agreement.

Margaret Gossett, another Gardner salesperson, obtained from Rebman the written offer upon which this suit is based. The offer, for $100,000.00, including the stove and "all items attached to wall", contained the following provision:

Mrs. Gossett related the following version of the pertinent events leading up to the offer and acceptance: On Saturday, September 19, the day before the written offer at issue, while the Reeds were temporarily in Florida, she telephoned Mrs. Reed and submitted for overnight consideration an offer of $100,000.00, including the draperies and appliances. She read the complete offer to Mrs. Reed, who filled in the terms on a blank standard form she had brought to Florida with her. The next day Mrs. Reed called back and submitted two counter offers, one for $103,000.00 with the draperies and other items and the other for $100,000.00 without these items. They then discussed at length the provision in the offer making the sale conditional upon Rebman's obtaining homestead financing. When Mrs. Gossett insisted that most offers contain this condition, Mr. Reed took the telephone and stated that regardless of how the majority of offers were worded, when he bought property he first arranged financing and then put in a cash offer. When she asked for ten days to help Rebman obtain financing, Reed gave her until Tuesday night. She then contacted Rebman, who signed the offer at issue (containing the already rejected financing condition) and authorized her to apply for financing to the homestead which held the mortgage on his present home. The next morning (Monday) she and Mrs. Gardner secured a loan commitment, which was expressly subject to the title and survey being acceptable to the homestead's attorney. (The homestead president testified he discussed with Mrs. Gossett and Mrs. Gardner that the loan was also subject to certain appraisal standards, as were all homestead loans.) Later that day (September 21) she telephoned Mrs. Reed in Florida and told her that arrangements had been made for the financing (according to the Reeds' version, she said that the deal was the way they wanted it). Reed then authorized Mrs. Gardner to accept that offer for him.[3] Mrs. Gardner requested written confirmation, but immediately (on September 21 at 3:55 p.m.) executed the acceptance of the September 20 offer "as agent for Seller as per Telephone authorization."[4]

*41 Also undisputed are the following facts: On Tuesday, September 22 Mrs. Gardner again telephoned Reed, reaffirmed the previous day's conversation, and again requested written confirmation of authority. Reed then wrote and mailed to Mrs. Gardner the following:

"September 22, 1970
"I authorize you to accept the offer on my house at 1224 Second Street, New Orleans, La., in the amount of $100,000.00 all cash to me. No draperies, rugs, washing machine or dryer to be included in the Sale."

The Reeds returned to New Orleans on Friday, September 25, and after spending the weekend looking at apartments and houses, submitted an offer on September 29 on a house in Metairie, which was rejected. Later on September 29 Mrs. Reed notified Mrs. Gardner that they rejected Rebman's offer because of the financing condition.[5]

III

Plaintiffs' only evidence on ratification after Mrs. Gardner's acceptance was Reed's September 22 letter. We find that letter insufficient.

At the time Mrs. Gardner accepted the offer on Reed's behalf the contract was voidable, but Reed had the power to validate the contract. Validation or ratification will not be presumed, however, and the party seeking to enforce the contract must prove that the other party ratified the agreement with full knowledge of all of the facts.

The September 22 letter authorizing acceptance of "the offer . . . in the amount of $100,000 all cash" (emphasis supplied) merely constitutes written confirmation of the earlier verbal acceptance and thus needs explanatory evidence. Mrs. Gossett's own testimony makes it clear that the only dispute over the verbal acceptance centered around the financing condition. She stated that her discussion with Mrs. Reed as to whether or not the offer she had read over the telephone constituted an "all cash offer" precipitated Mr. Reed's taking the telephone and telling her that he always made his own financing arrangements before putting in a "cash offer".

It is in the light of Mrs. Gossett's testimony that we must view Reed's September 22 letter and determine whether that letter made the previously voidable contract enforceable.

Nowhere in her testimony does Mrs. Gossett state that Reed accepted the September 20 offer (written before the commitment) on the condition that Rebman *42 obtain financing in two days.[6] (If so, the offer could have been accepted the same day by merely changing the "21 days" on line 13 to "2 days").

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Bluebook (online)
335 So. 2d 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rebman-v-reed-lactapp-1976.