Rice v. Bush

16 Colo. 484
CourtSupreme Court of Colorado
DecidedSeptember 15, 1891
StatusPublished
Cited by28 cases

This text of 16 Colo. 484 (Rice v. Bush) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rice v. Bush, 16 Colo. 484 (Colo. 1891).

Opinion

Mr. Justice Elliott

delivered the opinion of the court.

The action of the district court in sustaining the motions of the several defendants for judgment upon the pleadings is the only matter assigned for error. In passing upon a motion by one party for judgment upon the pleadings, after issue joined, all the material allegations of the opposite party must be taken as true; and if the pleadings of the opposite party, though defective in form, are neverthe[489]*489less sufficient in substance to sustain a judgment in his favor, the motion should not be granted. In general, a motion for judgment upon the pleadings cannot properly be granted except in cases where the pleadings are not sufficient to sustain a different judgment notwithstanding any evidence which might be produced.

The principal questions to be considered upon this review may be stated thus:

1. To what extent, if at all, under the pleadings may the several defendants be held liable upon the written instruments sued on?

2. To what extent, if at all, may their several interests in the property as alleged be affected by a judgment in this action?

It will be observed that neither of the written instruments purports to have been executed by Mr. Teller; his name nowhere appears in or upon them. They do not purport to have been executed for him or in his behalf by any party assuming to be his agent; nor do they refer directly or indirectly to any other writing or memorandum by which he can be identified as the seller of the property or as a party to the contract. On the contrary, the instruments purport to have been executed by Mr. Bush, who expressly describes himself as “ principal ” in the first, and as “ owner ” of the property to be conveyed in the second. The two instruments for the purposes of this action are to be construed as one contract. Such contract is controlled by the statute of frauds in force at the time, which provided that every contract for the sale of a/ny lands should be void, unless the contract or some note or memora/ndmm thereof, expressing the consideration, should be in writi/ng and subscribed by the party by whom the sale was to be made or by the agent of such pa/rhy, lawfully axuthorized. Gen. Stats. 1883, p. 508. But see Amendment, Session Laws 1887, p. 274.

Under the statute of frauds as it existed in this state prior to the amendment of 1887, an agent acting under parol authority might execute the written contract or memorandum [490]*490required by the statute for the sale of real estate, and thus bind his principal. This construction of the statute has been too long established by judicial decisions to be easily overthrown. Thus far, the authorities are generally agreed. But as to the proof by parol of other matters relating to such writings, the decisions are contradictory. For example, on the one hand, the rule has been announced that a contract for the sale of land cannot be enforced unless the names of the purchaser and of the seller appear upon the face of the written contract or memorandum, or are so designated thereby that they can be identified without parol proof. On the other hand, it has been decided that an agent authorized by parol to sell the land of his principal may enter into such contract in his own name without in any manner disclosing his principal, and that the purchaser upon discovering the real principal may enforce the contract against him, and for that purpose may prove the name of such principal as well as the authority of his agent by parol evidence. “While the more rigid rule requiring that the names of the parties should be in some way disclosed by the contract or memorandum itself, would seem to be based upon the more reasonable as well as the more logical construction of the statute according to the natural import of its language, the more relaxed rule doubtless grew out of certain supposed equitable considerations developed by cases of peculiar hardship. The first step allowing the agent’s authority to be shown by parol having been taken, the next was readily ventured upon. The argument relied upon for such departure may be stated thus: Since the authority of the agent to sell may be shown by parol, the name of the principal giving such authority will be disclosed as an almost inseparable concomitant of such proof; and it being established that a certain person as principal has given to a certain other person as agent, control over the former’s estate with power to sell the same, and the agent having exercised such authority, the purchaser must be held to have acquired an equitable title, since he acquired it from one clothed with [491]*491lawful authority to sell. It is further urged that if the agent to sell did not disclose his principal at the time of entering into the contract, it was no fault of the buyer, and the buyer should not be deprived of the benefit of his bargain by the fault of the agent of the other contracting party, especially when such fault consisted not in want of authority to sell, but merely in the manner of executing such authority.

"Whatever weight there may be in arguments like the foregoing, in cases where the unnamed principal is also unknown to the other contracting party, the reasoning loses its force whenever it appears that the real principal, though known at the time of making the contract or memorandum, was not named nor in any manner designated or referred to therein.

In the record before us it affirmatively appears by the plaintiff’s own pleadings that he knew at the time of entering into the contract with Mr. Bush — at the very time of making the first agreement — that Mr. Teller was an owner of the property contracted for, and the only one who could convey the legal title thereto. Under such circumstances, if plaintiff desired the contract to bind Mr. Teller, he should have required the same to be drawn in such terms as would express that intent and effectuate that purpose. The plaintiff had full knowledge as to the ownership and title of the property contracted for, as we must assume from the complaint. Therefore, by accepting the individual contract of Mr. Bush, instead of requiring the contract to be executed also by or on behalf of Mr. Teller, the plaintiff must be held to have relied on the individual covenants and personal responsibility of Mr'. Bush, in case of a breach of such contract, and his remedy must be limited accordingly. This view is strengthened, though not in our opinion necessarily controlled, by the fact that the written instruments are under seal, there being no averment that Mr. Teller ever in any manner ratified or performed the agreements, or either of them, either in whole or in part. [492]*492Chandler v. Coe, 54 N. H. 561-576; Ford v. Williams, 21 Howard, 289; Grafton v. Cummings, 99 U. S. 100; Stack-pole v. Arnold, 11 Mass. 27; Anderson v. Harold, 10 Ohio, 399; Briggs v. Partridge, 64 N. Y. 357; Yerby v. Grigsby, 9 Leigh (Ya.), 387; Eppich v. Clifford, 6 Colo. 493, and cases cited; Williams v. Uncompahgre Canal Co., 13 Colo. 469; Pomeroy on Spec. Perf., secs. 89, 326; Pry on Spec. Perf., sec. 146 et seq., and notes.

From the foregoing it is apparent that, under the pleadings, the plaintiff cannot have a recovery for or on account of the Teller interest in the property, either against him or his grantee. But the complaint avers that both Teller and Bush were the equitable owners of the property. True, Mr.

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Bluebook (online)
16 Colo. 484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-bush-colo-1891.