Rice v. Gibbs

50 N.W. 436, 33 Neb. 460, 1891 Neb. LEXIS 201
CourtNebraska Supreme Court
DecidedNovember 25, 1891
StatusPublished
Cited by3 cases

This text of 50 N.W. 436 (Rice v. Gibbs) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rice v. Gibbs, 50 N.W. 436, 33 Neb. 460, 1891 Neb. LEXIS 201 (Neb. 1891).

Opinion

Cobb, Ch. J.

This action was brought April 27, 1888, to enforce the specific performance of the following contract:

“Articles of agreement made this eighteenth day of July, 1887,. by and between Miss E. C. Gibbs, of Buffalo county, Nebraska, of the first part, and F.A. Archibald, of Hamilton county, Ohio, of the second part, witnesseth, that the said party of the first party, in consideration of the sum of $5.00 (five) in hand paid, the receipt whereof is hereby acknowledged, hereby covenants and agrees to sell and convey to the party of the second part at any time within five months, oh being thereunto requested in writing, the premises hereinafter described on the terms and conditions hereinafter mentioned. On the failure of the party of the second part to notify the party of the first part within" the time above specified of his intention to take the property on the terms and conditions hereinafter specified, then this contract shall be conclusively forfeited and determined, and the party of the second part shall forfeit the payment above made by him, which shall be retained by the party of the first part in full satisfaction of all damages by him sustained by reason hereof; if the party of the second part shall declare his option to take said property in the manner and within the time aforesaid, then the said party of the first part hereby covenants and agrees that he will convey and assure to the party of the second part, in fee simple, clear of all incumbrances whatsoever, by good and sufficient warranty deed, the following lot, piece, or parcel of ground, viz: South half lot 110, Wyoming ave., Kearney, embracing 25 feet front, 130 deep, and the second party of the second part covenants and agrees to pay the said party of the first part, if he shall declare his option to take said [462]*462property, the further sum of $3,500, payable as follows: Fifteen hundred dollars, cash, upon execution of deed, one thousand in one year and one thousand in two years (from date of deed) with interest at 10 per cent on deferred payments. It is mutually agreed that all the covenants and agreements herein contained shall extend to and be obligatoi'y upon the heirs, executors, administrators, and assigns of the respective parties hereto.

“ In witness whereof, the parties to these presents have hereunto set their hands and seals the day and year first above written. . Miss E. C. Gibbs, [l. s.]

“ F. A. Archibald., [l. s.]

Second — That on October 14, 1887, Archibald, without having declared his option to take the property, assigned the contract to the appellant for the sum of $175.

Third — That on December 17, 1887, George W. Frank addressed a letter to the appellee as follows:

“Madam — Referring to your conversation with Mr. C. II. Elmendorf a few days since as to an extension of an option to purchase the south one-half of lot one hundred and ten on Wyoming avenue, in the city of Kearney, Nebraska, embracing twenty-five foot front and rear by one hundred and thirty feet deep, dated July 18, 1887, signed by yourself and F. A. Archibald and acknowledged before Syl. S. St. John on the same day, I would say: Mr. C. H. Elmendorf and myself have been to your place of residence on the above described property, also to the store of Messrs. Grant & Hartzell, as well as the Kearney National Bank, of Kearney, Nebraska, taking with us fifteen hundred dollars to pay the amount which would become due upon the execution of the deed by yourself for the above described property, also two notes, one dated December 17, 1887, for one thousand dollars and due at the Kearney National Bank (your banking house) on or before one year from date; one dated December 17, 1887, for one thousand [463]*463dollars, due at the Kearney National Bank in the city of Kearney (your banking house) on or before two years from date; also a mortgage duly executed and signed on the 17th day of December, 1887, to secure the two notes above described. I also took one deed drawn for you to execute for the above described property, thus complying in full with the terms of the agreement referred to above between yourself and F. A. Archibald of the part of the assignee.

“I will mail one copy of this letter to your address at the Kearney postoffice and leave one copy of it at your place of residence. Geo. "W. Frank,

“ Agent for owner of contract above ref erred to.

“P. S. — All the above papers, including the'money, you will find at the Kearney National Bank (your bankers), in the city of Kearney, Nebraska, to be delivered to you upon the execution of the deed by you above referred to.”

Fourth — That Frank on the same day deposited his check for - $1,500, two notes, and a mortgage upon the property to secure the same, both executed by Will. J. Scoutt, together with a draft of a warranty deed for the premises from the appellee to Scoutt, with instructions to the bank to deliver the check, notes, and mortgage to the appellee upon the execution of the deed, which she failed to execute; that the appellant brought the money and securities into court, and offers-the same to the appellee upon her fulfilling the terms of the contract; that since December 17, 1887, the premises have been leased to the present occupants, Theodore N. Hartzell and J. F. Wheelock, who are made defendants, and who have paid the appellee a monthly rent, the amount not known, which the appellant is entitled to receive since December 17, 1887.

The appellant asks that Gibbs be enjoined from conveying or incumbering the property, and that Hartzell and Wheelock be enjoined from paying further rents theiefor. On April 27, 1888, injunction against defendants was granted as prayed in the plaintiff’s petition.

[464]*464On May 20, 1888, the appellee answered, setting up, in substance, that she objected to the specific performance of the contract on the grounds:

“ 1. That the contract was obtained by fraud and undue influence while the defendant was sick, and feeble, and incompetent to contract.

“2. That the contract was not fair, just, or reasonable.

“3. That the letter signed George \\r. Frank, agent for the owner of contract, was not a sufficient ‘request in writing’ within the meaning of the contract.

“4. That the deposit of a check and notes of Mr. Scoutt, in the bank, was not a sufficient offer or performance on the part of plaintiff.

“5. That the contract was one involving personal trust and was not assignable before acceptance.”

The appellant replied, denying each allegation in the answer set up as a defense.

There was a trial to the court, without a jury, and the court held:

“1. That five dollars, the sum paid by Archibald to the defendant as a consideration of the option, was unfair and inequitable, and while the contract was not obtained by means of fraudulent representations, or by undue influence over a person of feeble mind, that it was nevertheless a bad, bargain that a court of equity is not bound to enforce and should not enforce.

“2.

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

Related

Montgomery v. De Picot
96 P. 805 (California Supreme Court, 1908)
Rice v. Gibbs
58 N.W. 724 (Nebraska Supreme Court, 1894)

Cite This Page — Counsel Stack

Bluebook (online)
50 N.W. 436, 33 Neb. 460, 1891 Neb. LEXIS 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-gibbs-neb-1891.