Riggs v. Brock

189 S.W.2d 367, 208 Ark. 1050, 1945 Ark. LEXIS 636
CourtSupreme Court of Arkansas
DecidedJune 18, 1945
Docket4-7681
StatusPublished
Cited by5 cases

This text of 189 S.W.2d 367 (Riggs v. Brock) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riggs v. Brock, 189 S.W.2d 367, 208 Ark. 1050, 1945 Ark. LEXIS 636 (Ark. 1945).

Opinion

Holt, J.

Appellee, D. 0. Brock, sued appellants for a real estate commission which he alleged they had agreed to pay and which he had earned. Appellants denied liability. A jury was impaneled to try the cause but at the close of all the testimony, each side requested a directed verdict, whereupon the trial court withdrew the case from the jury and rendered judgment for appellee in the amount of $425, the amount for which he sued, This appeal followed.

Appellants owned the property here involved in Springdale, Arkansas, which they listed with appellee for sale at a price of $8,500. Appellee interested F. A. Achenbach and his wife, Grace Achenbach, of Hardtner, Kansas, in this property. They came to Springdale, were shown the property by appellee and on the following- day entered into a written purchase agreement with appellants, the material portions of which are hereinafter set out.

At the request and suggestion of appellee, the parties went to Fayetteville and said agreement was prepared by Mr. J. R. Greer, an abstracter, selected and chosen by appellee. Appellee testified: “Q. What did you tell Mr. Greer when you went in there? A. I went in and told Mr. Greer we wanted a contract on the sale of this place and I told him—we were all there seated around there at the table—it was $8,500, the price of the place. We told him they had agreed on six weeks, I believe it was, to give possession and then he was to pay the rest of the money over and I told Mr. Greer that Mr. Riggs would owe me $425; so they come there and made the contract and they signed it and looked at it and read it; I didn’t see it or read it, I thought it was all right.”

The contract or agreement was as follows: “This agreement made this 31st day of March, 1944, by and between L. M. Biggs and Myrtle Biggs, husband and wife, first parties, and F. A. Aehenbach and Grace Achenbach, husband and wife, second parties, witnesseth: The first parties have this daj^ bargained and sold to the second parties, upon the terms and conditions hereinafter set forth, the following described real estate, to-wit: (Then follows a description of the property.) The purchase price shall be eighty-five hundred and no/100 ($8,500) dollars, of which, the sum of one thousand and no/100 ($1,000) dollars is paid cash in hand, the receipt of which is acknowledged by the first parties and the residue of seventy-five hundred and no/100 ($7,500) dollars is to be paid six weeks after date when said first parties are to deliver possession of said premises to the second parties. It is agreed and understood that said first parties have executed a good and sufficient warranty deed conveying said real estate to the second parties and have placed said deed in escrow in the First State Bank, of Springdale, Arkansas, to be delivered to the second parties together with an abstract showing good legal title to said lands, free and clear of all liens, taxes or encumbrances, on or before six weeks from the date of this contract upon the payment of the sum of seventy-five hundred and no/100 ($7,500) dollars, balance of the purchase price, by said second parties.

“It is further understood and agreed that said parties of the first part shall deliver possession of said premises to the second parties upon the delivery of said deed and abstract within six weeks from the date hereof, it being understood that said first parties shall remain in the possession of said premises until the expiration of said period, at their option, and in the meantime that said first parties shall not remove or permit to be removed from said premises any of the shrubs, trees or plants now growing on said premises. It is further understood and agreed that said first parties shall pay to D. O. Brock a real estate brokerage or commission of four hundred twenty-five ($425) dollars, to be paid over and delivered to him by said first parties, or the escrow bank, upon the payment of* tlie residue of the purchase price as herein-before set out and stipulated.

“In the event of the failure of said second parties to pay said residue of the purchase price within said period of six weeks or upon delivery of the possession of said premises, then this contract to be null and void, at the option of the first parties and said cash payment shall be forfeited to the first parties as liquidated damages. This contract signed in triplicate the day herein first above written. (Signed) L. M. Riggs, Myrtle Riggs, first parties. F. A. Achenbach, Grace Achenbach, second parties.”

Following the execution of this contract, the Achenbaclis returned to Kansas and about six weeks thereafter wrote appellee to the effect that they were not going through with the deal and forfeited to appellants their down payment of $1,000. Appellee then demanded his commission, which appellants refused to pay.

We think appellee, Brock, is clearly bound by the provisions of the above contract. While he did not sign it, he it was, who had it prepared by Mr. Greer, a friend upon whom he relied and in whom he reposed great confidence. lie understood its terms. In these circumstances, the contract was in effect an embodiment in writing of appellee’s oral understanding with appellants, and he is as much bound by it as though he had signed it.

We have many times held that before a real estate broker would be entitled to a commission, he must produce a purchaser able, willing and ready to buy upon the terms stipulated.

Here the terms of the agreement, supra, are plain and unambiguous. It ivas there provided and “agreed that said first parties (appellants, Riggs and wife) shall pay to D. 0. Brock a real estate brokerage or commission of four hundred and twenty-five ($425) dollars, . . . upon the payment of the residue of the purchase price as hereinbefore set out and stipulated.” The residue of the purchase price was $7,500. It was further provided, how-' ever, that “in the event of the failure of said second parties (the Achenbachs) to pay said residue ($7?500) of the purchase price within a period of six weeks . . ., then this contract shall be null and void at the option of the first parties (appellants here) and said cash payment ($1,000) shall be forfeited to the first parties as liquidated damages.”

The purchasers, Mr. Achenbach and wife, failed and refused to pay the residue of the purchase price, $7,500, within the six weeks period and accordingly appellants, as was their right under the contract, elected to declare it “null and void” and appropriated the $1,000 earnest money which was, under the contract “forfeited to the first parties (appellants) as liquidated damages.”

The' rule announced by this court in the case of Lewis v. Briggs, 81 Ark. 96, 98 S. W. 683, is controlling here. In that case, Lewis, a real estate dealer undertook to sell a tract of land owned by Briggs and wife, and in pursuance of this purpose, induced Cashburn and Richardson to enter into a written contract with Briggs and wife for the sale of their property for $9,600, payable part cash and part on time. The contract was signed by Briggs and wife, the owners, and the purchasers. It was not signed by Lewis. There was an addendum to the contract as follows: “We hereby agree to above contract. Out of this price we are to receive $8,000 net to us. The balance of purchase price, $1,600, is to be paid to Geo. C. Lewis as commission for sale of said land. This 20th day of January, 1905.” Signed, “H.

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Bluebook (online)
189 S.W.2d 367, 208 Ark. 1050, 1945 Ark. LEXIS 636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riggs-v-brock-ark-1945.