San Antonio Joint Stock Land Bank v. Malcher

164 S.W.2d 197, 1942 Tex. App. LEXIS 447
CourtCourt of Appeals of Texas
DecidedJuly 22, 1942
DocketNo. 11180.
StatusPublished
Cited by47 cases

This text of 164 S.W.2d 197 (San Antonio Joint Stock Land Bank v. Malcher) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
San Antonio Joint Stock Land Bank v. Malcher, 164 S.W.2d 197, 1942 Tex. App. LEXIS 447 (Tex. Ct. App. 1942).

Opinion

MURRAY, Justice.

This suit was instituted by August Mal-cher in the District Court of Atascosa County against San Antonio Joint Stock Land Bank of San Antonio, a corporation, and Edwin Seay seeking to set aside a certain trustee’s deed conveying 221.4 acres of land out of the J. T. Eubanks Survey No. 506, in Atascosa County, Texas, to the above named Land Bank and, in the alternative for judgment decreeing specific performance of an alleged agreement on the part of the Land Bank to convey said 221.4 acres of land to Malcher, together with an injunction prohibiting the Land Bank from in any way interfering with Malcher’s possession of said 221.4 acres of land, and, further, in the alternative, for a money judgment against the Land Bank in the sum of $1,863.94.

The trial was to the court without the intervention of a jury and resulted in judgment in Malcher’s favor requiring the Land Bank to execute and deliver to the Clerk of the District Court, for August Malcher, a deed conveying to August Malcher all the right, title and interest to said 221.4 acres of land that the Land Bank has in said property, and also that Edwin Seay has in said land, upon the payment by Malcher to said District Clerk for the Land Bank of the sum of $3,262; and further enjoining the Land Bank from in any way interfering with Malcher’s possession of the 221.4 acres of land. The trial judge made elaborate findings of fact resolving all fact issues against the Land Bank.

From this judgment the San Antonio Joint Stock. Land Bank alone has prosecuted this appeal.

Appellant presents its first three points together, and they are as follows:

“First Point. The court erred in rendering judgment for Appellee, Malcher, herein, for the relief prayed for by him and in rendering judgment against Appellant upon its cross-action, because, under the undisputed evidence, Appellee, Malcher, was not entitled to recover herein and Appel *199 lant was entitled to judgment on its cross-action.
“Second Point. The court erred in granting Appellee Malcher’s prayer for specific performance of his alleged contract to repurchase the land in suit, because the undisputed evidence shows that appellee never offered to perform his alleged option contract, to repurchase said land until the time allowed him to exercise such option had expired.
“Third Point. The court erred in granting Appellee Malcher’s prayer for specific performance of his alleged agreement to repurchase the land in controversy because the undisputed evidence shows that Ap-pellee never at any time prior to the filing of this suit made a valid tender of performance of his option to purchase.”

On August 19, 1929, August Malcher and wife executed a deed of trust to William B. Lupe, Trustee, upon the 221.4 acres of land involved herein, to secure the Land Bank in the payment of a deed of trust note in the sum of $4,500.

On June 4, 1940, a trustee’s sale of the land was had and the Land Bank bid it in for the sum of $2,250, leaving a balance due on the note of $2,254.47.

On 'June 7, 1940, Malcher went to San Antonio and had a conversation with William B. Lupe, Jr., a vice-president of the Land Bank. Malcher paid Lupe the sum of $1,500 and understood that he would be permitted to redeem the land by paying in full the amount due on the note. The Land Bank, through its officers and attorney, wrote Malcher several letters thereafter urging him to come in and complete the deal, but Malcher neglected to answer these letters.

Malcher never went back to see Mr. Lupe until about October, 1940, at which time he agreed to pay the taxes upon the land. After the taxes were paid he received the following letter from Mr. Lupe, which is self-explanatory, to-wit:

“November 8th, 1940
“Mr. August Malcher
“Poth, Texas
“Dear Sir: In re: Loan 3008
“Confirming our conversation of October 10, 1940, in regard to re-purchasing your farm, the Bank agreed that if you would pay up all taxes by the 15th of October, that •we would give you an option until December 1, 1940, to re-purchase the farm at the amount of investment the Bank has in the farm as of December 1, 1940.
“Since you have paid the taxes as per your agreement, this is to confirm our agreement that you have the option to repurchase up to December 1, 1940, and the figure will be $4,639.30 less $1,500.00 or $3,139.30.
“Yours very truly,
“Wm. B. Lupe, Jr.
“Vice-President.”

Malcher did not re-purchase the land under this option, but in June, 1941, he entered into a rental contract with the Bank, whereby he rented the land from the Bank for the year 1941. This rental contract was signed by both Malcher and the proper officer of the Bank and contained the following option:

“The Lessor hereby gives Lessee (August Malcher) the right to purchase the above described tract of land for a consideration of $3,009.70, plus 6% interest from June 7, 1940, to date of purchase. This option, if not exercised, expires September 30, 1941, is not transferrable, and is subject to right of sale by Lessor prior to September 30, 1941.”

August Malcher testified to facts which support the trial court’s finding to the effect that he notified the Land Bank, in August, 1941, that he was exercising his option to purchase, however, he did not tender the money or secure a deed to the property prior to September 30, 1941. He did tender the money to the Bank on October 18, 1941, which tender was not accepted by the Bank.

This brings us to a consideration of the all-important question in the case, which is, whether under the option Malcher was required to pay or tender the purchase money to the Bank on or before September 30, 1941, or whether, having notified the Bank of his intention to exercise the option, he would have a reasonable time after September 30th to pay the money and otherwise complete the deal. We conclude that he would have such reasonable time. It will be borne in mind that the contract does not require that the option be accepted in writing not later than September 30, 1941, neither does it require in express terms that the money be paid or tendered not later than that date; nor does it require that the money be tendered in cash. It simply provides that the “option, if not exercised, expires September 30, 1941.”

*200 Where an option to purchase real estate is in writing and signed by both parties it may be orally accepted. Haskell v. Merrill, Tex.Civ.App., 242 S.W. 331; 43 Tex.Jur. 100; 66 C.J. 499; Killough v. Lee, 2 Tex.Civ.App. 260, 21 S.W. 970.

In Anderson v. Tinsley, 28 S.W. 121, 122, Justice Fly, speaking for this court, said: “ * * * The 10-days limit does not, and evidently was not intended to, apply to the passing of the deed. ‘The offer to remain in force for ten days from this date,’ upon a fair construction, means that the 10-days limit is given in which to accept the offer. It was accepted within the 10 days.

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164 S.W.2d 197, 1942 Tex. App. LEXIS 447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-antonio-joint-stock-land-bank-v-malcher-texapp-1942.