Schields v. Horbach

46 N.W. 629, 30 Neb. 536, 1890 Neb. LEXIS 118
Nebraska Supreme Court·Decided October 7, 1890·Published·Cited by 5 cases

Opinion

Norvau, J.

After the filing of the decision (28 Neb., 359), a re-argument was allowed upon the application of the defendant. Upon the second hearing the case was ably presented by learned counsel on both sides, by planted briefs and by oral argument. We have fully examined and reconsidered the testimony contained in the bill of exceptions, and have reached a conclusion different from that expressed in the former opinion.

It appears from the testimony that on January 1, 1864, the defendant leased to the plaintiff the real estate in con[539] troversy, situated in the city of Omaha, consisting of three and one-fifth acres, at an annual rental of $35, the plaintiff to pay all taxes assessed on the premises during the lease. The following May the defendant contracted to sell the plaintiff the leased premises for $1,600, of which $700 was to be paid by October 1, by doing the brick and stone work, and the plastering on a dwelling house for the defendant. The balance Shields was to settle 'for with his note, payable October 1,1865. It is not claimed that this note was .ever executed by the plaintiff. Upon the trial he testified that the $700 was paid in work, as agreed. This was, however, denied under oath by the defendant. While, it-is true that the plaintiff did considerable work upon the defendant’s house, the clear preponderance of the evidence shows that the plaintiff was fully paid therefor in cash, and by orders given by Schields, which were accepted and paid by the defendant. Horbach testified upon the trial, that nothing was ever paid by Schields upon the agreement of 1864. In this the defendant is corroborated by the memorandum of settlement, made between the parties on January 14, 1873, as well as by the fact That the plaintiff, on the same day, accepted a new lease of the premises. There can be no doubt that the agreement to convey was mutually canceled by the parties. It is so conceded by the plaintiff.

It also appears from the testimony that the plaintiff, from 1864 to 1873, paid neither rent nor taxes. When the settlement was made on January 14, 1873, the plaintiff was indebted to the defendant for merchandise in the sum of $383.05, for which the plaintiff gave his note, bearing 12 per cent interest. At the same time the defendant, in writing, leased the premises to the plaintiff for one year, for a rental of $50, the plaintiff also agreeing to pay the taxes for 1873. On the same day this lease was entered into, or the day' following, the defendant made to the plaintiff the following proposition in writing :

[540] “Omaha, Jan. 15, 1873.

“Plaving settled up all claims with Lew Schields to date, I now make him this proposition to purchase said premises of 3-J- acres. If said Schields will pay up his note of Jan’y 14th, for $383.05, and interest on same, in full within six months from date, I will sell him the premises leased to him Jan. 14, 1873, for $1,946, with 12 per cent interest from this date, and the additional price or sum of what may be found due me for taxes paid by me for 1864, ’65, ’66, ’67, ’68,’69, ’70, ’71, and 1872, and interest at 12 per cent on such amounts from date they were paid by me.

This proposition is made to enable Schields to acquire title to said premises as a homestead, and his option to purchase shall continue during the lease he now holds, provided one-half of the same shall be paid up during the year 1873, and the balance during 1874, with interest.

“J. A. Horbach.”

This was simply a proposition to sell the premises, and required the acceptance of the plaintiff to make it binding on either party. And it must have been accepted within the time named, and on the conditions proposed, to be of any validity, unless the offer was continued until it was accepted. (Boston & Maine Ry. Co. v. Barrett, 3 Cush., 224; Larmon v. Jordon, 56 Ill., 204; Eliason v. Henshaw, 4 Wheat. [U. S.], 225; Potts v. Whitehead, 20 N. J. Eq., 55; Waterman on Specific Performance, sec. 434.)

Was this proposition accepted by Schields? It will be observed that the option to purchase was in the first place conditional that Schields should pay his note of $383.05 within six months from the date of the proposition. There is no claim that any part of the note was paid within the time specified. But a veiy small portion was paid within a year, and the balance during the year 1875. Considerable importance was attached in the former opinion to the fact that the defendant accepted the money on the note [541] after the time limited in the option for its payment. As we view the transaction, the receipt of the money after the time named for its payment, was not a recognition of the option. The note was not given as a part of the purchase price of the land, but in settlement for merchandise previously sold by the defendant to the plaintiff. Had the note been given as a payment on the premises, then the accepting of the money would have constituted a waiver of the forfeiture. But the accepting by Horbaeh of the money due him on another transaction, certainly did not have the effect to revive the option given to the plaintiff to purchase the property. The payment of the note within six months was a condition precedent to the plaintiff’s right to purchase the land.' It is clear that the plaintiff acquired no interest in the property prior to 1875, for the note was not at that time fully paid.

The option given Schields to purchase, was also conditioned that he should pay one-half of the purchase money during 1873, and the balance in 1874. The total payments made by the plaintiff prior to February, 1875, as testified to by Horbaeh, were only $222.25, which was less than one-half of the principal and interest due on the note. No part of the purchase money was paid during the years 1873 and 1874.

The defendant testified that after February 1, 1875, the plaintiff made numerous payments aggregating $1,029.68, which were applied in payment of the balance due on the plaintiff’s note, and for rents and taxes; that nothing was ever paid on the land, and that plaintiff owed a balance on rent and taxes of $97.54 on January 14, 1878.

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Schields v. Horbach, 46 N.W. 629, 30 Neb. 536, 1890 Neb. LEXIS 118 (Neb. 1890).

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