Smith v. Holmwood

231 Cal. App. 2d 549, 41 Cal. Rptr. 907, 1965 Cal. App. LEXIS 1541
California Court of Appeal·Decided January 4, 1965·No. Civ. 10890·Published·Cited by 2 cases

Opinions

VAN DYKE, J.*

This is an appeal by defendant from a judgment in favor of plaintiffs granting specific performance of a contract to buy and sell real property situated in Placer County in the Lake Tahoe area. We have concluded that as contended by appellant no contract was made between the parties for the sale of the subject property and that the judgment appealed from must be reversed.

Holmwood, the defendant and appellant, owned 800 acres of land in the region of Lake Tahoe. He dealt with a real estate broker, one White, who in turn dealt with plaintiffs and respondents concerning the sale and purchase of the property. The dealings between the parties took the following form: Respondents gave to White for transmission to appellant a document dated November 16, 1958, entitled, “This Is An Offer” and signed by two of respondents as offerors. In material part the document read as follows: “The undersigned Ralph L. Smith, Glenn H. Millage and Nello Malerbi, Hereby Offer to Purchase from Loren Holmwood, on the following terms and conditions, the property [description].

“1. The purchase price shall be the sum of $250,000.00.
“2. The purchase price shall be paid as follows:
“a. $1,000.00 cash to be paid upon the acceptance of the within offer. Said acceptance to be in writing by Loren Holmwood the owner.
“b. $4,000.00 cash to be paid to the owner within 30 days after the date of the acceptance of the within offer in writing by the owner.
“c. $25,000.00 cash to be paid to the owner on or before May 31, 1959.
“d. The balance of the purchase price shall be paid according to the terms of the promissory note to be executed [551] by the offerors, a copy of which is attached to this offer and made a part hereof; said note to be secured by a deed of trust to be executed by the offerors, a copy of which is attached hereto and made a part hereof for all purposes.”

The document contained many other provisions unnecessary here to relate.

White presented this offer to appellant on November 17. It was not accepted by him, although in almost all respects it was satisfactory. However, the written offer contained a provision that out of the 800 acres appellant reserved the right to select and have conveyed to him without consideration a parcel of two acres located in a certain area described in the offer. This was unsatisfactory to appellant because of the limited location. Appellant signed and delivered to White for communication to respondents a document reading as follows:

“Regarding offer from Ralph L. Smith, Glenn H. Millage and Nello Malerbi to Loren Holmwood, dated Nov. 16, 1958 and relative to 800 acres of land in Placer County, Calif., which is attached hereto and made a part hereof:
“The Undersigned Loren Holmwood accepts the said offer subject to the following change:
“Relative to item 6 of said offer. The seller reserves the right to select the two acres described in said item 6 at any place in the said section 23 except within 200 feet of the big spring.
“Other items of the original offer are acceptable.
/s/ Loren Holmwood”

This document contained in the left lower part the word “Accepted,” below which appeared three signature lines— the names of the respondents being typed below the signature lines.

White transmitted the document signed by appellant to the respondents who signed it and gave it to White for transmission to appellant with a letter reading as follows:

“November 19, 1958.
“Ed. White,
2616 J St.,
Sacramento, Calif.
Dear Sir:
This is to advise you that the offer dated Nov. 16, 1958, and your (representing Mr. Loren Holmwood) counter offer of Nov. 17, 1958, covering 800 acres more or less in [552] Placer County, Calif., owned by Mr. Loren Holmwood, from Ralph Smith, Glenn Millage and Nello Malerbi has been accepted.
Copies of properly signed documents will be forwarded to you under separate cover.”

White then wrote to appellant telling him that “Regarding offer of Ralph Smith, Glenn Millage and Nello Malerbi dated November 16, 1958 and your counter of November 17, 1958,

“I am pleased to inform you that I have been advised, in writing, . . . that your conditional acceptance of the original offer has been accepted by the offerors.”

In the meantime appellant had consulted an attorney who on November 22, 1958, mailed to respondents a letter telling them that appellant had “rescinded” any contract that existed by reason of fraud in the procurement of the same. On December 12, 1958, the sum of $5,000 was tendered by respondents to appellant who refused the tender. Prior to that no money had been paid or tendered by respondents to appellant.

The parties are in agreement, and we think necessarily so, that the question of contract or none depends upon what was done prior to the letter from appellant’s attorney to respondents. The trial court decided that the contract had arisen, notwithstanding no money had been paid, and decreed specific performance. We think this was error.

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Smith v. Holmwood, 231 Cal. App. 2d 549, 41 Cal. Rptr. 907, 1965 Cal. App. LEXIS 1541 (Cal. Ct. App. 1965).

231 Cal. App. 2d 549 (Smith v. Holmwood) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Landberg v. Landberg
24 Cal. App. 3d 742 (California Court of Appeal, 1972)
Smith v. Holmwood
231 Cal. App. 2d 549 (California Court of Appeal, 1965)