Threlkeld v. Inglett

124 N.E. 368, 289 Ill. 90
CourtIllinois Supreme Court
DecidedJune 18, 1919
DocketNo. 12704
StatusPublished
Cited by33 cases

This text of 124 N.E. 368 (Threlkeld v. Inglett) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Threlkeld v. Inglett, 124 N.E. 368, 289 Ill. 90 (Ill. 1919).

Opinion

Mr. Justice Cartwright

delivered the opinion of the court:

In the summer and fall of the year 1917 the appellants, George W. Threlkeld, William H. Green, L. C. Morgan and Jerome Mannen, procured from various owners options for the purchase of the coal, oil and gas underlying several thousand acres of land in the townships of Elk Prairie and Bald Hill, in Jefferson county. Their plan and effort were to secure options upon a connected body of land sufficient to justify some large coal corporation in taking over the property and mining rights if it was demonstrated by drilling there was coal of sufficient thickness and conditions for profitable mining. Among other options they took one on September 29,1917, from the appellee A. J. Inglett, in which a consideration of one dollar was expressed, and by which he agreed, for the further consideration of $25 per acre, to convey to appellants, their heirs or assigns, by warranty deed, including the release and waiver of dower and homestead rights, on or before eighteen months thereafter, the coal, oil and gas underlying his land, containing 320 acres, more or less, and to furnish appellants an abstract of title showing a good, clear and merchantable title, which the appellants were to have a reasonable time to examine after the exercise of the option. About twenty test drillings were made in the field covered by the options, which showed that the lands were underlaid with a vein of coal of suitable thickness and conditions for mining. The appellee the West Frankfort Coal Company invaded the field in which the appellants had operated and secured options from different owners of lands, telling them that the options given to the appellants were not worth anything and not valid and promising to protect the owners against any claim of the appellants. On June 4, 1918, the appellees other than Inglett induced Inglett to make a deed to the West Frankfort Coal Company for the coal, oil and gas underlying his land, and the deed was deposited in the bank, to remain there until the matters were settled. There is no evidence that they made any statement to Inglett about the previous option, but they had full knowledge of it, and when an attempt was made to enforce it they agreed to, and did, defend the cause for Inglett. The appellants had made an arrangement with the representative of large coal companies for taking the property and mining rights to be conveyed by the options they had secured, and on August 5, 1918, they served a written notice on Inglett accepting the option and notified him to deliver his warranty deed to the Jefferson State Bank of Mt. Vernon, together with an abstract of title. He acknowledged in writing the receipt of the notice, with a statement that he would deliver abstracts of title and deeds to the Jefferson bank at once. About a week after August 7, 19x8, he served a written notice bearing that date on the appellants, stating that he had theretofore sold to the West Frankfort Coal Company the coal, oil, gas and other minerals underlying the surface of the land, and that the option given to the appellants had been determined and ended by him and was then void and of no force and effect. He refused to make a deed or deliver his abstract, and the appellants filed their bill in this case in the circuit court of Jefferson county against him and the West Frankfort Coal Company, Jesse Dimond, D. M. Parkhill and John D. Hirons, owners or agents of the West Frankfort Coal Company, praying for a specific performance of the option contract. The bill was answered with denials of practically everything averred, and the chancellor heard the cause and dismissed the bill for want of equity, at the costs of the appellants.

The lands were not correctly described in the option, and the bill prayed for a reformation conforming to the agreement. On that question there was no dispute and the appellants were entitled to the reformation prayed for.

It was argued with great vehemence at the bar that there was no equity in the bill because the appellants had not invested anything and did not intend to purchase the lands for themselves but were only promoters, obtaining options for the purpose of disposing of them at a profit if they were able to do so, and for that reason were not entitled to any consideration. Taking the options was a perfectly legitimate business transaction, and the fact that the appellants would only accept the options in case coal was found and they could dispose of them with a profit is of no importance whatever on the question of their rights.

It is also argued that the decree was right because the bill did not allege that the appellants were able to comply with the option on their part. The bill alleged that they were ready, willing and anxious to comply with the option and to pay for the property the consideration therein expressed, and they offered to purchase and to pay such consideration for the coal, gas and oil. They could not be ready without being able, and they offered to perform on their part. The bill was answered and no question was made of its sufficiency. The proof showed that the appellants were ready, able and willing to perform on their part, as they had offered to by the bill, and the objection is groundless.

It is further contended that the option was void because oil and gas not discovered and located are not the subject of a conveyance. That question has no relation to the coal, and in Bruner v. Hicks, 230 Ill. 536, it was held that a conveyance of gas and oil, with the right to prospect for and mine the same, gave a present vested right to go upon the land for the purpose of prospecting and mining and securing and marketing the oil when discovered. Whether oil and gas while in the earth are subject to a separate ownership from the surface or not would make no difference to the appellees. If a deed, when made, would convey nothing but the coal, that fact would concern only the appellants and not the appellees.

The option recited a consideration of one dollar, but no consideration was in fáct paid, so that the option was subject to be withdrawn at any time before acceptance and amounted only to a continuing offer of sale during the eighteen months after it was made. If a consideration for an option is paid and a time fixed for the exercise of the option it cannot be withdrawn during that period, but if there is no consideration it may be withdrawn upon notice given before acceptance. A contract is not complete without the mutual assent of the parties, and so long as the option remains open it imposes no obligation upon either party, but if accepted before withdrawn the offer is changed into a binding promise. (Carter v. Love, 206 Ill. 310; 6 R. C. L. 604; 13 Corpus Juris, 293.) No notice was given to the appellants of the withdrawal of the offer, and there are some cases holding that a sale to another person of real property covered by an option amounts to a revocation. Dickinson v. Dodge, L. R. 2 Ch. Div. 463, is one of those cases where an offer was to be left open until Friday at nine o’clock A. M., and before the expiration of the time the property was sold to another. That case was cited by this court in McCauley v. Coe, 150 Ill. 311, on the right of withdrawal before acceptance, but the decision that a conveyance to another without notice was a withdrawal had nothing to do with the case in which it was cited. In that case premises were leased for one year with an option to purchase on full payment of the rent reserved, and a further sum, with interest, at certain specified dates.

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Bluebook (online)
124 N.E. 368, 289 Ill. 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/threlkeld-v-inglett-ill-1919.