Turley v. Thomas

31 Nev. 181
CourtNevada Supreme Court
DecidedApril 15, 1909
DocketNo. 1758
StatusPublished
Cited by16 cases

This text of 31 Nev. 181 (Turley v. Thomas) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Turley v. Thomas, 31 Nev. 181 (Neb. 1909).

Opinion

By the Court,

Talbot, J.

(after stating the facts as above):

The appeal is from a decree directing the specific performance of an agreement to transfer 41,625 shares of the stock of the Selby Consolidated Mining and Milling Company and from an order denying a motion for a new trial. The main questions presented are whether the agreement relied upon is too indefinite to be binding, whether the evidence supports the above findings, and whether these warrant the conclusions of law and the judgment; and, in the latter connection, whether an action will li'e to compel the delivery of stock instead of one for damages, if the stock has no market value by which any loss sustained by plaintiff caused by the failure to deliver to him can be adequately gaged, and whether the contract between the parties may be enforced in an action for specific performance when plaintiff’s part of the agreement was for a monetary consideration and for personal services which could not be enforced, if not already performed.

It must be conceded that the clause in the agreement that "it is further understood and agreed that said W. E. Turley and Edwin Arkell will, to the best of their ability, use their best energies towards the securing of the sale of treasury stock in such company, and do all in their power to assist in advancing the interests of such company” states no time in which it is to be performed, and is not specific as to what acts were to be done by plaintiff and Arkell in securing the sale of treasury stock or in advancing the interests of the Selby Consolidated Mining and Milling Company. It does not state whether they were to work a month, a year, or as long as they lived for the advancement of these purposes, or [189]*189whether they should sell any designated number of shares, nor in what particular way they should assist in advancing the interests of the company, except by using their best energies towards securing the sale of treasury stock. When no date is specified for doing things required in a contract, it has often been held that they must be done within a reasonable time, to be determined by the circumstances. It is not probable that it was the intention of any of the parties that plaintiff and Arkell should do all in their power to advance the interests of the company and sell stock for a lifetime before they would become entitled to receive the number of shares agreed to be delivered to them. What, then, were the circumstances and conditions existing at the time the contract was made which led to its execution, or which the parties had in contemplation, from which the fulfillment of its terms and a reasonable time for its completion may be determined? Did appellants by the fulfillment of the conditions of the agreement by plaintiff and Arkell receive all the benefits which by a fair construction of the contract it may be presumed they expected to obtain under its terms? May it not be-fairly inferred that by the agreement plaintiff and Arkell were to aid in every way they could towards the sale of any treasury stock then offered or intended to be sold by the company? What was necessary to be done under this agreement which would aid in fulfilling the contract which appellants had made with the Selby Consolidated Mining and Milling Company? They had undertaken to act as agents and promoters, and were to have one-third of all stock of the company when increased to 1,000,000 shares, subject to the requirement that they would raise through the sale of treasury stock or otherwise the sum of $1,500, while by a more detailed agreement dated the same day, August 21, 1906, but in fact executed some days later, they were required to raise the sum of $15,000 by the sale of stock or otherwise for the company for its use in beginning operations for the development - of its mines. As the contract for the services of plaintiff and Arkell was with the appellants, and not with the corporation,' the natural conclusion is that it was executed by them for the purpose of securing such assistance and having such acts per[190]*190formed by plaintiff and Arkell as would fulfill or aid in the completion of their agreement with the company.

It is clearly shown that there were two considerations uuon the part of plaintiff and Arkell for the making of the agreement, of which the appellants received the benefit: That in addition to the services to be performed the $500 was paid to, and received by, appellants as an inducement for them to make the agreement; and that if the money had not been paid they never would have executed it. This appears from their own testimony; and, although they claim the money was only a loan, their own statements do not contradict the fact that the money would not have been paid if they had not made the agreement. The negotiations of the parties and the indorsement on the back of the note to the effect that it would become due in thirty days, if the stock of the Selby Company was not increased, the fact that plaintiff and Arkell were seeking to arrange for the money only in connection with securing the agreement, show beyond doubt, and regardless of any discrepancies in the testimony, that the money, whether paid with the understanding that the note was to be canceled, if the appellants consummated their agreement and obtained their stock from the Selby Company, as testified to by respondent, or whether advanced as a loan, as claimed by appellants, was paid only in consideration of, and as part consideration for, the execution of the contract.

In Schroeder v. Gemeinder, 10 Nev. 364, this court quoted from a Maryland case: " 'Where a 'contract consists of several distinct and separate stipulations on one side, and a legal consideration is stated on the other, it must be considered that the entire contract was in the contemplation of the parties in each particular stipulation, and formed one of the inducements therefor, 'and no one stipulation can be supposed to result from or compensate for the consideration or any portion of it, exclusive of the other stipulations, unless the parties have expressly so declared.’ (Stansbury v. Fringer, 11 Gill & J. Md. 152.)”

Under the rule that the date or consideration of an agreement may be explained or proved by parol, was it not proper to show that the note was given as security for money to be [191]*191repaid only in case the appellants failed in their option and agreement with the Selby Company, so that they could not fulfill their contract with plaintiff and Arkell, and that otherwise the note was to be canceled, on the same theory that a deed absolute in its terms may be shown to have been given as a mortgage? Appellants were greatly in need of the money, and testified that it was necessary to obtain it to preserve their business existence; and it may be presumed that in order to obtain funds, even as a loan, they were willing to make the contract with Turley and Arkell in providing that they should use their best energies to secure the sale of treasury stock, without specifying any time or number of shares. It is evident that the parties had in mind and intended that effort should be made to sell the amount of treasury stock offered or which -would be offered by the company about that time, Avhich -was 100,000 shares.

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Bluebook (online)
31 Nev. 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turley-v-thomas-nev-1909.