Underwood Typewriter Co. v. Century Realty Co.

119 S.W. 400, 220 Mo. 522, 1909 Mo. LEXIS 207
CourtSupreme Court of Missouri
DecidedMay 22, 1909
StatusPublished
Cited by25 cases

This text of 119 S.W. 400 (Underwood Typewriter Co. v. Century Realty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Underwood Typewriter Co. v. Century Realty Co., 119 S.W. 400, 220 Mo. 522, 1909 Mo. LEXIS 207 (Mo. 1909).

Opinions

LAMM, J.

This case is here from the St. Louis Court of Appeals on the dissent of Judge Bland. [118 Mo. App. 197.] The majority opinion of that court reversed the judgment of the circuit court sustaining a demurrer to the petition and remanded the case to he tried on its merits. We think the majority opinion is soundly reasoned on both principle and precedent. It should be read in connection with this; for we shall not restate its reasoning but rest content with adopting it, only supplying a sufficient statement here to make this opinion intelligible, and adding some observations of our own.

THE STATEMENT: Plaintiff was tenant of defendant in possession under a written lease for a five-[524]*524year term "beginning on the first day of February, 1901, and ending on the last day of January, 1906. The lease provided, inter alia, that plaintiff could not assign or underlet without the written consent of defendant indorsed on it. Thereafter plaintiff and defendant entered into a written agreement to the effect that defendant would give its written assent to an assignment of the lease to an acceptable tenant. The petition pleads the lease, the provision against assigning or subletting and the subsequent written agreement to give consent in "writing to an acceptable tenant and then states, in substance, that plaintiff in reliance on said written agreement, with the knowledge of defendant, expended a large amount of time and labor in securing an acceptable and satisfactory tenant and did secure such tenant, but that, notwithstanding that fact, defendant refused and still refuses to consent to the assignment of said lease and to permit said tenant to enter into the possession of said premises, though often requested to do so. That by reason of defendant’s refusal to consent to said assignment of said lease plaintiff was and is prevented by defendant from securing such tenant at a large advance over the rent reserved by defendant under said lease, to its damage in the sum of $4,500. Wherefore, etc.

The circuit court sustained a general demurrer to the petition. Thereat plaintiff stood on its petition and, refusing to plead over, judgment went on the demurrer. From that judgment plaintiff appealed to the Court of Appeals, with the result indicated.

When the case came here it was assigned to Division One and there argued and submitted. That division was evenly divided and the cause came into Banc. So much by way of statement.

THE OBSERVATIONS: True, the typewriter company was not bound to do anything under the written agreement. True, it was executory only, and may be called in a sense a nude pact as born. True, defendant realty [525]*525company conld at no time have sued the typewriter company on that agreement for failure to perform. Why should it sue? It already had a tenant in the person of the typewriter company. It wanted no other. But mutuality, in its essence, is but a phase, strictly speaking, of the consideration that will support a contract. It is not the only phase. If mutuality, in a broad sense, was held to be an essential element in every valid contract, to the extent that both contracting parties could sue on it, there could be no such a thing as a valid unilateral or option contract, or a contract evidenced by a subscription paper, or a contract to enforce a reward offer, or a guaranty, or in many other instances readily put in ordinary business affairs. The contract sued on in this case was made for the benefit of the typewriter company. It could furnish an acceptable tenant to defendant to take its place, or let it alone. In that respect it does not differ from many contracts, the breach of which is actionable at the option of the promisee.

Being in writing, and signed by the party to be charged, it was not obnoxious to the Statute of Frauds. Being fully performed by the promisee, it was no longer a nude pact but became clothed with a consideration executed on request. That performance on the strength of the offer made, having been accomplished at an outlay of time and labor on the part of the offeree or promisee, with defendant’s knowledge, as alleged in the petition, makes it enforcible against the offerer or promisor so long as both parties were capable of contracting and their contract be not vitiated by fraud or as against good morals or public policy.

We take it as good doctrine worthy of all acceptance that it is the primary duty of courts to enforce contracts, not to abrogate them. A contract (such as this) between two parties not in fiduciary relation but dealing at arms-length, free from taint of fraud, duress [526]*526or other form of overreaching or oppression, when performed hy the promisee, comes into a court of justice entitled to every fair presumption of validity. Such a contract bespeaks, in the first instance, judicial diligence and astuteness to support the act of the party hy the act and art of the law. To that extent, at least, those fine rules of personal honor obtaining between man and man, requiring one to keep his word with another, accord with the rules of law.

It is afield to point to the contract word, “acceptable,” and say that it would he illusory or unthinkable to suppose that its terms could he complied with hy the plaintiff by its furnishing a tenant acceptable to the landlord. As to whether a landlord could stand on mere whim and caprice or some fanciful conceit in rejecting a party furnished hy his tenant, under the contract sued on and the lease out of which it grew, we need not inquire. It is likely his refusal would have to stand on something better than mere caprice and whim. It is likely the law would compel such landlord to acquit himself hy acting with reason and that courts would hold that the contract implied he would so act. But in this case, as pointed in the majority opinion in the Court of Appeals, the petition says that the party furnished was acceptable. The demurrer assumes that allegation true; hence, for present purposes, it is true.

Discussing the question of mutuality, a law-writer whose views are fortified hy the weight due to a virile and a luminous mind, enriched with great research and strengthened hy a profound grasp of legal principles, lays down the right doctrine to he: “But if without any promise whatever, the promisee does the thing required, then the promisor is hound on another ground. The thing done is itself a sufficient and a completed consideration; and the original promise to do something, if the other party would do something, is a continuing promise until the other party [527]*527does the thing required of him. A very large proportion of our most common contracts rests upon this principle.” [1 Parsons on Contracts (9 Ed.), bottom p. 488.] .

_ In a learned note to American Cotton Oil Co. v. Kirk, 15 C. C. A. 543, Mr. Clark, author of Clark on Contracts, in speaking to the point says: “Again, contracts may be formed by the offer of a promise for an act and acceptance by performing the act, as where a man requests another to perform services for him, and the latter does so. The request is an offer of a promise to pay for the services, and performance of the services is an acceptance of the offer. This is described as consideration executed upon request. Here, also, the act of one party forms the consideration which supports the promise of the other. In these two cases one of the parties, in the formation of the contract, does all that he can be required to do, and there remains an outstanding obligation on the other side only.

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Bluebook (online)
119 S.W. 400, 220 Mo. 522, 1909 Mo. LEXIS 207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/underwood-typewriter-co-v-century-realty-co-mo-1909.