Vratis v. Baxter

315 S.W.2d 331, 1958 Tex. App. LEXIS 2151
CourtCourt of Appeals of Texas
DecidedJune 5, 1958
Docket6195
StatusPublished
Cited by20 cases

This text of 315 S.W.2d 331 (Vratis v. Baxter) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vratis v. Baxter, 315 S.W.2d 331, 1958 Tex. App. LEXIS 2151 (Tex. Ct. App. 1958).

Opinion

R. L. MURRAY, Chief Justice.

This is an appeal from a judgment in the district court of Jefferson County, in favor of the appellees, Gordon Baxter, Jr., ■et al., against the appellants, Socs Vratis, et al., decreeing specific performance of a contract for the sale of Radio Station KOLE by appellants to appellees.

On November 19, 1955, the appellants, Socs Vratis and Mary Anne Petru, were co-partners, doing business as Port Arthur Broadcasting Company, and as such they owned and operated Radio Station KOLE in Port Arthur. At that time the appellees, Gordon Baxter, Jr., and Lester Ledet were radio announcers and performers. On that date the four parties entered into a written contract in which the appellants agreed to sell Radio Station KOLE, together with the land and physical equipment used to operate it to the appellees for the agreed price of $90,000. The agreement was an optional contract, by the terms of which the appellees were ■granted the right to purchase said radio station for a period of one year from the date of the contract. If the appellees should exercise such option within six months from date the cash payment was to be $35,000 and the balance payable in the form of a promissory note secured by a vendor’s lien and chattel mortgage lien; if appellees should exercise their option from six to nine months from the date of the contract the terms of the sale would be $30,000 cash and a note for $60,-000; that if they should exercise their •option from nine through twelve months, then the cash consideration should be $25,-000 and the note would be in the sum of $65,000. The contract further provided that all of its terms were subject to the approval of the sale and transfer of such radio station by the Federal Communications Commission, and it was agreed that in the event the option should be exercised, all parties agreed to cause to be executed and prosecuted an application to the Federal Communications Commission for transfer and assignment of the license by the appellants to the appellees. The ap-pellees also agreed that should they exercise their option to buy that they would obtain life insurance on each other in an amount equal to the purchase price of the radio station, and that in event of death of either, or both, parties, the proceeds of said policy should be first applied to the balance of such purchase price. The contract also contained an agreement by appellants to employ appellees for announcing duties and as advertising salesmen. It was agreed that during the option period the appellants would not encumber any of the property to be sold other than for the conduct and operation of the radio station and that they would deliver the property free of encumbrances, if the ap-pellees should exercise their option. The contract made further provision for retention of cash assets and accounts receivable by the appellants.

On September 10, 1956, appellees sent the following letter to the appellants:

“2323 Fifth Street
Port Arthur, Texas
September 10, 1956
“Mr. Socs Vratis, and
Miss Mary Anne Petru
d/b/a Port Arthur Broadcasting Company
Port Arthur, Texas
“Dear Mr. Vratis and Miss Petru:
“This is notification that we are exercising our option to buy Radio Station KOLE.
“Pursuant to the provisions of Article I (C) of the option agreement which we all signed on November 19, 1955, we are exercising our option during the ‘ninth’ through the ‘twelfth’ month. As required by Article I (C) we are prepared to pay *333 $25,000.00 in cash, and execute the promissory note for $65,000.00.
“A ‘Transfer to Escrow of Cashier’s Check’ is attached and made a part of this letter. The Transfer, which is self-explanatory, is presented to you as the required cash payment. In keeping with the intent of our option agreement, the First National Bank of Port Arthur will pay you $25,000.00 in cash when you present to it evidence that the ‘KOLE’ Federal Communications Commission License has been assigned to us, d/b/a ‘Baxter-Ledet Broadcasting Company’ and that you have fulfilled your duties under the option agreement.
“In fulfillment of our duties under Art. III of our option agreement, we have fully executed the Assignee’s portion of Federal Communications Commission Form No. 314, a copy of which is attached hereto both as a matter of record and for your assistance in preparing the assignor’s portion. For your accomodation, there is also attached to this letter four blanks of the Assignor’s portion of Form No. 314.
“Plans have been made so that the partnership life insurance required by Article IV will be placed in effect with the execution of the transfer and assignment contemplated in that Article.
“It now becomes the purpose of this letter to request that you carry out your obligations under Article III of our option agreement by doing these things:
“1. Complete the Assignor’s part of the application.
“2. Join with us in submitting the application to the Federal Communications Commission.
“3. Assist us in obtaining the transfer and assignment to us of your License for Radio Station KOLE.
“Sincerely yours,
/s/ Gordon Baxter, Jr..
/s/ Lester Ledet”

The “Transfer to Escrow of Cashier’s check” which was attached to and made a part of the above letter was an agreement between the appellees and the First National Bank of Port Arthur, not signed by and not consented to by the appellants, reciting that appellees had delivered to said bank cashier’s check numbered C-91211, dated 9-7-1956 in the amount of $25,000 and payable to the order of said bank. Said agreement then provided that said check was delivered to said bank to be held by it in escrow subject to certain instructions, designated “First Instructions”, the ones here material being:

1. That appellants Vratis and Petru would present to said bank a general warranty deed convey'~>g to appellees title to Lots 7, 8, 9 and 10 in Block 5 of Boulevard Acres, an addition to the City of Port Arthur, Texas, said deed to provide for a vendor’s lien unto Vratis and Petru to secure the balance of the purchase price in the sum of $65,000.

2. That appellants would present to said bank evidence that the Federal Communications Commission had approved the transfer of the license of Radio Station KOLE from the appellants to the appellees.

3. That said appellants would present to said bank a bill of sale conveying to ap-pellees title to the personal property made the subject matter of said option agreement.

Said “Transfer to Escrow of Cashier’s check” agreement then provided:

“Upon receipt of the aforesaid instruments, the Bank shall notify the Partners in writing.

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Bluebook (online)
315 S.W.2d 331, 1958 Tex. App. LEXIS 2151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vratis-v-baxter-texapp-1958.