Watts v. Elmore

1946 OK 232, 176 P.2d 220, 198 Okla. 141, 1946 Okla. LEXIS 702
CourtSupreme Court of Oklahoma
DecidedSeptember 17, 1946
DocketNo. 32267.
StatusPublished
Cited by13 cases

This text of 1946 OK 232 (Watts v. Elmore) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watts v. Elmore, 1946 OK 232, 176 P.2d 220, 198 Okla. 141, 1946 Okla. LEXIS 702 (Okla. 1946).

Opinion

OSBORN, J.

This is an action for damages for breach of contract, brought by plaintiff Elmore against defendant Watts. The trial court overruled defendant’s demurrer to plaintiff’s evidence, denied his motion for a directed verdict, and upon submission of the case to the jury verdict was returned for plaintiff. From judgment against him on the verdict, and the overruling of his motion for new trial, defendant appeals.

The facts pertinent to the questions presented are that plaintiff, a broker living in Stillwater, procured from the owners the exclusive authority or right to dispose of 17 2/9 acres of mineral interests in a tract of land in Payne county, for $225 per acre net to them. This exclusive authority, which was in writing, terminated July 25, 1940. On July 24, 1940, one day before the written authority expired, defendant, a resident of Tulsa, executed and delivered to plaintiff a proposal, in the form of a letter, to purchase such mineral interests, up'on which letter plaintiff endorsed his acceptance. The letter, with the endorsement, is as follows:

“M. H. Watts
Oil Producer - Investments
Ritz Building
Tulsa, Oklahoma
July 24, 1940
“Mr. George A. Elmore
“Stillwater, Oklahoma
“Re: Mid-Continent Johnson royalty SE/4 Sec. 2-17N-1E, Coyle Pool, Payne County, Oklahoma Wilcox Sand Production
“I hereby agree to buy from you up to 21 acres of the above royalty for $237.50 per acre subject to examination and approval of title by my attorney or myself.
“Deeds to be made in blank. Transfer orders to date July 1, 1940. Draw draft on me with papers through First National Bank, Tulsa, Oklahoma.
“Please notify me 48 hours before papers reach my bank so that I can examine title through Mid-Continent Petroleum Corporation land department.
“Please sign below.
“Yours truly,
“(Signed) M. H. Watts”
“I hereby agree to the above Purchase Order and agree to deliver said royalty.
“(Signed) George A. Elmore.”
Thereafter, and on the same day, defendant signed and delivered to plaintiff another letter, as follows:
“M. H. Watts
Oil Producer - Investments
Ritz Building
Tulsa, Oklahoma
July 24, 1940
“Mr. George A. Elmore,
“Stillwater, Okla.
“Dear Sir: —
“You are to draw draft on me in the sum of $250.00 per acre. $237.50 is the purchase price and $12.50 is commission to you. I am,
“Yours truly,
“M. H. Watts.”

On July 30, 1940, plaintiff drew a draft on defendant for $4,444.44, the agreed price of the mineral interests. This draft, with mineral deeds and transfer orders attached, all properly executed, were received by the First National Bank & Trust Company of Tulsa, the drawee bank, on July 31, 1940, and held by it until August 12, 1940, when the draft was recalled. *143 Thereafter the owners sold the mineral interests through another broker, and plaintiff sought in this action to recover the loss he sustained because of defendant’s refusal to complete the purchase thereof.

Defendant first contends that the letters above set forth do not constitute a contract in that they do not specify what kind of deeds and transfer orders were to be made, and for the further reason that the letters provide that the purchase price is $237.50 per acre, whereas plaintiff in his petition alleges it was $250 per acre.

This contention is devoid of merit. Both parties were familiar with the form of deeds and transfer orders usually used in the transfer of mineral interests, and if defendant had desired special forms he should have so specified. The only complaint as to the deeds is that they provided that the interest sold was subject to an oil and gas lease of record, and defendant knew that the land was leased to Mid-Continent Petroleum Corporation. Defendant testified that the transfer orders were made out to the wrong oil purchasing company, but this was denied by plaintiff, and was a question for the jury. As to the price defendant was to pay, the letter last above set forth, which was supplemental to or amenda-tory of the first letter and must be considered with it, clearly shows that the price to be paid by defendant was $250 per acre.

Defendant also asserts that the 48-hour notice specified was not given. But in his testimony he admits that he received the notice the day the draft arrived at the Tulsa bank, and that on August 5th plaintiff and one of the owners came to his office in Tulsa and insisted that he close the deal. The bank records showed that the draft was not recalled until August 12th. Therefore the fact thát the notice was not given 48 hours before the draft was sent to the Tulsa bank in no wise prejudiced defendant.

In Webb v. Moran, 186 Okla. 140, 96 P. 2d 308, we said:

“A contract is not void for uncertainty, even though it does not specify all the details with respect to its subject matter, if, according to its terms, it is sufficiently definite so that it can be ascertained with a reasonable degree of certainty what the parties intended to agree to.”

Measured by this rule, the two letters set forth above sufficiently reflect an agreement by defendant to purchase at least 17 2/9 acres of the mineral interests under the described land, subject to the Mid-Continent lease, for $250 per acre, the deeds and transfer orders to be sent to the bank with draft attached, defendant to have 48 hours after notice of the receipt of the draft by his bank in which to examine title, with the right to refuse to complete the purchase only in the event title was disapproved. The trial court did not err in so holding.

Defendant next contends that plaintiff failed to prove merchantable or marketable title in the grantors of the mineral deeds. Plaintiff, at the trial, introduced in evidence a certified copy of a patent to Alfred Johnson conveying the described land, and a certified copy of the decree of distribution entered by the county court of Payne county in the matter of the estate of Alfred Johnson, wherein the grantors in the mineral deeds tendered to defendant were decreed an interest in minerals under the described land in excess of the amount which the said deeds conveyed. The decree, in the absence of any attack upon it, must be considered valid. Riley v. Jones, 153 Okla. 64, 4 P. 2d 1070. The two instruments so put in evidence constituted prima facie evidence of perfect title in the grantors in said deeds. Gentry v. McCurry, 134 Okla. 182, 273 P. 222. There is no showing that the proceedings leading up to the decree were defective.

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Bluebook (online)
1946 OK 232, 176 P.2d 220, 198 Okla. 141, 1946 Okla. LEXIS 702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watts-v-elmore-okla-1946.