63 Ind. App. 621 | Ind. Ct. App. | 1917
Appellees brought this action against appellant in the Porter Circuit Court to recover damages for the breach of a contract alleged to have been executed between the parties by which appellant sold and agreed to convey to appellees a twenty-acre tract of land situate in Lake county. The cause was venued to the Laporte Circuit Court, where a trial resulted in a verdict against appellant for $4,000, on which judgment was rendered. Error is assigned on the overruling of appellant’s motion for a new trial.
“Washington, D. C. June 11, 1910.
Mr. A. R. Hardesty,
Valparaiso, Ind.
My dear Hardesty:
I have your letter of the 8th inst. about the twenty acre tract of land in Tolleston. I would not sell that land for less than $350 an acre. In my judgment within five years it will be worth a thousand dollars an aere. I do not care to sell it even at $350, but will let it go at that price in order to clean up things. If you sell it at $350 an acre I will allow you two and a half per cent commission.
Sincerely Yours,
E. D. Crumpacker.”
Soon after Hardesty received the above letter there was a telephone conversation between him and appellees, leading to an exchange of letters as follows:
“Valparaiso, Ind. June 23, 1910.
Jeffrey and Morgan,
Chesterton, Ind.
Gentlemen:
This will confirm my telephone conversation of this date, with Mr. Jeffrey, whereby I sell to you (Charles L. Jeffrey and Ed. L. Morgan) for Hon. E. D. Crumpacker of this city, twenty (20) acres of land in Tolleston, now Gary, Ind., and described as follows: E. £ of the N. W. i of the N. E. i of Sec. 18, Town. 36, N. R. 8, W., in Lake County, Ind. The terms of sale are as follows: The consideration is $350.00 per acre, or $7000.00, the receipt of $100.00 of which is hereby acknowledged as earnest money, and to be applied on the*626 purchase price, the balance of one third to be paid on delivery of warranty deed and merchantable abstract of title, one third to be paid on or before one year from that date, and one third on or before two years from the same date, deferred payments to bear int. at six per cent per annum, payable annually, and secured by first mortgage on the land, the deed to have the usual release clause.
Very truly,
A. R. Hardesty, Agent.”
“Chesterton, Ind., June 23, 1910.
Mr. A. R. Hardesty, Agent for E. D. Crumpacker, Valparaiso, Ind.
Dear sir:
As per conversation with you today over the telephone, I am enclosing you herein Chicago exchange made payable to your order as agent for E. D. Crumpacker for $100.00. This payment is made as earnest money in the purchase from Mr. E. D. Crumpacker by Edward L. Morgan and myself of a twenty acre tract located in section 18, township 36, range 9 west, in the corporate limits of Tolleston, now Gary, Lake County, Indiana.
According to the terms of sale, the price of this twenty acres is three hundred and fifty dollars ($350.00) per acre, one third cash upon Mr. Crumpacker delivering to Mr. Morgan and myself warranty dhed and abstract showing - merchantable title to the property in question. The remaining two thirds to be payable on or before one and two years time from date of deed, and evidenced by two notes of even date therewith, bearing six per cent interest payable annually and secured by first mortgage on the property. The deed to have the usual release clause contained therein.
As soon as the proper continuation of the abstract has been made, you will deliver the same to Us at our office in Gary, Indiana.
Kindly acknowledge receipt of this letter and oblige, Yours very respectfully,
Charles L. Jeffrey,
CLJ/SA Edward L. Morgan.”
Enclosed in the letter last set out there was a $100 check drawn by appellees and payable to Hardesty as appellant’s agent. Hardesty thereupon wrote and mailed to appellant
“Valparaiso, Ind., June 24, 1910. Hon. E. D. Crumpacker,
Washington, D. O.
Dear sir:
As I informed you yesterday, by telegraph, I sold the 20 acres which you own at Tolléston, Ind., described as the E. ¿ of the N. W. J of the N. E. ¿ of Sec. 18, Town. 36, N., R. 8, W.
The sale was made to Charles L. Jeffrey and Edward L. Morgan of Chesterton, Ind., for $7000.00, check for $100.00 of which is enclosed herewith, the balance of one-third to be paid on delivery of warranty deed and merchantable abstract showing good and sufficient title, one-third to be paid on or before one year from that date, and one-third on or before two years from that date, the deferred payments to bear interest at six per cent payable annually and be secured by first mortgage on the land, the deed to contain the usual release clause.
Now, if you will have the abstract brought down to date at once or send it to me for that purpose or tell me where to find it, so I can have it brought down, we can have the deal closed soon.
Awaiting your reply soon, I am,
Very truly,
A. D. Hardesty.”
Appellant returned to his home in Valparaiso early in July. There was evidence that on several occasions thereafter he stated to Hardesty, and on one occasion to appellees, that the terms of the sale were satisfactory to him. There were, however, certain complications in the title involving liens, some of which were disputed by appellant. There was evidence that he proceeded as rapidly as possible, considering other matters that demanded his attention, in an effort to clear the title. The effort, however, was not successful as to a lien claimed by Ward and Gill, but disputed by appellant, amounting to $600. On appellant’s part there was evidence that he did not approve of
On a former occasion Hardesty had acted as broker in the. sale of a tract of real estate for appellant. ' In that transaction the former had asked the latter to execute a contract after a purchaser had been found. The latter replied “I will not sign a contract, but get your buyers ready with the money and we will do business. ’ ’ Hardesty testified that, -remembering such transaction, he did not ask appellant to sign a contract in the sale involved here. As we have said, appellant on -inquiry was informed the last of July or early in August that Hardesty had not executed a formal contract for the sale of the land, but that he had
upon appellant’s letter to him dated June 11, 1910, and above set out, and especially on the following expression contained in it: “I do not care to sell it even at $350, but will let it go at that price in order to clean up things. If you sell it for $350 per acre, I will allow you two and one half per cent commission.” Such language addressed to a real estate broker is very generally construed as conferring authority merely to find a purchaser, rather than as authorizing the broker to go further and execute
We therefore conclude that Hardesty’s authority was limited to procuring a purchaser for the land at $350 per acre. It follows that in attempting as appellant’s agent to bind him by entering into the written contract constituted of the two letters dated June 23, 1910, Hardesty exceeded his authority in two respects: First, in specifying in detail the terms of sale as expressed in such letters; and; se'eond, in entering into what purported to be a binding contract in writing. We proceed to the question of ratification.
dated June 23, 1910. But he was not thereby informed of the existence of such letters, or that Hardesty and appellees had committed to writing in any form and duly signed the terms of their agreement respecting the sale of the land. There was evidence that on several occasions, after receiving the letter dated June 24, appellant
the lands, appellant should be chargeable with knowledge of the contents of such letter. It will be remembered that the facts are as follows: Appellant asked Hardesty whether he had executed a contract for the sale of the land. Hardesty replied that he had not, but that he had written a letter. Appellant then asked to see a copy of the letter, but Hardesty, having searched, was unable to find it, and then agreed to get a copy and deliver it to appellant. Neither Hardesty nor any one else at any time gave appellant any information respecting the contents of such letter. The copy was delivered after October 3, as we have stated. These facts do not indicate that appellant wilfully remained ignorant respecting the existence of a written contract, or that he purposely shut his eyes to means of information. No duty rested on him to ratify the unauthorized acts of his agent, nor was he bound to inquire if there had been such unauthorized acts. He should not be chargeable with knowledge of the contents of such letter, unless he wilfully or purposely failed to prosecute an inquiry.
“Ratification is a voluntary act upon the part of the principal, and he is under no legal obligation to make inquiries about the unauthorized acts of his agent, and knowledge will not be presumed because of the opportunity to acquire it.” Lightfoot v. Horst, supra. “The principal, before a ratification (of unauthorized acts of an agent) becomes effectual against him, must be shown to have had previous knowledge of all the facts and circumstances in the ease; and if he assented to or confirmed the act of his agent while
‘ ‘ Generally speaking it does not devolve upon the principal to make inquiry as to the facts. He has a right to presume that his agent has followed instructions, and has not exceeded his authority. Whenever he is sought to be held liable on the ground of ratification, either express or implied, it must be shown that he ratified upon full knowledge of all material facts, or that he was willfully ignorant; or purposely refrained from seeking information, or that he intended to adopt the unauthorized act at all events, under whatever circumstances.” Oxford Lake Line, etc. v. First Nat. Bank (1898), 40 Fla. 349, 24 South. 480. “It is a well-settled rule that knowledge of -the terms and conditions of an unauthorized contract, entered into by an agent, is not to be presumed from the fact that the principal had a reasonable opportunity to acquire such knowledge.” Haswell v. Standring (1911), 152 Iowa 291, 132 N. W. 417, Ann. Cas. 1913B 1326. See, also, Heinzerling v. Agen (1907), 46 Wash. 390, 90 Pac. 262; 1 Mechem, Agency (2d ed.) §403.
We conclude that the' evidence is insufficient to sustain the verdict. Other questions presented are not considered or decided. The judgment is reversed, with instructions to sustain the motion for a new trial.
Note.—Reported in 115 N. E. 62. Brokers: real estate, power ,to make contracts of sale, Ann. Cas. 1917A 522; what constitutes a contract for the sale of land within the statute of frauds, 102 Am. St. 232. See under (2) 19 Cyc 294; 9 C. J. 668; (3) 19 Cyc. 296.; 9 C. J. 532; (4) 19 Cyc 290 ; 9 C. J. 534; (5) 20 Cyc 226; (6) 19 Cyc 296; (7) 19 Cyc 306; (10) 19 Cyc 294.