159 Iowa 171 | Iowa | 1913
We here quote the letters in full:
Ligonier, Pa., Dec. 30, 1908.
My Dear Mr. Knox: I received in yesterday’s mail your offer $11,250.00 for my business block in Waterloo, Iowa. This offer came through Mr. Bateman, who has been acting as my agent for the past five or six months. I wish you had made your best offer direct to me. I’ll tell you why. With all due respect to Mr. Bateman, I think I need the commission which you of necessity must pay him. You may know~~ that I am a clergyman, and have been serving a congregation at a small salary, and all my little savings of thirty years have gone into that property. It is my little all. About one year ago, on account of a nervous breakdown, I was obliged to give up my work. One reason why I have refused to sell this property was this: On account of my calling, I am not versed in business of any kind, and I was afraid that if I should sell I might somehow lose what little money I had saved. For this reason I have always refused to put a price on this property. And then it has brought me a fairly good percentage for the money invested. I bought it about twenty or twenty-five years ago, and it has cost me I know over nine thousand dollars. So you see, while you may think your offer is a liberal one, I would be making very little money in the property. After my health was broken, my doctors advised me to spend the winter in California. On my way home, wife and I stopped off at Waterloo. In talking with the wife of the proprietor of the hotel where we stopped, we said that we wanted to look over a little property that we owned in Waterloo. She asked where it was located. We pointed it*174 out. She remarked that the property was as 'good as gold’ and gave many reasons why — which I shall not repeat. Her husband was also in the real estate business, and her opinion was worth something. Afterward we employed his partner, Mr. L. E. Baker, as our agent. My property done better than ever before. We were exceedingly sorry when death removed him. Now, Mr. Knox, I believe that this property is a good investment at twelve thousand dollars, and I am willing that you should have it at that price. I would be willing that you should pay me $2,000.00 in cash and the balance to suit your own convenience. I have not the remotest idea as to what I will do with the money, as I have no place at present where I can invest it, and I would like to have as much of the money remain in the property as possible with interest at six per cent. Tou have made some improvements in this property and. I would like to sell it to you rather than to some one else. I am positive that if you hold it for twenty-five years, as I have done, you will make a good deal more money out of it than I have ever made. But I think I am entitled to every dollar that is in it. An agent for selling that property would want at least 2 per cent for making the sale. Now, I am sure that I need that money worse than any agent you have in Waterloo, so I would like to deal direct with you and let me have the commission that you would be obliged to pay a real estate agent. I think we may be able to get together, but, Mr. Knox, I don’t think you ought to ask me to sell this property for less than twelve thousand dollars. I have always said that when it reached that price I would let it go. I have during the last few months received several letters of inquiry concerning this property, and have been asked several times to put a price on it, but this I have always refused to do. Hoping to hear from you at an early date, I am, yours, H. L. McMurray, Ligonier, Pa.
P. S. I expect in a week or ten days to take trip South to escape the long, cold, and disagreeable winters. I may be absent for six weeks or two months. I can’t stand the cold weather.
Waterloo, Iowa, Dec. 31, 1908.
Mr. H. L. McMurray, Ligonier, Pa — My Dear Mr. McMurray: We have your favor of the 30th inst., and note you have decided to sell us your property here for $12,000.00 payable $2,000.00 in cash, you to carry the balance of $10,-*175 000.00 on mortgage at 6 per cent interest. We have decided to accept your proposition and are enclosing you herewith a check for $100.00 to bind the bargain. The balance of purchase price to be paid February 1, 1909, and give you a mortgage back for the difference at 6 per cent interest payable on or before five years. We think we are paying you more than the above property is worth, but we realize if we want to stay here and do business, that a number of improvements will have to be made and we do not feel like going to .any extra expense until we own the property. We are glad to note we can deal with you direct instead of through a real estate man, for we would rather have the commission. I beg to remain, very truly yours, R. M. Knox.
Latrobe, Pa., January 7, 1909.
Mr. R. M. Knox — My Dear Mr. Knox: Your letter was received in yesterday’s mail. Would say that the day before I received your letter, I received a telegram with an offer of $12,000.00 for my Waterloo property. This party is very anxious to buy and I think would pay me even more than his first offer of $12,000.00, but I am free to confess that I think you ought to have this property, and what is more, I want you to have it, but naturally, if you put yourself in my place, jrou would want to get out of it all you possibly could. I have had enough worry over it for twenty years and I ought to have a little something now in return. Now, I thought like this: Since I have an offer of $12,000 from two parties, I thought that you ought in addition pay me for the repairs made on roof. Some of these bills are not in yet, and I hardly know how much they will amount to. Mr. Bateman could tell you. I am sure I could get several hundred more out of the other party, but I don’t want to resort to any underhand business, and yet, at the same time, I want every dollar that I can possibly get for this property. It is the savings of thirty years’ hard work. Let me hear from you, and in the meantime I may have a letter from my nephew which will help me decide. I don’t want you to give me any more than any one else, but I do think you ought to give me as much. Yours, H. L. McMúrray, Ligonier, Pa.
Waterloo, Iowa, Jan. 8, 1909.
Mr. H. L. McMúrray, Ligonier, Pa.' — -Dear Sir: We have your letter of the 7th inst. and note contents very carefully.*176 We note that you say after you had made us the proposition to sell your property to us for $12,000 you had another offer, which you must bear in mind would not affect our deal in any way, as we accepted your proposition in good faith and we of course expect to carry out the sale of the property to me. Now in regard to the repairs you say that have been made on the roof and skylight, we would be willing to assume this obligation, which we think is more than fair on our part. We have accepted your offer in good faith and we will of course look to you to carry out same as per your offer we received in your letter under date of December 30, 1908. We do not blame you in wanting to get all you can for the property, but the price we are giving you is a very liberal one, but we realize, if we want to continue doing business here, we will have to make a good many improvements, and we do not feel justified in making them unless we own the property, and we are making a concession to you in agreeing to pay the repair bills as above stated in order that we can get this matter closed up without delay. We would like to have you send on the deed and abstract to the Iowa State Bank of Waterloo, Iowa, and when they are examined and found to be correct, your money will be turned over to you as per our letter accepting your proposition. Trusting you will give this matter your prompt attention, I beg to remain, yours truly, R. M. Knox.
Latrobe, Pa., January 7, 1909.
Mr. R. M. Knox: I wrote you this morning but in consulting with some of my friends, I have decided to call off the sale of my property and come back to my old plans of not selling until after the expiration of your lease.. I think this would be better for all parties concerned. I had another offer since writing you and so I have finally concluded that I will not sell until your lease expires. Thanking you for your kind offer, I am,- yours, H. L. McMurray, Ligonier, Pa.
It is stipulated of record that the several letters were written on the dates named: that of the two letters written by the defendant under date of January 7, 1909, the one designated as No. 3 was written first, and that they were received by plaintiff in the same order — No. 3 on January 8,1909,
As will be at once apparent from the foregoing statement, the first and most vital question presented by this record is whether the correspondence above quoted contains such an offer of sale or purchase by one party and such an acceptance by the other as is necessary to constitute a contract specifically enforceable in equity. It is the proposition of the appellant that, to constitute such a contract, the acceptance must be as broad as the offer, or, in other words, that to be sufficient for such purpose the acceptance must not be in the nature of a counter proposition, and must not be qualified by the addition, of any condition or stipulation not expressed or implied in the offer of which the acceptor wishes to take advantage. The soundness of this legal proposition is not denied by counsel for appellee, but they contend that the acceptance made or attempted by him in the quoted correspondence satisfies all the requirements of the rule just stated. To that inquiry then we turn our attention. Restated in briefer form, the essential facts of the negotiations are as follows: They seem to have been opened by the appellee in a letter written prior to De
Tbe question thus presented has been ably argued by counsel on either side, and the briefs submitted in support of their respective positions collate and discuss tbe respective authorities with a commendable degree of care and fairness. We have examined and re-examined tbe record in the light of this thorough presentation and of our own precedents bearing upon tbe principles involved, and our conclusion is not in accord with that announced by tbe learned trial court. If we do not misunderstand the position of appellee, it is that bis letter of December 31st is a complete acceptance of tbe appellant’s offer of December 30th, and.that for tbe purpose of determining whether there was an enforceable contract the court may disregard entirely bis letter of January 8th, and that tbe conditions or requests therein do not in any manner detract from tbe effect of such acceptance. But be further insists that even if tbe acceptance expressed in tbe letter of December 31st should be thought insufficient, or to have been superseded or abandoned, yet a complete acceptance is evidenced by tbe letter of January 8th, and that the same result
In chronological and natural order we first look to the letter of December 31st, and inquire whether its stipulations for paying an earnest of $100 and the remainder of the cash installment on February 1st adds anything to the alleged contract which it would not have contained had the appellee answered appellant’s proposal by the single unequivocal statement: “Your letter of December 31st is received and I'will purchase the land at the price and. upon the terms therein stated, and that as you consent that the remainder of the price after deducting the down payment may be paid at my convenience I elect to have it become due at the end of five years from the delivery of your deed to me.” Had this been the answer in substance of effect, its sufficiency as an acceptance would not be open to the slightest doubt. Instead of this, his answer may fairly be paraphrased as follows: “Your price and terms are satisfactory except that I do not wish to pay the down installment at once and will pay you. $100 now, $1,900 on February 1st, and the remainder in five years.” Had the answer been in these words, its insufficiency as an acceptance would we think be equally clear. ■ Yet how and in what manner does it depart from the clear meaning and effect of appellee’s letter of December 31st? For appellee it is argued that, even if his acceptance had been clearly stated in the simplest and most unequivocal terms of acquiescence, he would still have had a reasonable time in which to reach the seller, and do the things which the contract required of him. Proceeding then from the standpoint of this conceded correct statement of the law, counsel say that February 1st was within the limits of such reasonable time, and that, therefore, its designation as the date upon which the purchase and sale stated should be consummated added nothing to the agreement which would not have been implied, had appellee not mentioned the matter at all. But this reasoning is not
But other and in our judgment insuperable objections arise to the sufficiency of the letter as an acceptance of appellant’s offer. Its promise to “turn1 over” the purchase money is expressly conditioned upon the examination arid approval of a deed and abstract which the appellant is asked to send to a bank selected and named by appellee in Waterloo, Iowa. In appellant’s offer to sell, there is no statement or suggestion of willingness to furnish an abstract of title or to close the transaction by accepting payment or delivering deed at any
Of the proper application of this rule there is perhaps no more apt illustration than is afforded by Phillips v. Moor, supra, decided by the Maine court. There a buyer wrote the owner of hay offering to purchase it at $9.50 per ton, and to this the owner responded, saying he had hoped the offer would be at the rate of $10 per ton, and adding: “But you can take the hay at your price and when you get it hauled, if you can pay the ten dollars, I. would like to have you do it if the hay proves good enough for the price.” That this suggestion was not intended as an added term or condition of the contract is too clear for reasonable controversy. So, also, in the CiOrtis ease, supra, the purchaser, after an unqualified acceptance of an offer, said: “ If it is just as satisfactory to
There are other features of the ease not without importance and interest; but, as those we have considered are controlling of the result, we do not undertake their discussion. Finding as we do that there is shown no such meeting of the minds of the parties as will constitute a contract, the decree of the district court must be reversed, and plaintiff’s bill dismissed. — Beversed.