55 Iowa 484 | Iowa | 1881
I. The defendant, being the payee of a negotiable promissory note, transferred it to plaintiff by the following indorsement:
“For value received I assign the within note to James Stafford.' (Signed) . H. J. Fetters.”
III. The agreement of the parties — the meeting of their minds upon the conditions and obligations touching the sub
IY. But there is another familiar rule of equity upon which plaintiff relies to defeat the application of these doctrines to this case, namely, relief will not be granted to correct mistakes of law. The rule has no application to mistakes in the language of a contract, or in the choice of the form of an instrument whereby it has an effect different from the intention of the parties. If parties intending to sell and purchase lands should in ignorance of its legal effect execute a lease, equity would reform the instrument, though it was a mistake of law which led them to adopt it. This mistake, it will be noticed, affects the very contract the parties intended. They intended a deed, but a lease was made. But where two are bound by a bond, and the obligee releases one, mistakingly believing that the other will remain bound, equity will not grant him relief, for the reason that the release is just what he intended it to be; his mistake related to the effect of the contract in matters not contemplated therein. The mistakes of law against which equity will not relieve arc those which pertain to the subject of the contract, and were inducements thereto, or considerations therefor. In such cases the parties intended to make the very contracts which they executed, but were induced to make them by-a mistake of law. Further illustrations taken from the books make our expression of the rule plainer.
A tenant for life purchased a Reversion under the mistake
But, on the other hand, when parties enter into an agreement which, through mistake of law or fact, they reduce to writing and the instrument fails to express their true agreement, or omits stipulations agreed upon, or contains terms contrary to the intention of the parties, equity will reform the writing, making it conform to the agreement entered into by the parties.
The doctrines we have stated are familiar to the profession. They have ample support in the authorities. See Nowlin v. Pyne, 47 Iowa, 293; Hunt v. Rousmanier's Adm'r, 8 Wheat., 174; s. c., 1 Pet., 1; 1 Story Eq. Jui’is., sections 113-116 et seq., and cases cited. Kerr on Fraud and Mistake (American Ed.), 396 et seq., and p. 418, and cases cited; Reynolds v. Meelick, 17 Iowa, 585.
In the case before us the parties agreed that plaintiff should take the note without recourse on defendant. They mis
Glenn & Pryce v. Statler, 42 Iowa, 107, and Moormon & Green v. Collier, 32 Iowa, 138, are not in conflict with our conclusions just expressed. In each case the' mistake was not in expressing the contract, but as to its legal effect. The parties executed an instrument expressing the very contract intended, but the instruments had a legal effect unknown to and not intended by the parties. .These decisions are also distinguishable from the case at bar by the fact that in each of them the rights of persons other than the parties to the contracts are involved. They were actions upon delivery bonds. Creditors not parties thereto were beneficiaries. The law will in such cas.es rather impose hardship upon the parties who made a mistake than upon one chargeable with no fault." We reach the conclusion that the Circuit Court correctly rendered a decree reforming the assignment indorsed upon the note and dismissing plaintiff’s petition.
Affirmed.