Front Street, Mission & Ocean Railroad v. Butler

California Supreme Court
Front Street, Mission & Ocean Railroad v. Butler, 50 Cal. 574 (Cal. 1875)

Front Street, Mission & Ocean Railroad v. Butler

Opinion of the Court

By the Court :

As we construe the contract, Butler was to pay ten per cent, upon the beginning of the work; an additional ten per cent, when the line of the road shall have progressed the distance of four blocks westerly from Polk street; an additional ten per cent, when the line shall have been completed opposite the land of Butler, and the remainder in monthly installments of ten per cent, thereafter.

In fact, the foregoing is substantially the language of the contract itself.

The covenant to make monthly payments, after the first three payments, was independent—at least so far as the installments might become due prior to the expiration of the six months. The payment of money cannot be made dependent on the performance by the other party of a condition, which, by the very terms of the contract, is not to be performed, or may. not be performed until after the date at which'the money is to be paid.

' Courts are disinclined, As was observed by the Court of Appeals of Bow York (20 B. Y. 432), to construe the stipulations of a contract as conditions precedent, unless compelled by the language of the contract plainly expressed. The reason of this disinclination is that such a construction prevents the court from dealing out justice to the parties according to the equities of the case. The case at bar affords an instance of the injustice which would be wrought by such a construction of the contract of these parties. A road of the character and description contemplated by the parties, had, in fact, been built and operated before the action was brought; the defense relied on is, that it was not completed within the six months mentioned in the contract— a short delay upon the part of the company having occurred from fortuitous circumstances apparently beyond its control. *578If the defendant has sustained damages by the delay, he is entitled to recoup to that extent against the claim of the plaintiff.

Judgment reversed, and cause remanded for a new trial.

Reference

Full Case Name
THE FRONT STREET, MISSION AND OCEAN RAILROAD COMPANY v. CHARLES C. BUTLER
Cited By
24 cases
Status
Published
Syllabus
Contract fob Payment of Money.—The payment of money cannot he made dependent on the performance of a condition by the party to whom it is to ho paid, which condition, by its terms, may not he performed until after the date at which the money is to be paid. Conditions Pbecedent in a Contract.—Courts are disinclined to construe the stipulations in a contract to do certain things within a given time, in consideration of the payment of money by the other party, as conditions precedent, unless compelled to do so by the express language of the contract. Cqntkact to Build Street Railroad.—If property-holders along the line of a street contract with a street railroad company to pay it certain sums of money, if, within a certain time, it constructs a railroad along the street, the fact that the road is not built within the time is not an excuse for the non-payment of the money if the road is actually built; but the subscribers may recoup the damage they sustain by the failure to complete in time.