Williams v. Brooks
Williams v. Brooks
Opinion of the Court
— This action was commenced to recover the sum of $500 claimed by the plaintiff under the provisions of two written agreements which had been previously executed by plaintiff and defendants. The first agreement was executed on the tenth day of March, 1903. The portions of that agreement involved in this action are as follows: ‘ ‘ That said party of the first part, for and in consideration of the covenants and agreements hereinafter contained, agrees to convey by good and sufficient title (and furnish abstract thereof) to said second party, upon payment by said second party to said first party as consideration for the above mining property, the sum of seventy-five thousand ($75,000), five hundred dollars ($500) on the acceptance of this bond by said second party’s eastern principals, and to be paid by 1st of April, 1903; five hundred dollars ($500) on examination of said property by said second party, at such time and as early as said first party is able to show said property; nine thousand dollars ($9,000) on or before July 1, 1904; and the balance, fifty thousand dollars ($50,000), on or before January 1, 1905.....It is mutually agreed that this instrument shall be binding upon the heirs and assigns of both and all the parties hereto, and in the event of the abandonment or forfeiture in this agreement on the part of the party of the second part, said second party shall deliver up said property to said first party free of all encumbrances, and the payments which may be herein made, or work and development done upon said property shall be forfeited by said second party and accepted by said first party in full discharge and liquidation of this agreement.” The agreement of March 10th appears to have lapsed and no payment was made under it. On April 4, 1903, the plaintiff and defendants entered into a renewal and extension agreement which caused all the trouble in this case, and is as follows: “The time of the payment of the first $500 herein provided for is hereby extended thirty
The next question, namely, the correct construction to be placed on the provisions of these contracts, is a much more difficult and distracting proposition. Counsel for respondent maintains that under the renewal and extension agreement the payment became due May 4th, independent of the condition which was attached to the provision of payment of this sum in the original contract. In the agreement of March 10th it will be observed the payment of this first $500 was conditioned “on acceptance of this bond by said second party’s eastern principals.” Appellants admit that by the extension agreement this first payment was not dependent on acceptance of a bond by “eastern principal,” but do contend that they still had the right to “rescind or abandon” the option under the provisions contained in the last paragraph of the contract of March 10th, and that after such abandonment or rescission they could not be held liable for any payments which had not been previously made. This construction would, it seems, be a correct view to take of the original contract, but the difficulty and confusion arises when we come to consider the language and effect of the extension agreement, of April 4th. If this latter agreement was to have any force or effect as a contract it must have been founded on some consideration. Evidently the parties considered it legal and binding. At the time it was made the original contract of March 10th was forfeited and had lapsed. It seems like a reasonable and logical deduction to say that the original contract was revived and renewed, and the time of first payment extended in consideration of the liability
Judgment affirmed with costs to respondent.
Reference
- Full Case Name
- WILLIAMS v. BROOKS
- Status
- Published
- Syllabus
- Option to Purchase Mining Property — Renewal and Extension— Construction. 1. Where W. and B. enter into an agreement whereby B. secures an option to purchase a certain mining property, and it is provided that the first payment of five hundred dollars shall be paid “on acceptance of this bond by said second party’s eastern principals, and to be paid by 1st of April, 1903,” and tbe agreement also contains a clause providing for abandonment and forfeiture of tbe option by B., and after the option has been forfeited W., B. and C. indorse thereon an agreement in the following words: ‘ ‘ The time of the payment of the first $500 herein provided for is hereby extended thirty days and the said second party agrees that the same shall be paid on or before May 4, 1903. April 4, 1903,” and after the date on which the payment falls due under the latter agreement, B. and G. abandon and forfeit the option and W. sues them to recover the $500 payment, held, that the latter agreement was an unconditional and absolute agreement to pay the sum specified therein as the first payment. (Syllabus by the court.)