Holt v. Stofflet
Holt v. Stofflet
Opinion of the Court
On June 30, 1948, George M. Holt
and Dorothy E. Holt, husband and wife, plaintiffs and appellants herein, entered into a written lease of a certain parcel of land located in Marshall, Michigan, for the term of 3 years, with Lawrence M. Stofflet and Patricia Stofflet, husband and wife, defendants and appellees herein. Plaintiffs were the lessees and defendants were the lessors. This lease contained the following option to purchase:
“The parties of the first part hereby give unto the parties of the second part an option to purchase the said premises for the sum of $10,000 upon the written request of the second parties made at any time within 1 month of the expiration of the said lease term. If the said seeond parties should elect to exereise this option then the first parties covenant and agree to credit one-half of all instalments made by the second parties hereunder toward the said purchase price, provided however that there be no arrears of rent due at such time.”
On tbe 28th of May, 1951,1 month and 3 days prior to the expiration of the lease, plaintiffs served upon the defendants a written notice that they were exercising their option. The pertinent portion of said notice is quoted:
“This is your written liotiee that the said lessees are exercising their option of purchase as so provided, and request that you have the deed of purchase and the abstract of title in their hands in ample time before the first day of June, 1951, in order that same may be examined.”
Defendants refused to recognize this notice as being a legally effective exercise of plaintiffs’ option. Plaintiffs brought suit for specific performance. After hearing on defendants’ motion to dismiss, an order was entered granting defendants’ motion. From that order this appeal was taken.
'“An option to purchase, being inserted in the lease for the benefit of the tenant, must be construed with that purpose in view.” 51 CJS, p 638 (citing Barnhart v. Stern, 182 Wis 197 [196 NW 245]).
The trial judge held that the exercise of option was ineffectual because plaintiffs had not accepted it according to its terms, in that they demanded an abstract of title when the option itself did not call for one.- We do not so construe plaintiffs’ acceptance. Rather, we construe plaintiffs’ statement “and re-, quest that you have the deed of purchase and the abstract of title in their hands in ample time before the first day of June, 1951,” as a mere request, which defendants were free to grant or refuse.
Defendants also contend, and the trial judge so held, that plaintiffs’ exercise of option was not legally effective because no effective tender was made at the time notice of exercise of option was given. With this we cannot agree. The option itself was silent on the question of when tender of the purchase price should be made. On May 29, 1951, plaintiffs placed
Defendants are not .entitled to $92 for the last month’s rent, because at the time the option was exercised- on May 28,-1951, the relation of landlord and tenant ceased and the obligation to pay rent with it. See 51 CJS, p 610.
The decretal order of the trial court is reversed and a decree will be entered in this Court remanding the case to the trial court with instructions to proceed in accordance with this opinion. Costs of both courts to appellants.
070rehearing
On Application for Rehearing.
Defendants move for rehearing, contending that, as appears from our opinion herein, we have, on appeal from an order granting a motion to dismiss plaintiffs’ bill of complaint,
Rehearing denied.
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