Weber Meadow-View Corp. v. Wilde
Weber Meadow-View Corp. v. Wilde
Opinion of the Court
Plaintiff Weber Meadow-View Corporation sued to enforce a “first right of refusal” to buy a tract of land in Summit County from the defendant, Florence Wilde. Upon the basis of the submissions and stipulated facts, it appears that defendant Church made an offer of $200,000, which was to be paid in part by the conveyance of a particular home in the town of Oakley, stated to be worth $48,000, and the balance in cash. On September 10, 1976, Mrs. Wilde submitted that offer to plaintiff Weber Meadow-View in order that it could meet it and thereby exercise its first right of refusal, if it so desired. Upon being advised of those terms, plaintiff on September 17, 1976 offered: $200,000 to be paid: $1,000 deposit, $199,000 on delivery of deed, which would include any piece of real property selected by Mrs. Wilde, with a value of up to $50,-000. Defendant Florence Wilde did not consider plaintiff’s offer acceptable, but instead chose to accept the offer of the Church including the home she desired.
Upon the basis of the foregoing stipulated facts, the parties agreed to submit the controversy to the trial court on these two issues of law:
1. May Mrs. Florence S. Wilde, as promissor under a recorded First Right of Refusal, accept an offer from a third party, Salt Lake Monument Park Stake, which includes the trade of a unique and specific piece of real property, and thereby make it impossible for the promisee, Weber Meadow-View Corporation, to exercise the First Right of Refusal?
2. Did the terms of Weber Meadow-View Corporation’s Earnest Money Receipt and Offer to Purchase sufficiently comport with the terms offered by Salt Lake Monument Park Stake so that, upon Weber Meadow-View Corporation’s tender of their Earnest Money Receipt and Offer to Purchase, a binding contract to sell the Real Property arose between Florence Wilde and Weber Meadow-View Corporation?
The trial court ruled in favor of defendants and plaintiff appealed.
Plaintiff argues, not entirely without reason, that in a situation of this kind, an optionor (such as Mrs. Wilde) could make it impossible for the optionee (plaintiff) to perform by demanding one particular finger ring, an old hat, or any other unique item which the optionee could not obtain, and thus defeat the optionee’s right.
As the owner of the property in question, the granting of a “right of first refusal” placed Mrs. Wilde under no obligation to sell her property, it only committed her to give the optionee (plaintiff) the first right to purchase upon her terms, if and when she decided to sell.
The fact appears to be that as a condition to selling her property Mrs. Wilde wanted not only the $200,000 which plaintiff was willing to pay, but also as a substantial part of that inducement she wanted the particular home in the town of Oakley. We are not made aware whether the plaintiff could or could not have purchased that particular home for her. But what does appear is that it did not do so, but offered her some other home of her choosing at about the same value (up to $50,000), which Mrs. Wilde indicated was not what she wanted.
In harmony with what has been said above, we are not persuaded that the trial court was in error in concluding that the plaintiff’s offer to purchase did not meet the terms upon which Mrs. Wilde had offered to sell her property and that she was therefore justified in accepting the offer of defendant Church.
Affirmed. Costs to defendants (respondents).
. Fischer v. Johnson, Utah, 525 P.2d 45 (1974); Cummings v. Nielson, 42 Utah 157, 129 P. 619 (1912); 5 Wiiliston on Contracts, Sec. 677; 17A C.J.S. Contracts § 468.
. Chournos v. Evona Jnv. Co., 97 Utah 335, 93 P.2d 450 (1939); 77 Am.Jur.2d, Vendor and Purchaser, Sec. 49; 91 C.J.S. Vendor and Purchaser § 19.1 (pocket part).
Dissenting Opinion
(dissenting).
Plaintiffs appeal from a district court decision granting defendant’s motion for summary judgment. We should reverse and grant plaintiff’s motion for summary judgment and specific performance under the contract of sale.
The stipulation of the parties shows plaintiff was the assignee of a “first right of refusal,” or a “preemptive right,” to which the real property owned by defendant Wilde was subject. This court recognized at an early date that a preemptive right is a valuable contract right and since “there is nothing unfair or unjust about such a provision” the court will enforce it.
The flexibility of the preemptive right allows for differing interpretations of its exact terms but the courts have consistently disallowed attempts to deprive the holder of his right for which “a valuable consideration” has been paid.
Further, there is no doubt that since a preemptive right is a contract the promisee must “manifest a definite intention to accept the offer and every part thereof . .,” when confronted by a third party offer acceptable to the promissor.
To require anything more of the promisee would in great measure destroy the evident purpose of the right of first refusal.
. Cummings v. Nielson, 42 Utah 157, 129 P. 619, 622 (1912).
. Russell v. Park City Utah Corp., 548 P.2d 889, 891 (Utah, 1976).
.Cummings v. Nielson, 42 Utah 157, 129 P. 619, 622 (1912). See also Socony-Vacuum Oil Co. v. Texas Co., D.C., 113 F.Supp. 514 (1953); Westpark, Inc. v. Seaton Land Co., 225 Md. 433, 171 A.2d 736 (1961); Barling v. Horn, 296 S.W.2d 94 (Mo. 1956); R. F. Robinson Co. v. Drew, 83 N.H. 459, 144 A. 67 (1928); Tamura v. De luliis, 203 Or. 619, 281 P.2d 469 (1955); Driebe v. Fort Penn Realty Co., 331 Pa. 314, 200 A. 62 (1938).
. Gulf Oil Corp. v. American Louisiana Pipe Line Co., 6 Cir., 282 F.2d 401, 404 (1960); 5 Williston, Contracts § 677 (3d ed. 1961).
. R. J. Daum Const. Co. v. Child, 122 Utah 194, 247 P.2d 817, 819 (1952).
Reference
- Full Case Name
- WEBER MEADOW-VIEW CORPORATION, Plaintiff and Appellant, v. Florence S. WILDE and the Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints, a Corporation Sole, Defendants and Respondents
- Cited By
- 16 cases
- Status
- Published