Johnson v. Arcadia Orchards Co.
Johnson v. Arcadia Orchards Co.
Opinion of the Court
These parties entered into a contract in writing on January 20, 1910, by the terms of which appellant agreed to sell, and respondent agreed to buy, a certain described five-acre tract of land for the sum of $2,000. The covenants and conditions of this contract material to this case are as follows: One hundred dollars of the purchase price was acknowledged as received by the vendor, and it was agreed that the balance was to be paid at the rate of $2.50 per acre per month for a period of four years, and five dollars per acre per month during the fifth year, deferred payments to bear interest at five per cent per annum. If the payments of principal and interest were not made when due, the vendor could declare the contract forfeited and the payments made retained by the vendor. Paragraph 9 of the contract is as follows:
“It is further mutually agreed by and between the parties hereto that in the event said second party shall fail to make the payments of principal or interest when due, as herein provided, then the first party may at its option by giving the said second party written notice of thirty days ofthesaidpayment or payments due, which notice shall be mailed to the last address known to the first party, in the event said amounts remain unpaid at the expiration of said thirty days, declare this contract forfeited and shall remain in full possession of said lands and premises, together with the appurtenances thereunto belonging, the same as though this contract had never been made, and the payments thereon by the second party shall, by reason of said default, be forfeited as vested and settled rights; but it is further mutually understood and agreed that if the purchaser shall have paid one-fourth of the purchase price as herein provided, he may at his option cease*291 further payment hereunder and be entitled at the expiration of five years from the date hereof to such a proportionate part of the within described tract of land as the amount so paid shall bear to the purchase price and accrued interest thereon, except that no fractional part of an acre shall be deeded under this provision. The selection of such land shall be by first party, and it is understood and agreed that it shall be equal in every respect to the land herein contracted for.”
Respondent made payments on the contract aggregating $575 principal, and the interest accruing, which payments ceased on January 3, 1913. Thereafter, on December 29, 1913, appellant gave respondent notice, as provided in paragraph 9 of the contract, that he was delinquent in his payments, and that, unless they were paid in thirty days, the contract would be declared forfeited. No more payments were made by respondent, who, believing himself entitled to one acre of land by virtue of paragraph 9, on January 22, 1915, two days after the time the contract provided that he should be entitled to a deed, demanded from appellant a deed to one acre of land. This demand was refused, and respondent thereupon instituted this action to recover the moneys paid by him on the contract, with interest on each installment from date of payment thereof. Judgment was entered in accordance with the prayer of the complaint, from which this appeal is taken.
The court concluded that the contract was breached by appellant, the vendor, by reason of its neglect and refusal to give respondent a deed to one acre of land as provided in the contract, and that respondent had the right to accept the breach of appellant and to sue at law or in equity for the payments made by him under the contract, together with interest at six per cent on each payment from the date thereof.
I. It is first asserted hy appellant that the delay of two days by respondent after the expiration of the contract precludes him from recovery. The contract in that respect, in paragraph 9, provides that, at the expiration of five years from the date of the contract, the respondent shall be entitled
II. Respondent made his election to sue for his damages, and he brought his action for the entire amount of money that he had paid under the contract, as if he had performed all of the contract by him to be performed so far as permitted, and that appellant had wholly breached or rescinded the contract. That is not the situation. The italicized portion of paragraph 9 constitutes an alternative contract and a separate and divisible contract, resting, however, upon the original consideration. Respondent himself first abandoned the principal contract for the purchase of five acres of land in gross for $2,000 and, having abandoned and ceased to pay the installments due under the contract, appellant was well within its rights under the contract in giving him the
The judgment is therefore modified, and a judgment accordingly ordered. Appellant will recover costs in this court.
Parker, Mount, Main, and Chadwick, JJ., concur.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.