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Quasi-Contracts - Statute Of Frauds - Right To Restitution Of Money Paid On Oral Land Contract
Quasi-Contracts - Statute Of Frauds - Right To Restitution Of Money Paid On Oral Land Contract
Michigan Law Review
Plaintiff paid $1,000 on an oral agreement for the purchase of land. Defendant admitted receipt of the money but alleged he was ready, able, and willing to comply with the terms of the agreement and convey the land. Held, that since the contract was void under the statute of frauds, plaintiff might recover. Reedy v. Ebsen, (S. D. 1932) 242 N. W. 592.
Contracts - Anticipatory Breach - Effect Of Election
Contracts - Anticipatory Breach - Effect Of Election
Michigan Law Review
The plaintiff leased a lot to a development company and the latter agreed to demolish the present buildings and begin the erection of new ones by April 1, 1934. The defendant was surety on a bond executed to insure performance. The development company was adjudged bankrupt and, on February 11, 1931, the trustee expressly repudiated the contract. On February 24 the plaintiff notified the trustee and the bankrupt that he refused to accept the disaffirmance of the contract and would hold them to performance. The plaintiff later brought suit on the theory that the action constituted an acceptance of the …
Suretyship - Interpretation Of Surety Contract
Suretyship - Interpretation Of Surety Contract
Michigan Law Review
A bank sued to recover on a surety bond for loss sustained because of fraud practised by one of the vice-presidents on a customer. The bond provided that performance was subject to certain conditions and limitations, among which was one to the effect that the bank should notify the surety within ninety days of the default. The surety was not notified until the trial four years later. Held, notification is a condition precedent to liability, even though the surety was not prejudiced by lack of notice. National City Bank v. National Security Company, (C. C. A. 6th, 1932) …
What Is A "Contract" Under The Contracts Clause Of The Federal Constitution?, Paul G. Kauper
What Is A "Contract" Under The Contracts Clause Of The Federal Constitution?, Paul G. Kauper
Michigan Law Review
The case of Coombes v. Getz, recently decided by the United States Supreme Court, raises in a crucial way the question of what is a contract within the meaning of Article I, section 10 of the Constitution, forbidding States to pass laws impairing the obligations of contracts. A provision of the California Constitution in force at the time the plaintiffs brought this action in the state court below made directors of corporations jointly and severally liable to the creditors and stockholders for all moneys embezzled or misappropriated by the officers of the corporation during the term of office of …
Assignment Of Money Claims (Particularly Wage Claims) - Restraint On Alienation
Assignment Of Money Claims (Particularly Wage Claims) - Restraint On Alienation
Michigan Law Review
If a contract has been performed on one side so that all that remains is an obligation to pay and a right to receive money, can the parties by agreement effectively prevent the assignment of the claim? The Illinois Supreme Court had this question before it for consideration in the case of State Street Furniture Co. v. Armour & Co., where the plaintiff was the assignee of wages due to an employee of the defendant, the employee having agreed not to assign his wages without the written consent of his employer. The court decided that the restrictive agreement had …
Specific Performance - Chattel Contracts Performable In Installments
Specific Performance - Chattel Contracts Performable In Installments
Michigan Law Review
The refusal of a court of equity to decree the performance of a contract relating to personalty is not based on any intrinsic. difference between land and chattels. Any distinction between them is entirely subordinate to the question whether an adequate remedy can be afforded at law. Yet constant repetition has imparted such a degree of rigidity to the rule that courts have been prone to forget the reason on which it rests. Nowhere is this fact more evident than in the field of installment contracts.
Contracts - Executed Modification - Consideration
Contracts - Executed Modification - Consideration
Michigan Law Review
A and B in 1912 entered into a written contract of separation in which B, the wife of A, gave up her marital rights and A promised to pay to her $75 per month thereafter. Six years later B orally agreed to reduce the payments to $25 per month. B accepted the reduced payments for a period of twelve years. B then brought suit for $10,000, asserting that there was no consideration for the modified agreement. Held, that the modified agreement was executed and would not be disturbed for want of consideration. Vigelius v. Vigelius, (Wash. …
Mortgages-Given Without Consideration But Intended As Gift
Mortgages-Given Without Consideration But Intended As Gift
Michigan Law Review
Statements that no mortgage is good unless there is consideration therefor are common; but that such statements are entirely true is very doubtful. Jones, in his book, Mortgages, makes such a statement, and then in the same section tells us that a mortgage intended as a gift will be enforced against all but prior creditors of the mortgagor. Wiltsie, in his book, Mortgage Foreclosures, states that want of consideration is a good defense, with some exceptions which are not clearly indicated. And Tiffany, in his work on Real Property, suggests that although a mortgage without consideration might be valid as …
Vendor And Purchaser-Right Of Purchaser To Exoneration As To A Prior Vendor's Lien
Vendor And Purchaser-Right Of Purchaser To Exoneration As To A Prior Vendor's Lien
Michigan Law Review
The case of McClure v. Southfield Woods Corporation, decided by the Michigan supreme court last year, raised an interesting question as to whether a contract vendee of land which is included in a tract subject to a pre-existing vendor's lien has a right of exoneration against his vendor as to such incumbrance. The plaintiff in that case had sold land to the Southfield Woods Corporation by a contract which provided for joinder of the vendor and vendee in a subdivision plat and for release of any lots from the vendor's lien upon payment of a stipulated sum, in addition …
Contracts-Assignment-Liability Of Assignee For Non-Performance Of Delegated Duties
Contracts-Assignment-Liability Of Assignee For Non-Performance Of Delegated Duties
Michigan Law Review
Plaintiff bank extended credit to cover checks drawn by X, a cattle buyer, who agreed that the proceeds of the sale of the cattle would be deposited to the bank's credit in A bank. X gave an order to the defendant, his commission broker, to retain the proceeds of the sale of the cattle and deposit them in A bank to the credit of the plaintiff. Defendant deposited the proceeds in its own name in B bank and sent its check to A bank. B bank became insolvent and the check was never paid. Held, in Wallowa Nat. …
Non-Assignment Provisions In Land Contracts, Edwin C. Goddard
Non-Assignment Provisions In Land Contracts, Edwin C. Goddard
Michigan Law Review
Many a sale of real estate is made to a purchaser who lacks the ready cash to pay the price. A deed of conveyance may be given with a mortgage back for the unpaid portion of the purchase price. But more and more in recent years the vendor has given a contract to convey conditioned upon the making of periodical payments of stipulated amounts, a deed to be given when the whole or a stated portion of the purchase price has been paid. The initial payment may be very small, and not infrequently the periodic payments are little more than …
Restrictive Indorsements
Michigan Law Review
Under Sec. 36 of the N. I. L. an indorsement is restrictive which prohibits further negotiation or constitutes the indorsee the agent of the indorser or vests the title in a trustee in trust for some other person. The mere absence of words importing a power to negotiate does not, however, make the indorsement restrictive. Among the rights of a restrictive indorsee as declared by Sec. 37 is the one to bring "any action thereon that the indorser could bring." The remaining provision of the statute dealing with such indorsements is Sec. 47, which provides that "An instrument negotiable in …
Contracts-Beneficiaries-Right Of Employee To Sue On A Contract Made Between Employer And Union
Contracts-Beneficiaries-Right Of Employee To Sue On A Contract Made Between Employer And Union
Michigan Law Review
Defendant agreed with an employees' union that its employees would not be discharged without cause or without a hearing. The plaintiff, who entered into an employment contract with the defendant for an indefinite term, was discharged by the latter without a hearing, and sued as a third party beneficiary for breach of the defendant's agreement with the union. Held, in Johnson v. Am. Ry Express Co., that this agreement was a valid third party beneficiary contract, and so enforcible by the plaintiff who was one of the parties intended to be benefited by it.
Statute Of Frauds-Oral Modification Of Written Agreement
Statute Of Frauds-Oral Modification Of Written Agreement
Michigan Law Review
The vendor sued on a written contract of sale. The defense was that subsequent to the formation of the contract the parties had orally agreed to extend the time for payment and delivery one year. The vendor argued that the contract, being within the statute of frauds, could not be modified by a parol agreement. Held, in Bemis Bros. Bag Co. v. Nesbitt that performance of a written contract may be extended by subsequent oral agreement.
Pleading-How To Raise The Issue Of Payment
Pleading-How To Raise The Issue Of Payment
Michigan Law Review
On rehearing in an action on contract for money two questions were presented to the court, to wit: first, is an allegation of non-payment essential in order that this complaint might state a cause of action; and second, can the issue of payment be raised by the defendant's general denial? Held, in Hughes v. Wachter an allegation of non-payment is necessary in the complaint, and the defendant may prove payment under a general denial.
Contracts - Assignment - Right Of Partial Assignee
Contracts - Assignment - Right Of Partial Assignee
Michigan Law Review
One White assigned to the plaintiff, for a valuable consideration, part of the amount due him (White) from the defendant as wages for the last half of October. Before the time of payment on November 15th, the plaintiff had given written notice of the partial assignment to the debtor, defendant, who refused to recognize it, and who on the 15th of November paid the total sum due to White. Plaintiff sues in equity for. the $25.00 assigned to him, alleging the above facts. Held, that the defendant was in equity bound by the notice of the partial assignment and must …
Quasi-Contracts -Assumpsit For Use And Occupation Against A Trespasser In Modern Cases
Quasi-Contracts -Assumpsit For Use And Occupation Against A Trespasser In Modern Cases
Michigan Law Review
Perhaps the doctrine of stare decisis is sometimes deserving of severe criticism in its application to matters of substantive law; but the unfortunate results of uncritical adherence to precedent appear most clearly in regard to rules of procedure, where the demand for certainty cannot be justified by a supposed reliance of laymen on "settled" rules. The evils are aggravated where inconvenient decisions are not undermined or their effects evaded by the lawyer's typical process of "distinguishing'' cases. A forcible illustration is the firm refusal of most courts to extend quasicontractual relief to cases of use and occupation of land by …
Contracts - Consideration - Agreement To Modify A Lease
Contracts - Consideration - Agreement To Modify A Lease
Michigan Law Review
Defendant leased from the plaintiff's assignor certain premises for a term of five years. After the lease was partially performed, the parties orally agreed to reduce the rent. The lessee, shortly before the expiration of the term, defaulted under the oral agreement. Plaintiff sued the defendant for the difference between the rent reserved and that which was paid under the oral agreement. Held, that an executed oral agreement, or so much of it as has been performed, will serve as a modification of a lease without regard to the presence or absence of consideration, but that which is executory …
Contracts - Partial Illegality - Contract In Restraint Of Trade
Contracts - Partial Illegality - Contract In Restraint Of Trade
Michigan Law Review
The plaintiff contracted to transfer his law business, property used in connection therewith, and good will to the defendant and to refrain from practicing law within the state until the time set for payment of the balance of the contract price. The balance not having been paid at maturity, the plaintiff brought an action on the contract, alleging full performance on his part. The defendant demurred on the ground that the contract constituted an illegal restraint of trade under Oklahoma statutes which declare that agreements in restraint of trade upon selling the good will of a business are void to …
Private Carriers - Contracts Limiting Liability For Negligence
Private Carriers - Contracts Limiting Liability For Negligence
Michigan Law Review
Defendant contracted to haul cars belonging to a circus under a stipulation that it was not to be liable for injury or damage resulting from the negligence of its employees. Plaintiff, who had made an employment contract with the circus, releasing them and the defendant from liability for injury to him, was injured in a collision caused by the negligence of the defendant's servant. Held, the defendant could not contract against liability for injury caused by its wilful and wanton negligence and was therefore liable. Sabol v. Chicago & N. W. Ry. (Mich. 1931) 238 N. W. 281.
A Valuable Handbook, John B. Waite
A Valuable Handbook, John B. Waite
Michigan Law Review
A review of VOLD ON SALES. (Hornback Series) By Lawrence Vold.
Injunction - Mutuality- Personal Service Contract
Injunction - Mutuality- Personal Service Contract
Michigan Law Review
Plaintiff and defendant entered into a contract whereby plaintiff was to teach defendant boxing and to use his best efforts to negotiate and manage boxing bouts for defendant over a period of five years, the proceeds of the contests to be divided between plaintiff, defendant, and a brother of defendant on a percentage basis. Defendant agreed not to engage, during the life of the contract, in any "boxes, exhibition fights, or theatrical performances except such as have been procured by" the plaintiff. On appeal by defendant from a temporary injunction restraining his breach of the negative covenant, held, assuming …
Wills -Validity Of Contracts To Suppress
Wills -Validity Of Contracts To Suppress
Michigan Law Review
Certain children entered into a contract during the lifetime of their parents, by the terms of which it was agreed that if the will of either parent should favor some of the children above others, the favored children would waive their rights under the will and share equally in the real and personal estate of the parents. The will of the father left the whole estate to the mother. Her will omitted any gift to one of the children, and this suit was brought by an assignee of that child to obtain specific performance of the agreement. Held, that …
Insurance - "Liability" Of "Indemnity" Contract - "No Action" Clause
Insurance - "Liability" Of "Indemnity" Contract - "No Action" Clause
Michigan Law Review
Plaintiff sued his insurer upon a policy which provided that the defendant would indemnify the insured against loss from liability for damages and would defend any suit brought against the assured to recover such damages. The policy contained a "no action" clause which denied a right of action unless a final judgment had been rendered and the assured had actually sustained a loss by payment of such judgment. Such a suit, brought against the plaintiff, had been unsuccessfully defended by the insurer. It was held that plaintiff could recover on the policy upon the rendition of the judgment and without …
Bankruptcy - Claims Against Bankrupt Indorsers
Bankruptcy - Claims Against Bankrupt Indorsers
Michigan Law Review
Bankrupts were indorsers of promissory notes payable to claimants. None of these notes was due before the filing of the petition in bankruptcy and some of them did not mature within the year following adjudication during which proof of claims may be made. The court of appeals for the sixth circuit held that claimants could not prove on the indorsements because their claims were contingent. Held, that the claim was one "founded upon a contract express or implied," and provable even though not due until after the year allowed for proof of claims, the requirement of presentment and notice …
Evidence - Burden Of Proof - Compliance With Stipulation In Bill Of Lading As To Time For Claim Of Loss
Michigan Law Review
P purchased potatoes in Michigan. He instructed the defendant railroad to deliver the potatoes to the warehouse of B when they should arrive in Richmond. Instead, some were sent to another warehouse. Before P discovered the mistake, the potatoes had spoiled. P made claim of loss six months and twenty days after the shipment left Michigan. The bill of lading provided: "Sec. 2 (b). Claims for loss or damage . . . must be made in writing . . . within six months after a reasonable time for delivery has elapsed." The testimony of Neiss, freight clerk, who was called …
Contracts - Illegality- General Restraint Of Trade
Contracts - Illegality- General Restraint Of Trade
Michigan Law Review
Defendants sold their stock in a manufacturing corporation with a covenant in the contract to the effect that they would not engage in the sale or manufacture of bunghole appliances in the United States, east of the Mississippi, for a period of sixteen years. Held, a contract which does not permit one to engage in his trade anywhere within the state is one in general restraint of trade and is ipso facto illegal and void. Parish et al. v. Schwartz et al. (Ill. 1931) 176 N.E. 757.
Equity - Estoppel By Injunction In Subsequent Suit At Law For Damages
Equity - Estoppel By Injunction In Subsequent Suit At Law For Damages
Michigan Law Review
A leased to B a shop to be used as a public market. The lease contained a restrictive covenant by the lessor to lease no other shops for a like purpose. The lessor, however, leased to C, who was engaged in the same business as B, one of the shops so restricted. C took with knowledge of the restrictive covenant in B's lease. B, the plaintiff in this action, secured a final injunction in a New York court enjoining the use by C. Under the New York statute B could have obtained damages under the equity decree, but failed to …
Contracts - Parties - Suit On A Sealed Instrument
Contracts - Parties - Suit On A Sealed Instrument
Michigan Law Review
Defendant was the obligor on a bond under seal given for the faithful performance of a shipbuilding contract in which the obligee was named as "the United States Shipping Board Emergency Fleet Corporation; a corporation organized and existing under the laws of the District of Columbia, representing the United States of America." The contract, to insure the performance of which the bond was executed, was signed by the "Fleet Corporation" and sealed with its own seal. In action at law on the bond brought by the United States, held, since the plaintiff was not a party named in the …
Bills And Notes - Estoppel As Against Bona Fide Purchaser Of Non-Negotiable Chose
Bills And Notes - Estoppel As Against Bona Fide Purchaser Of Non-Negotiable Chose
Michigan Law Review
Plaintiffs bought some interim certificates (at that time non-negotiable in New York), and delivery was made to them. Because of inability to make payment that day, they asked the vendor to send a runner for the certificates, and when a person appeared asking for the amount due the vendor, plaintiffs' cashier gave him the certificates. Shortly thereafter the proper runner arrived, and plaintiff's at once gave notice of the theft in newspapers and otherwise. Some of the stolen certificates were pledged with defendant who acted in good faith in taking them. The defense to this suit for recovery of the …