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Vendor And Purchaser - Right Of Vendor's Assignee To Specific Performance Where Contract Calls For Warranty Deed, Daniel Hodgman Nov 1938

Vendor And Purchaser - Right Of Vendor's Assignee To Specific Performance Where Contract Calls For Warranty Deed, Daniel Hodgman

Michigan Law Review

Vendor, a corporation, contracted to convey real estate to the vendee "by good and sufficient warranty deed, free of all incumbrances" upon payment of the purchase price by the vendee. The vendor assigned the contract to X as trustee and then went into receivership and liquidation. A new corporation was organized and the real estate subject to the contract was conveyed to it by the old corporation (vendor). The contract was then assigned to the new corporation by X, the trustee. The vendee being in default, the new corporation as assignee of the vendor sued the vendee for specific …


Torts - Unfair Competition - Preventing Formation Of Contract, Anthony L. Dividio Nov 1938

Torts - Unfair Competition - Preventing Formation Of Contract, Anthony L. Dividio

Michigan Law Review

The Supreme Court of Minnesota was recently confronted with an interesting problem in the case of Johnson v. Gustafson. Real property was listed by the owner with the plaintiff, a real estate broker, who was to receive a $300 commission if she found a purchaser therefor. The plaintiff interested one Clarity in the property, but no offer to purchase was made. Desiring the property but being unwilling to pay the full price of $6,000, Clarity induced his friend Gustafson to purchase it for $5,700 with Clarity's money, directly from the owner, who had a right to sell it himself …


Contracts - Consideration - Dealers' Contracts, Richard S. Brawerman Nov 1938

Contracts - Consideration - Dealers' Contracts, Richard S. Brawerman

Michigan Law Review

Defendant manufacturer, reserving the right to sell to enumerated persons, granted plaintiff dealer a franchise to sell certain of defendant's products in a defined territory. Plaintiff in turn promised to establish a place of business and develop the territory to the satisfaction of defendant. All orders received by defendant were to be subject to acceptance by defendant; defendant agreed to fill accepted orders as promptly as practicable; and plaintiff expressly released defendant from liability for loss or damage arising from failure of defendant to fill the plaintiff's orders. A clause, originally part of the agreement, allowing either party to cancel …


Contracts - Illegality - Recovery By Party Not Licensed As Statute Requires, Seward R. Stroud Nov 1938

Contracts - Illegality - Recovery By Party Not Licensed As Statute Requires, Seward R. Stroud

Michigan Law Review

P, an unlicensed milk dealer, sold milk to D, also a milk dealer. By statute it was made unlawful for a milk dealer "to buy milk or sell milk to a milk dealer who is unlicensed," and violations were made a misdemeanor punishable by .fine and/ or imprisonment. P sued to recover the contract price of milk delivered and D set up counterclaims for breach of contract and overpayment, and asserted that P was barred from recovery, since he had failed to obtain a license. Held, P was not barred from recovery by failure to obtain license. …


Wills - Conveyances Conditioned On Grantor's Death - Contracts For Posthumous Performance, Charles Haines Jr. Nov 1938

Wills - Conveyances Conditioned On Grantor's Death - Contracts For Posthumous Performance, Charles Haines Jr.

Michigan Law Review

By an instrument entitled a lease, the owner of a country estate agreed with the Y.M.C.A. that the latter should have a lease of the land for his life in consideration of the payment of taxes and the maintenance and improvement of a boys' camp on the premises. Further, if at his death the lease were in good standing (a right of entry for condition broken having been reserved), then the Y.M.C.A. was to receive full title to the land. Pursuant to the agreement the camp was operated, and at the lessor's death the Y.M.C.A. was in possession in good …


Contracts - Effect Of Fail Ure Of Performance In An Aleatory Contract, Michigan Law Review May 1938

Contracts - Effect Of Fail Ure Of Performance In An Aleatory Contract, Michigan Law Review

Michigan Law Review

Plaintiff held a note of defendant's husband, long overdue. Defendant promised to guarantee payment of her husband's note, in consideration of plaintiff's promise to lend her money. Thereafter plaintiff, in breach of its promise, refused defendant a loan. Defendant immediately repudiated the contract. Plaintiff sued on the contract to recover the amount of the note with interest. Held, the promises were dependent; plaintiff's refusal to make the loan was a material breach of its promise, and excused defendant from further performance under the contract. People's Trust & Savings Bank v. Wassersteen, (Wis. 1937) 276 N. W. 330.


Associations - Massachusetts Trusts - Personal Liability Of Trustees On Contracts, Michigan Law Review May 1938

Associations - Massachusetts Trusts - Personal Liability Of Trustees On Contracts, Michigan Law Review

Michigan Law Review

The trustees of a business trust, by their agent, accepted seven trade acceptances in which there was no stipulation against the personal liability of the trustees. The trust instrument under which the business was operating provided that the trustees were to be under no "personal obligation or liability of any kind," and that all having transactions with the trustees are put on notice that no trustee or subscriber is personally liable, and further, that in all contracts made by the trustees, "specific mention shall be made therein of this trust to the end that any and all parties must look …


Constitutional Law - Act Changing Pensions - Impairing Obligation Of Contracts - Due Process, Bertram H. Lebeis May 1938

Constitutional Law - Act Changing Pensions - Impairing Obligation Of Contracts - Due Process, Bertram H. Lebeis

Michigan Law Review

An Illinois statute provided for the compulsory retirement of teachers at the age of seventy with an annuity of $1500 a year for life, and an amendment thereto granted annuities on a sliding scale from $1000 to $1500 a year to teachers voluntarily retiring between the ages of sixty-five and seventy. These provisions were changed by an act of 1935 which abolished the provisions for voluntary retirement and .fixed compulsory retirement at the age of sixty-five, with annuities reduced to a flat rate of $500 annually. Plaintiffs, who either had retired or were eligible for retirement at the time the …


Contracts - Assignments - Sufficiency Of Notice To A Bank Of The Assignment Of An Account, Michigan Law Review May 1938

Contracts - Assignments - Sufficiency Of Notice To A Bank Of The Assignment Of An Account, Michigan Law Review

Michigan Law Review

On March 25, 1933 an account in D Bank was assigned to P. A week later the bank received from P a formal statement of the assignment, which the bank totally ignored for nine months. In the meantime the bank debited the account for the price of thirty shares of its stock which the depositor-assignor bought in October. On January 2, 1934, D Bank acknowledged receipt of the letter of notice, but denied any liability to P thereunder. In a suit brought by P for the account, the only question was the right of D Bank to take the …


Contracts - Moral Obligation As Consideration - Promise To Pay For Benefits Previously Received, Michigan Law Review Apr 1938

Contracts - Moral Obligation As Consideration - Promise To Pay For Benefits Previously Received, Michigan Law Review

Michigan Law Review

Plaintiffs, assignees of an oil lease of land, after drilling a dry hole thereon, did not comply with the requirements of their agreement for further development within a stipulated time, in consequence of which there was a formal termination in accordance with the terms of the assignment. An extension of the lease, which the lessees obtained, was assigned to the defendants, who had knowledge of the foregoing circumstances and plaintiffs' claim of a property right in the dry hole. Defendants promised to pay plaintiffs for the use of the dry hole, but subsequently repudiated any liability on the promise. Held …


Contracts - Acceptance By Mistake, Michigan Law Review Apr 1938

Contracts - Acceptance By Mistake, Michigan Law Review

Michigan Law Review

Plaintiff mailed to defendant's agent a written offer to purchase a piece of property. A check was mailed with the offer which was to be the initial payment for the land, if the offer was accepted. In the lower corner of the check was noted, "to be cashed when contract is signed." Defendant's agent acknowledged the check and affirmed the stipulation. He instructed his stenographer not to deposit the check, but she did so, inadvertently. Plaintiff received notice of the check's deposit before the agent attempted to return the credit. Plaintiff brought an action for specific performance. Held, that …


Corporations - Validity Of Contract Executed During Suspension Of Charter For Failure To File Proper Annual Report - Effect Of Innocent Mistake, Ralph Winkler Apr 1938

Corporations - Validity Of Contract Executed During Suspension Of Charter For Failure To File Proper Annual Report - Effect Of Innocent Mistake, Ralph Winkler

Michigan Law Review

A Virginia statute, providing that foreign corporations desiring to carry on intrastate business there must pay an entrance fee graduated according to authorized capital stock, imposed on plaintiff a fee of $5,000. Only two-thirds of plaintiff's authorized stock was issued. A considerable amount of its assets were used in interstate commerce, though the sum invested in Virginia was negligible. Plaintiff contended that such an entrance fee burdened interstate commerce because measured by property used in interstate commerce, that it denied due process because measured by property without the state, and that it denied equal protection of the laws becaused measured …


Contracts - Illegality - Enforcement Of Contract Declared "Invalid" By Statute, Amos J. Coffman Mar 1938

Contracts - Illegality - Enforcement Of Contract Declared "Invalid" By Statute, Amos J. Coffman

Michigan Law Review

Plaintiff was injured while in the employ of defendant. Thereupon the defendant agreed to give the plaintiff employment for life if he would not prosecute the claim before the State Industrial Commission. After thirteen years plaintiff was summarily discharged. The time having elapsed for filing a claim with the Industrial Commission, he brought this action for breach of contract. Statutes of Oklahoma provide that no agreement to waive the right to compensation shall be valid and that claims shall not be released. The lower court awarded plaintiff $3,000 damages. Defendant appealed. Held, the rule that invalid contracts will not …


Specific Performance - Injunctions To Enforce Negative Covenants In Contracts For Personal Services, Benjamin H. Dewey Mar 1938

Specific Performance - Injunctions To Enforce Negative Covenants In Contracts For Personal Services, Benjamin H. Dewey

Michigan Law Review

Plaintiff entered into a contract with defendant in which defendant agreed to participate in a boxing match with the then heavyweight champion of the world. The contract also provided that if the defendant won the bout and himself became heavyweight champion he would render his services as a boxer in his first boxing contest thereafter, in defense of his title, under plaintiff's auspices. The contract further provided that defendant was to engage in no other boxing contests in which a decision was rendered prior to such championship bout, without the written consent of the plaintiff. Subsequently, three amendatory contracts were …


Municipal Corporations - Quasi-Contractual Liability - Distinction Between Quasi-Contract And Ratification, Edward J. Wendrow Mar 1938

Municipal Corporations - Quasi-Contractual Liability - Distinction Between Quasi-Contract And Ratification, Edward J. Wendrow

Michigan Law Review

Plaintiff sued to recover for services rendered as foreman on a city "Works Project," the services having been rendered at the request of the mayor and with full knowledge on the part of the city council. Because of the foregoing fact the plaintiff claimed the contract had been ratified even though no formal corporate action had been taken authorizing the contract. Defendant's demurrer was overruled in the circuit court. On appeal, held, although plaintiff could not recover in an action based on the alleged contract because no formal contract was ever entered into, and because plaintiff's compensation had not …


Carriers Distinction Between Common Carriers And Contract Carriers, Marcus L. Plant Mar 1938

Carriers Distinction Between Common Carriers And Contract Carriers, Marcus L. Plant

Michigan Law Review

In the recent case of Ace-High Dresses, Inc. v. J.C. Trucking Co., the defendant was a corporation organized for the purpose of doing a general trucking business. At the time of the suit it was operating under separate contracts with five dressmaking establishments, one of which was the plaintiff. Under these contracts the defendant trucked dress goods every day except Sunday. The goods were taken on in New York, carried to New Haven, Hartford or Bridgeport, left there until processed, and then taken back to New York. The defendant's drivers had keys to the factories of the processors, entered …


Corporations - Corporate Seal - When Affixing Seal Makes The Instrument A Specialty, Edward D. Ransom Mar 1938

Corporations - Corporate Seal - When Affixing Seal Makes The Instrument A Specialty, Edward D. Ransom

Michigan Law Review

The plaintiff contracted to buy gasoline from a subsidiary of the defendant. The lengthy contract was signed at the end by the proper officers and in juxtaposition to the signatures were the corporate seals of both parties. The contract contained a recital of sealing. On a separate page, but attached to the contract, was a guaranty by the defendant of the subsidiary's performance. This also was sealed with the corporate seals of both parties adjacent to the signatures of the officers. No mention of sealing was contained in the guaranty. On default by the subsidiary, the plaintiff sued on the …


Contracts - Definiteness - Effect Of Provision In Employment Contract For Termination Only By Mutual Consent, Michigan Law Review Feb 1938

Contracts - Definiteness - Effect Of Provision In Employment Contract For Termination Only By Mutual Consent, Michigan Law Review

Michigan Law Review

Plaintiff entered into a written contract with defendant whereby defendant was to employ plaintiff as a salesman and plaintiff was to receive a salary of seven per cent of the annual profits of defendant's business with a guaranteed drawing account of forty-five dollars per week. The agreement provided that it should be terminable only by the mutual consent of both parties and contained no other stipulation for duration. Plaintiff was employed under the agreement from August 1912 until April 1933, when he was discharged because of a decrease in defendant's business. Held, that the contract was too indefinite to …


Joint Adventure - Relationship Distinguished From That Of Employer-Employee, Wayne E. Babler Feb 1938

Joint Adventure - Relationship Distinguished From That Of Employer-Employee, Wayne E. Babler

Michigan Law Review

The taxpayer had an arrangement whereby he planned to furnish the Russian Government with shrapnel shells by farming out the various stages of manufacture to several different companies. A Canadian corporation, also having a contract for furnishing shrapnel, made arrangements with the taxpayer whereby the latter cancelled his contract and went in with the Canadian corporation. Under this arrangement the taxpayer was to furnish his manufacturing arrangement, plans, tools, gauges, drawings, etc., and to get fifteen per cent of the profits on the present contract and five per cent of the profits on future contracts of a similar nature. An …


Vendor And Purchaser - Equitable Conversion - Application To Obligation To Extinguish Forest Fires, Michigan Law Review Feb 1938

Vendor And Purchaser - Equitable Conversion - Application To Obligation To Extinguish Forest Fires, Michigan Law Review

Michigan Law Review

A Montana statute placed the burden of extinguishing forest fires on the person on whose "property" the fire occurred, and, on failure of such person to extinguish it, made him liable to reimburse any authorized unit that should do so. Fire broke out on property owned by D, and a Government unit extinguished it. Previous to such fire, D had contracted to sell the land to X under a contract giving X the right of possession. Held, by the doctrine of equitable conversion, X was the beneficial owner, and the land was not D's "property" so as …


Corporations - Alteration Of Charter Under Reserved Power - Change In Remedy To Enforce Stockholders' Liability, Michigan Law Review Jan 1938

Corporations - Alteration Of Charter Under Reserved Power - Change In Remedy To Enforce Stockholders' Liability, Michigan Law Review

Michigan Law Review

The constitution of Maryland of I 867 provided that owners of bank stock should be liable for debts of the corporation to an extent equal to the value of the stock owned by them. The bank in which the defendants owned stock was organized under legislation of 1870 containing the provision, "this act and every part of it may be altered from time to time, or repealed by the legislature." The Maryland court held that, while the constitution provided no remedy, the right was conferred on each creditor in his individual capacity to be enforced by separate suits against those …


Contracts - Specific Enforcement Of An Executory Accord, Benjamin H. Dewey Jan 1938

Contracts - Specific Enforcement Of An Executory Accord, Benjamin H. Dewey

Michigan Law Review

Sometime previous to the suit in question, defendant had executed a mortgage to the plaintiff, the loan secured by such mortgage to be repaid in installments. After having paid some but not all of the installments, defendant defaulted. As a result of negotiations between the parties and the Federal Land Bank of Omaha, it was agreed that the defendant should pay a lump sum in full satisfaction of the balance of the installments due under the mortgage. Performance was later tendered under this agreement, but the plaintiff refused to accept same, and subsequently brought suit in equity to foreclose the …


The Effect Of The Contract Clause And The Fourteenth Amendment Upon The Power Of The States To Control Municipal Corporations, E. B. Schulz Jan 1938

The Effect Of The Contract Clause And The Fourteenth Amendment Upon The Power Of The States To Control Municipal Corporations, E. B. Schulz

Michigan Law Review

Although the power to establish systems of local government is reserved to the states under the Federal Constitution, they are obliged to exercise it in conformity with the limitations, direct or indirect, by which their powers in general are circumscribed. Since a state lacks authority to delegate powers which it does not possess, it may not confer upon municipal corporations, to cite but a few examples, the power to pass ex post facto laws and bills of attainder, to coin money, to emit bills of credit, to regulate foreign and interstate commerce, or to levy taxes for strictly private purposes. …