Contracts Commons^™

Contracts - Consideration - Agreement To Reduce Rent Reserved In Lease

Michigan Law Review

Plaintiff sued defendants, who were trustees of a business trust, to enforce personal liability upon them for accrued rent due under a lease. When the lessee company, which was losing money because of the depression, threatened to vacate the premises, the plaintiff acquiesced in the lessee's demand that the rent be reduced for the balance of the term. Plaintiff sought to recover the amount due under the lease, claiming that the agreement for reduction was without consideration and therefore a nullity. Held, that in view of plaintiff's knowledge of the lessee's financial condition, the latter's agreeing to remain in …

Specific Performance--Foreclosure Of Land-Purchase Contract--Where Time Is Of The Essence, Robert W. Burk

West Virginia Law Review

No abstract provided.

The Minnesota Mortgage Moratorium Case, Joseph V. Heffernan

Indiana Law Journal

No abstract provided.

Contracts - Liability Of The Assignee Of A Land Contract - Reformation By Extrinsic Evidence

Michigan Law Review

Defendant Campbell assigned a contract to purchase land from the plaintiff to the defendant bank, the evidence being undisputed that the assignment was additional security for an existing indebtedness of Campbell. A printed form containing a promise by the assignee to pay the purchase price was used. The name of the assignee was left blank in order that the name of a prospective purchaser could be filled in if an anticipated sale materialized. In an action to foreclose the land contract the vendor asked for a deficiency judgment against the defendant bank. Held, that the vendor was not entitled …

Vendor -Purchaser-Prospective Inability Of Vendor To Convey

Michigan Law Review

In a contract for the sale of sixty-three lots of a subdivision, the defendant agreed to take the purchase money by installments extending over a period of eighteen months, and promised to convey the premises free from encumbrances when twenty-five per cent of the sale price was paid. While the plaintiff was not in default the defendant mortgaged the entire subdivision to one who was not charged with notice, to secure the payment of bonds some of which did not mature for five years. Stipulations m the mortgage allowed the release of any lot on deposit with the mortgagee of …

Quasi-Contracts-Waiver Of Tort-Suit Against Governmental Agency

Michigan Law Review

County officials forcibly ejected plaintiff from five acres of his land, harvested and used plaintiff's oat crop thereon, and converted the land into a road. Held, that although a county, being an agency of the State, is not liable in tort in the absence of statute, the tort may be waived and recovery allowed on the implied promise to pay for the taking of private property for public use without just compensation. Kerns v. Couch, (Or. 1932) 12 Pac. (2d) 1011.

Contracts - Champerty

Michigan Law Review

Plaintiff leased her lands to defendant under a void oil and gas lease. One Johnston induced plaintiff to enter into a contract with him whereby Johnston agreed to pay the costs of a bill to cancel the lease in return for a new lease to himself should the bill be successful. Accordingly, this suit was brought to cancel the lease. The court, agreeing that the existing lease was void, nevertheless dismissed the bill on the ground that the contract between Johnston and plaintiff was void as against public policy, and that plaintiff had no standing in equity. Of the eight …

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 …

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 …

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 …

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 …

The Kentucky Rule Of Damages For Breach Of Executory Contracts To Convey Realty, Wendell Carnahan

Kentucky Law Journal

No abstract provided.

Statute Of Frauds-Specific Enforcement Of Oral Contract To Convey Land-Part Performance

Indiana Law Journal

No abstract provided.

Deeds-Delivery In Escrow-Effect On Income Tax

Michigan Law Review

A taxpayer, by written contract, had agreed to sell a 99-year leasehold for $195,000. $50,000 was to be paid in 1920, and the balance in 1921. The first payment was made in October, 1920, and a deed put in escrow, to be handed to the grantee on payment of the balance. The transaction was fully carried out as per contract, and the taxpayer was assessed income tax on the entire $195,000 as of 1920. Held, the deed having been delivered in escrow, the title relates back to the original delivery on performance of the condition, showing a completed transaction …

Contracts-Liability Of Assignee For Unfullfilled Duties Of His Assigned

Michigan Law Review

Plaintiff contracted for the sale of lands with H., title being reserved in the plaintiff. The contract purported to bind the assigns of both parties, and contained an acceleration provision in favor of the plaintiff on default of any payment. Under North Dakota law the parties were substantially in the position of vendor-mortgagee and vendee-mortgagor. H then assigned to the defendant who made payments to the plaintiff, and there was also testimony indicating that in the printed form of the assignment defend ant had promised the assignor to assume the duties under the original contract. Upon default and foreclosure sale …

Contracts--Risk Of Loss Under Executory Land Contract--Disposition Of Insurance Process.

Michigan Law Review

When buildings, which are part of the subject matter of an executory contract for the sale of land, are accidentally destroyed by fire, there immediately arises the question of who, as between the vendor and the purchase, shall bear the loss. The majority of courts in this country place it on the purchaser. This was the result reached in the leading English case of Paine v. Meller and has been adopted in the following states: California, Indiana, Iowa, Kentucky, Louisiana, Maryland, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota and West Virginia. …

Contracts-Rescission For Substantial Breach-Lien For Improvements Given Vendee

Michigan Law Review

For statement of facts see preceding note in this issue, Younger v. Caroselli, 251 Mich. 533, 232 N.W. 378.

According to the majority view in the United States, a builder, whose substantial breach of contract (the instant case can hardly be considered one of substantial performance) is merely negligent and in good faith, can recover the value of his labor and materials less the damage caused the promisee.

Deeds-Side Of Lake As Boundary-Presumption That Grantee Takes To Center

Michigan Law Review

ln a conveyance of land adjoining a lake, the description read in part, "thence running northerly * * * to the Rockland Lake thence westwardly along the south side of the Rockland Lake." Held, that the grantee took to the center of the lake. White v. Knickerbocker Ice Co. et al. (N. Y. 1930) 172 N.E. 452.

Contracts-Breach Of Implied Warranty That Construction Be Usable For Purpose Intended

Michigan Law Review

Plaintiff and defendant entered into a contract by the terms of which defendant was to assign to plaintiff an equity in a land contract to purchase a lot. The plaintiff was to complete the payments and sell to the defendant on a land contract this same lot with a house and garage to be erected by the plaintiff, an experienced builder, according to plans and specifications to be drawn by the latter. The defendant was to be given credit for the amount he had previously paid on the lot, and the price was further reduced by the defendant doing the …

Quasi-Contracts-Dutiful Intervention-Discharge Of Public Officer's Duty

Michigan Law Review

By statute in Montana the boards of county commissioners were ordered to cause such highways as were necessary for the public welfare to be "laid out, recorded, opened" and maintained. A highway was laid out through the plaintiff's land in 1903, but the county commissioners refused to continue constructing it though requested to do so by the plaintiff, instead compelling him to remove the fences on his property. His entire land being thus thrown open to the public, he constructed the road himself in 1926, with the knowledge of the commissioners, who on its completion immediately accepted it but refused …

Contracts-Risk Of Loss Between Vendor And Purchaser In Land Contract

Michigan Law Review

Plaintiff entered into a contract to sell his grocery business to the defendant for a specified amount, part payment to be by way of the conveyance of a house and lot owned by the defendant, the title to pass upon payment by the plaintiff of certain outstanding debts of the grocery business. Subsequent to the execution of the contract, but before conveyance of the house and lot and while the defendant was still in possession, the house was destroyed by fire and the plaintiff sues to have $2,500 substituted, that amount being the agreed valuation at which the property was …

Specific Performance Of A Parol Agreement To Convey Real Estate. Part Performance To Take The Contract Out Of The Statute Of Frauds, J. H. W.

West Virginia Law Review

No abstract provided.

Statutory Regulation Of Railway Equipment Agreements, Kenneth Duncan

Michigan Law Review

Form of Equipment Contracts. A large part of the rolling stock and equipment obtained by railroads in the United States and Canada is financed through the issue of equipment obligations. At the present time, approximately three-quarters of a billion dollars, par value, of these securities are outstanding, and they have come to constitute about six per cent. of the aggregate funded debt of railroads. Yet in spite of their large and growing importance, they are probably not as well understood as other common forms of corporate securities, and it is doubtful if many lawyers are fully cognizant of the …

Deeds--By And To Infants--Effecti Of Disaffirmance

Michigan Law Review

The disaffirmance of a contract made by an infant nullifies it and renders it void ab initio; and the parties are returned to the same condition as if the contract had never been made. Grissom v. Beidleman, 35 Okla. 343. This states the general rule both as to executed and executory contracts, and is particularly applicable to transfers of personal property. WILLISTON, CONTRACTS, § 237; PAGE, CONTRACTS, ed. 2, § 1622. Does this principle apply also to conveyances of real property? Does disaffirmance of a deed by or to an infant ipso facto nullify it and revest the …

Some Greek Legal Papyri From The Michigan Collection, A Er Boak

Michigan Law Review

The documents which form the subject of this paper are part of the Michigan Collection of Papyri recently acquired by Professor F. W. Kelsey in Egypt and secured for the University by the generosity of the Regents and certain friends and alumni, among the latter Mr. J. W. Anderson, of the Law Class of 189o. A large proportion of these documents are of a legal nature, and from these I have selected for translation four, which may be regarded as typical specimens of their respective classes.

Recent Important Decisions, Michigan Law Review

Michigan Law Review

No abstract provided.

Note And Comment, Edgar N. Durfee, Cyril E. Bailey, Edwin B. Stason, William C. O'Keefe, Clyde Y. Morris

Michigan Law Review

The Basis of Relief from Penalties and Forfeitures - The equitable principle of relief from penalties and forfeitures is so far elementary as almost to defy analysis. Many, perhaps most, of the judicial explanations of the principle have based it upon interpretation or construction, appealing to the doctrine that equity regards intent rather than form. Yet a logical application of this doctrine would lead to results very different from those which have actually been arrived at in the decisions. Thus, a stipulation in a mortgage that the mortgagor waives his equity of redemption can hardly be interpreted as meaning that …

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Admiralty - Workmen's Compensation - Is a Hydroplane a Vessel? - Claimant was employed in the care and management of a hydroplane which was moored in navigable waters. The hydroplane began to drag anchor and drift toward the beach, where it was in danger of being wrecked. Claimant waded into the water and was struck by the propeller. Held, claimant is not entitled to compensation under the Workmen's Compensation Law, since a hydroplane while on navigable waters is a vessel, and therefore the jurisdiction of the admiralty excludes that of the State Industrial Commission. Reinhardt v. Newport Flying Service Corp. …

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Carriers of Passengers - Duty to Stop at Station to Permit Passenger to Alight-Contributory Negligence of Passenger Plaintiff's intestate was riding in the front end of a crowded vestibule car in the coach next to the tender of the eengine. When the train stopped at his station he tried to leave by the front end, but found the door from the vestibule closed. As he did not know how to open it, or was unwilling to be carried by his station, he stepped from his platform to the bumper of the tender and tried to follow it to the side …

The Assignability Of An Option Contract, M. T. Van Hecke

West Virginia Law Review

No abstract provided.