iplli|!.lil>Siln!nfc::lh|^W;i'aw^^ ,1 \ UNIVERSITY 01 C ALirORMA LO.^ ANGELES SCHCX5L OP DWV LIllRARY A T R E A T 1 - L <»fk Till 1'l,i;Ri|;\|.\N('i;iin'(i.\Tll.\iTS IHl- HON SIK HUWARD FRV. M J^V*-^ •' »^ •• » ktxi r«t»»« <4 I'atTvratly THE 1> EDITION THE .\rTHOU AM. WM Im)NALI»S()N HAWLINS. THIHI» AMERICAN EDITION. WITH KEFEHKN' » T<» TIIF. LATD«T AMERICAN C AM>. ■T WILLIAM M SCOTT, .. I -I ll.. I..' U>-Tnimtf year I804« Hy WKAHE C little Jt CO . In the offlco of \]w Librarian of CongrvM, at \Va%3.inct. n Ricei Printing «nd PuMiihln([ Com(i«»T, PRINTING, BINDING AND ELECTROTYPING, •1«1 Broadwsy, Albany, N. Y. n; r, iw i it lillKli AMhKRA.N hi»lll".\ • H»*rfornmiicf of C'nii- tni IS that <»f Willlnm 8. Schuyler, E«q.» Coun84»l<)r ai l*aw ; jt Ij.ih '-•••n out of print for »<»ineilnit», having Ixn-n |.i. Ih* wnnl <»f II new edition han l>«t»n felt by th*- HI Kn^land, an in this country, nnd ns a mall • an Kn^'lii^h e»Ulion t the cases down Hit. t^li hw third American editlnHiMe fur lh«» no- ir 1871, to the i»r»'?*^nl !ini»» ; if the whiru lit- iia- :in»veX1> EIiITION, w^.t•• nnd i»uMinh«nl the following trvntim*: and in that •»; I f Mill.- ji'-At . Iirni '.•> li IV.. !k.M.n efftH'teti in tin* law - an . . :irn/ mh rJif siil.l...f .if r!.> ••-%'iay hn» \m-r-ii y. I must exiM*ct « «• ; iticlsm for thij* second ene<»u.H, the notion I Mi»*an that tlu'V IJOVWH.S aquosijmlicial authority. It is hardly enon^^h rememljereil lu»w diffen-nt are the circumstances under which a >»k is written and a jui the court cannot perform. iQcapacily of court to execute contract . . 35 Breaches frequent 36 Goodwill of a business 36 5. Where tJie performance of the contract would be useless. Revocable contracts 37 Contract to enter into partnership at will 38 Contract to become member of company 38 Contract to execute revocable instrument 38 6. Where the court would be unable to enforce its judgment. Contracts to build and execute works 39 Cases where performance has been refused 40 Lord Cairns' Act 41 Exceptions — a. "Where the work is defined and essential to the plaintiff 41 b. Where the defendants have also obtained possession under the contract 41 Contract to make siding 42 to erect market-house 42 Amount of damages unascertainable b\- plaintiff 42 Act of part-performance answerable in damages 43 Covenant to keep canal in repair 43 7. WJtere the enforcement of the contract would he worse than non performance. Hiring and service 43 Such contracts formerly enforced 43 Secus now 44 Contracts of agency 45 8. Where the contract is voluntary. Where no consideration 46 Where no right to property affected 47 9. T]7(f r^ the plaintiff has elected to proceed in some other manner than for specific performance. Where plaintiff proceeded at Law 47 Opinion of Knight Bruce L. J 47 of Lord Cranworlh 47 Proceedings under Lands Clauses Act 47 Present practice 48 10. TT7(^r<: the jurisdiction has been taken away by statute. Fines and Recoveries Act ^8 XIV CONTENTS. PAGE. 11. The jurisdiction is agai?ist tM defendant personally. Equity acts against the person "*° Where defendant is not subject to the jurisdiction 'IS Where the court had originally no jurisdiction - 48 Foreign contracts 49 Contracts relating to immovable property • 49 There must be privity of contract 50 Mr. Justice Story on the English doctrine 50 12. Quasi-contracts in respect to irJiicTi the court has jurisdiction. Quasi-contracts under Lands Clauses Act 51 Effect of notice to treat 52 Procedure after the notice 52 Refusal to proceed after the notice 52 The company forced to proceed 52 Parliamentary contract '■ 53 Where notice followed by a contract 53 CHAPTER III. OF CONTRACTS "WITH A PENAL OR OTHER LIKE SUM. Effect on the jurisdiction 55 The question stated 55 i. Contract with a penalty strictly so-called 56 Contract not to carry on business 57 ii. Distinction between penalty and liquidated damages 57 Condition for recovery of deficiency on re-sale 58 Where contract and obligation to pay are distinct 59 Where election not imported 60 iii. Alternative contracts 60 Intention primarily governs construction 60 Alternative form not conclusive 61 The amount of the penalty 62 The benefit of the penalty and the contract resulting to different persons. . 64 Single sum and continuing act 64 Sum variable 64 Wherere there is a forfeiture in addition 65 Where the contract is reasonable only as an alternative one 65 CO]^TENTS. XV PART 11. PARTIES TO THE ACTION. PAGB- . 66 CHAPTER I. OF THE GENERAL RULE. Division of the subject 1. As to the former practice oftfie Court of Chancery. The general rule stated "^ Stranger necessary party to conveyance "' Same property sold twice over "^ Purchasers of diflfereut lots held under same lease 69 Effect of a direction that A. should convey ^ Where the suit had several objects ' ^ Tenant of vendor *" Persons having adverse rights '^ Exceptions to the general rule '-' Novation ' "^ Sales on the Stock Exchange "^^ Stranger "^ Interest under prior contract ' ** Remainderman 'J* Reversioner ' Objection precluded by pleading '* Some suing or sued on behalf of all '* Avoiding multiplicity of suits ' -* "Where one lot sold involved with adjoining lot "''^ 77 Adverse claimants Voluntary settlement ^ Multifariousness Several contracts in one suit '^ 2. As regards the practice of the High Court. 79^ The general rule Provisions of the Rules of Court as to parties '^^ Result of third-party rules "-^ Bare trustee •• 80 Unpaid legatees Counterclaim "_ Registered land XVI CONTENTS. CHAPTER II. OF A STRANGER TO THE CONTRACT. PAGE, Division of the subject 82 1. As to a Dt ranger. Generally a stranger cannot sue 82 Apparent exceptions to the rule 83 (i.) Cestui gue.trust of contract 83 (11.) Agency 83 (Hi. ) Executed contracts 84 (iv. ) Near relationship 84 (v.) Change in condition of life 85 2. As to a stranger being sued. : Generally a stranger cannot be sued 86 Exception if he gets possession of the subject-matter with notice b6 ■ Stranger claiming benefit resulting from the contract 87 Where part of relief might effect person In possession 87 jExceptions under.statutory provisions 87 CHAPTER III. OF THE DEATH OF A PARTY TO THE CONTRACT. 'Death of a party 88 fDeath of vendor gg ' Trustee Act, 1850 , 90 Widow 90 Contract enforced by creditors 90 Executors suing before probate 91 Death of purchaser 91 Heir or devisee 91 Vendor ordered to revive 92 .Death of proposed lessee 92 Discharge of the contract by death— where personal qualities required 92 CHAPTER IV. OF AN ASSIGNMENT OF THE CONTRACT OR OF THE PROPERTY. Assignment of the contract 93 Assignment by way of mortgage 95 Exceptions og (i.) Where the contract is personal gg ; Contracts for leases ^ Where there is a set-off ng Where some previous personal relation gg CONTENTS. Xvii PAGE. Pothier on error in regard to the person contracted with 98 The principle illustrated 99 (ii.) Where there is proviso against assignment 99 (iii. ) Illegality of assignment 99 Transfer of expectancy 100 Maintenance 100 Public trust 101 Offer not assignable Iqo The rights of the assign of the contract 102 Extent of the assign's right IO3 Assignment of the property Iqo Assign a defendant 102 Unregistered contracts in register counties ... 103 Owner of prior title affected by notice 103 Effect of notice in cases of executed contracts lO.j •Contracts to devise lands j O.5 Amalgamation of companies jOo Bankruptcy of contractor 106 CHAPTER V. ■OF THE LIABILITY OF COMPANIES FOR THE CONTRACTS OF THEIR PRO- MOTERS. The doctrine introduced by Lord Cottenham 107 Conditions under which the doctrine is applicable lOS .(i.) The company must have taken the benefit of the contract 108 Contract intra vires and beneticial 110 (ii.) The contract must have been warranted by the terms of incorporation 110 Contract rdtra vires 110 Doubts thrown on the doctrine Ill State of the authorities 112 CHAPTER VI. OF AGENCY. Contracts by agents 113 Agent appearing on the contracts as such 113 Agents appearing on the contracts as principals 113 Principals suing and being sued 115 Agents not generally parties 117 Question whether party is principal or agent 117 Both principal and agent sued 117 Directors Hy Agent suing 118 Agent sued Hg •Cases where agent a proper party 119 (i. ) Agent claiming intererst 119 (ii.) By reason of the form of the contract 119 B . Xviii CONTENTS. yAGB. . 119 (iii.) Stakeholder Cases where stakeholders made parties The proper practice in such cases ^"^ Auctioneers, etc. , who are and are not stakeholders 120 PART III. OF THE DEFENSES TO THE ACTION. CHAPTER I OF THE IXCAPACITY TO CONTKACT Nature of the defense 1-^* When incapacity to be judged of 124 Married women 12^ Their general engagements 126 Contract by married women to take lease 127 "Where no power of anticipation 1 27 Contract under power informally exercised l''^7 Parties to action in respect of separate estate 127 Real estate of married women 128 Contracts between husband and wife 128 Contract of married woman trustee 129 Lunatics 129 Subsequent lunacy of a party to a contract 130 Persons standing in confidential relations 130 CHAPTER II. OF THE NON-CONCLUSION OF THE CONTRACT There must be a concluded contract 131 Onus of proof is on plaintiff 131 When the question of construction 131 Where there is a formal document 131 Is the instrument a contract 131 Judge's order 131 Instructions for a settlement 131 Articles of Association 131 Recital 131 Negctiation is not contract 132 Proposal and acceptance 132 Essentials of acceptance 133 Acceptance must be unequivocal 133 CONTENTS. XIX PASB. Acceptance must be uncomlitioual 135 Acceptance must be without variance from the offer 136 Acceptance must not introduce anj^ new term 130 Acceptance subject to title being approved by solicitors 137 ■\Vbat is not a new term 137 Nugatory variations 138 Reference to mode of execution 138 Indulgence granted by acceptor 138 Acceptance must be communicated 139 And that witbout unreasonable delaj"- 139 "Wbat determines the proposal 140 (i.) Withdrawal 140 Notwithstanding time for acceptance prescribed 141 Express notice of withdrawal not needful 141 Notice imder right of pre-emption 141 (ii.) Refusal 141 Variations of the proposal 1 42 Writing signed by one party sufficient 143 Plaintiff's acceptance need not be in writing 143 Acceptance by acts 1 44 Defendant's acceptance must be in writing 144 Time at which the contract is constituted 144 Posting letter 144 Where there is an agent for the proposer 145 Representation and conduct 146 Representation of things past 14f> Representation of things future 147 Representation must be clear and absolute 147 Where the engagement is merely honorary 14S Subsequent settlement silent as to promise 15U Where the promise did not induce the marriage 150 Cases where representation has been held binding 150 Marriage contracts loO Distinction between written and verbal proposal 151 The principle long established 151 Representations by stranger loS CHAPTER III. OF THE INCOMPLETENESS OF THE CONTRACT. Contracts must be certain, fair, and just 155 Where objection made after part performance 155 Completeness, fairness, and certainty, how to be explained 156 Incompleteness may be in contract or evidence 156 Completeness to be ascertained at commencement of proceedings 156 Exceptions ^ 56 (i.) When incompleteness arises from fault of defendant 156 (ii.) Or may be made good from the contract itself 167 XX CONTENTS. P(GE. Complcteuess to be considered ^ ■ '~ (i.) As to subject-matter 1 '^"^ Pleading 1"'9 What definiteness required ■ ^^'^ Where subject-matter ascertainable though not ascertained l'"9 Subject-matter ascertained by election 160 (ii.) As to the parties • 160 Description instead of name 161 Lord Cairns' statement of the law 161 Descriptions held sufficient 161 Description held insufficient 162 (iii.) As to price 162 Cases where price not ascertained 163 Contract need not precisely determine the price 163 Where a mode of determining the price prescribed 163 Where mode of ascertainment essential 163 Ascertainment by valuers to be named 163 Lord Bacon's maxim 163 Doctrine of the Roman Law 164 Valuers are not arbitrators 164 First class of cases 164 Difficulty occasioned by defendant's default , 165 Second class of cases 166 Contracts to sell at a fair price 166 The distinction between the two classes of cases illustrated 166 (iv.) As to other terms of the contract 168 Instances of contracts held incomplete 158 Some matter left for future agreement 169 Contract referring to third person's decision 169 Implied terms 169 Condition for good title implied 170 Conditions may be waived 170 Contract for underlease 170 Implication as to usual stipulations' 171 Implied terms rebutted by a condition or by notice 171 Where material term cannot be supplied, no performance 171 CHAPTER IV. OP THE UNCERTAINTY OP THE CONTRACT. What amount of certainty required 173 Original uncertainty removed 176 Indefinite words 176 Instances of uncertain contracts 177 Less certainty required where there is fraud 180 CONTENTS. XXI CHAPTER V. OF THE WANT OF FAUtNES-S IN THE CONTRACT. Nature of the fairness required l"^! Unfairness in the terms or in extrinsic matters l^i When ascertained l'?^ Where there is a condition to be performed 1^3 Compromises and family settlements 183 Contracts involving contingencies : l'*4 The contingency must be really such to both parties 1!?'* The contingency must have been understood to be within the contract. ... l^'t Contracts to sell at a price to be fixed 1 ^0 Amount of rent to be fixed \^fi Fairness of surrounding circumstances 1H7 Court slow to act where circumstances saspicious 1S7 Intentional unfairness not necessary to be proved 18S Misstatements 188 Silence or suppresio veri 188 Intoxication 1^ Contract injurious to third persons 18t» Secret guarantee 1 J^J* Sale bj- a voluntary settlor l^*) Contracts necessitating a breach of trust 15'0 Where condition for compensation IWl The objection precluded by the conditions of sale 15'1 Unbusinesslike contract 192 Cases of ])reach of duty 1&2 Rescinding contract on this ground 192 Injury to the public 192 CHAPTER VI. OF THE II.\KDSHIP OF THE CONTRACT. Hardship a bar tu the court's interference 1 ".'J When to be judged of 193 Instances of subsequent circumstances disregarded 194 Submission and awards 19.'> lustances of subsequent events regarded Ut5 subsequent events dependent on plaintiff I'.'G Plaintiff's subsequent conduct a trap 1 i'T Distinction between patent and latent hardship 197 Hardship brought upon the defendant by himself 198 Failure of party's scheme 198 Hardship on members of a corporation 19b Forfeiture a circumstance of hardship 199 Exceptions 199 Where vendor would be left subject to a liability 2(K) Other instances of hardship '-ioO XXU CONTENTS, PAGE. Liability disregarded 200 Miscellaneous instauces of hardship 201 Impossibility of enjoying the thing purchased 201 The principle applied in contracts between companies 202 Inadequacy of consideration 202 CHAPTER VII. OF INADEQUACY OF THE CONSIDERATION How it may appear in the contract 203 Difference of cases between vendor and jDurchaser 203 Inadequacy with other circumstances 203 Inadequacy by itself 204 As a ground for setting aside contracts 204 As a defense to specific performance 205 Mere inadequacy not a defense 206 Reason of the rule 208 The laws of Rome and France 209 When the inadequacy is to be ascertained 210 Sale at a price to be fixed 210 Effect of under-valuation , 210 Sales of reversions 211 Before the Sales of Reversions Act 211 "Where the prmciple did not apply 211 Present interest relatively small 211 Sale by auction 212 The Act 31 Vict. c. 4 212 Effect of the Acts as to actions for rescission 212 As to specific performance 218 Origin of rule as to burthen of proof 213 CHAPTER VIII. OR WAJTT OF MUTUALITY IN THE CONTRACT. Mutuality required 214 Contracts under powers 216 Time at which mutuality is to be judged of 216 Exceptions 217 (i. ) Unilateral contracts 217 (ii.) Waiver 217 (iii.) Contract signed by one party only 218 Reason of this last exception 218 Contract in deep poll 219 (iv. ) Where vendor has only partial interest 219 Doubts of Lord Redesdale 219 The principle is well established 220 COXTKNTS. XXm CHAPTER IX. OF THE ILLEGALITY OF THE CONTUACT. FA«B. Illegality a bar to performance of a contract Foreign contracts 223 What constitutes illegality 223 Peculiar nature of the defense 22-1 Awards 228 How far the ilk-gulity must be made out 22S Where a trust is constituted 2^9 The principle illustrated 229 Trade unions •• 230 CHAPTER X. OF THE COXTKACT BEING ULTRA VIRES. Contracts by corporations must be -within their powers 232 But are presumed to be good 232 Where the presumption is rebutted 232 Limitation of the discussion 235 Difference between ultra vires a corporation and ultra vires its agents 285 Difference of the question between corporations and between corporation and strangers 236 Where ultra vires is and is not a defense 237 Vendor of land to company not bound to see that it is strictly required 238 Irregularity --^^ CHAPTER XI. Fourth section of the statute ~'^" Decision that the section refers to the procedure _. 240 The statute often a defense '-^^^ Division of the subject ^^^ 1. IIoic the defense may be raised. Reference t© the former practice -^^ Before the Judicature Acts the statute taken advantage of by demurrer. . . 242 T> 1 '>42 By plea -^~ By plea and answer '-"^^ By answer "'*- Otherwise not at the hearing 2"^3 The present practice ■'■*" How the statute may now be taken advantage of 243 Not by plea J^"^"^ Where statement of claim does not allege written contract 243 By demurrer "^ XXIV CONTENTS. PAaB. By pleading the statute specially 243 The benefit of the statute must be claimed distinctly 243 "Where defendant makes default in pleading 243 Where no pleading at all 243 2. What satisfies the statute. Written statement 244 Nature of the document immaterial 245 The writing must express a concluded contract existing at the time when the memorandum was signed 248 Treaty only 249 Formal contract intended 249 Where first document is not binding 249 The law stated by Jessel M. R , 251 Solicitors ' ' to prepare contract " 252 Agreement signed by one party only 252 signature 253 Must be a writing of the name 254 In pencil 254 In priut 254 Initials 254 How far intent to sign necessary •. 254 Incidental introduction of name for different purpose 255 The statute a weapon of defense, not offense 255 Actual signature with intent to authenticate the document 256 Suggestion as to the true principle 257 Agent 257 How appointed 259 Where court will conclude in favor of agency 259 Direct evidence 259 Inference 259 Representation 259 Ratification 259 Essentials' of a valid ratification 262 Auctioneer 262 Authority of auctioneer 264 Agent of agent 264 Auctioneer's clerk 264 Solicitor 264 Telegraph clerk 265 Revocation of agent's authority 265 Death of principal 265 Agency a question of fact 265 Letters 265 (1. ) Letters referred to for signature 266 Parol evidence admitted 266 There must be a reference 267 To terms in writing 268 How far reference must be express 268 CONTENTS. XXV rA8B. Entry in auctioneer's book 2(J>? Other illustrations 269 (3. ) Letters to suppl}' a term o^jrj (3.) Letters constituting the contract 270 The correspondence must be considered as a whole 270 Letter to a third person 270 Letters repudiating a contract 870 Parol contract before marriage, written after 271 Pleading a contract within the statute 272 Before the Judicature Acts 272 The present practice 272 Contract implied from letters, conversations, or circumstances 273 3. What takes a contract out of the statute. Sale by the court, admission, fraud, or part-performance '.'73 (1.) Sale by the court 273 Ordinary sale by auction 274 (2. ■) Admissions in pleadings 274 Effect of admissions under present practice 275 Death of person making admission 275 (3.) Fraud 275 Collateral contract 277 Fraudulent refusal to recognize collateral parol promise 277 Provision for defeasance or redemption fraudulent!)- omitted 278 Trustee for real purchaser 278 Principle of foregoing cases 279 Fraud in relation to marriage articles 279 Mere non-performance of contract to sign a document 279 Marriage contract 280 Wills r 281 (4.) Part performance 281 Principle of the exception 282 Essentials 283 (1. ) The acts must refer to a contract 284 They need only be referred to some contract and consistent with that alleged 284 Mr. Aust in quoted 285 The acts must not be referable to any other title 285 (2.) The acts must render non-performance a fraud 286 Principle stated by Lord Cottenhum 2!^6 No relief where refusal to perform is no fraud 287 The acts must be done with the knowledge of the person to be charged . . . 287 Acts not fraudulent from character of person 287 from the nature of the act 288 from their being alternative remedies 288 (3.) The contract must be such as can be enforced 288 Want of a seal 289 Engagement of an honorary character 289 Incomplete contract 290 Where possession adverse 290 XXVi CONTEXTS. PAGE. Particular acts as part-performance ~'^" Possession ^^ Possession of stranger acknowledged ^'^^ Possession acquiesced in ^"-^ Possession tells for and against both parties alike 292 Possession as against a company 293 Possesion in contracts other than of sale or lease 293 Marriage contracts 293 Family arrangements 294 Effect of lapse of time 294 Laying out of money— how different from possession 294 Expenditure and other acts admitting of compensation 295 Payment of purchase-money 295 Why not an act of part-performance 296 Vacillation of the law ou this subject 296 Payment of auction dutj- 297 Payment of additional rent 297 Review of the cases on payments as part-performance 297 Marriage 298 Acts connected with marriage 800 3Iarriage in fraud of previous parol contract ... 300 Cohabitation 300 Previous acts 300 Preparatory acts 30 1 Surrender of lease 303 (iv.) The evidence of the contract 303 Classification of the cases 303 (1 .) Contract admitted in pleadings 303 (2. ) Contract denied by defendant's pleading 304 (3.) Variation between the contracts alleged and proved 304 "What variations are immaterial 305 Inquiry 306 The present practice 307 (4.) Alleged contract denied but another admitted 307 Part reduced to writing 398 CHAPTER XII. OF THE FORMALITIES REQUIRED IN CONTRACTS BY CORPORATIONS. Practical importance of the subject 309 Contract by corporation must generally be under common seal 309 Exceptions — (i.) Some contracts of trading corporations 309 (ii. ) Under statutory provisions 309 Companies Clauses Act, 1845, s. 97 309 Companies Act, 1867, s. 37 310 Former statutory provisions 3H (iii. ) From the doctrine of part -performance 311 The subject more fully discussed in other works 312 CONTENTS. XXVll CHAPTER XIII. OF MISREPRESENTATION. PA9E. Effect of a misrepresentation 313 Elements of a misrepresentation 313 Division and limitation of the subject 316 Misrepresentation, how related to fraud 316 (1.) A statement made and untrue 317 Mere silence 317 When a statement is to be held untrue 317 (ii.) The making of it by a party or his agent 318 What agency must be proved 318 (iii.) The state of mind of the party making the statement 319 Knowledge of the error or falsity 319 Misrepresentation by agent in common law actions 320 Always fatal to specific performance 320 In equity a man is bound by inadvertent misrepresentation 321 (iv.) The intent of the misrepresentation 322 Purchaser on faith of prospectus not received from its authors 323 Earlier cases affected by Peck v. Gurney 323 (v. ) The reliance on the statement 324 The statement not the sole inducement 325 Vagueness of the representations 325 Vendor's statements must be unambiguous 327 Commendation by vendor 327 Other grounds for considering that there was not reliance 327 Mere presence of means of knowledge 32S Resort to other means of knowledge 329 Other knowledge itself 330 Misrepresentation of law 331 as to title 331 Doctrine of Edwards v. McLeay not of universal application 331 Where defect is patent 332 Analogy with warranties 333 Evidence of knowledge must be clear 333 Other means of knowledge open to purchaser not enough 333 Doctrine of notice does not apply 383 General statement inconsistent with the misrepresentation not enough 334 Rescission for misrepresentation 384 Recommendation to other party to consult his adviser 334 Misrepresentation as to lease 335 as to character of building 335 as to profits of theatre 335 Sale with all faults 335 Assignment of a contract affected bj' misi-epresentation 335 Statement to agent known by principal to be false 33(» (vi. ) The misrepresentation must be essential 336 Cases considered under head of fraud 336 XXViii CONTENTS. CHAPTER XIV. OF FRAUD. PAGE. Fraud is a larger word than misrepresentation 337 comes before the court in several relations 337 Fraud in obtaining contract 3-37 oori in pert" orniing contract '^^' Suppression of a fact 338 Silence ^^^ Obligation to disclose 339 (i ) Where fiduciary relationship 339 (ii.) Where antecedent wrong done 340 (iii.) From character of contract 341 Latent defect 341 (iv.) From course of negotiation 341 Lord Blackburn quoted 341 Imperfect statement 342 (V.) From obligation subsequent to the contract 342 (vi.) From statute— Companies Act, 1867, s. 38 342 Mere silence generally permissible in either party 343 Silence of purchaser 344 Aggressive concealment 344 Purchaser may not make any false representation or suggestion 845 Silence not fraudulent but unfair 846 Puffing at auctions 346 (i.) Where sale without reserve 347 All parties having liberty to bid 347 (ii.) One puffer employed 347 A defense in chancery 348 (iii.) Several puffers 348 The sale of land by Auction Act, 1864, s. 4 348 Sections 5,6 849 Fraud by agents 349 Agency of directors 350 Fraud by a mere stranger 350 Fraud affects the entire contract 350 So does misrepresentation 350 The two-fold effect of fraud 351 Contract voidable not void 351 Consequences of contract being voidable only 3.")2 How right to rescind may be precluded 352 (I) Rescission impossible 352 (ii. ) Rescission inequitable 352 (iii. ) Election to abide by the contract 352 Contract to take shares 353. How election may be made 353 Election final 353, (iv.) Inability to make restitution 353 Does the receipt of any benefit prevent rescission ? 354 CONTKNr>. WiX rA«B. Restitution reudereil imi>o&sJble by act of third person ... JtW The French liiw Innocent misrepresentation does not generally give right to re«ciud. . , Other remedies open though rescission impossible Fraud is a personal bur to relief Innocent misrepre.senlation •'•''^ Fraud on the public *'* CHAPTER XV, OK MISTAKE. Kinds of mistake that occur in contracts y'»<^ Principle of the defense ^'i^ Mistake sometimes but not always a bar to performance 3<51 As to the Statute of Frauds 301 Parol evidence admitted for defense !561 Mistake of the defendant :WW Where contributetl to by plaintiff 804 Mistake i)urely of defendant J''>-* on the part of ti vendor «^W of defendant's agent 3M Cases where mistake of defendant is no defense 366 Mistake of one party as a ground for rescission 309 Parol variation set up b}* defendant 869 (i.) Where enforced 3C9 ut to bis election 870 Instances of variation 872 Variation, how set up 878 Evidence 873 Common ei ror 874 Mistake a ground for rescission 874 Instances of rescission 875 Mistake a ground for ix-ctification 876 Rectilicaliou recjuires a prior contract 877 Mistake of one party not a ground for compulsory rectitkatiun 878 Election between annulment and rectification 878 Parol evidence admitted for rectification 878 The proof must W clear 879 Jiatent amliiguity 879 Division of mistake ^^ Mistakes of law ' Misrepresentation of law " ' The court will now relieve against mistakes of law S**! Lord Weslbury on I'/norantiajurii ftoutl exeutit 85<8 Result of tlie authorities 384 SjH'culation as lo facts *** Mistake not about essence of coatract 885 PAGE. . 885 . 385 ^-^-X CONTENTS. 'I he Roman law Where the writing purposely differs from the contract ^^^^ Subsequent parol contract Specitic performance with rectification of mistake J»' Mistake of plaintiff alone of both parties ' " ' in reference to Statute of Frauds ^^° Cases of entire exclusion of parol evidence for i)laiutilf ^m Lord St. Leonards on the doctrine ^ These cases observed on Previous parol contract ' Admission of parol evidence for plaintiff ^^^ Opinions of American jurists °^^ Effect of the Judicature Act, 1873. s. 24 (7) 394 Cases of rectification and relief in same suit 395 Misdescription in contract CHAPTER XVI. OK THE INC.U'ACITY OF THE COURT TO PERFORM PART OF THE CONTRACT. Subject of the chapter 399 Contract divisible or not 399 Sale of property in one lot 399 Ship and freight 400 Distinct lots "^^^ Different prices for different parts 403 Cross coutracls of sale 403 Stipulation for piece-meal execution 408 Contemporaneous contracts 404 The court will not perform part 404 Consideration a future act 405 Illustrations of the principle. ■. 405 Where execution of deed not ordered 406 Where execution of deed ordered 406 The principal applied to marriage contracts 407 Exceptions — (i.) Separate execution contemplated 407 (ii.) Where the contract is executed 407 Difference between executory and executed contracts illustrated from part- nership articles 408 And from leases 409 (iii). Relief on contracts not by way of specific performance 409 (iv.) Where contract may be completely performed though there arc future acts 410 (v.) Where part cannot be performed through defendant's default 410 Lord Cairns' Act 411 (vi.) Where the contract has negative and positive stipulations 412 Negative stipulation implied 413 CONTENTS. XXXI PAOE. Negative implied in clmrter- party ■^1'^ Limits of the doctrine .' "^^^ Lord Hatlierley's view ^^^ Jessel, M. R., iu Fotliergill v. Rowland -^^6 Doctrine of Lumley v. Wagner not to be extended -IKJ Conclusions from the authorities '^^'^ Unenforceable terms all on plaintiff's side 418 (vii.) Where the arrangement is partly honorary 418 (viii.) Where the contract is alternative 418 (ix.) Where the part which the court could not enforce has been performed 418 CHAPTER XVir. OF DEFECT IN THE SUBJECT MATTER OF THE CONTRACT. Nature of the defense 4'-- 1 Defects patent or latent 4v"^ Patent defects 422 Latent defects . 422 Defect consisting in undisclosed liability 423 Defect unknown to both parties 4-4 Variation which is not a defense 4-4 Uncertainty in subject-matter and in description of it 424 Sale with all faults 424 Effect of a defect 425 CHAPTER XVIII. OF THE WANT OF A GOOD TITLE. Title must be free from doubt 427 Former practice • 4-8 Present rule ^"^ Observations on the rule 429 Arguments against and for the rule 4^9 Amount of doubt 430 Marketable title • 430 Formerly performance refused through court in favor of the title 430 Present tendency of the court 431 Decision of inferior court 431 Lord St. Leonards' court 431 Nature of the doubt 432 Cases in which court would consider title doubtful 432 (i.) Probability of litigation great 432 (ii.) Past adverse decision doubted 432 (iii.) Past favorable decision doubted 432 (iv.) Construction of inartificial instrument 432 (v.) Title resting on presumption of doubtful fact 432 XXXii CONTENTS. PAGE. Voluntary settlor plaintiff ^'^^ (vi.) Presumption of fact fatal to title 432 Cases where court would not consider title doubtful -135 (i.) Probability of litigation small 435 (ii.) Past adverse decision wrong 435 (iii.) Question dependant on general law 435 (iv.) Where general rule of construction 4To (v.) "Where presumption in favor of the fact 435 (vi.) Suspicion of 7nala fides 435 Dictum of Leach, V. C, observed upon 438 Title under will 439 Costs 439 Bringing in adverse claimant 439 Land Transfer Act, 1875, s. 93 439 Judicature Act, 1875, Ord. XVI, r. 17 440 Special case 440 CHAPTER XIX. OF FAILURE OF THE CONSIDERATION. Events affecting the subject-matter 442 1. Events prior to the contract. Operation of prior events 443 Destruction of subject-matter of contract 444 The question excluded by contract 445 When is the contract complete 445 Sale of Land by Auction Act, 1867, s. 7 44(j 3. Events subsequent to the contract. Sometimes a defense 446 Where contract subject to an implied condition. 446 Contracts for sale of land 446 A condition not performed 447 Subsequent illegality 448 Events subsequent to the contract being entered into and becoming abso- lute 448 The principal formerly not clearly recognized 449 Illustrations of the principal as now established 449 Failure or winding up of company 450 Extinction of subject-matter by lapse of time after issue of writ and before trial 450 Opinion of Alderson, B 451 The point now unimportant 451 CONTENTS. XXXlll CHAPTER XX. OF DEFAULT ON THE PART OF THE PLAINTIFF. PAGE. Plaintiff must show performauce and willingness to perform 453 1. The performance of pad acts. Of what terms plaintiff must show performance 454 •Of what he need not 454 (i.) Express terms 455 (ii. ) Implied term 455 (iii.) Representations of future acts 455 Plans 456 Contract silent as to plan 456 Intended division bj' roads shown on plan 456 Exact performance of scheme not obligatory 456 Plan accurately representing present state of property 457 (iv.) Default must be of an important term 457 (v.) Default in respect of collateral contract . . 458 (vi.) Performance waived by defendant 460 Non-performance the fault of defendant 460 Infancy 460 (vii.) Impossibility of performance 460 Substantial part performed 461 ■Gilbert's Lex Prtetoria quoted 461 Where plaintiff shall have relief 462 The rule does not apply to marriage contracts 463 2. The performance of future nets. Default in respect of acts to be done 463 Trustees in bankruptcy 463 Bankruptcy of plaintiff 464 Disclaimer by trustee 464 Insolvency 464 Subsequent affluence 465 Insolvency after assignment of interest : 465 Felony 465 Loss of deeds 465 CHA.PTER XXI. OF ACTS IN CONTKAVENTION OF THE CONTRACT. Nature of the defense 467 Acts which would have worked forfeiture 467 Cases of contracts for leases 467 Waste 468 The acts must be gross and willful 468 Lease ordered to bear date of contract 4(i8 Cases under contracts for leases classified ... 469 C XXXiv CONTENTS. PAGE. 1. W/ure the ads complained of have M to refusal of specific per- formance. 469 Instances 3. Cases where relief has not been refused. Breach trivial or waived Breach not working absolute forfeiture 470 Where landlord defendant has not complained before action 471 Irish Tenantry Acts 4'^ 3. Wiere specific performance loas granted and the question of breach of covenants left for decision at law. Practice of the Court of Chancery 472 Establishment of tliat practice 47S Anticipated practice under the Judicature Acts 473 Otlier illustrations of the principle 473 Railway company 473 Small breaches of good faith 473 CHAPTER XXII. OF THE NON-PERFORMAXCE OF CONDITIONS. Contracts not to be performed until absolute 4T5 Condition express or implied 476 Railway contracts 476 Waiver 477 CHAPTER XXIII. OF THE INCAPACITY OF THE DEFENDANT TO PERFORM HIS PAKT OF THE CONTRACT. Contract conditional on capacity 478 Such contracts cannot be sued on 478* Where incapacity of defendant a defense 478 Defendant author of his own incapacity 480 Capacity when to be judged of 480 Illustrations of the principle 481 Application to Parliament required 481 Estate not the vendor's 481 Goods not in possession of vendor 481 Consent of third parties 481 Sale of wife's estate 483 Execution cy pres 483 Death of co-contractor, tenant in tail 483 Lease by copyholder 484 Contract modeled so as to be legal 484 CONTENTS. XXXV PAGE. Modeling confined to formal matters 4g4 Contract partly invalidated by legislation 4g5 Contract modeled .so as to be possible 4^*5 Rail wa}' cases 4,s5 Impossibility of one alternative 4ii<(5 (i.) One alternative originally impossible 4S0 (ii.) One alternative rendered impossible by the act of God 487 (iii.) One alternative prevented by the other party 4h9 The j)rinciple of these cases 49O (iv.) One alternative prevented by a stranger 400 (V.) Elected alternative becoming impossible 490 CHAPTER XXIV. OF THE RKCISSION OF THE CONTRACT. Grounds of rescission 4ciud. Agreement to rescind 4{<.> Parol agreement to rescind writing or deed 493 Objection from rule of law 494 Objection from Statute of Frauds 494 Agreement to rescind evidenced by conduct 404 Evidence must be clear . . 495 Absolute refusal of one party 495 There must be total abandonment 495 Cases at common law 4913 Conduct may prevent party's rights, yet not be a rescission 490 2. A)k agrctint'iit upon mw terms. Second agreement inconsistent 49(j Alteration not amounting to novation 49(3 Concession 497 Novation must be a valid contract 497 Evidence of the new contract 497 1. Original contract by parol 497 2. Original contract in writing 49,vj 3. Original contract by law required to be in writing 499 Where only extinguishment of original contract sought 499 '6. An iigreement with a third person. Third person substituted 5OO Resale of shares ^OO Novation in sales of shares 500 Other cases of novation 500 XXXvi CONTENTS. PA SB. 4. Exercise of n poicer to rescind reserved by tlie contract. Expre64i power to rescind ^^^ Contnict to be void in specified event 501 Right, how to be exercised 501 Vendor without any title '• • • 503 Witliin what time riglit must be exercised 503 Waiver or loss of riirht to rescind 503 Separate breaches 504 Condition for rescission limited by another for compensation 504 Action claiming rescission 505 5. Becission the ground of fraud or mistake.' Either party may rescind 505 6. Where one party has refused to perform or unreasonably delayed performance. Refusal to perform 505 Insolvency 506 Delay 506 7. WJiere one party has made performance impossible. Election by the other party 506 Impossibility must be in a substantial part 507 Impossibility produced by fraud 507 CHAPTER XXV. OF THE LAPSE OF TIME. Nature of the defense 510 Time formerly differently regarded at law and in Equity 510 Provision of the judicature acts as to time 511 Division of the subject , 512 1. Time originally of the essence of the contract. Wlien time is of the essence 512 By express condition 514 Condition must be clear 5I(; Implication from nature of subject-matter 517 Subject-matter daily varying 51^7 Commercial enterprise g^^g ^Ii°e« • ......'.'.'.'.'.'. 51S Coal 518 Patents gig Shares e^q Surrounding circumstances r^jo Condition showing time not of the essence 520 Option of retirement from company goQ Where delay would involve hardship ^21 CONTENTS. XXXVll PAOK. Time in some respects of the essence 521 "Where the contract is imilateral 522- 2. Time engrafted hy notice. When notice may be engrafted 522 Introduction of the principle 522 The time limited by notice must be reasonable 522 Previous refusal to remove objection 523 Conditional waver of notice 523 Nature of the subject-mtitter 523 What notice requisite 524 Where parol notice sufficient 524 3. Lapse of time constituting laches or evidencing abandonment of contract. Delay as laches 524 Laches a bar to relief 527 Contract not mutual 527 Option to have lease 528 Acquiescence 528 What delay sufficient 528 Delay after notice by the other party 529 4. Where time does not run. Contract substantially executed 530 Possession must be under the contract 531 Pending negotiation 531 Delay arising from party objecting 532 Leaving deposit 533 Continuing in possession 533 Land taken under railway act 533 Mere claim 533 5. Waiver of delay. Waiver bj' conduct 533 Intention and knowledge requisite 534 As to time for payment 534 As to time for delivery of objections 534 Possession 535 Extension of time 535 Waiver of time for doing an act, no waiver of the act 535 Waiver decided at the trial 536 XXXviii CONTENTS. PART ly. OF THE MODE OF EXERCISING THE JURISDICTION". CHAPTER I. OF THE INSTITUTION OF TELE PROCEEDINGS. PAGE. The former practice ^°^ Judicature Act, 1873, s. 34 538 Limited operation of the thirty-fourth section 538 Form of writ 538 Transfer of action 538 Action properly commenced in Queen's Bench Division 539 Special case 539 Vendor and Purchaser Act, 1874, s. 9 539 The County Courts Acts, 1865 and 1867 540 Procedure under County Courts Acts 540 High Court retains current jurisdiction 541 Land Transfer Act, 1875, s. 93 541 Companies Act, 1862, s. 35 542 Application of this section to cases of specific performance 542 CHAPTER II. OF INJUNCTIONS. Subject of the chapter 544 How injunction is connected with specific performance 544 1. Injunction the instrument of perfor7nance. Effect of restraining breach of a term of a contract 544 Contract containing express negative terms 545 Part of contract incapable of performance 545 Refusal of court to interfere 545 Breach of express or implied term restrained 546 2. Injunction ancillary to p&)'formance. Object and effect of injunction in these cases 546 Granted on prima facie case 547 Instances of grant of injunctions 547 Vendor obstructing valuer 548 Lis pendens 548 Balance of convenience 548 Second purchase 549 Injunction against third persons 549 CONTENTS. XXXIX FAOE. Acts inconsistent with the contract 549 Former chancery practice of restraining action in other courts 5-49 The present practice (Judicature Acts, 1873 and 1875) 550 Effect of Jud. Act, 1873, s. 24, sub-section 5 550 3. Enforcement of right resulting from non-performance. When the court will interfere 550 Extent of the High Court's jurisdiction in injunction 551 CHAPTER III. OF THE WRIT OP NK EXEAT. The writ issued by tlie Court of Chancery 553 Use of the writ under the present practice 553 Debtors Act, 1869, s. 6 553 CHAPTER IV. OF RELIEF AFTER JUDGMENT. Such relief often necessary 555 Modes of relief open to either party 556 (i.) Sequestration or attachment 556 (ii.) ^lotion to rescind 556 Damages 557 Vendor's lien 5o7 When the lien will and will not prevail 557 Modes of enforcing the lien 558 (i.) Sale 558 Railway company 558 (ii.) Receiver 559 (iii.) Injunction restoring possession 559 "Writ of assistance 559 Vesting order 559 PART Y. OF INCIDENTAL MATTERS. CHAPTER I. OF CONDITIONS OF SALE AND PARTICULARS. Conditions part of contract How regarded 560 560 Xl CONTENTS. PA«B. Reasonable clearness requisite 5"" Instances of ambiguity 563 Conditions construed strictly 568 Vendor unable to give a good title 564 Outgoings 564 Rents and profits 564 Sense of condition not extended by implication 565 Time for delivery of objections 565 Fraud 565 Inconvenient requisition 566 Misleading condition 566 Facts stated in conditions 567 Conditions in sales by the court 567 Stipulation as to form of conveyance 568 CHAPTER II. OF COMPENSATION. Vendor nnable to perform the whole of the contract 570 Origin of the right to compensation 570 Pleading 570 Division of the subject 571 1. (a.) Vendor insisting on the contract there being no condition for compensation. Vendor must be able to perform his part substantially 571 Tlie principle stated by Lord Thurlow 572 Limitation of the principle 572 Essential and non-essential defects to be distinguished 572 (i.) Material part wanting 572 Nuisance apprehended 573 Tenure different .574 Freehold estate with a leasehold adjoining 574 Estate sold as tithe-free 574 Incumbrances 574 Indemnity 575 Purchaser not compelled to take indemnity 575 Misrepresentation 576 Conduct inconsistent with contract 576 (ii.) Defect not essential 576 Profits over-stated 576 Trifling incumbrances 596 Taxes under local act 577 Tithe 577 Patent defect 577 Such defect must be visible 578 "Waiver of defect 579 Defect immaterial 578 CONTENTS. xli 1. (b.) Vendor insisting upon the contract, there being a condition for compensation. The vendor's position in such cases -^ ' 9 Material misdescription 5 1 9 • Prohibited trades imperfect!)^ enumerated 579 Copj'hold described as freehold ^^9 Tenancy yearly only 580 Rights materially affecting enjoyment 580 Compensation reasonably estimable 581 Reasonable estimate unattainable 581 Copyhold nearly equivalent to freehold 581 Underlease called lease 58^ Other cases where compensation is not given 582 Misrepresentation 58- Flourishing description 58o 2. (a.) Purchaser insisting on the contract, there being no condition for compensation. Purchaser may take all that vendor has 583 The principle stated by Lord Eldon 584 Illusli ations of the principle 584 Modern application of the principle 585 Wife's interest 586 Title to a moiety only 5b6 Moiety subject to a mortgage 586 Purchaser aware of the defect 586 Limitations of the principle 588 Prejudice to third persons 588 Purchaser aware of vendor's incapacity 588 Benefice subject to mortgage to Queen Anne's bounty 589 Abatement, how calculated 589 Computation impossible ^^" Compensation approximately ascertainable 5;t0 Enforcement of contract inequitable 591 Indemnity 591 When compensation must be claimed 592 Claim before completion 592 Deterioration 592 Claim after completion 593 2. b. Purchaser insisting on the contract, there being a condition for com- pensation. Effect of the language of the condition 593 Condition enforced notwithstanding execution of conveyance 594 Cases contra 594 Suggested mode of precluding controversy 594 Construction of conditions for compensation 595 Considerable deficiency of area 595 No allowance for deficiency 595'- Xlii CONTENTS. FAOE. . 596 Vendor entitled to rescind Right to compensation abrogated by terms of contract 596 Damacres ^ ■ CHAPTER III. OF DAMAGES. Distinction between compensation and damages 599 Lord Cairns' Act 5^9 Condition precedent to jurisdiction under that Act 600 Order for damages subsequently to decree 601 Effect of Judicature Acts as to damages 601 Present powers of the court 603 Present exercise of jurisdiction under Lord Cairns' Act 602 Utility of the jurisdiction in damages 602 Loss of profits 602 Suit brought to hearing for damages 602 Partial performance plus damages 603 Damages in substitution for performance 603 Where vendor has no title 603 Mistake of defendant 603 Ascertainment of quantum of damages 604 CHAPTER IV. OF REFERENCE OF TITLE. Purchaser defendant 609 Reference in general terms 009 Purchaser's costs disallowed 610 Vendor cannot except to the title .... 610 Purchaser plaintiff 610 In respect of what contracts the right exists 610 Where reference not directed 610 Vendor selling such interest as he has 611 Contract for assignment of Vendor's share 612 Misleading condition 612 Inquiry limited 613 The cases fall into two categories 613 First category illustrated 613 Second category 614 Defect discovered by purchaser without inquiring of vendor 614 Defect disclosed by vendor himself 614 Title in accordance with conditions 614 Waiver of the right 615 by vendor 615 by purchaser 615 Express waiver 615 CONTENTS. xliii Implied waiver 616 Particular objections 618 •Classification of the cases 616 i. Where the objection is known and curable 616 ii. Where known and incurable 616 Contract treated as subsisting 617 Where there is an agreement for possession 617 Possession taken with vendor's consent 618 iii. Acts of ownership 618 Such acts must be strong and distinct 618 .Acts amounting to waiver 618 Waiver by silence of subsequent contract 619 Acts not a waiver 619 Waiver of lessor's title 62< » •Contract not enforced notwithstanding waiver 620 .Defect cured by purchaser's own act 621 Pleading waiver 6'~1 Reference — at what stage directed 62 1 Practice of the court of chancery 621 i. At the hearing 6',~ ii On motion after answer 622 Question of title only 622 Other questions frivolous 6','- Inquiry before the hearing an indulgence 622 Reference before the hearing refused 622 What are questions of title 623 Questions suitable for the hearing 623 Motion by purchaser defendant 623 (iii.) Reference before answer 623 Where vendor ought to apply for the reference 624 The present practice 6'-4 Inquiry rls to matters connected with title 624 when good title shown 6'>4 other matters. 62.") Inquiry limited ^'-^ When the title may be made out 623 Time allowed for completion of title 626 Where vendor plaintiff 6'..b Time not allowed "-b Old title cured, or new title 626 Acquiescence of purchaser 6~^ Inquiry, how made "- < Evidence "'^ Vendor and Purchaser Act, 1874, s. 9 627 Form of certificate 6".8 Certificate, how objected to 628 Certificate in favor of the title 628 Certificate referred back 628 Reference-back under the old practice 629 >Certificate against the title 629 xliv CONTENTS. Costs PAGE. . 630 . 630 What is a good title Distinctions between questions of title and of conveyance bdO Rule laid down in Esdaile v. Stephenson ^"^^ lilustrationsof the rule Distinction between showing and making title "^V Distinction between mailers of evidence and of litlc 632 CHAPTER V. OF IMERETS, KENTS, DETORIATION AND PAYMENT INTO COURT. The passing of the property in subject-matter of contract 633 Difference between the legal and equitable estates • 633 Mutual obligations of the contractors 634 Vendor's obligations "^'^ Vendor a constructive trustee ''^^ Purchaser's obligations 634 Purchaser a constructive trustee 634 Liens 635 Transfer of possession 63o Estate and price, rents and interest, mutually exclusive 635 Application of the general principles 636 Division of the subject 636 1. WMre the vendor is in possession. No time fixed for completion . . 636 Time fixed for completion 637 Interest more than rents, delay vendor's 637 Title made out in chambers 637 Action occasioned by purchaser . •■ • • • 639 Purchase-money to be ascertained after contract 639 Purchase-money appropriated and notice given to vendor 639 Rents expressly reserved to vendor 640 Delay from any cause whatever 640 Lord Cottenham's decision in De Visme v. De Visme. 640 Analogies with Lord Cottenham's decisions 642 Such stipulations construed literally 642 What delay will not exempt purchaser 642 Delay from untenable objection or act of God 643 Exemption by appropriation of purchase money 613 ("oudilion as to interest dependent on condition as to abstract 643 Interest, on what amount payable 644 Interest on deposit 644 Rate 644 Profit made by purchaser 644 Income tax 644 What rents the vendor is charged with 644 Willful default 644 CONTEXTS. Xlv PAGE Vendor not bailiff to purchaser 64.'» Out-goings 045 Deterioration C45 Where borne by vendor 04") Set-off against interest • • C40 Deterioration by vendor's tenants 640 Duty of vendor to re-let farm 646 Vendor working mine 646 Deterioration borne by purchaser • • . ■ 647 Possession of vendor accidental 647 Purchaser the cause of the mischief 647 Vendor in personal occupation ^ 047 Purchaser in default 64*3 Income tax a just allowance 648 2. Wfiere the purchase}' is in possession. Purchaser in possession must pay interest 648 Though delay of completion owmg to vendor 649 Election between interest and rents 64'J Stipulation for increasing interest 6o0 Possession returned 650 Purchase-money appropriated and notice given 650 Profit made on appropriated purchase-money 651 Contract exempting purchase from interest 651 Exemption not enforced 651 Purchaser dispossessed 6"'2 Possession under statutory power 652 Price ascertained by verdict of jury 652 Occupation rent 653 Sales of reversionary estates 652 From what time interest runs 653 Sale of reversion by the court 653 Payment of purchase-money into court 653 Title made out 653 Title not made out 654 Purchaser put to election 654 Possession according to contract 655 Possession under some other title 055 Acts of ownership 050 Income-lax, where purchase-money paid into court 657 Procedure 6.)7 Purchase-money in hands of stakeholder 658 When interest became due within statute of limitations 058 CHAPTER VI. OF THE DKrOSIT. Deposit — when paid 659 Other part-payments 659 xlvi CONTENTS. FAOE. ^ , , ,. 659 Purcbaser s lieu „ „„ , f, 660 In cases of lease . of sub-purchase • Extent of the lien o(jO '"///"/.''... 660 '[[[[,. 660 '"'[ 6G0 *''"'' 661 "'/'.. 661 [[[][[ 661 [,[..[.. 663 '/ 663 ,".''' 663 *."'.. 663 [[][, 662 663 Under lands clauses act Mode of enforcing the lien (i.) Vendor plaintiff (ii.) Purcbaser plaintiff Deposit in bands of auctioneer Forfeiture of deposit Vendor unable to make title The practice of the court of chancery. Where vendor was plaintiff The practice discretionary Where purchaser was plaintiff Where lien claimed Where contract rescinded PART YI. OF SOME CONTKACTS IN" PAETICULAPw CHAPTER I. OF COXTRACTS FOR THE SALE OF SHARES. Subject of the chapter 664 Nature of the relief 664 Relief at common law 664 Contracts off the stock exchange 665 Contracts on the stock exchange 665 The practice of the stock exchange stated 665 Positions of jobber and purchaser the same 667 Contract with first purchaser 668 Peculiarity of the contract 668 When the original purchaser is discharged 669 Nominee need not be a sub-vendee 669 The new contract 670 When it arises 670 No contract with intermediate purchasers 671 Contract with registration guaranteed 671 Third person adopting the contract ' 672 Plaintiff only equitably entitled 673 Making a call before the contract 673 Power of directors to refuse transfer 673 CONTENTS. xlvii PA8E. (i.) Where the vendor bound to effectuate transfer . Beckham, 31 Gratt., 379. When j^idicial dmretion cemes.'\ The relief demanded in an action for the specific performance of a contract lies in the discretion of the court, only so far as it must necessarily judge whether, under the circumstances, the agree- ment is, or is not, an inequitable one. When that fact is determined, judicial discretion ceases. Goodwin v. Collins, 4 Houst. (Del.), 28; King v. Hamilton, 4 Pet., 310; Lee v. Kirby, 104 Mass., 420; Wedgwood v. Adams, 6 Beav., 600. I 12 FRY ON SPECIFIC PKKFORMANCE OF CONTRACTS. CHAPTER II. OF THE EXTENT OF THE JURISDICTION. § 26. It lias already been in substance observed that if a contract be made and one party to it make default in per- formance, there appears to result to the other party a right at his election either to insist on the actual performance of the contract, or to obtain satisfaction for the non-perform- ance of it.(rt) It may be suggested that from this it follows that a perfect system of jurisprudence ought to enforce the actual performance of contracts of every kind and class, except only when there are circumstances which render such enforcement unnecessary or inexpedient, and that it ought to be assumed that every contract is specifically en- forceable until the contrary be shown. But so broad a proposition has never, it is believed, been asserted by any of the judges of the court of chancery, or their successors in the high court of justice, though, if prophecy were the function of a law writer, it might be suggested that they will more and more approximate to such a rule.* Judges have sometimes dwelt upon those negative cir- cumstances which render specific performance unnecessary or inexpedient ; sometimes on those affirmative circum- stances which render such performance necessary and ex- pedient. (a) See supra, § 4. ' Rule ill respect to xchat contracts will be enforced.'] Every contract should be enforced, the subject of which is susceptible of substantial enjoyment ; pro- vided the circumstances surrounding and connected with the contract, bring it within the rules entitling the party to equitable relief. Bruck v. Tucker, 42 Cal., 347; Johnson v. Ricket, 5 id., 218. Where the agreement is in writing, is fair and certain, is upon an adequate consideration, and is capable of being- enforced, a court of equity will decree specific performance as a matter of course. Chance v. Beall, 'iO Ga., 143; Rogers v. Saunders, 16 Me., 62: HoflFer V. Hoffer, 16 N. J. Eq., 147. Wherever such interference becomes necessary to prevent the improper diversion of a specific fund devoted to a particular usse, or to prevent a great and irreparable injury, or to avoid a multiplicity of ac- tions ; a court of equity has jurisdiction, and will interfere. Skinner v. Mor- ris Canal k, Banking Co., 27 N. J. Eq., 364; Farmer v. Vallentine, 3 Nebr., 498. EXTENT OF THE JURISDICTION. 13 § 27. The following propositions may help to explain the extent to ^Yhicll the jurisdiction has hitherto gone, assuming in each proposition (unless otherwise stated or implied) the existence of a contract binding in equity. The court will interfere in specific performance :' (1) Where there is no common law remedy. (2) Where the common law remedy exists, but is not adequate. On the contrary, the court will not interfere in specific performance : (3) Where the common law remedy exists and is adequate. ^ Equity creates no right of action. '\ Notwitlistauding a court of equity will supply a remedy where none exists at law, yet it wilfuot create a rioht of ac- tion where the law gives none. The rule which requires a plaintifl' to show a present subsisting right of action, is equally regarded in equity as at law. Hoy V. Hansbrough, 1 Freem. (Miss.) Ch., 533; see Foote v. Garland, 1 Sm. & Marsh. Ch., 95; Slanson v. Watkius, 44 N. Y. Supr. Ct., 73. When remedy nwst often e.vermed.] Specific performance is most frequently exercised in the case of contracts concerning real estate, the remedy being ap- plied not only as between the original parties, but also to all who claim under them. Glaze v. Drayton, 1 Desau, 109; McMorris v. Crawford, 15 Ala., 271; Ewins V. Gordon, 49 N. H., 444; Nesbit v. Moore, 9 B. Mon., 508; Tieruan v. Roland, 27 Pa. St., 429; Ambrouse v. Keller, 22 Gratt.. 769; Laverty v. Moore, 33 N. Y., 658; Murphy v. McVicker, 4 McLean, 253; St. Paul Div. v. Brown, 9 Minn., 157; Yarick v. Edwards, 1 Hoffm. Cli., 382; Sterling v. Klepsattle, 24 Ind., 94; Maddox v. Rowe, 23 Ga., 431; Vaughn v. Barkley, 6 Whart.,392; Harding v. Metropol. R. R., L. R., 7 Ch. 154; Eastern Counties R. R. Co. v. Hawkes, 5 House of Lords, 331 ; Lewis v. Lord Lechmore, 10 Med., 503; Hood V. Northwestern R. R. Co., 8 Eq., 666; aff'd, 5 Ch. App., 525. Clioice of Bemedies.] Notwithstanding a vendor of real estate usually has an adequate remedy at law, yet he has a choice of remedies. Forsyth v. McCau- ley, 48 Ga., 402; Pinkie v. Curtiss, 4 Brown's Ch., 329; Carey v. Smith. 2 N. Y., 60: Schropell v. Hopper, 40 Barb., 425; Bryson v. Peak, 8 Ired. Eq., 310; Phyfe V. Warden, 5 Paige Ch., 268; Springs v. Sanders, Phill. (N. C) Eq., 67; Finley v. Aiken, 1 Grant. Pa. Cas., 83; Lanison v. Barb, 4 Watts., 27; Old Colony R. R. Co. v. Evens, 6 Gray, 25. In Deck's Appeal (57 Pa. St., 467) and Kauff man's Appeal (55 Pa. St., 383), the bill was dismissed, where the whole object of it was to obtain payment of the purchase money. liule in regard to personal property.] Whatever may be the nature of the property, if the plaintiff has not an adequate remedy at law, a court of equity will entertain jurisdiction. It is no ground of demurrer to a bill, that it seeks specific performances of a contract relating to personality. Carpenter v. Mut. Safety Ins. Co., 4 Sandf. Ch., 408; Clark v. Flint, 22 Pick., 231; Roundtree v. McLean, 1 Hemp., 245; Sullivan v. Fink, 1 Md. Ch., 59; Waters v. Howland, I Md. Ch., 112; City Council v. Page, Spear. (S. C.) Ch., 159; Hoy v. Hans- borough, 1 Freem. (Miss.) Ch., 533; Lloyd v. Wheatly, 2 Jones' Eq., 267; Johnson v. Rickert, 5 Cal., 218; Dull" v. Fisher, 15 id., 375; Furman v. Clark, II N. J Eq., 3 Stock., 306; Mechanics' Bk. v. Seaton, 1 Peters, 299; Cutting V. Danna, 25 N. J. Eq., 265; Corbin v. Tracy, 34 Conn., 325. Where the jiroperty has exceptional value.] Specific performance will be de- creed for the delivery of chattels which none but the defendant can supply, and Avhich are necessary to enable the plaintiff to fulfill a contract with third parties. Buxton v. Lister, 3 Atk., 385. Contracts for the scde of stock.] If a breach of contract can be fully compen- sated in damages, equity will not interfere. Specific performance will be de- 14 FKY ON SPECIFIC PERFORMANCE OF CONTRACTS. (4) Where tlie contract is such as the court cannot per- form. (5) Where the performance of the contract would prove useless. (6) Wliere the court would be unable to enforce its own judgment. (7) Where the enforced performance of the contract would be worse than its non-performance. (8) Where tlie contract is voluntary. (9) Where the plaintiff has elected to proceed in some other manner than for specific performance. (10) AVhere the jurisdiction has been taken away by statute. creed, however, when the contract to convey stock is clear and definite, and the uncertain value of the property renders it difficult to do justice by an award of damages. White v. Schuyler, 1 Abb. Pr. (N. S.), 300; S. C, 31 How. Pr., 38; Treasurer v. Commercial Co., 23 Col., 390. Speciiic performance as to debts.'] Specific performance of a contract to bor- row or'lend money, will not be enforced by a court of equity. Rogers v. Chal- lis, 27 Beav., 175; Siebel v. Mosenthal, 31 L. J. C, 326; Lariss v. Gurety, L. R. 5 P. C, 346. An agreement to give security for a debt will be enforced. Ashton V. Corrigau, L. R., 13 Eq., 76; Robinson v. Cathcart, 2 Cranch, 590; Ogdeu V. Ogdea; 4 Ohio St., 183; Stockley v. Davis, 17 Ga., 177. Aparol contract for a mortgage of personal property was made, a valuable considera- tion being given therefor, and the Statute of Frauds not requiring the same to be in writing — Held, that a court of equity would enforce the contract. Trie- bert V. Burgess, 11 Md., 452. The creditors of an insolvent firm agreed to sell their claim to one of their number at twenty-five per cent — Held, that the con- tract, although for the sale of a debt, would be specifically enforced, for the reason that the complainant has not a clear and adequate remedy at law. Cut- ting V. Dana, 25 N. J. Eq., 265. The following written agreement was made by the owner of a mortgage debt : "that on receiving money from another person, he will pay him a specific portion of the debt when received, and in manner as received." Held, that such an agreement would be specifically en- forced. Buck V. Swazey, 35 Me., 41. The vendor of land agreed to release the same from the lien of a mortgage. Held, that specific performance would not be decreed. Bennett v. Abrams, 41 Barb., 619; Barkley v. Barkley, 14 Rich, Eq., 12. In Barry v. "Walker (6 B. Mon., 464) land was sold, the pur- chase price to be paid immediately in order that the same might be released from the lien of certain mortgages; part of the price was paid, and a bill was filed enjoining the vendor, who was insolvent, from selling and from commit- ting waste. A decree was obtained. Afterward the purchaser tendered good notes for the full amount of the purchase money, offered to perform, and filed an amended bill to compel a specific performance of the contract. The land was sold under foreclosure, and bought in by the party to whom it was origi- nally sold, who paid cash for the amount of the lien. Held, that he had a right to extinguish the lien in that manner. Gillis v. Hall, 2 Brems. (Pa.), 342; Broadwell v. Broadwell, 6 111., 599; Dailey v. Lichfield, 10 Mich., 29. The grantee of land executed a bond, the consideration being the support of the grantor for life, and, in case of neglect, to recouvey the land. Held, upon failure to perform, that a court of equity would decree a re-conveyance. Rob- inson v. Robinson, 9 Gray, 447. A contract to indemnify against a pecuniary liability will be specifically enforced, notwithstanding its performance is re- versed by a penalty. Chamberlain v. Blue, 6 Blackf., 491 ; Champion v. Brown. 6 Johns. Ch.. 398. EXTENT OT THE JUEISDICTION. . 15 After the foregoing propositions have been discussed, it will be shown : (11) That the jurisdiction is" against the defendant per- sonally. Lastly will be considered : (12) Certain cases of quasi-contract in which the court has jurisdiction. 1. Where there is no common laio remedy. § 28. In many cases though a contract was in conscience obligatory upon both the parties to it, yet the common law, from the strictness of its forms, afforded no remedy to the j)arty injured by the other's non-performance. The defect of justice which hence arose was avoided by the jurisdiction of equity, which in such cases has comi)elled the specific execution of the contract, if in other respects fit for the intervention of the court. § 29. By the principles of the common law, exact i)er- formance by the plaintiff of his i)art of the contract accord- ing to its very terms must be averred and proved; whereas, in equity, a distinction has been made between those terms w^hich are of the essence of the contract and those terms which are not thus essential, and a breach of which it is inequitable for either party to set up against the other as a reason for refusing to execute the contract between them. In these cases the doctrine of common law was forfeiture, the doctrine of equity is compensation. " Lord Thurlow,'^ to quote the language of his successor Lord Eldon, "used to refer this doctrine of specific performance to this : that it is scarcely possible that there may not be some small mis- take or inaccuracy ; as, that a leasehold interest represented to be for twenty-one years, may be for twenty years and nine months ; some of those little circumstances that would defeat an action at law, and yet lie so clearly in compensa- tion that they ought not to prevent the execution of the contract. "(&) On this ground the jurisdiction rests in all cases where specific performance is decreed with compensa- tion by the plaintiff. § 30. The fact that the common law remedy has been lost (6) In Mortlock v. Buller, 10 Ves., 305-6. See, also, Stewart v. Alliston, 1 Mer., 26, 32. 16 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. by the default of the very party seeking the specific per- formance of a contract will not exclude the jurisdiction, if it be" notwithstanding conscientious that the contract should be performed, as in cases where the plaintiff has performed his part substantially, but not with such exactitude as to be able to plead such performance as the common law courts required, (c)' § 31. But besides these cases, there are many others in which the court interferes, because there is no common law remedy by reason of something in the subject-matter of the contract, (r?) or the parties to it, or the form in which it is concluded, § 32. Thus the court will give relief in respect of a con- (c) Davis V. Hone, 2 Sch. & Lef., 341, 347. (rf) See per James, L. J., In Bewley v. At- kinson, 13 Ch. D., 305 (windows J. ' This rule is well established, and forms one of the leading features of equity jurisdiction. Performance to the letter is not required; and it is sufficient if the complainant can show that he has not been in fault, and that he has taken all proper steps toward performance. McCorckle v. Brown, 9 Smedes and Marsh., 167; Coale v. Barnej', 1 Gill & John., 324, and Voorhees v. De Meyer, 2 Barb. Sup. Ct., 37, are leading cases on this point. In the former case an agreement Avas entered into on the 27th of November, 1813, between the cestm's que trust for life, and of the remainder in fee, and the trustee of a certain estate held by the latter in fee; the object of which was to lease out certain unim- proved trust property, to secure to all the cestuis que trust an immediate partici- pation in the profits. It was agreed that the trustees should appoint an agent to make leases for ninety-nine years, with liberty of renewal for such rents as should be thought reasonable by the parties interested, payable to the agent, in trust for the cestui^ que tn/st, their executors and administrators, in certain pro- portions. On the 29th of September, 1823, a bill was filed by two of the cestuis que trust, against the third, for a specific execution of the agreement, on the ground that the defendant, since the year 1818, had prevented the execution of the leases, and refused to do any act toward carrying the contract into effect. This charge was proved, and it was held that the court would, in the exercise of its duty, satisfy the minor provisions of the agreement only so far as could be done consistently with the great design ; that the agreement containing pro- visions Avhich, because of a technical principle of law, could not be literally performed, the court would give it that construction which the rules of law would tolerate, and the intention of the parties, collected from the whole in- strument, would justify; that the failure to comply with an engagement to do a merely nugatory act should not impair the right of the complainants to the specific performance of the agreement ; the facts in the case otherwise sustain- ing the bill ; and, further, that the lapse of time did not amount to laches, so gross as to conclude the rights of the parties. In Voorhees v. De Meyer, G. agreed with D. to pay for certain lands in five equal, annual installments. Twenty-eight years after the date of the agreement, havino; made payments from time to time, G. proposed to D. that he should give liim, G., a deed for the lands, and seciu-e the remaining payments by mortgage on the property. D. tendered a deed which was not satisfactory and was refused, and G. tiled a bill for a specific performance. Held, that G. had not so far departed from the terms of his contract as to be refused relief; and that where non-compliance with the terms of an agreement does not go to its essence, relief will be granted, notwithstandiug the laches of the party seeking to enforce performance. See, also, Shaw v. Livermore,- 2 Green's (Iowa) Rep., 338. EXTENT OF THE JURISDICTION. 17 tract to assign a chose in action, (e) or of a contract concern- ing the hope of succession of an heir, (/) although no dam- ages could have been recovered at common law for contracts dealing with these subject-matters, and it will in a proper case specifically enforce a right of pre-emption, and restrain by injuncion the viokition of such a right, and will specifi- cally enforce a compromise. (17)' In one case Plunier, M. R., intimated the opinion that where a promissory note had been handed over for valuable consideration unindorsed, a court of equity would, at the suit of the holder, compel the transferor, or his jjersonal representative, to indorse it in order to substantiate the right of the transferee. (7^) A con- tract between joint tenants of a copyhold estate to divide it between them has been specifically enforced. (/)' § 33. Again, the court will specificallj^ enforce a contract to execute a mortgage, and that even with an immediate power of sale where the money has been actually advanced (e) 1 Mad. Ch.,362. " combe Railway Co , L. R. 3 Ch., 377; Lord (/) Jones V. Roe, 3 T.R., 88, compared with Beauciiamp v. Great Western Railway Co., Beckley v. Newland, 2 P. Wms., 182. and id., 745. cases infra, § 1502 et seq. See, also, 1 Fonbl. (ft) Watkins v. Maule,2 J. & W., 243; Byles Eq., 216. on Bills (11th ed.). 154. Distinguish Edge v. {g) Homfray v. Fothergill, L. R. 1 Eq., 567, Bumlord, 31 Beav., 247. 573; Birmingham Canal Co. v Cartwright, (i) Bolton v. Ward, 4 Ha., 530. See, too, 11 (Jh D., 421. Cf. Lord Carington v. Wy- Seton, 530 (contract for exchange). 1 Every contract cauuot be enforced in a court of equity ; it is only where it is strictly equitable to do so, that the legal intention and effect will be carried out. Canterbury Aqueduct Co. v. Ensworth, 22 Conn., 608. ^ Where a legal remedy is obstructed, a court of equity may enforce or set aside a contract to purchase lands, compel deeds of confirmation to be made, and in a case where deeds are lost, or not recorded, a court of equity will inter- vene. Blight V. Banks, 6 T. B. Mon., 152; Davis v. Hall, 4 id., 23; Cummings V. Coe, 10 Cal., 529. Where without fault of the grantee, a deed was lost before being recorded, the grantor was compelled to give a duplicate deed. A demand must be first made. Conlin v. Ryan, 47 Cal., 71 ; see Lindeman v. Rinker. 42 Ind., 223. A court of equity will frequently decline to interfere to establish possession of property, when, nevertheless, it will refuse to disturb the posses- sion where it has been obtained without its agency. Crane v. Gough, 4 Md., 316 Where a jurisdiction has been properly acquired, a court of equity will settle the controversy, even in a case which did not afford original grounds of jurisdiction. Brooks v. Stoley, 3 McLean, 523; Pearson v. Darrington, 21 Ala., 169; Martin v. Tidwell, 36 Geo., 332; Franklin Ins. Co. v McCrea, 4 Greene (Iowa), 229; Handley v. Fitzburgh, 1 A. K. Marsh., 24; State v. McKay, 43 Mo., 594; Armstrong v. Gilchrist, 2 John. Ch., 424, 431; Londer's Appeal, 57 Pa. St. , 498. It was held that a judgment for specific performance could not be granted, even in a case where the "evidence was suflicieut to warrant such a suit. This was in an action by the vendors of real property against the pur- chaser foi- damages for the non-fulfillment of contract. The trial was without a jury. Towle v. Jones, 19 Alb. Pr., 449 ; see Cowenhoren v. City of Brooklyn, 88 Barb., 9. Damages for breach of a covenant to improve land sold for a public square recovered in an action; held no bar to a subsequent suit for specific performance of a covenant to keep the premises forever open as such public square. Stuyvesant v. Mayor of New York, 11 Paige Ch., 414. 2 18 FKY ON SrECIFIC PEKFOKMANCE OF CONTRACTS. either before or at the time of the contract;^') though it will not so enforce a mere agreement to lend, advance, or pay money(70 (though the loan be one to be secured by mortgage), while'it rests entirely unperformed either by the intended lender (/) or by the intended borrower. (m) "The Statute of Frauds does not apply to such a case. Therefore if the court has jurisdiction in such a case, any conversation may be made the subject of a suit for specific performance : thus if two friends are walking together and one says, ' Will you lend me £100 at £5 per cent, for a year on good security 'I ' and the other says ' I will,' that conversation might be made the subject of a suit for specific performance in this court if, on the next day, one friend should say ' I do not want the money,' or the other should say 'I will not lend it.' Nothing would be more difficult and more dangerous than the task which this court would have to perform if it were to investigate cases of that description, "(ti) § 34. In one case there was a contract by B. to advance C. £3,000 on the security of some leasehold houses for five years. B. advanced £600 on deposit of the lease of one of the houses. The contract was (in the opinion of the court) that B. should not be entitled to call for the lessor's title. Nevertheless he did call for it, and on its being refused, filed a bill for specific performance of the contract, or for the sale of the property to repay him the £600 and interest. The court considered that the plaintiff was in the wrong, but the defendant submitting to jjerform the contract with- out showing the lessor' s title, and the plaintiff" electing to have a decree, made him pay the costs of the suit, as the price of its interference, (o) § 35. In another case S., who had become liable for a debt of W., and with whom W. had deposited title deeds as an indemnity, was held entitled to have a written mem- orandum of the terms of the deposit signed by W. (p) § 36. Again, though no action would lie at common law in respect of a contract to convey by a particular day, which was rendered impossible by the death of the contractor be- O) Aehton v. Corrlgan, L. E 13 Eq., 76; (m) Sichel v. Mosenthal, 30 Beav., 371. ttermann v. Hodges, L. R. 16 Eq., 18. Cf. (n) Per Lord Komilly, M. R., In Rogers v. Taylor v. Eckereley, 2 Ch. D., 302. Challis, 27 Beav., 178. (*) Larios v. Bonany y Gurety, L. R. 5 P. (o) Bass v. Clivley, Taml., 80. C, 346. Cf. Brough v. Oddy, 1 R. & M., 55. (p) Sporle v. Whayman, 20 Beav., 607. (0 Rogers v. Cballis, 27 Beav., 175. EXTENT OF THE JUEISDICTION. 19 fore that day, yet specific performance would be decreed by the court of chancery against the heir, {qy § 37. The court of chancery has also interfered specifi- cally to execute a contract evidenced by a bond given to a v^ife by her husband, or to a husband by his wife,(r) before marriage, though the bond was suspended at common law by the intermarriage. "* § 38. The same principle equally applies to give the court jurisdiction where, though the contract is in its nature such that a breach of it can be satisfied by damages, yet from some particular circumstances this remedy is not open to the aggrieved party ; therefore where a contract for the purchase of timber-trees was comprised in a memorandum which appeared not to be the final contract, but was to be (5) See arguments of counsel in Milnes v. v. Acton, Prec. Ch., 237. See, too, Gage v. Gery, U Ves., 403, and 1 Mad. Ch., 362. Acton, 1 Salk., 325. (r) Cannel v. Buckle, 2 P. Wms., 242 ; Acton ' At common law, choses in action are not assignable. Greenby v. Wilcox, 2 John., 1; Coolidge v. Ruggles, 15 Mass., 338. But they may be assigned in equity. Breckenridge v. Churchill, 3 J. J. Marsh., 11. Hopkiss v. Eskridge, 2 Ired. Eq., 54; Spring v. Car. Ins. Co., 8 Wheat., 268. And the assignee has an equitable right enforceable at law in the assignor's name. Dix v. Cobb, 4 Mass., 511; Parker v. Grout, 11 Mass., 157, and note; Wheeler v. Wheeler, 9 Cow., 34; Eastman v. Wright, 6 Pick., 316; Welch v. Mandeville, 1 Wheat., 236. In reference to heirs expectant, it is said, in Davidson v. Little, 22 Penn. (10 Harris), 245, that an unexecuted contract for the sale of land will not be enforced in a court of equity, if it be found unconscionable. But after it has once been executed the chancellor will not interfere on account of its hardship, except in cases of an heir expectant, when the court will, upon that ground alone, declare it void, ' In Glaze v. Drayton, 1 Dessau., 109, the contract of the ancestor was de- creed to be performed by the infant heir at law, who was allowed six months, after coming of age, to show cause. Upon clear proof of a parol contract and a part performance thereof, the same decree was given against one Wilkinson, a minor, in the case of Wilkinson v. Wilkinson, 1 Dessau., 201. In Saunders V. Simpson, 2 Har. & John., 81, where a father, in 1777, gave a bond to his daughter, binding himself to convey certain lands, but died without doing so, specific performance was decreed against his devisees, on a bill filed by her in 1797. See, also, Newton v. Swazy, 8 N. H. R., 9. In New York, infant or adult heirs of a vendor are bound to fulfill his contract to convey lands, to the extent of the estate that descends to them, and may be compelled to do so, though not named in the contract. But, ordinarily, the court will not compel the heir to enter into personal covenants, in pursuance of an agreement by the ancester. Therefore, where the vendor agreed to convey land by a good and sufficient deed, free of all incumbrances, and died leaving a widow entitled to dower, and heirs, one of whom was an infant, and the heirs were not named in the contract, it was held, in a suit against them for a specific performance of the agreement to convey, that the infant defendant must convey, but without covenants, and that the other defendants must also convey, but with covenants against their own acts, on payment of the sum due by the terms of the con- tract, deducting out of each payment due, and to become due, a proportionate share of the amount that should be found to be the value of the widow's right of dower. Hill v. Ressegieu, 17 Barb., 162. 20 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. made complete by subsequent articles, so that it was doubt- ful whetlier tlie contract, as it then stood, would not have been considered at law as incomplete, and so the plaintiff have been debarred of any remedy there. Lord Hardwicke held that tlie contract was one which the court of chancery could specifically perform. (5) In another case a contract to purchase a debt was enforced against the purchaser, on the ground that the debt had not been so assigned to him as to enable him successfully to sue at law -,{1) and in the case of a contract for the purchase of government stock, the fact that the plaintiff was not the original holder of the scrip, but merely the bearer, which rendered it doubtful whether he could maintain an action at law upon the contract, was one ground on which the court of chancery was held to have jurisdiction. (?/)' § 39. It is said that before the time of Lord Somers the practice of the court of chancery was to send the parties to law, and to entertain the suit only in case of the plaintiff there recovering damages, (^^ a practice which, of course, in- volved the proposition that specific performance could not be granted except in cases where damages could be recovered at law.' The case in which this principle was the most distinctly maintained was that of Dr. Bettesworth v. The Dean and Chapter of St. Paurs,(?o) decided by Lord King in 1726, with the assistance of Raymond, C. J., and Price, J. A lease had been granted by the defendants previously to the disabling statute of 13 Eliz., with a covenant to renew for ninety-nine years, and the plaintiff sought a renewal for the term allowed by the statute, which the Lord Chancellor refused, on the ground that no action could have been main- tained on the covenant after the passing of the statute. "I take this to be a certain clear rule of equity," said Ray- (s) Buxton V. Lister, 3 Atk., 383; but see (m) Doloret v. Rothschild, 1 S. & S., 590. infra, §§ 317, 488. (v) Per Clarke, M. R., in Dodsley v. Kin- (0 Wright V Bell, 5Pri. 325. Of. Adderley ner^ley, Ambl., 406. T. Dixon, 1 S. & S . 607. (w) Sel. Cas. in Ch., 66. ' See Costwaight v. Hutchinson, 2 Bibb., 407; Gould v.Womack, 2 Ala., 83. In New York all contracts between persons in contemplation of marriage remain in full force after such marriage takes place. Laws of New York, 1849, p. 529, ch. 375, § 3. * Where it is not clear that a court of law can give the relief asked for, chan- cery will entertain jurisdiction. West v. Wayne, 3 Miss., 16 ; Wheeler v. Clinton Canal Bank. Harring Ch., 449; Philips v. Thompson, 1 John. Ch., 133. EXTENT OF THE JUKISDICTION. 21 mond, C. J.,{x) "that a specific performance sliall never be comx3elled for the not doing of which the law would not give damages. The covenant to oblige them to make a lease for ninety -nine years is gone, and damages cannot be recovered for part of a covenant, and I, therefore, am of opinion equity cannot interfere." This decision, which was opposed by the opinion of Jekyll, M. R.., was reversed in the House of Lords ; and it is abundantly evident, from the cases already cited, that the jurisdiction at present exercised is not re- strained within these limits, and that there are many cases in which specific performance is granted where no action for damages could be maintained, (i/)' 2. WJiere flier e is no adequate common law remedy. 3. Where tliere is an adequate common law remedy. § 40. The propositions that the court will interfere in specific performance where the common law remedy exists, but is not adequate, and that the court will not interfere where the common law remedy exists and is adequate, being in the nature of converse propositions will be conveniently considered together.^ (x) Page 69. Steward, 3 Mer., 491, to which Mr. Justice («/) Per Lord Redesdale in Lennon v. Nap- Story (Eq. Jur., § 741) has referred as a dic- per, 2 Sch. & Lef., 6S2; Cannel v. Buckle, 2 turn of Grant, M. R., is the language of P. Wms.,242. The passage in Williams v. counsel fl/ffwewfto. ' "The whole class of cases of specific performance of contracts respecting real estate, where the contract is by parol, and there has been a part perform- ance, or where the terms of the contract have not been strictly complied with, and yet equity relieves the party, are proofs that the right to maintain a suit in equity does not, and cannot, properly, be said to depend upon the party's liaving a right to maintain a suit at law for damages. In cases of specific per- formance, courts of equity sometimes follow the law, and sometimes go far beyond the law ; and their doctrines, if not whollj^ independent of the point, whether damages would be given at law, are not, in general, dependent upon it. Whoever should assume the existence of a right to damages in an action at law, as the true test of the jurisdiction in equity, w^ould find himself involved in endless perplexity ; for sometimes damages may be recoverable at law, where courts of equity would yet not decree a specific performance; and, on the other hand, damages may not be recoverable at law, and yet relief would be granted in equity." Story's Eq. Jur., § 741. See, also, Getchell v. Jewett, 4 Greenl., 350; Andrews v. Andrews, 28 Ala., 432, which coincide in the doctrine as ex- plained by Mr. Justice Story, and as laid down in the text. There ^are, how- ever, contrary decisions in this country. See Allen v. Beal, 3 A. K. Marsh., 554, and Smith v. Carney, 1 Litt., 298. In this latter case relief was denied upon a verbal contract for the sale of land, after a delay of five years, upon the express ground that equity would not relieve where the law would not award damages, and msumpsit, the only action which could be maintained at law, the contract having been made before the introduction of the Statute of Frauds, was barred by the delay. ^ A specific performance will be decreed, when the party wants the thing in specie, and cannot be otherwise compensated; where an award of damages z' 22 FRY OX SPECIFIC PERFORMAKCE OP CONTRACTS. § 41. The only remedy at common law for the non-per- formance of a (contract was in damages, that is to say, in the payment of a sum of money by the party who had broken the contract to the party injured by that breach.' If money were in all cases a perfect measure of the injury done by this breach, it is evident that an exact equivalent for the wrong might be made, and that the justice done would be complete. But money is an exact equivalent only when by money the loss sustained by the breach of the con- tract can be fully restored. Now in a vast variety of cases this is not so ; for though one sovereign or one shilling is to all intents and purposes as good as any other sovereign or shilling, yet one landed estate, though of precisely the same market value as another, may be vastly different in every other circumstance that makes it an object of desire ; so that it evidently follows that there would be a failure of justice, unless some other jurisdiction supplemented that of common law, by compelling the defaulting party to do that which in conscience he is bound to do, namely, actually and specifically to perform his contract. The common law treats as universal a proposition which is for the most part, but not universally, true, namely, that money is a measure of every loss.(^) The defect of justice which arose from this universality of the common law principle was met and remedied in certain cases by the jurisdiction of courts of equity to compel specific performance. § 43. Even when money is alone in question, the com- mon law remedy is in some instances less beneficial than that afforded by courts of equity, and where this is so, a ground is laid for specific performance if otherwise a proper remedy. So where A. gave a note to B., and C. agi^eed with B. for the relinquishment of his (B.'s) claim against A. on the payment of certain sums, for which the notes were, in the contemplation of equity, to stand only as a security, it was held that the court of chancery would specifically per- (3) See Aris. Eth Nic. lib. 9, ck. 1. would not put him iu a situation as beneficial as if the agreement were specifi- cally performed; or where the compensation in damages would fall short of the redress to which he is entitled. Philips v. Berger, 2 Barb. Sup. Ct., 608; Phyfe V. Warden, 3 Edw. Ch., 47. Stuyvesant v. Mayor, etc., of New York, 11 Paige's Ch., 414; Nevitt v. Gillespie, 1 How. (Miss.), 108. ' See McLane v. Elmer, 4 Ind.. 239. EXTENT OF THE JURISDICTION. 23 form the contract, thougli the relations between the parties might have been worked out by actions at law. (a) § 43. Leach, Y. C, seems to have considered that the fact that the remedy in damages given at common law de- pended for its beneficial effect upon the personal responsi- bility of the defendant, gave the other party to the contract a right to sue in equity for its actual x)erformance.(5) It is evident that this principle applies to all damages, and, if it were admitted, would give the court jurisdiction by way of specific performance in all cases of contract, whether for the sale of chattels or of any other nature, which certainly is not the law of the court. In another case the same learned judge appears to have held that the circumstance that damages at law would not accurately represent the value of the contract to either party was a ground for granting specific performance. The contract in that case was for the sale of debts proved under two commissions of bankruptcy ; and Leach, Y. C, granted specific performance, considering that to compel the plaintiff to accept damages would be to compel him to sell those divi- dends which were of unascertained value at a conjectural price. (e) The learned judge just named seems to have shown a tendency to extend the jurisdiction in specific performance somewhat more liberally than most other judges ;(^) and the mere want of exactitude in the measure of damages at com- mon law has not always been held a sufficient ground for the equitable jurisdiction.' § 44. The ground of this jurisdiction having been the in- adequacy of the remedy at common law, it followed that where that remedy was adequate, chancery did not interfere (a) Beech v. Ford, 7 Ha ,208 (affirmed bv per Lord Hatherley (then Wood.V. C},in Lord Cottenham). Cf. Cogent v. Gibson, 33 Pollard v. Clayton, 1 K. & J., 462. Beav., 557 (purchase-money of patent). (rf) See Withy v. Cottle, 1 S. & S.,594; Ken- (6) Doloret v. Rothschild, 1 S. & S., 590. ney v. Wexham, 6 Mad., 355; Cf. Brealey v. (c) Adderleyv. Dixon, 1 S. & S., 607. See Collins, You., 317, 330. 1 When the court will refuse to act.} In all cases where it is clearly inequita- ble to grant it, the court will refuse to do so. In exercising its discretionary powers, it will act with more freedom than when exercising its ordinary powers. Munch V. Shobel, 37 Mich., 1C6; St. Paul. Div. v. Brown, 9 Min., 157; SneU V. Mitchell 65 Me., 48; Tyson v. Watts, 1 Md. Ch., 13; Fish v. Lightmer, 44 Mo., 2«8; Hudson v. King, 2 Heisk. (Tenn.), 560; Quinn v. Roath, 37 Conn., 16; Higginbottom v. Short, 25 Miss., 160; Inglehart v. Veil, 75 111., 63; Sweeney V. O'Hara, id., 34; Willard v. Taylor, 8 Wall., 557; Marble Co. v. Ripley,'lO id., 339; Borgan v. Daughdrill, 51 Ala., 312; Daniel v. Frasier, 40 Miss., 507; O'Brien v. Fenty, 48 Md., 562. 24 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. to compel specitic performance.' It is on tliis ground that the conrt has generally refused specific performance in re- spect of government stock or chattels, as will be hereafter seen, and refuses it in all cases where the contract is sat- isfied by a mere payment of money, (e) § 45. The principle has been recognized in several other cases. It was one of the grounds on which Knight Bruce and Lord Cran worth, L. JJ., acted in dismissing the bill in Lord James Stuart v. London and Northwestern Railway Co.,(/) so far as regarded specific performance and only put- ting the defendants on terms to make certain admissions in any action at law to be brought by the plaintiff against them— their lordships considering that, the railway having been abandoned and complete relief being in their opinion obtainable at law, the case was not one for specific perform- ance. It was also one of the reasons alleged by Lord Cran- worth, L. J., for dismissing the bill in Webb v. Direct London and Portsmouth Railway Co.,(^) he considering that under the circumstances the vendor could obtain com- plete relief at law. The authority of these decisions was subsequently questioned by Lord St. Leonards, (A) but only as to the applicability of the principle to the circumstances, and not as to the validity of the iDrinciptle itself. § 46. In one case specific x^erformauce was sought of a contract for a tenancy from year to year, the contract speci- fying that the tenant was in all respects to abide by the terms entered into by a ptrevious tenant, and that the tenant should pay for a contract to be drawn up; it was contended that the court would therefore interfere for the purpose of settling the proper terms of the contract. But the court thought the remedy at law was adequate, and that the full Ce) See Brough v. Oddy, 1 R. & M., 55; (/) 1 De G M. &G.,721. J.arios V. Bonany y Gurety, L. R. 5 P. C, ((/) I De G. M. & G , 521. 346; and cf. the cases on contracts with a ih) Hawkes v. Eastern Counties Railway penalty, infra, § 114 et seq. Co.,lDeG.M. &G.,737; S. C.,5 H. L.C.,331. ^ There is probably no principle of equity more thoroughly established than thib. Dhetegoft v. "Loudon Assur. Co., Mosely's E., 83^ S. C, 1 Atkin's R, 547; Rose v. Clarke, 1 Y. & Col., 534; Hammond v. 3Iessenger, 9 Sim., 827; Rees V. Parish, 1 McCord's Ch., 59; Bell v. Bemen, 3 Murph., 273; Sampson V. Hunt, 1 Root, 317; Pitkin v. Pitkin, 7 Cow., 315; Adair v. Win- chester, 7 Gill & .John., 114; Carter v. United Ins. Co., 1 John. Ch., 463; Smiley v. Bell, Mart, et Yerg., 378; Mosely v. Boush, 4 Rand.. 392; Thomp- son V. Mauley, 16 Geor., 440; Mechanics' Bank v. Debolt, 1 Ohio St, 591; Bonebright v. Pease, 3 Mich. (Gibbs), 318; Degsett v. Hart, 5 Florida, 215. EXTENT OF THE JUEISDICTION. 25 terms of the contract might be shown there, and therefore refused to decree performance. (/) § 47. On this ground also, as well as that of the inca- pacity of the court to execute the works, the court of chancery refused specifically to perform a contract to make a branch railway, although the contract for the execution of it had been entered into during the pendency of the bill before Parliament, arid when several of the directors had thoughts of withdrawing the bill, and would have in fact done so (as the bill of comi^laint alleged), but for the contract in question. (,/) § 48. And where a bill sought the specific performance of a contract which would have been effected by a mere account of profits and a payment of the amount found due, and there was no obstacle to the recovery of the amount at law, the court dismissed the suit, (A*) § 4d. In analogy with this principle, in a case in which the plaintiffs sought the specific performance of a contract to grant a way-leave for a railway for a term of sixty years, and between the filing of the bill and the hearing the plaint- iffs had obtained statutory powers to take the land in fee^ Stuart, V. C, considered this to be a circumstance strongly influencing the \iiscretion of the court against specific per- formance. (Z) § 50. It may appear, at first sight, that inasmuch as money in exchange for the estate is what the vendor of land is entitled to, he has a complete remedy in an action for damages, and therefore cannot sustain an action for the. specific performance of the contract. But on further con- sideration it will be apparent that damages will not place the vendor in the same situation as if the contract had been performed ; for then he would have got rid of the land and of all the burdens and liabilities attaching to it, and would have the purchase-money in his pocket ; whereas, after an action for damages, he still has the land, and, in addition, damages — representing, in the opinion of a jury, the differ- (i) Clayton v. Illingworth, 10 Ha., 451. v. Midland Railway Co., 6 W. R., 2.33; 4 Jur. (J) South Wales Railway Co. v. Wythes, 1 N. S.. 273. Cf. Bagnell v. Edwards, I. R. la K. & J., 186; S. C, 5 De G. M. & G., 880. See, Eq.. 215. too.GreenhlUv. Isle of Wight (Newport June- (0 Meynell v Surtees, 3 Sm. & Gif, 101. tion) Railway Co., 19 W. R , 345. See, also, per Lord Craiiwonh in Morgan v. (i) Ord \. Johnston, 1 Jur. N. S., 1063; 4 Miiman, 3 De G. M. & G.,35. W. R., 37 (Stuart, v. C). See, also, Sturge ■26 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. ■ence between tlie stipulated price and the price which it would probalily fetch, if re-sold, together with incidental ■expenses and any special damage which he may have suf- fered. (?/i) The doctrine of equity, with respect to the con- version of the land into money, and of the money into land upon the execution of the contract, (?i) and the lien which the vendor has on the estate for the purchase-money, and his right to enforce this by the aid of the court, are addi- tional reasons for extending the remedy to both parties. Accordingly, it is well established that the remedy is mutual, and that the vendor may bring his action in all •cases where the purchaser could sue for specific perform- ance of the contract, and this independently of any ques- tion on the Statute of Frauds, (o) § 51. On the principle that damages are a sufficient satis- faction, it is now perfectly settled that specific j^erformance will not be enforced of a contract for the transfer of stock in the public funds. § 52. It api^ears, that in one instance, Lord Hardwicke did grant sj^ecific performance of such a contract \{p) but in the earlier case of Cuddee (or Cud) v. Ilutter,(5') Lord Macclesfield, overruling a decision at the rolls, refused to perform a contract to transfer South Sea stbck, though by the decree he undertook to arrange the settlement between the parties. His Lordship assigned three reasons for this •decision : first, the nature of the subject-matter of the con- tract ; secondly, the circumstance that the defendant was not possessed of the stock at the time of the contract ; and, thirdly, that the liability to sudden rise and fall in stock made the day a most material part of the contract, and therefore rendered it an improper one for the court to carry into execution. This principle was adopted by Gil- bert, C. B.,(r) and stated to be the settled doctrine of the •court by Lord Eldon.(5) § 53. In a case before Leach, Y. C, a bill for the specific performance of a contract to sell Neapolitan stock was sup- ported ; but this was j^artly on the ground of its x-raying (m) Eastern Counties R'y Co. v. Hawkes 6 Ha., 594; Kenney v. Wexham, 6 Mad., 355 5 H. L. C, 331, 359, 376; Lewis v. Lord Lech (p) See Nutbrown v. Thornton, 10 Ves ,16l. mere. 10 Mod, 5U3. (q) 5 Vin. Abr., 538,pi.21 ; S. C, 1 P.Wms., '"} }^.i^ . 570; 1 W. & T., L. C, 756 (4th ed.). ,.1''\.9",?**'^'^ "■ Turrell, 1 Y. & C. C. C, 133, (r) Cappur v. Harris, Bunb., 135. 150; Walkerv. Eastern Counties Railway Co., (a) In Nutbrown v. Thornton, 10 Ves , 161, EXTENT OF THE JUKISDICTION. 27 the delivery of the certificates which would constitute the plain tift' the proprietor of a certain quantity of the stock, and i)artly because the plaintiff, not being the original scrip- holder, but merely the bearer, it was doubtful whether he would be able to maintain his action at law.(^) In another case the same judge overruled a demurrer to a bill by the vendor of a life-annuity payable out of dividends of stock, on the ground that the purchaser could clearly maintain such a bill, and that the remedy must be mutual. (2^^) But it seems that the court would not enforce specific perform- ance of a contract to sell a life-interest in the public funds, (-y) § 54. With regard to shares in companies the same prin- ciple does not apply. "In my opinion," said Shadwell, V. C.,(^) "there is not any sort of analogy between a quan- tity of £3, per cents or any other stock of that description (which is always to be had by any person who chooses to apply for it in the market), and a certain number of rail- M^ay shares of a particular descrij^tion, which railway shares are limited in number, and which, as has been observed, are not always to be had in the market;" and, accordingly, specific performance was enforced of a contract to sell a cer- tain number of railway shares, the shares not being particu- larized. In a subsequent case, Lord Chelmsford stated that there was no doubt that a contract for the sale of railway shares is capable of being enforced \{x) and in a subsequent chapter(2/) many recent cases will be referred to, which have arisen in resi)ect of contracts for the sale of shares. It may have been on this j^rincii^le that Lord King disallowed a de- murrer to a bill for the transfer of York building stock ;(z) but a different view seems to have been previously enter- tained by Lord Macclesfield, inasmuch as he dismissed a Mil for the transfer of £1,000 of the same stock. («)' (0 Doloret V. Rothschild, 1 S. & S., 590. (x) Cheale v. Kenward, 3 De G. & J., 27. (M) Withy V Cottle, 1 S. & S . 174. (y) Part VI, ch. 1. (V) Brealey v. Collins, You , 317, 330. (z) Colt v. Nettervill, 2 Smi., .S04. (w) Duncuft V. Albrecht, 12 Sim , 189, 19i). (a) Dorison v. Westbrook, 5 Vm. Abr.,o40, See Jackson v. Cocker, 4 Beav., 59. pi. 22. ' See Story's Eq. Jur., § 744: Ferijuson v. Paschall, 11 Miss , 267; Brown v. Gilliland. 3 Dessau., 539 ;" Strasbourg R. R. Co. v. Elchternact, 21 Penn., 220, uiuthorities in unison with the text. A contract for the sale of stock, on time, by a person who is not the owner of the stock at the time, is void though made through the medium of a broker, by whom the principal is not disclosed. And money paid on such a contract may be recovered from the broker, at any time 28 FRY ON SPECIFIC PERFUKMANCE OF CONTRACTS. § 55. A vendor of shares may maintain an action against the purchaser to comiiel him to complete the purchase by the execution and registration of a proper transfer, (&) and to indemnify the vendor against future calls, (c) . In like manner the company may sue a person who has contracted with the company to take shares from it.{d) Many difficult questions have arisen as to the nature and elfects of contracts to take shares, which will be considered separately in a later chapter, (.e) § 56. The court for the most inivt refuses to interfere in respect of chattels, both because damages are a sufficient remedy, and because the price of such articles, especially of mercliandise, varies so as often to render the specific exe- cut ion of contract for their sale and delivery an act of in- justice, entailing perhaps ruin on one side, when upon an action that party might not have paid perhaps above a sliil- ling damages. (/')' As these principles, however, do not apply to all cases of chattels, exceptions arise which we shall now consider. § 57. When the chattel in question is unique, when there is, over and above the market value, that which has been called the pretmm affectionis, the court, whether the plain- tiff's right has arisen from contract or not, has interfered and not left him to his common law remedy. The leading case in this branch of the law is Pusey v. Pusey,(^) in (6) Shaw V. Fi6her, 2 De G. & Sm., 11 ; 5 (e) Part VI, ch. 1. De G. M. & G., 596. Cf. Ward and Henry's (/) Per Lord Hardwicke in Buxton v. Lis^ Case (where the purchaser had filed his bill ter, 3 Atli , 384. In Norton v. Serle, Finch, for s)>ecifle performance), L. R. 2 Eq , 226; 2 149, Lord Nottingham specifically perfornaed Ch., 431. a charter-party by directing the payments to (c) vt'ynne v. Price. 3 De G. & Sm., 310; be made in pursuance of it See, also, Clar- Walker v. Bartlett, IS C. B., 845. ingbould v. Curtis, 21 L. J. Ch., 541, and Lord (d) New Brunswick, etc , Co. v. Mugger- Westbury in Holroyd v. Marshall, 10 H. L. Idge, 4 Drew.,6S6. See, also, Sheffield Gas C, 209. Where the delivery of chattels is <.onsumers Co. v. garrison, 17 Beav., 294; only part of a contract otherwise enforcea- Oriental Inland Steam Co. v. Briggp, 2 J. & ble, thp contract may be performed. Marsh H.,625; 4 De G. F. & J., 191; Odessa Tram- v. Milligan, 3 Jurs. (N. S.), 979 », Wood, V.C). ways Co. v. Mendel, 8 Ch. D., 2.35. {g) l Vern., 273. before he has paid it over. Gram v. Stebbius, 6 Paige, 124. Stock is consid- ered as a chattel, and, therefore, as will be seen hereafter, is perfectly compen- sated in damages. Buxton v. Lister, 3 Atk., 883. And, indeed, it is viewed with even less favor than chattels generally. Brown v. Gilliland, 3 Des., 529. See further, Austin v. Gillespie, 1 Jones' Eq. (N. C), 261, and Bissell v. Farmers and Mechanics' Bank of Michigan, 5 McLean, 4t>5. ' The ground upon which courts of equity refuse to interfere, in cases of this kind, is that there is an adequate remedy provided at law; but wherever a breach of the contract cannot be compensated by damages, equity will grant relief. SuUivan v. Fink, 1 Maryl. Ch. Decis., ,59; Roundtree v. McLean, 1 Hemp., 245; Waters v. Howland, 1 Md. Ch. Decis., 112; Llovd v. Wheatley^ 2 Jones' Eq. (N. C), 267. EXTENT OF THE JURISDICTION. 29 which the heir of the family of Pusey recovered possession by a bill in equity of the celebrated Pusey horn; the grounds of the decision are insufficiently reported, but the case "turned," to quote Lord Eldon's language in respect of it, (7^-) '' iii^on the pretmm affect ionis, independent of the circumstance as to tenure, which could not be estimated in damages." This has been followed by other similar cases, one having relation to an ancient silver altarpiece, remarka- ble for a Greek inscrii^tion and dedication to Hercules, (/) another to a tobacco-box of a remarkable and peculiar kind,(y) another to masonic dresses and ornaments, (A-) and another to a very finely engraved cherry-stone. (Z)' (fc) In Nutbrown v. Thornton, 10 Ves., 163. bould v. Curtis, 21 L. J. Ch , 541 ; De Mattos {i) Duke of Somerset v. CookBon, 3 P. v. Gibson, 4 De G & J., 276. Bills have been Wms., 390. filed for speciflo performance of contracts for U) f'ells V. Read, 3 Ves., 70. the sale of ships. See part VI, ch. 5, infra. (k) Lloydv. Loaring.6Ve8.,773. See,also, W Per Lord Hardwicke in Pearne v. Lisle, Savllle V. Tancred, 1 Ves. Sen., 101 ; S. C, 3 Ambl., 77, in which case a specific delivery Sw., 141, n.; Lady Arundell v. Phlpps, 10 of negroes v^as prayed, "but that is not Ves., 139; Lowther v. Lor) Mr. Austin, too, has expressed his inability to understand on what principle the case proceeded, (c) and a like inability is here confessed. 4. Where tlie contract is such as the court cannot loerform. § 68. Where the contract is, from its nature, such that the court cannot enforce its performance, {d) it is necessarily no subject of its jurisdiction in that respect. (e) § 69. On this principle the court will not prohibit the making of a secret medicine ; for, if it be secret, then the court cannot tell whether it has been infringed or no ;(/) nor, for the same reason, will it direct the si^ecific perform- ance of covenants in a farming lease, for "how," said Lord Northington, "can a master judge of repairs in hus- (a) Wood V. Rowcliffe, %Cbi mpra. («) Consider Hope v. Gibbs, 26 W. R., 72; («) Taylor v. Neville, cited 3 Atk.. 384. De Mattes v. Gibson, 4 De G. & J., 276, 299. Distinguish Nives v. Xives, 15 Gh. D., 649. (/) Newberry v. James, 2 Mer., 446; WIl- (6) Pollard V. Clayton, 1 K. & J., 462. liamsv. Williams, 3 Id., 157; and see the other (c) Jurisprudence, 808. cases cited in the note to § 1516, infra. {d) A.8 to uncertainty in contracts see Part III, ch. 4, Infra. inasmuch as with the damages he may ordinarily purchase the same quantity of the like stock or goods. ' Story's Eq. Jur., § 717. It was upon this distinc- tion that the decision in Clark v. Flint, 22 Pick., 231, is based. It was there held, that, where the owner of a brig had contracted, in writing, for a valuable consideration, to hold the vessel in trust for another, and subject to his order and disposition, and then sold her to another person, with notice of the con- tract, specific performance might be enforced, in case of the insolvency of the original contractor, since a judgment at law against an insolvent person would not be an adequate remedy. It is a point too well settled to admit of much doubt, that where a trust has been created in relation to particular chattels, by contract, a bill in equity will lie to enforce the trust and have a transfer of the property. Cowles v. Whitman, 10 Conn., 121, which was a case of a trust in bank shares. See the dictum in Ferguson v. Paschall, 11 Miss., 267. / J 36 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. bandry?"((7)' Nor will it enforce against a life assurance society a contract to reduce a premium if satisfied with the removal of the cause for charging an extra premium, for it is the society and not the court which is to be satisfied ;(7i) nor will it order the performance of continuous acts.(?:) And the fact that the parties cannot be put in the condition for which they stipulated when the contract was entered into, obviously disables the court from adjudging specific performance, {j) § 70. And so, too, the court will not interfere to enforce a contract by means of injunction, where the acts com- plained of as breaches are frequent, and the court could not ascertain whether there has, in each case, been a breach without an action ; as in the case of a covenant not to sell water from a certain well to the plaintiff's injury. (A') § 71. The incapacity of the court to execute the contract limits its jurisdiction in cases relating to the sale of the goodwill of a business.' For where the contract has respect to a goodwill alone, unconnected with business premises, the court refuses specific performance by reason of the uncertainty of the subject matter, and the consequent in- capacity of the court to give specific directions as to what is to be done to transfer it.(Z) But where the goodwill is ((7) Rayner v. Stone, 2 Eden, 128. Cf. Bern- (j) Re Mercantile and Exchange Bank, L. ard V Meara, 12 Ir Ch. R., 389, 396. B. 12 Eq., 26S, 276. (h) Manby v. Gresham Life Assurance So- Qc) Collins v. Plumb, 16 Ves.,454. See, also, ciety, 29 Beav , 439 City of London v. Xash, 3 Atb , 512. 515. (i) Blackett v. Bates. L. R. 1 Ch., 117; (Z) Baxter v. Conolly.lJ. & W.,. 576; Bozon Powell Uuffryn Steam Coal Co. v. Taff Vale v Farlow, 1 Mer., 459; Coslake v. Till, 1 Railway Co., L. R. 9 Ch., 331. Russ., 376. ^ Under tbi.s head may be ranked contracts to do purelj' personal acts. It may be laid down that equity never enforces these contracts unless they have some reference to property of some kind, or a partnership of some nature. In England, equity will interfere negatively, that is, by injunction. Although the court could not carry out the jjosiiive part of the agreement; which, in Lumley V. Wagner, 1 De G. M. & G., was an engagement to sing at a theatre; the court preventing the singer from performing elsewhere. But in New York at least there are no cases of this kind where the court has interfered either actively or negatively. Haight v. Badgley, 15 Barb. Sup. Ct., 501; Hamblin v. Dunneford, 2 Edw. Ch., 532; De Rivafinoli v. Corsetti, 4 Paige, 261; Sanquirico v. Bene- detti, 1 Barb. Sup. Ct., 315. Where property is concerned, the rule is different. Stuyvesant v. The Mayor of New York, 11 Paige, 414. In regard to contracts relating to partnerships the English rule, as established in Morris v. Coleman, 18 Ves., 437; Clark v. Price, 2 Wilson, 157, and Kemble v. Kean, 6 Sim., 333, has never been controverted. ' Equity will interpose to prevent a party from setting up a business or pro- fession in opposition to his agreement, notwithstanding he has agreed not to do so under a penalty, and has paid the penaltv. Roper v. Upton, 125 Mass., 258; Dooley V. Watson, 1 Gray, 414; Hardy v. Martin, 1 Cox, 26. \ EXTENT OF THE JUElSDICTIOlSr. 37 entirely or mainly annexed to the premises, and the con- tract is for the sale of the premises and goodwill, the con- tract may be enforced. (7?z) For in that case the goodwill is merely the advantage attached to the possession of the honse or other x)lace of business, (7^) — "the probability," to use the words of Lord Eldon, (o) ' ' that the old customers will resort to the old place" — together with the right which arises to the x)urchaser to restrain the vendor from setting up anew, or continuing, the identical business he has con- tracted to sell, but w^ithout any right, independently of stipulation, to prevent the vendor's setting up a similar business. (^) In the case of contracts for the sale of the business of an attorney, the legality of stipulations com- prised in them, for the purpose of giving to the party to carry on business the advantage of the name or of the recommendation of the party not engaged in it, has been questioned by the highest authorities, including Lord El- don ; Grant, M. R., and Knight Bruce, L. J.(^) But it seems to be now established, not only that such transac- tions are legally valid, (r) but that they may be specifically executed, by injunction or otherwise, by the court. (5) 5. Where the performance of the contract would he useless. § 7S. The court will not enforce a contract which is in its nature revocable by the defendant ; for its interference in such a case would be idle, inasmuch as what it had done might be instantly undone by one of the parties.' Thus w^here the registrar of a consistory cqurt agreed to grant a deputation of his office, it was held that such a (OT) Darbey v. Whittaker, 4 Drew., 134,139, v. Baker, 14 id., 468. Cf. Leggott v. Barrett, 140. 15Ch. D.,306. (n) Chissum v. Dewes, 5 Rus8.,29; Mum- (q) Per Lord Eldon In Candler v. Garden, mery V. Paul, 1 C. B., 316,326; and see fur- Jac, 231; Bozon v. Farlow, 1 Mer., 459; ther, as to the nature of a goodwill, Potter V. Thornbury v. Bevill, 1 Y. & C. C. C, 584. Commissioners of Revenue, 10 Ex., 147; Alii- See GilflUan v. Henderson, 2 CI. & Fin., 1. eon V. Monkwearmouth, 4 El. & Bl., 13. and (r) Bunn v. Guy, 4 East. 190. Lindley, Partn., 884 (3d ed ). (s) Whittaker v. Howe,3 Beav.,383; Aubln (o) In Cruttwell v. Lye. 17 Ves.. 346. v. Holt, 2 K. & J., 66. (p) Cruttwell V. Lye, 17 Ves., 335; Shackle ^ Thus, while equity will sustain a post nuptial voluntary settlement in favor of the wife, when executed, and will specifically. enforce, as against any other person than the party himself, an agreement to make such a settlement, it will refuse to execute such an agreement against the party himself, because, until executed, it is revocable. Andrews v. Andrews, 28 Ala. , 432. 38 FEY ON SPECIFIC PERFORMANCE OF CONTRACTS. deputation was in its nature revocable, and, tlierefore, could not be enforced by the court. (^)' § 73. It is on the same principle that the court generally refuses to interfere in cases of contracts to enter into part- nership which do not specify the duration of the partnership — that relation, unless otherwise provided, being dissoluble at the will of either party, {u) There is indeed some authority to the contrary of this proposition, consisting of a dictum of Lord Hardwicke's(«) in general terms, and two or three cases {to) in which specific performance of such contracts seems to have been enforced, but with regard to which it does not appear whether the partnershii3s thus constituted were for a term or not ; and it is indeed said that Lord Eldon was not quite satisfied with his decision in the case quoted as establishing the princii)le. (a?)' § 74. The doctrine, however, appears to be generally ac- cepted as that of the court. Thus in a case before Lord Romilly, M. R., the principle was acted on: the defendant entered into a contract with the plaintiff company to take a certain number of shares and to execute the deed of settle- ment when required ; and of this contract the court refused specific i)erformance, because the defendant might, by the rules of the company, have ceased again to be a j)artner within fourteen days after becoming such.(?/) § 75. It is on the same reasoning that the court declines to perform a contract to execute an instrument if such cove- nants must be introduced into the instrument that the party resisting the performance may immediately take advantage (<) Wheeler v. Trotter, 3 Sw., 174, n. See, {x) 1 Mad. Ch., 411, n. also, Sturge v. Midland Railway Co., 6 W.R , (y) Sheffield Gas Consumers' Co. v. Harri- 233 (Stuart, V. C). son, 17 Beav., 294; cf. Bluck v. Mallalue, 27 (M) Hercy v. Birch, 9 Ves., 357. See fui-- Id., 398, 405. Distinguish Odessa Tramways ther. Infra, §§ S24, 1512 et seq., and cf. Firth Co. v. Mendel, 8 Ch. D., 235, and cf. Xew V. Ridley, .33 Beav., 516, 521. Brunswick and Canada Railway Co., Limlt- (V) In Buxton V. Lister, 3 Atk., 385. ed, v. :MuggerIdge, 30 L. J. Ch., 247. See, (w) Anon., 2 Ves. Sen., 629; Anon., 1 Mad. also, as to contracts to form a company, Ch., 411, n.; Hibbert v. Hibbert, Coll., Partn., Stocker v. Weddcrburn, 3 K. & J , 393. 133. ' Where tlie contract is revocable at tlie pleasure of the party making it, specific performance will not be decreed ; it would be an idle exercise of the power of the court. Express Co. v. R. R. Co., 9 Otto, 191. « Mea.son v. Kaine, 63 Pa. St., 335; Birch v. Smith, 29 Mich., 166. Where, by the partnership agreement a party has an interest in property, such interest will be secured to him. Somerly v. Buntin, 118 Mass , 279. The terms of the partnership must, however, have been distinctly settled for a definite time. Wilson V. Campbell, 10 111., 383; Whittorth v. Harris, 40 Miss., 4S3; England V. Curling, 8 Beav., 129. EXTEN^T OF THE JURISDICTION. 39 of them to deprive the other of all benefit under the instru- ment ; as, for instance, a contract for a lease which is to contain a jDroviso for re-entry on breach of a covenant, which the plaintiff has already broken. (2:) 6. WJiere the court would he unable to enforce its judgment. § 76. In some old cases the court of chancery entertained suits in respect of building contracts; and what lias ))Hen considered one of the earliest traces of the jurisdiction in specific performance is a dictum of Genney, J., in tlie 8 Edward IV, that a promise to l)uild a house would be spe- cifically enforced, (rt) Lord Hardwicke also maintained this view of the jurisdiction of the court. (^) But it is now clearly settled that, subject to certain excei)tions, the court will not specifically enforce contracts to build or repair, (c) both be- cause specific performance is "decreed only Avhere the party wants the thing in specie and cannot have it any other way,'"((^Z) and because such contracts are for the most part so uncertain that the court would be unable to enforce its own judgment. (e)' (2) Per Grant, M. R , in Jones v. Jones, 12 (d) Ver Lonl Kenyon, M. R., in Errington Ves., 188. T. Aynesly, -2 IJro. C. C, :>13; S. C, 2 Dick. (a) See supra, § in. W^2. Acconllngly Lucas v. Commerford, 3 (6) Buxton V. Lister, 3 Atk., 38.i; City of liro. C C, 1G6 London v. Nash, id , .512; S. C , 1 Ves. Sen., (c) Moselv v Virjrln, 3 Vps., LS4: cf. Green- 12. See, also, Allen v. Harding, 2 Eij. C. hill v. Isle of Wight (X. J.) Railway Co., 19 Abr., 17. W. R., S45; Bernard r. Meara, 12 Ir. Ch. R., (c) Paxton V. Newton, 2 Sm. & Gif., 437; 389,397. Kay V. Johnson, 2 H. & M , 118; Wbertley v. Westminister Brymbo Coal Co., L. R 9 Eij., 538. ' Buildiiirj contract H.'] The rule is uow well settled, that coutracts for build- ing will not be specifically enforced. Lord Kenyon said in Erringtouv. Ayucs- ley, 2 Bro. C. C, ;J4:i: "There is no case of a specific performance decreed of an agreement to build a house, because if A. will not do it, B. may. A specific performance is only decreed where the party wants the thing in sju-cie and cannot have it in anv other way." See, also, "Wilkinson v. Clement.-^, L K., 8 Ch., !)G: City of London v. Southsate, 38 L. .J. C, 141: Martin v. Hallv. Gl Mo., 196: Ross v. Union Pacific R. R. Co , 1 Woohv.. 06. In Scotland, the court will sometimes apjroint a suitable person to superintend the work, when it orders specific performance of a building contract. Clark v. Glasu'ow Asso. Co., 1 McQueen. 668. Example of building contracts tcJiich were enforced, and rult.] A. agreed to sell land to B., and to constiiict a road, allowing A. to use the same. B. was to erect a house on the laud at a definite price lleld, that such contract would be specifically enforced. Wells v. Maxwell, 32 Beav., 40S: alT'd, 9 Jur. (X. S.) 1021. A tenant agreed to rebuild a farm-house, but did so upon his own land instead of upon his landlord's. Held, that sjiecific in-rformance would be de- creed. Pembroke v. Thorpe, 3 Swanst., 437, note. In Shorer v. Gt. Western R. R. Co., 2 Y. ic C. C C, 48, it was held, that a railroad company having agreed to do so, would be compelled to construct and maintain an archway under their line, connecting lands of plaintilT severed by the road. In San- derson V. Cockermouth and Workinirton R. R. Co., 11 Beav., 41)7, that the 40 FRY ON SPECIFIC PERFORMAlSrCE OF CONTRACTS. § 77. For the first of the reasons stated, Grant, M. R., refused specific performance of a covenant to make good a gravel-jDit ;(/) on the ground of both of these reasons, spe- cific performance was refused in a case of a contract for the construction of a branch railway, which was entered into during the pendency of the bill before Parliament, and when several of the directors had thoughts of withdrawing the bill, and, as the plaintiffs alleged, would have done so, but for the contract in question \{g) and in other cases, specific performance has been refused of contracts for the working of quarries, (7^-) and coal mines, (/) or involving the perform- ance of continuous acts or duties. (,y) § 78, In the case of Brace v. Wehnert {k) decided by Lord Romilly, M. R., in March, 1858, the contract was that A. should grant a lease to B. as soon as B. should have built a house of the value of £1400, according to a plan to be sub- mitted to and approved by A., and B. agreed to build and take the lease ; no plan had been approved ; a bill filed by A. against B. was dismissed, with costs. In like manner a contract by a landlord to execute repairs upon a farm was not enforced. (Z)' (/) Flint V. Brandon, 8 Ves., 159. ell Duflfryn Steam Coal Co. t. Taff Vale Rail. (g) South Wales Railway Co. v. Wythes, 1 wav Co., id , 9 Ch , 331. K. & J., 180; S. C., 5 De G. M. & G., 880; (k) 25 Beav , 348 Note that this case was GreenhiU v. Isle of \\ right (X. J.) Railway decided before the passing of Lord Cairns' Co , 19 \V R.,345. Act. Consider Asylum for Female Orphans ih) Booth V Pollard, 4 Y. & C Ex., 61. v. Waterlow, 16 W. R., 1102. (t) Pollard V. Clayton. 1 K. & J , 462. (I) Norris v. Jackson, IJ. & H., 319. ij) Blackett v. Bates, L. R. 1 Ch., 117; Pow- railroad company must construct such roads through the land divided, as would be necessary to connect the several portions. A. agreed, in writing, to partiailly erect sixteen houses, and, upon completion, was to receive a deed of three of the same. Having performed his part of the contract, the court deemed spe- cific performance, that a deed in fee simple should be given, with a covenant against incumbrances. Ellis v. Burden, 1 Ala. , 458. A railroad company pur- chased land, upon the terms that they would construct a road and wharf. Held, that they must do so. Wilson v. Furners R. R. Co , L. R., 9 Eq., 28. In Lytton v. Gt. Northern R. R. Co., 2 K. & J., 394, the road agreed with the owner of land to construct and maintain a siding — Held, that specific perform- ance would be enforced. The same rule was applied with regard to building and maintaining a station "in all respects first-class." Hood v. Northeastern R. R. Co., L. R., 8 Eq., 666. "Where the plaintifi has a material interest in its execution, and the work to be done is clearly defined, and where he cannot be adequately compensated in damages, specific performance will be decreed. Story's Eq. Juris., § 728; Mosely v. Virgin, 3 Ves., 184; Stuyvesant v. Mayor of N. Y., 11 Paige Ch., 414. \ Specific performance as to repairs.'\ With rare exceptions, covenants tore- pair will not be specifically decreed, there being an ample remedy at law. This was held in a case where the lessor agreed, in his lease, to repair damages caused by fire. Beck v. Allison, 56 N. Y., 367; City of London v. Marsh, 3 Atk , 512; Lord Abinger v. Ashton, L. R., 17 Eq., 37C; Hill v. Barcley, 18 Ves., 59. In EXTENT OF THE JUKISDICTION. 41 § 79. But, since Lord Cairns' Act (21 and 22 Vict., cli. 27), it has been held that where the contract is for the building of a house, and, also, for the grant and acceptance of a lease, the court can grant specific performahce of the contract to accept the lease and give damages for the non-building of the house. (??i) § 80. There are, as already hinted, exceptional cases of building contracts in respect of which the court will inter- fere. Lord Rosslyn, in a judgment which appears never to have been overruled, maintained that where a contract for building is in its nature defined, the court might, without much difficulty, entertain a suit for its performance. (;i) Mr. Justice Story argues in suxjport of this view,(c) and in Cubitt V. Smith, (^) Stuart, Y, C, acted upon it.' It may also be added that in Scotland many contracts to build are sj^ecifically iierformed, in respect of Avhich the court would decline jurisdiction in England, the Scotch courts appoint- ing some properly qualified person, under whose superin- tendence the work is directed to be executed. (^) § 81. But whether the court will, or will not, interfere to enforce all such contracts when definite, it appears to be settled that it will assume jurisdiction where we have the following three circumstances : first, that the work to be (m) Soames v. Edge, Johns., 669; Mayor, (o) Eq. Juris., § 728. etc., of London v. Southgate, 17 W. R , 197; (p) 10 Jur. (N. S.), 1123. 38L. J. Ch, 141. ' (9) Clark v. Glasgow Assurance Co., 1 (n) Mosely v. Virgin, 3 Ves., 184. M. Qu., GG8. Hughes V. Metropolitan R. R. Co., ^16 L. J. C, 583, the lessee coveuantcd to repair after notice; the lessor gave notice, and afterwards waived the default of the lessee by continuing to negotiate. Held, that the court would relieve against the forfeiture. An agreement was made that a lease should be executed containing a covenant to repair. Held, that specific performance of such agree- ment would be decreed, so as to give a remedy for not repairing. Yolloton v. Seigrett, 2 Abb. Pr.. 121. See as to improvements made by lessor. Berry v. Van Winkle, 2 N. J. Eq., 1 Greene, 269. ' There seems to be considerable doubt on this point. See Story's Eq. Jur., §§ 726, 727. As to the specific performance of covenants to repair, see Kayner v. Stone, 2 Eden, 128; Hill v. Barclay, 16 Ves., 405. lu Lucas v. Commer- ford, 10 Ves., 235, the court was of opinion that the contract, whi:-h was one to build, should not be enforced. But it appears that the agreement was, in in every respect, too uncertain and undefined to be made the subject of a mas- ter's report. See note [2] to Lucas v. Commerford, 1 Ves. (Sumner's ed.) Birchett v. Boiling, 5 Muu., 442, is an authority on this point In that case, a contract to build a tavern, at the joint risk and expense, and for the joint benefit of the parties, was decreed to be specifically performed, at the instance of one of them, who had furnished the land to be built upon, and performed his part of the agreement, the others objecting, on the ground that a change of circumstances rendered the scheme unadvisable. 42 FRY ON SPECIFIC PEKFOEMAKCE OF CONTRACTS. done is defined ; secondly, that the plaintiff has a material interest in its execution, which cannot adequately be com- 2)ensated for by damages, and thirdly, that the defendants have by the contract obtained from the plaintiff possession of the land on which the work is to be done. Thus the court has in numerous cases (r) enforced on railway companies contracts to make and maintain works for the convenience of the lands of the plaintiff. It has done this in cases in which the terms of the contract have been general and diffi- cult to execute. § 82. In one of these cases a contract by the company to construct and maintain, upon land belonging to and to be provided by a landowner, a siding of specified length along- side the line, was held capable of specific performance ; and the company were not allowed to resist performance on the ground that the plaintiff had, before filing his bill, entered into a negotiation (which failed) for a money compensa- tion. (5) § 83. In another case the plaintiff had sold lands to the defendants, a municipal corporation, who by the deed of sale covenanted forthwith to make a road and erect a market-house on the land. They entered and made the road, but neglected to build the market-house. Wigram, V. C, observed that the defendants having had the benefit of the contract in sxiecie, the court would go any length that it could to compel them to perform their contract in specie. (^) § 84. In this case, as in the railway cases previously quoted, the plaintiff having parted with the land, had no opjDortunity of doing the work which the defendants had contracted to do, and so ascertaining the amount of damages sustained by their non-j^erformance ; (w) but though loart- performance has to this extent been held important, it must be borne in mind that it will in no case enable the court to (r) Storer v. Great Western Railway Co., 2 and Banbury Junction Railway Co., L. R. 9 Y. & C. C. C, 48; >aunder80n v. Cocker- Ch ,279. mouth and Workington Railway Co., 11 (si Greene v. West Cheshire Railway Co., Beav., 497; Lord Darnley v. Loudon. Chat- L. K. 13 Eq , 44. ham and Dover Railway Co., 1 De G. J. & (0 Price v. Corporation of Penzance, 4 Ha., S., 2'i4; 3 id., 24; L. R. 2 H. L. 43; Sir E. P.. 506. See, also, Pembroke v. Thorpe, 3 Sw., Lytton V. Great Northern Railway Co., 2 K. 437, n.; Oxford v Provand, L. R. 2 P. C.,135. ■«& J., 394; Wilson v. Furness Railway Co.,L. {u) Per Lord Hatherley (then Wood, V.C.) H. 9 Eq.,28; Ilood v. Nortti Eastern Railway in South Wales Railway Co. v. Wythes, 1 K. Co.,id.,5Ch.,52.i; cf. Wilson v. Northampton &J.,200. EXTENT OF THE JURISDICTION. 43 intervene where it has no jurisdiction in the original subject- matter of the contract. (?;)' § 8»5. Where the act alleged as part-performance is one proper to be brought before a jury, and can be answered in damages, non-performance of the rest of the contract does not constitute that fraud which is the origin of the court's jurisdiction in cases of part-performance in this respect, as well as when treated as an exception to the Statute of Frauds. (70) § 86. In one case Lord Eldon, though expressing a diffi- culty in decreeing repairs" to be done affirmatively, yet 1)\' means of an injunction in fact granted perfonnance of a cove- nant to keep a canal and its stopgates in repair for the benefit of the lessee of a mill interested in them.(a^) 7. W?ie7'e the enforced performance of the contract icould he worse than its non-performance. § 87. The relation established by the contract of hiring and service (?/) is of so personal and confidential a character that it is evident that such contracts cannot be specifically' enforced by the court against an unwilling party with any hope of ultimate and real success ; and accordingly the court now refuses to entertain jurisdiction in regard to them.(i') § 88. In former times this seems to have been otherwise. In a case decided by Lord Cowper and the House of Lords, there was a contract by which a skilled person had bound Iiimself to serve during his life as manager and overseer to a company engaged in the manufacture of brass, and the company had agreed to pay him a certain salary and 3*. Qd. {V) Kirk V. Bromley Union, -1 Ph.,G4n, 618; 57; M'hite v. Boby, -If, W. R.. 133. In Riijby Crampton v. Vaina Railway Co., L. R 7 Ch., v. Connol, 14 Ch. L)., 4S7. the opinion ai'pears 562. to have been intimated by Jessel, M. K., that (w') South Wales Railway Co. v. Wythes, I the fdCt of there being no property, tlie ri^ht K & J., 186; and see Inlra, § n6-2 et seq. to which is taken away from the persi>ii eom- (.r) Lane v. Newdijrate, 10 Ves., 192 plaining, lies at the root of the court's non- (j/) See per Jessel, M. R., in Rigby v. Con- Interference in respect of contracts strictly nol, 14 Ch. D., 487. personal in their nature. (s) See Ghillis v. McGhec, 13 Ir. Ch. R., 48, ' In a very similar case — where the city of New Haven had agreed to Iniy of the phiintilT certain lands, and as much of the water of Mill river as shoulti l)e necessary to supply thai city with pure water, for the consideration of AoO.OOO, and of tlie covenant to construct a costly dam, and a canal to convey, for the plaintiff's use. the surplus water of said river — specific jierforinance was re- fused, upon the ground that he had never parted with the possession of the property, and, conse(iuently, that he had the means of complete redress at law. Whitney v. New Haven, 255 Couu. R., G24. 44 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. for every liundred- weight of brass wire made by him or any other person for them during his life ; on a bill by the man- ager, Lord Cowper decreed the payments according to the articles for past services, and specific performance of them for the future, by the plaintiff again repairing to the works and acting according to the articles, if the defendants should require the same. The appeal from this decree to the House of Lords was by the plaintiff on a x^oint of the construction of the contract as to the 3s. 6d. per cwt., which resulted in a modification of the decree according to his contention, (a) And in another case Lord Hardwicke specifically enforced a contract by the East India Com^Dany to employ a man as a packer. (^) § 89. But the difficulty of enforcing such contracts in si^ecie is now admitted by the court. Thus, in a case where the plaintiffs had contracted for a specified sum to work the line of a railway company and to keep the engines and rol- ling stock in repair, the court, considering this to be a con- tract for services, refused to enforce it.(c) " We are asked," said Knight Bruce, L. J.,{d) "to compel one person to em- ploy against his will another as his confidential servant, for duties with respect to the due performance of which the utmost confidence is required. Let him be one of the best and most competent persons that ever lived, still, if the two do not agree, and good peoi^le do not always agree, enor- mous mischief may be done." § 90. So in an earlier case a grant having relation to an office of a personal and confidential character, was held to be incapable of being specifically enforced ;(e) in another instance, where an indenture was li^ld to constitute the rela- tion of master and servant, and not of j^artner. Lord Truro dissolved an injunction which had been previously granted, restraining the defendant from excluding the plaintiff from the management of the business ; (/) and in another case, where a contract by the plaintiff to employ the defendant as manager of a business formed part of a contract by which (a) Ball V. Coggs, 1 Bro. P. C , 140. This too, Home v. London and North Western case involves the validity of contracts of ser- Railway Co., 10 W. R., 170. vice lor life; as to which see, also, Wallis v. (d) Page 926. Day, 2 M. & \V., 273. («) Pickering v. Bishop of Ely, 2 Y. & C. C. (6) East India Co v. Vincent, 2 Atk., 83. C., 249. (c) Jonnson V. ^hrew8bu^y and Birming- (/; Stocker v. Brocklebank, 3 Mac. & G., ham Railway Co., 3 DeG. M. &G. 914. See, 250; cf Webb v. England, 7 Jur. (N. S.), 153; 9 W.R., 183; SOL. J. Ch., 222. EXTENT OF THE JURISDICTION. 45 the defendant agreed to grant to the plaintiff a lease of a wharf, specific performance was refused on the ground of want of mutuality. (<7) § 91. In like manner the court cannot enforce contracts of agency ; as has been illustrated in the cases of contracts to employ a shipping-broker (Z*^) and auctioneer. (/)' 8. W/iere the contract is voluntary. § 92. The court will never lend its assistance to enforce the specific execution of ccyi tracts which are voluntary, or where no consideration emanates from the party seeking performance, (ji') even though they may have the legal con- sideration of a seal ; and this principle applies, whether ig) Ogilen v. Fossick, 4 De G. F. & J., 42.1 ; ton v. Lees, 1 Juv. (X S.l. S>y2 (Stuart, V. C); cf Stocker v. WeiMerburn, 3 K. & J., 393; Ord v. Johnston, ia.lOG.J; 4 \V. H., 37, 1«1.; Firth V. Ridley, 33 Beav., 516. Walrond v. Walroml, Johns., IS; Kennedy (/t) Brett V. East India and London Ship- v. May, 11 W. R , 353. bee, too, per Lord ping Co., Limited, 2 H. & M , 404 Eldon in Penn v. Lord B..ltimore, 1 Ves. Sen., (i) Chinnock V. Sainsbiirv,30 L. J. Ch., 400. 4.'i0, and distinguisli Cheale v. Kenward, 27 0) Groves v. Groves, 3 Y . & J., 163; Hough- L. J. Ch., 784. ' Si^ecific performance of contracts for pergonal service.'} Contracts of liiring and service, uotwithstandini; their difficulty of being carried out, were form- erly specificalh' enforced by courts of equity. Ea'st lud. Co. v. Vincent, 2 Atk., 8;J: Ball V. Coggs, 1 Bro. P. C, 140. The rule, however, appears now to be well settled, that specific performance of a contract involving persqnal service, special ability or confidence, will not be decreed: and that a party will not be enjoined from terminating such a contract, the following are examples: Tlie court refused to decree specific performance; to report law cases. Clark V. Price, 2 J. Wills., 157. To furnish drawings for maps. Baldwin v. Useful Knowledge Soc.,.9 Lim., 393. To perform at a theatre. Lumlev v. Wagner, 1 De G. M & G., G04: Fredericks v. IVIyer, 13 How. Pr., 566; Butler v. Galetti, 21 id., 465; Montague v. Flocktou, L. R , 16 Eq., 189. In Pennsylvania, it has been very lately held, that a court of equity would not enforce the pensoual services of aii actor, and would not enjoin hfm from lu'rforming at another theatre. Ford v. Germon, 6 Phila., 6. To do work as an ai^prentice. or to in- struct as a master. Webb v. Endand, 29 Beav., 44. To work quarries or coal mines. Booth v. Pollard, 4 Y. 6c C. Ex., 61. Pollard v. Clayton, I. K. & J., 462. To work a line of railroad, and keep the rolling stock iu repair. Johnson v. Shrewsbury, etc., R. R. Co., 3 De G. M. ) It follows from this that a contract made abroad may be enforced against a defendant within the jurisdiction of this country, and as the remedies for breach of a contract are clearly governed by the lex fori, or law of the place where the action is brought, (c) it follows that it is no objection to the specific performance in England of a foreign contract that the for- eign law might have given no such remedy. Accordingly a marriage contract made in France was spe- cifically executed here, the parties to it having come to this country as refugees. (rZ) § 103. This jurisdiction is not confined to cases of con- tracts relative to personal property, but extends to those (z) Penn v. Lord Baltimore, 1 Ves. Sen., (6) Davis v. Park, L. R S Ch.. 862. 444 Consider Norrls v. Chambres, 3 De G. (c) Story's Conflict of Laws, § 556. r. & J., 583 (aflirminff S. C, 29 Beav., 24«). ((/) Foubert v. Twist, 1 Bro. P. C, 120. (a) Wilson v. Wilson, 1 H. L. C, 538; S. C, 14 Sim., 405; 5H. L. C, 40. ^ Foreign contrads.l^ Equity will decree specific iK-rforniuuce of a coutract, notwithstandinrr the subject was not origiually witliiii the jurisdiction of the court; the relief is not restricted to personal contracts, but extends to reiil es- tate when the parties reside within the jurisdiction, or are temjiorarily within such jurisdiction, and are served with process. ]Massie v. "Watts, 6 Crauch, 158; "Watkins v. Holnian, 16 Pet., 25; Sutjihen v. Fowler, 9 Paiire's Cb.. 280; Stainsburg v. Fringer, 11 Gill. & Johns., 149; Wood v. AVarner, !5 N. J. Eq., 81; Olmey v. Eaton, GO Mo., 563: Orr v. Quinn, 2 Law Hepls. (N. C), 465; Cleveland V. Burrell, 25 Barb., 5;52: Doolev v. Watson. 1 Gray, 414; McGreg- gorv. ■McGrcirsror, 9 Iowa. 65; Kenn v. HaVward. 14 Ohio St., 302; see. how- ever, Peter v.^Worthinuton, 14 Ala., 584; Carter v. Jordon, 15 Ga,, 76; Smith v. Iversou, 22 id.. 190; ""Akin v. Llovd, 28 111., 331 ; Birchard v. C'hcever, 40 Vt , 94. In Wiscon.sin, in an action to "enforce specific performance of a contract to convey land— Held, that the bill might be filed in any court in the State. Burrill v. Fames, 5 "Wis., 260. 4 50 FEY ON SPECIFIC PERFOKMANCE OF CONTRACTS, relative to real or immovable proi)erty, where the defend- ant is within the jurisdiction of the court. The maxim is '''■^quitas agit in i^ersonam^^^ and any operation of the judgment on the immovable estate abroad is not direct but indirect, and only through the medium of the person affected by the judgment. Thus, where Sir Philip Cartaret, the ow^ner of the island of Sark, had mortgaged it, and a bill was brought against him by the mortgagee for foreclosure, a plea put in by the defendant that the island was not within the jurisdiction of the court of chancery was over- ruled, (d)' § 104. But the court has been careful to confine its juris- diction to relief arising strictly from privity of contract : it has nothing to do with rights arising from privity of es- tate in any other country. (/") So in Norris v. Chambres(^) the court declined to enforce a lien on foreign real estate, though the parties were residing here, and the defendant had taken the estate with notice of the contract from which the lien was sought to be raised, § 105. It has been said by Mr. Justice Story, (7^) that "the doctrine of the English courts of chancery on this head of jurisdiction seems carried to an extent which may X)erhaps in some cases, not find a i)erfect warrant in the general principles of international public law," And Lord Romilly, M. E,,, in the case last cited, ado^^ting this remark, expressed his disposition not to go a step further than the cases warranted and demanded. (/) § 106. It remains to notice a case in which the court of chancery granted relief with a view to si^ecific performance against a defendant not within the jurisdiction, (j*') In that («) Toller V. Carteret, 2 Vern., 494. See, (K) Conflict of Laws, § 544 (2d ed.). too. Comes Arglasse v. Muschamp, 1 Vorn., \i) See further, as to land in the Colonies, 75; Jackson v. Petrie, 10 Ves., 164; Lord Re Holmes, 2 J. & H.,527; Sichel v. Raphael, Portarllngton v. Soulby, 3 My. & K., 104, 108; 3 N. R.. 662 ; Reiner v. Marquis of Salisbury, Story Eq. Jur., § 743. 2 Ch. D., 378; and cf. per Jessel, M. R., in (/) Vincent v. Godson, 4 De G, M. & G. , Norton v. Florence Land and Public Works 646. See, too, the argument in Innes v. Mit- Co., 7 Ch. D., 335. chell, 4 Drew., 57, and the cases collected in O) Hart v. Herwig, L. R. 8 Ch., 860. Dls- the note, p. 99. tinguish Rowney v. Alder, before Pollock, (J?) 29 Beav., -246; 3 De G. F. & J., 583. B., as Vacation Judge, 24 Sol. Jo , 807. ' It has been decided, in New York, that a court of equity may compel the specific performance of a contract to purchase land, though such contract was both made and to be performed, and the land lies within a foreign jurisdiction, provided that the defendant has been duly served with process and subjected to the jurisdiction of the court. Cleveland v, Burnell, 25 Barb., 532; New- bom V. Bronson, 3 Kern. (N. Y.), 587, EXTENT OF THE JURISDICTION. 51 case Hart, a domiciled Englisliman, agreed at Hamburg ^vitli Herwig, domiciled at Hamburg, for the purchase of a ship to arrive from San Francisco, for a certain sum liable in the event of certain damage to an abatement. The ship arrived in this country. The plaintiff claimed the abate- ment, the amount of which he alleged could be ascertained by a survey, which Herwig and the master refused, and de- clined to complete except on payment of the full price. The bill was against Herwig and the master, and prayed specific performance and an injunction against removmg the ship. This injunction was granted by Malins, V. C, and upheld by James and Mellish, L. J J. Their Lordships drew a distinction between an action for damages and the suit. H it had been the former, it was said that the action must have been in the forum of the defendant. "But where," said James, L. J., "the contract as in this case, though made abroad, is to deliver a thing in specie to a person in this country, and the thing itself is lu-ought here, then the court here, in the exercise of its discretion, will see that the thing to be delivered in this country does not leave this country, so as to defeat the right of the plaintiff to have it so delivered. "(^•) The law thus laid down seems to create an exception to the general principle of interna- tional law, which requires the plaintiff to seek the defend- ant and to sue in his forum. The decision is remarkable, but it has the authority of three unanimous judges. 12. Quasi-contracts in respect of loliicJi the court has jurisdiction. § 107. There is a class of quasi-contracts in res2)ect of which the court entertains jurisdiction, viz.: where the re- lationship of vendor and purchaser is constituted by the exercise of those compulsory powers of railway and other companies which are conferred by the lands clauses consoli- dation act, 1845, and similar statutes. They are here called quasi-contracts, because when the proceedings are strictly under the statute there is an absence on the part of the man whose land is taken of that volition, which seems an essen- tial element in all true contracts. {k) PageS64. ^ 62 FKY OX SPECIFIC PERFORMANCE OF CONTRACTS. § 108. It was at one time supposed tliat the mere notice to treat constituted the relation of vendor and purchaser to such an extent that a suit in equity could thereupon be maintained. But it is now well ascertained that such is not the case, and that though the notice constitutes the relation for certain purposes, such as that the particular lands to be taken are fixed, and that the company cannot get rid of the obligation to take nor the landowner of the obligation to give up these lands, yet that there is no contract between the 23arties and no ground for equitable intervention. (Z) § 109. After this notice is given, the act points out the method in which the purchase-money is to be ascertained. If the amount claimed do not exceed £50, it is to be settled by two justices ; if it exceed £50 it is to be settled by arbi- tration if the landowner so require, but otherwise by a jury, to be summoned at the instance of the company, (m) § 110. If after notice given the landowner refuse to con- vey, the company can proceed against him under their statu- tory powers, but have no ground for equitable relief ; and conversely if after notice the company refuse to proceed, the landowner cannot, it is conceived, generally sue in equity ; but he may apply for a mandamus to compel the company to proceed under the statute to ascertain the com- pensation money payable. (7z) § 111. There is one case,(o) however, in which jurisdic- tion was entertained by the court of chancery to enforce on the railway company proceedings under the lands clauses consolidation act. The question was how far a piece of land came within the definition of curtilage, so that if the com- pany took any j)art they could be compelled to take the whole under section 92 of the lands clauses consolidation act. The company gave a notice to take the part ; the plain- tiff gave a counter- notice to take the whole ; the comjDany took possession of part, and the plaintiff thereupon filed his bill and obtained at the hearing a declaration that the com- pany were liable to take the whole and a reference for title ; (I) Haynes v. Haynes, 1 Dr. & Sm., 426, way Co., 2 Mac. & G., 118; Lind v. Isle of where all the earlier cases are considered Wight Ferry Co., 7 L.T. (N. S.), 416; 1 N. R., and classified. See, however, Marson v. 13 ; cf. Leominster Canal Navigation Co. v. London, Chatham and Dover Railway Co., Shrewsbury and Hereford Railway Co., 3 K. L. R. 6 Eq., 101 ; 7 Eq., 546. & J., 654 ; and consider Baker v. Metropolitan (m) Lands Clauses Consolidation Act, 1845, Railway (Jo., 31 Beav., 504, 511. §§ 2-i, 23. (o) Marson v. London, Chatham and Dover (n) Adams v. London and Blackwall Rail- Railway Co., L. R. 6 Eq., 101. EXTENT OF THE JURISDICTION. 53 when the case came on for further consideration (^;) the plaintiff's counsel admitted that there was no precedent pointing out what course was to be pursued ; but they asked and obtained a direction that the defendant company should proceed under the lands clauses consolidation act to ascertain the amount payable for the value of the land, and directions for the payment of this amount and execution of the conveyance. The question of jurisdiction to make such a decree as was made does not seem to have been raised at the hearing. § 112. After the ascertainment of the amount of pur- chase-money, the equitable jurisdiction of the court of chan- cery was clear. There then exists what has been called a parliamentary contract, and the performance of that so- called contract could not be enforced at common law, for the courts of common law having no machinery for investi- gating the title or settling the conveyance could not do com- plete justice between the parties; but a suit might have been maintained in equity by either party to carry into exe- cution this quasi-contract. (^) For this purpose it seems to have been considered immaterial whether the compensation money had been ascertained in strict pursuance of the act or otherwise. In Mason v. Stokes Bay Pier and Railway Co.(r) and Harding v. The Metropolitan Railway Co. (.9) the compensation money was ascertained by statutory arbitra- tions ; in Nash v. The Worcester Improvement Commis- sioners (t) by the verdict of a jury, in Inge v. Birmingham, Wolverhampton and Stour Valley Railway Co.{u) the com- pensation was settled by correspondence, in The Regent's Canal Co. v. Ware {v) by arbitrators appointed under a writ- ten agreement, and in Watts v. Watts (■?/?) by two surveyors named by jmrol ; and in all these cases, as well where the act was as where it was not strictly pursued, the court of chancery entertained jurisdiction. In the latter class of cases the relation constituted ai)proached to, if it did not assume, the character of true contract. J; 113. It is probahly hardly needful to observe tliaf. if, (p) L. R. 7 Eq., 546. {s) L. R. 7 Ch., 154. {. R. 17 Eq., 217. (v) 23 Beav., 575. (r) 11 W. R., 80; 32 L. J. Ch., UO. (if) L. R. 17 Eq., 217. 54 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. after statutory notice, a contract should be entered into be- tween the company and the landoAvner, such a contract may be the subject-matter of an action for specific performance, just in the same way as any other contract, (rr) It is none the less a contract, because the relations between the parties began under the statutory powers of the company.' (X) Per Kindersley, V. C, in Havnes v. but unsuccessfully, tried to give the go-by to Haynes 1 Dr & Sm., 457. See Wells v. the contract by proceedings under §§ 76, 77 Chelmsford Local Board of Health (15 Ch. of the lands clauses act. D., Iii8), where the defendants ingeniously, ' Not decreed wJien it looidd be inequitable so to do.] Where the contract is for the sale of laud, the court will not decree the specific performance of a con- tract to convey, where it would be unjust and inequitable so to do. Fitzpatrick V. Dorland, 27 Hun, 291. Reqidsiti'S.] Particularity, a consideration (which must be a valuable one), certainty, mutuality and a necessity for performance, are requisites upon which the equity of a case arises. Ashton v. Robinson, 49 Miss., 348; see, also, Willard v. Taylor, 8 "Wall., 557. Powers of United States courts.] The powers and rules of decision are the same in all the States; the equity jurisdiction is derived from the constitution and the laws of the United States. Noonan v. Lee, 2 Black. , 499. Specific ])e7'fo?-mance as to contracts of insurance.] Where there is a contract to insure, and a loss has occurred, the court will not compel the plaintiflF to have recourse to an action at law ; it will decree specific performance of the contract and paj'ment. Mead v. Davison, 3 Adol. & El., 303; Carpenter v. Mutual Safety Ins. Co., 4 Sandf. Ch., 408; Perkins v. Wash. Ins. Co., 4 Com. 645; S. C, 23 Wend., 18, 425; Taylor v. Merchants' Fire Ins. Co., 9 How. (N. S.), 405. CONTEACTS WITH A PENAL SUM. 55 CHAPTER III. OF CONTEACTS WITH A PENAL OE OTHEE LIKE SUM. § 114. From the principles stated in the last chapter, it appears that where a contract is substantially x)erformed by the payment of a sum of money, the common law remedy being adequate, equity mil not interfere. Hence, in cases where there is added to the contract a clause for the pay- ment of a sum of money in the event of non-performance, the question arises whether the contract will be satisfied by its payment, or whether it will not. In the former case, equity will not interfere ; in the latter it may. § 115. The question always is. What is the contract? Is it that one certain act shall be done, with a sum annexed whether by way of penalty or damages to secure the i^er- f ormance of this very act ? or is it that one of two things shall be done at the election of the party who has to per- form the contract, namely, the performance of the act or the payment of the sum of money X If the former, the fact of the penal or other like sum being annexed will not prevent the court enforcing performance of the very act, and thus carrying into execution the intention of the parties ; («) if the latter, the contract is satisfied by the payment of a sum of money, and there is no ground for proceeding against the party having the election to compel the performance of the other alternative.' § 116. From what has been said it will be gathered that (a) Howard V. Hopkins, 2 Atk., 371; Frencli tholomew, 12 Pri., 797. V. Macale, 2 Dr. & War , 269; Roper v. Bar- 1 The test, in these cases, by which to determine whether relief will, or will not, be granted in equity, is to consider whether compensation can be made or not. If it can be made, then equity will interfere; if it cannot, equity will not interfere. Hackett v. Alcott, 1 Call., 533; Skinner v. Dayton, 3 John. Ch., 431. City Bank of Baltimore v. Smith, 3 Gill & John., 265. But the case must be such that the party can be fully and clearly indemnified, and placed in sitatn quo. Skinner v. Dayton, 3 John. Ch., 431; S. P., Skinner v. White, 17 id. 357. 66 FEY o:n^ specific performance of contracts. contracts of the kind now under discussion are divisible into three classes : (1) Where the sum mentioned is strictly a penalty — a sum named by way of securing the iDerformance of the contract, as the penalty in a bond. (2) Where the sum named is to be paid as liquidated damages for a breach of the contract. (3) Where the sum named is an amount the payment of which may be substituted for the performance of the act at the election of the person by whom the money is to be paid or the act done. Where the stipulated payment comes under either of the two first mentioned heads the court will enforce the con- tract, if in other respects it can and ought to be enforced, just in the same way as a contract not to do a particular act with a penalty added to secure its performance or a sum named as liquidated damages may be specifically enforced by means of an injunction against breaking it. On the other hand, where the contract comes under the third head, it is satisfied by the payment of the money, and there is no ground for the court to compel the specific performance of the other alternative of the contract. (&) It will be conven- ient to consider the three classes of cases separately. § 117, (1) A penalty (strictly so called) attached to the breach of the contract will not prevent it from being specifi- cally enforced. "The general rule of equity," said Lord St. Leonards,(c) "is that if a thing be agreed upon to be done, though there is a penalty annexed to secure its performance yet the very thing itself must be done. If a man, for instance, agree to settle an estate and execute his bond for £600 as a security for the performance of his contract, he will not be allowed to pay the forfeit of his bond and avoid his agreement, but he will be compelled to settle the estate in sj)ecific perform- ance of his agreement. (^) So, if a man covenant to abstain from doing a certain act and agree that if he do it he will (b) "There are," said Brarawell.B., In Legh statute; and thirdly, covenants that acts shall V. Llllie, 6 H. & N., 165, 171 ; 30 L. J. Ex. 25, not be done unless subject to a certain pay- 28, "three classes of covenani 8 : first, coven- ment." ants not to do particular acts, with a penalty (c) In French v. Macale, 2 Dr. & War., for doing them, which are within the S and 9 274-5 Win. Ill, ch 11; secondly, covenants not to (d) The case referred to seems to be Chil- do an act, with liquidated damages to be paid liner v. Chilliner, 2 Ves. Sen , 5;8. if the act is done, which are not within the CONTRACTS WITH A PENAL SUM. 57 pay a sum of money ; it would seem that lie will be com- pelled to abstain from doing tliat act, and, just as in the converse case, he cannot elect to break his engagement by paying for his violation of the contract." § 118. Thus where two persons entered into articles for the sale of an estate, with a proviso that, if either side should break the contract, he should pay £100 to the other, and the defendant, by his answer, insisted that it was the intention of both parties that, upon either paying £100, the contract should be absolutely void, Lord Hardwicke never- theless decreed specific j)erformance of the contract to sell.(e) In another case, the condition recited a contract for a settlement comprising a sum of money and also real estate; the penalty was double this sum of money, but had no rela- tion to the real estate ; the court granted specific i^erform- ance of the contract embodied in the condition. (/) And where a father, in consideration of his daughters giving up a part of their interest in the property, agreed to make up their incomes arising out of it to £200 a year, and entered into a bond for the payment of such sum as might be need- ful for that purpose, and the bond recited the contract, the court took this as evidence of the contract, and accordingly granted relief on the foot of it beyond the bond ; {g) and in a case which went to the House of Lords, a contract (con- tained in the condition of a bond) to give certain property by will or otherwise, was held not to be satisfied by the penalty, but was specifically performed. (7^) § 119. So, again, a contract not to carry on a particular kind of business within certain limits expressed in the con- dition to a bond can be enforced by injunction. (/) § 120. (2) The difference between penalty and liquidated damages is, as regards the common law remedy, most ma- terial. For according to common law, if the sum named is not a penalty, but the agreed amount of liquidated dam- ages, the contract is satisfied either by its performance or the payment of the money, [j) But as regards the equitable (f) Howard v. Hopkins, 2 Atk., 371. (i) Clartson v. Edge, 33 Beav., 227; Grave- (/) Prebble v. Boghurst, : Sw., 309. ly v. Barnard, L,. R. IS Eq , 518 (g) Jeudwine V. Agate, 3 Sim., Ul. (j) Anon., Hard., 320 ; Lowe v. Peers, i (h Logan V. Wienholt, 7 Bli. (N. S.), 1; 1 Burr ,22.'5; Hurst v. Hurst, 4 Ex ,571; Legh V. L El. 776. Qi) Logan v. Wienholt, 7 Bli. (N. S.), 1; 1 , , - CI. & Fin , 611. See, also, Butler v. Fowls, 2 v. Lillie. 6 H. & N , 165; Mercer v. Irving, Coll , 156. El. B. & E., 563; Atkyns v. Kinneir, 4 Ex., 58 FRY OX SPECIFIC PERF0E3IANCE OF CONTRACTS. remedy the distinction is unimportant ; for the fact that the sum named is the agreed amount to be paid as liquidated damages is, equally with a penalty strictly so called, inef- fectual to prevent the court from enforcing the contract in specie, (ly § 1:31. The simplest illustration of this is the ordinary case of a stipulation on the sale of real estate that if the purchaser fail to comply with the condition he shall forfeit the deposit, and the vendor shall be at liberty to resell and recover as and for liquidated damages the deficiency on such resale and the expenses. (Z) Such a condition has never been held to give the i^urchaser the oi3tion of refusing to perform his contract if he choose to pay the penalty, nor to stand in the Avay of specific ^performance of the contract. § 122. In French v. Macale(m) Lord St. Leonards fully discussed the law as to compelling the performance of con- tracts of the kind under discussion. In that case there was a covenant in a farming lease "not to burn or bate the de- mised premises, or any part thereof, under the penalty of £10 per acre, to be recovered as the reserved yearly rent for every acre so burned." His lordship appears to have con- sidered this increased rent as in the nature of liquidated damages and not a penalty ; but, nevertheless, he granted an injunction against the burning, saying after a careful review of the authorities that in every case of this nature the question is one of construction, and that the court will always interfere unless there is evidence of an intention that the act is to be permitted to be done on iDayment of the increased rent, § 123. In one case a deed was executed dissolving a part- nership between H. and L., and containing a recital that it had been agreed that the deed should contain a covenant by L. not to carry on the trade within one mile from the old (k) City of London v. Pugh, 4 Bro. P. C, {[) "X purchaser," said Lord Eldon in 395; Webb v. Clark, 1 Fonbl. Eq , 154; French Crutchley v. Jernlngham (2 Mer., 506), " has V. Macale, 2 Dr. & War., 296; Coles v. Sims, no right to say that he will put an end to the 5 De G. M. & G., 1 ; Garden v. Butler, Hayes agreement, forfeiting his deposit." Cf. Long 6 J., 112; Bird v Lake, 1 H. & M., HI; cf. v. Bowring, 33 Beav., 585. Bray v. Fogarty, I. R. 4 Eq., 544. (?«) 2 Dr. & War., 369. _ ^ Liquidated damages. '\ Where the contract stipulates for the payment of liquidated damages in case of failure of performance, the court may decree specific performance, unless the agreement itself gives an option of payment instead of performance. Hull v. Sturdivant, 46 Me., 44; Dooley v. Watson, 1 Oray, 414; Hooker v. Pynchon, 8 id., 550. 1 CONTRACTS AVITII A PEXAL SUM. • 69 place of business "without paying to H., as or by way of stated or liquidated damages," a sum named. In a subse- quent part of the deed there was an al)solute covenant not to carry on the trade Avithin that limit, followed by a proviso that if L. should act contrary to or in infringement of that agreement he would immediately thereupon pay to H. the sum of £1,500 by way of liquidated damages. Notwith- standing the recital and the form used, it was held that L. was not entitled to break the covenant on paying the £1,500, and an injunction was granted. (??,)' § 1'24. The same view was put forward, though perhaps in slightly different language, by the lords justices in Coles V. Sims.(c») That Avas a case in which there were mutual covenants between a vendor of part of his land and the pur- chaser of that part as to building on the sold and unsold parts, with a stipulation for payment of liquidated damages in case of breach or covenant. On an application for an interim injunction (which was granted). Knight Bruce, L. J., said -.{p) " If I were now deciding the cause, I should proba- bly come to the conclusion that in a case where a covenant is protected (if I may use the expression) hj a i^rovision for liquidated damages, it must be in the judicial discretion of the court, according to the contents of the whole instrument and the nature and circumstances of the particular instance, whether to hold itself bound or not bound upon the ground of it to refuse an injunction if otherwise proper to be granted; and that in the present case, the circumstances are such as to render it right for the conrt to grant an injunction."' Turner, L. J., added : "The question in such cases, as I con- ceive, is whether the clause is inserted by way of penalty, or whether it amounts to a stipulation for liberty to do a certain act on payment of a certain sum." § 125. Where the contract to do or not to do the act is (?!) Bird V. Lake, 1 11. & M., 111. (p) 5 De G. M. & G., 'J. (o) 5 De G. M. & G., 1. ' Inpaiction.] A bond was given ])y a clerk to his oniployer, in ihe penalty of £1,000, stipulating that the obligor should not carry on the .same business ■within a specified distance. Ileld.lhat the bond was not merely to secure the price of doing the business on the clerk's part, but to prevent him from iloiug it. An injunction was granted. Howard v. Woodward, 84 L. J. C, 47; Jones V. Heaueus, L. R., 4 D. C, 636; see, however, IS^obles v. Bates, 7 Cow.. 307; Dakiu V. Williams, 23 Wend., 201. 60 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. distinct from the obligation to pay a sum of money, it seems that either the contract or the obligation may be sued on. •^ Where a person," said Lord Romilly, M. E,., in Fox v. Scard,!^) "enters into an agreement not to do a particular act and gives his bond to another to secure it, the latter has a right at law and in equity, and can obtain relief in either, but not in both, courts." § 126. It is clear that the fact that the contract may be comprised in a bond does not of itself import any election to pay the money and refuse to do the act.(r) § 127. (3) In the third class of contracts, which may be distinguished as alternative contracts, the intention is that a thing shall be done or a sum of money paid at the election of the person bound to do or pay. In these cases the contract is as fully performed by the payment of the money as by the doing of the act, and, there- fore, where the money is paid or tendeited there is no ground for interference by w^ay of specific performance or injunction. § 128. The question to which of the three foregoing classes of contracts any particular one belongs is, of course, a question of construction.' In considering it "the courts must, in all cases, look for their guide to the primary inten- tion of the parties, as it may be gathered from the instru- ment upon the effect of which they are to decide, and for that purjDose to ascertain the precise nature and object of the obligation." (5) Consequently each case depends on its own circumstances, but it may be noticed that "a court of equity is in general anxious to treat the penalty as being merely a mode of securing the due performance of the act contracted to be done, and not as a sum of money really in- tended to be paid;"(^) and that, "on the other hand, it is (g) 33 Beav., 328. (s) Roper v. Bartholomew, 12 Pri., 821. (r) Hobson V. Trevor,2 P. Wms.lGl; Chil- (t) Per I>ord Cranworth in Hanger v. Great liner v. Chilliner, 2 Ves. Sen., 528; Clarkson vvestern Railway Co., 5 H. L. C, W; Astley V. Edgp, 33 Beav., 227. " The form of mar- v. Weldon, 2 Bos. & P., 346. riage articles by bond does not import elec- tion." Roper V. Bartholomew, 12 Pri., 797. ' Ilacklett V. Alcott, 1 Call., 583; City Bank of Baltimore v. Smith, 3 Gill & John., 265; Moore v. Piatt Co., 8 ^NIo. , 467. The intention of the parties, if it can be ascertained, must govern as to whether the sum specified is to be regarded as a penalty, or as liqi;idated damages. The case, however, must be free from fraud. Durst v Swift, 11 Lexax, 273; Cothreal v. Talmadge. 9 N. Y., 557; Bagley v. Peddie, 16 id.. 409. A diflfereut rule is held in Michigan. See Jaquith v. Hudson, 5 Mich., 123. In Iowa, the inclination of the court is to regard the amount named as a penalty, where it is doubtful what the parties really intended. Foley v. Keegan, 4 Iowa, 1. CONTRACTS WITH A PENAL SUM. 61 certainlj^ open to parties who are entering into contracts to stipulate that on faihire to perform wliat lias been aureed to be clone, a fixed sum shall be paid by way of compensa- tipn."(?^)' § 1"39. On this question it is by no means conclusive that the contract may be alternative in its form, for, nevertheless, the court may clearly see that it is essentially a contract to do one of the alternatives ; so that where there was a con- tract to renew a certain lease, with an addition of three years to the original term, or to answer the want thereof in dam- ages, the court decreed specific performance of the lease, (u) Ranger v. Great Westera Railway Co., 5 H. L. C, 04. ' The legal operation of a penalty, properly so called, is not to create a for- feiture of the entire sum named, but only to cover the actual damaires occa- sioned b}^ the breach of contract ; and, therefore, on paj'ment of such damages, or in the case of a bond, of the principal and interest actually due, the party who has incurred the penalty will be relieved or discharged from it. But in the case of what is termed liquidated damages, the whole of the precise sum named may be exacted of the party who is in default, and the court will not interfere to relieve him Burr. Law Diet. The theory in courts of equitv, in granting relief in cases of penalties, treats them as securities for the conditions of the contract — as a means of securing payment — and it is only on tliis ground that relief is granted. IFonbl. Eq. B. 1, ch. 6, g 4, note (A). Peachy v. Duke of Somerset, Pre. Ch. 568; Skinner v. Dayton, 2 John. Ch., 535. It is in cases of this kind only — that is, in the nature o"f a security — that a court of equity will ever enforce & forfeiture. "It is admitted, indeed," says Mr. .lustice Story, " that where the condition or forfeiture is merely a security for the non-pay- ment of money (such as the right of re-entry upon non-payment of rent), there it is to be treated as a mere security, and in the nature of a penalty, ami is ac- cordingly relievable." Hill v. Barclay, 18 Ves , 58; Wadham v. Calcraft, 10 id., 68; Reynolds v. Smith, 19 id., 140. But if the forfeiture arises from the breach of any other covenant of a collateral nature, as, for example, of a cov- enant to repair, there, although compensation might be ascertained, and made upon an issue quantum damnijicatus, yet it has been held that courts of equity ought not to reUeve, but should leave the parties to their remedy at law. Wad- ham V. Calcraft, 10 Ves., 68; Hill v. Barclay, 16 id., 40:3; S. C. 18 id., 59; Reynolds v. Pitt, 19 id., 140; Bracebridire v. Buckley, 2 Price's R., 200. la England it is held, that in all cases of forfeiture for the breach of any covenant, other than a covenant to pay rent, no relief ought to be granted, in ecpiity, im- less upon the ground of accident, mistake, fraud or surprise, although the breach is capable of a just compensation. Eaton v. Lvon, 3 Ves., 692: Brace- bride V. Buckley, 2 Price's R.. 200: Hill v. Barclay, 16 Ves.. 403: Rolf v. Harris, 2 Price's R., 206; White v. Warner. 2 Meriv., 459; Eden, Injunc, ch. 2. p. 22. In New York it has been held that relief will not be granted for a breach of a condition contained in a lease, unless the forfeiture was incurred through acci- dent or mistake, for which compensation can be made to the other party; or where the forfeiture is in the nature of a mere security for the payment of money. Baxter v. Lansing, 7 Pai^e, 350. The rule, however, was formerly different. Popham v. Bampfield, 1 Vern., 33: Havwards v. Angell. 1 ierformauce of the covenants of a written agreement. One of the covenants was, not to re- veal the secrets of a trade in which the i)rincipal obligor was to be employed. It was held, that the amount of damages to result from a breach of this stipu- lation of the agreement was so uncertain and conjectural, that the sum named in the bond should be considered as li(juidated damages, and not a penalty, although the damages of the actual breach were certaiiu The following cases were also held to be those of liquidated damages: A partv agreed to convey u tract of land for $1,200, a part of which was to be paid down, and was to be received as part of the consideration money, if the i)urchase were completed, or of the damage, if the contract were not performed ; and he also covenanted, if he did not conform to his agreement, to pay .^oOO as forfeiture. Chamber- lain V. Bagley, 11 N. H., 2M. A. covenanted with B. to procure and deliver to him, within a limited time, the certificate of third persons to a certain etTect, and stipulated that if he failed to do so, he would pay him .^-lOO liiiuidated damages. Hamilton v. Overton, G Blackf., 20G. Where a jKirty. in considera- tion of having conveyed to him fourteen city lots for only sj 1,000, covmauted that he would, by a certain day, erect two brick houses," or in default thereof pay to the grantor, on demand, the sum of $4,000. AVhere the plaintiffs gave |;3,000 for the patronage and good will of a newspaper, and $500 for the type, etc., and the vendors covenanted that they would not ])ublisli a rival paper, etc., and the measure of damages was fixed at ^3,000. Dakin v. Williams, "2'i Wend., 201. Where the parties contract mutually to do certain ai-ts at a fixed time, and "respectively bind themselves each to the other in the sum of $500. for the faithful performance of the several agreements herein entered into," the sum is not to be considered as a penalty. (Jamnion v. Howe, 2 Shep.. 250. Where publishers agree to sell law reports to all applying or pay $100 for each refusal. Little v. Banks, 85 N. Y., 258. 64 FRY OX SPECIFIC PERFORMATs^CE OF CONTRACTS. in £5,000, on the marriage of liis daughter, to settle one- tliird of such i^roperty, and the contract so to settle was recited in the condition of the bond, it was specifically per- formed in full, and not up to £5,000 only.(^) "Such agree- ment," said Lord Macclesfield, (^) "was not to be the weaker but the stronger for the penalty." § 13*3. The fact that the benefit of the contract would result to one person, or flow in one channel, and the benefit of the sum, if paid, in another, is a strong circumstance against considering the contract alternative in its nature ; thus where, on a marriage, the husband's father gave a bond for the payment of £600 to the wife's father, his executors or administrators, in the p)enalty of £1,200 if he did not convey certain lands for the benefit of the husband and wife and their issue. Lord Hardwicke held that the obligor was not at liberty to pay the £600, or settle the lands, at his election, but comjDelled the specific performance of the con- tract to settle — partly on the ground that the £600 would not have gone to the benefit of the husband and wife and their issue, but of the wife' s father and his rei3resentativesj and partly that the lands to be settled were worth much more than £600. (a) § 133. Where the sum reserved is single, and the act stipulated for or against is in its nature continuing or recur- ring, as, for instance, particular modes of cultivating a farm, the sum will be considered as a security and not an alterna- tive. (Z^) § 134. On the other hand where the sum or sums made payable vary in frequency of payment or amount according to the thing to be done or abstained from, the courts have, in many cases, found that the payment is an alternative. § 135. In Woodward v. Gyles (c) a covenant by the de- fendant not to plough meadow land, and if he did, to pay so much. an acre, was held not to be a fit case for an injunc- tion restraining the ploughing ; but the exact form of the* covenant does not appear. " If , " said Lord St. Leonards, {d) "as in Woodward v. Gryles,(e) and Rolfe v. Peterson, (/) (j/) Hobson V. Trevor, 2 P. Wms., 191. And see Eoper v. Bartbolomew, 12 Pri., 797. (Z) 3 P. Wms., 102^6th ed.). (c) 2 VernT, 119. (a) ChilUner v. ChiUlner, 2 Ves. Sen., 528; (d) 2 Dr. & War , 284. Roner V. Bartholomew, 12 Prl., 797. (e) 2 Vern., 119 (6) French v. Macale, 2 Dr. & War., 269. C/) 2 Bro. P. C , 436 CONTRACTS WITH A PEXAL SUM. 65 there is evidence of intention that the party is to l)e at liberty to do tlie act if he choose to pay the increased rent of course the court cannot interfere, because this court never interferes against th^ exi^ress contract of the parties." § 136. In Rolfe v. Peterson (r/) the question was whether the payment was a penalty and so came within the doctrine of equitable relief against penalties ; but of it Lord Lough- borough said, in Hardy v. Martin (7^) : " That was a case of demise of land to a lessee to do with the land as he thouglit proper; but if he used it one way he was to pay one rent and if another way another rent." Similarly, a covenant in a farm lease not to do certain things " under an increased rent of," etc., was held to give the tenant the right to do the act on paying the increased rent,(/) and a contract to renew perpetually "under a penalty of £70," was held alternative, (y) § 137. But where, in addition to the increased rent, there is a stipulation that the act provided against shall be a for- feiture of the covenantors interest, the sum is held to be a security only and not an alternative ; and consequently the court would restrain the doing of the act \{k) and, of course, the usual form of lease giving the lessor the right to re-enter and avoid the lease on breach of covenant offers no impedi- ment to the enforcement of the covenants specilicallj'-.(7) § 138. Where the contract would be unreasonable unless It gives an option to the person stipidating to pay the sum, this will be a strong circumstance for treating the contract as alternative. So where a lady, administratrix of her hus- band, covenanted, under a penalty of £70, to renew a sub- lease as often as she obtained a renewal of the head-lease, and it appeared that the lines on the head-lease were raised on renewal, according to the then vahie of the property, so as to render her covenant unreasonable except upon the construction of its giving her an option, the House of Lords treated the contract as alternative. (7/^^) ig) 2 Bro. P. C., 43G. 0) Magrane v. Archbold, 1 Dow, 107. (h) 1 Cox, 26. (k) Barret v. Blagravc, 5 Ves., 555, as ex- (i) 2 Legh V. Linie,(> H. & N.,165: OW. R., plained hv Lord St. I.eonards in French v. 55; 30 L. J. Ex., 25. And see Hurst v. Hurst, Macale, 2 Dr. & War., 2T8-y 4 Ex., 571 ; Gerrard v. O'Reilly, 3 Dr. & War., (/) Dyke v. Taylor, 3 Do (i. t. jc j .. 4l4. (7/t) Magrane v. Archbyld, 1 Dow, 10 66 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. PART 11. PARTIES TO THE ACTION. CHAPTER I. OF THE GENERAL RULE. § 139. Ill considering the subject of this chapter it will be convenient to treat separately (1) of the rules formerly aiDplicable to suits for specific performance in the court of chancery, and (2) of the rules now applicable to like actions in the high court constituted by the judicature act, 1873. It is not yet possible to neglect the old i^ractice, as it will no doubt be appealed to, from time to time, as assisting to guide the court under the new jDractice. 1. As to tlie former iDractice of the court of cliancery. § 140. The general rule with regard to suits to enforce contracts was that the parties to the contract, or their rej^re- sentatives, were the necessary and sufficient parties to the suit — that all the parties to the contract should be parties to the suit and no one else.( Morgan v. Milraan, 10 Ha., 270; S. C, 3 (h) Johnstone v. Hall, 2 K. & J., 414. De G. M. & G., 24 ; Lowe v. Swift, 2 Ball & B., (i) S. C. 529; and see Affleck v. Affleck, 3 Sm. & G., (i) Jackson v. Pesked.l M. & S ,233; Bax- 3''4. ter V. Taylor, 4 B. & Ad., 72; Mumford v. (d) See IntYa, § 566. Oxford, etc., Railway Co., 1 H. & N.. 34; (e) Supra, Part I, ch. 2, § 93. Simpson v. Savage, 1 C. B. (N. S.), 347; Mott (/) 3 and 4 Wm. IV, ch. 74, § 47. v. Shoolbred, L. R. 20 Eq , 22. (?) Isherwood v. Oldknow, 3 M. & S., 832. GENERAL RULE. 75 eluded themselves from the objection bj- the course they had pursued. (A*) § 159. Where the circumstances of the case were fitting, some might sue for specific performance on behalf of all ;(Z) thus the directors of an unincorporated joint-stock company- were allowed to sue on a contract toinake a lease to them in trust for the company, without joining all the sharehold- ers. (??<) But in the converse case, there was great difficulty in applying to specific perfonnancfe the principle that some might be sued on behalf of all; from the nature of such suits, however, this application of the principle was not often required for the ends of justice. In one case, a joint- stock company established by an act of Parliament, which vested in them all property then belonging to them and authorized them to bring actions in the name of their treas- urer, purchased an estate, with notice of a prior contract by the owner to grant a lease of i)art ; on a bill by this x:)ro- posed lessee against the directors and treasurer, but not the other proprietors, asking for a specific performance of the contract, Grant, M. R., said, that though he could bind the interests of parties not before the court, he could not compel them to do an act, and that the execution of the lease by a few on behalf of all would hardly be sufficient, sup- posing it proper. He, however, gave the plaintiffs all the relief he could, by enjoining the treasurer from disturbing their possession, though he could not compel specific per- formance of the contract. (??,)' (k) Fenwick v. Bulman, L. R. 9 Eq., 165. Att. Gen. v. Mavor and Corporation of Poole, (0 Fenn v. Craig, 3 Y. & C. Ex., 216. 4 My. & Cr., 17; Pare v. Clegg, 21) Beav , 580; (m) Taylor v. Salmon, i My. & Cr., 134. Cullen v. Duke of Queensbury, 1 Bro. C. C, (m) Meux v Maltby, 2 8w., 27". And 101; 1 Bro. P. C, 396. see Adair v. New River Co., 11 Ves., 429; 1 It is clearly the nile that a part may file a bill iii behalf of themselves and all others in the same situation. IJobiuson v. Smith,' 2 Paige, 322. So, in Beatty V. Kurtz, 2 Pet., 566, it was held that a part of the persons belonging to a vol- untary society, and having a common interest, may sue in behalf of themselves and others having the like interest, as part of the same society, for purposes <;ommon to all and beneficial to all. Thus, part of the members of a German Lutheran Society, not incorporated, may file a bill for an injunction to prevent their possession of land dedicated to tiie use of the society, from being dis- turbed. Id. And where real estate had been purchasetl by a joint fund raised by subscription, in shares, by more than 250 subscribers, and the property con- veyed to trustees for the stockholders, on a bill for the sale of the premises -under a mortgage made by the trustees, it wa.s held to be unnecessary to make the stockholders parties, the trustees sufficiently representing all the interests concerned. Van Vechten v. Terry, 2 John. Ch., 197. In a l)ill against an un- incorporated banking company, the members of which are numerous, and m 76 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 160. There are a few cases in which the strict rule that none but the parties to a suit for its specific performance, appears to liave been relaxed in order to avoid multiplicity of suits.' § 161. To this principle we may probably refer the case of Lowther v. Viscountess of Andover,(o) where a father entered into a covenant with the trustees of his daughter's marriage settlement to endeavor to purchase certain re- mainders in estates of which he was tenant for life, and, when purchased, to convey them to the uses of the settle- ment. The covenantor died, having previously entered into a contract for the purchase of the remainders ; on a bill filed by the trustees of the settlement against the vendors, and it would seem also the personal representative of the deceased covenantor, specific performance was granted. In another case, where the Duke of Chandos had granted to A. a lease of a lodge, and also the deputation of a keepership in Enfield Chase, and A. assigned, but for part of the term (0) 1 Bro. C. C, 396. As to creditors of a deceased vendor suing, see Johnson v. Leg- ard, T. &R.,281. part unknown, it is not necessary to bring all the stockholders before the court, before a decree can be made. Mandeville v, Riggs, 3 Pet., 482. A. filed a bil} against B. and the commissioners of the bank of J., to subject the stock of B. in said bank to the payment of a judgment ; held, that the stockholders were not necessary parties to the bill. Dana v. Brown, 1 J. .J. Marsh., 804. Where some twenty-eight persons are associated together for the purpose of trade, the legal title to all their property, being in a part of them for the benefit of the whole, it is sufficient if those having the legal title be made parties defendant or complainant in a bill in equity. Martin v. Dryden, 1 Gilm., 187. But a bill will not lie by a freeholder or inhabitant of a town, respecting its common property, without the consent of the town, duly declared. Denton v. Jackson, 2 John. Ch., 320. The officers of a bank are, individually, not proper parties to a bill brought to enforce a demand against the corporation ; and the bill should be dismissed on demurrer. Wood v. Bank of Kentucky, 5 Monr.. 194, and Atterbury v. Knox, 8 Dana. 282, are authorities to the effect that where the allegations to a cross bill are, that the complainant was the agent of a Jor eign bank, doing banking business in Kentucky contrary to the laws of Ken- tucky, exacting more than legal interest, the bank should have been made a. party, and that it was erroneous to try the cause without it. In these cases it is no objection that the trustee and ce-sfni que trust unite in the same bill. So, where trustees filed a bill without disclosing their beneficiary, and afterwards filed a supplemental bill, disclosing the fact that they were trustees of the United States Bank, and praying that it might be made a party complainant to- the bill and also an amended supplemental bill, disclosing that the bank had gone into li(iuidation, and that certain persons were appointed assignees, ^nd praying that they might be made parties complainant; it was held, that all those persons constituted, in law, but one, representing the interests of the bank. Hitchcock V. United States Bank, 7 Ala , 387. ' Where, in order to avoid a midtiplicity of actions, the plaintiff must, as a gen- eral rule, first establish his right at law, before the court will interfere to en- force a contract. Pen. Co. v. Delaware Co., 31 N. Y., 91. GENERAL RULE. 77 only, to B., B. was allowed to maintain a bill against the dnke and A. for tlie rectification of a mistake in the oiiuinal grant by the dnke, and for a new and sufficient gi'ant by him.(^y) § 162. The same i^rinciple is illustrated by another case, In which a bill was filed by a purchaser against trustees for sale, to enforce the specific performance of a contract for the sale of lot A. ; it was resisted on the ground that by an aiTangement, to which the plaintiJff was a party, part of that lot as originally described was taken from it and given to the adjoining lot B. The bill Avas amended to put in issue this averment, which came out in the answer, but without adding as defendant the purchaser of lot B. ; and the court held that he ought to have been made a defendant, for otherwise the vendors would be exposed to another suit from the purchaser of lot B.($')' § 163. And where there were claims made by persons, strangers to the contract, adversely to both the parties to it, they might under some circumstances be made defendants to a suit for the performance of it. Thus, where an assignee under an insolvency sold a reversionar}- interest in stock of the insolvent, and the purchaser was served with notice not to pay the purchase-money to the assignee by a person claiming under a previous assignment by the insolvent sub- sequent to his insolvency, a bill was brought against the assignee and the adverse claimant, and prayed an inquiry (p) Jaiabert v. Duke of Chandos, 1 Eden, (?) Mason v. Tranklin, 1 Y. & C. C. C, 239, 37-2. 1 White V. Watkins, 23 Mo., 423. ' A cesfui que trust is not a proper party to an action brouglit by a trustee to enforce specitic performance of an agreement to convey land^ even where the money paid on the contract was a trust fund. Oibbsv. Blacliwell, 37 111., 191; see, as to making trustees parties, Evans v. Jackson. 8 Sim., 217; Saunders v. Richards, 1 Coll. C. C, 568; Fleming v. Holt, 13 W. Va.. 143; Morrow v. Laurreuce, 7 Wis.. 574. A wife requested Iter husband to enter into a written contract for the sale of laud held by him in trust for her. Held, no error to decree that he could convey the land free from her right of dower, notwithstanding she opposed the decree, she was not necessarily a part v. Rostetter v. Grant, 18 Ohio., 126; Chapman v. Wilbur. 4 Oregon, 362. When real estate is conveyed in mere execution of a trust, it is unnecessary to make the vendor's representatives parties fo the action. Down- ing v. Risley, 15 N. J. Eq., 93. The legal title was vested in the trustee merely to secure the payment of a given sum t"o a third person. Held, in an action by the equitable owner to redeem, that such third person was not a necessary party. Smith v, Sheldott, 65 111., 219. 78 FKY ON SPECIFIC PERFORMANCE OF CONTRACTS. into the rights of the hitter ; he was, in the event, decreed to pay costs. (r) ij 1*64. And so, in the case of purchases from a vohmtary settler, wliere the contract was enforced by a purchaser, it seems to have been proper to make defendants, not only the vendor, but the trustees of the settlement and the persons benelicially interested under it(5)— the question whether the purchaser was entitled to have the contract performed de- pending on whether the i3revious settlement was or not void against him, and that being a question which could not be tried in the absence of those who were interested under the settlement alleged to be voluntary. " I see no reason," said Turner, L. J.,(^^) "why it shall not be tried in a suit for specific performance, rather than be made the subject of a distinct and separate suit, the more so as it is a question which affects the validity no less than the performance of the contract." § 165. AVhere the several purchasers of several lots had been joined as defendants in one suit, a demurrer for multi- fariousness was repeatedly allowed. (^) "Suppose," said Lord Kenyon, M. R.,(^) "an estate is sold in lots to different persons, a plaintiff could not include them all in one bill for a specific performance, for each party's case would be dis- tinct and would depend upon its own peculiar circum- stances ; and there must have been a distinct bill upon each contract." And a bill by several purchasers against one vendor would have been equally multifarious, (•z/j) § 166. But in one case in which there had been several sales of a like kind, and several x^nrchasers joined as j)lain- tiffs, and the difficulty in completing the sale arose from the same cause in each case, and the persons interested in the estate made no objection for multifariousness, the court decreed specific performance of the different contracts in one suit, (re) And where the jDurchaser had entered into two (r) Collett V. Hover, 1 Coll, 227, before Turner v. Robinson, 1 S. & S., 313; Inman y. Lord Cottenham. and ct' Delabere v. Nor- Wearing, 3 De U. & Sm., 729. wood, 3 Sw , 144 (annuitants); Wilson v. (v) In Rayner v. Julian, 2 Dick., 677. Thomson, 23 W. R., 7-14. (w) See Hudson v. Maddison, 12 Sim., 416. («) Holford V. Holford, 1 Ch. Ca., 217; (») HarRreaves v. Wright, 10 Ha. Appx., Buckle V. Mitchell, IS Ves., lO.i; WiUats v. 56 In this case the bill was originally filed Busby, 5 Beav., 193; Lister v. Turner, 5 Ha., by two of the purchasers on behalf of them- 281; Daklng V. W^hlmper, 2G Beav., 568. selves and the other purchasers, and the (0 In Townend v. Toker, L. R. 1 Ch , 457. court (Turner, V. C), refused to entertain (M) Rayner v. Julian, 2 Dick., 677; Att.- the suit in that form, but gave liberty to Gen. V. Mayor, etc , of Poole, 4 My. & Cr., amend by adding other purchasers as co- 17; Brookes v. Lord Whitworth, 1 Mad., 8G; plaintiffs. Consider Turner v. May, 32 L.T., 50. gejSteral rule. 79 separate but simultaneous contracts (for the purchase of freeholds and leaseholds) with the same vendor, and the in- vestigations of the two titles had gone on concurrently, Kindersley, V. C, considered that the vendor was right in making both contracts the subjects of one suit for specific performance, (y) 2. As regards the lyractlce of the high court. § 167. No doubt the general rule will still continue to be that the parties to the contract are the necessary and suffi- cient parties to the action, for that is a rule of convenience and good sense. § 168. But the fact that persons may be Joined as plain- tiffs whose claims are alternative, or some of whom are found to have no interest in the litigation, or that a defend- ant is not interested in all the relief claimed now furnishes no defense ; {z) and the plaintiff may unite in the same ac- tion, and in the same statement of claim, several causes of action, subject to a i^ower in the ^court or judge to direct separate trials of the separate causes, (a) Further, the court or a judge may at any stage .of the x^i'oceedings order the name of any party, j)laintiff or defendant, who ought to have been joined, or whose presence before the court may be necessary, in order to enable the court effectually and comi^letely to adjudicate upon and settle all the questions involved in the action, to be added ; (6) and as regards the defendant, where he claims to be entitled to any remedy or relief over against any other i^erson, or where from any other cause it appears to the court or judge that a question in the action should be determined not only as between the plaintiff and defendant, but as between the j)laintift\ de- fendant and any other ]3erson, or between any or either of them, the court or a judge may, on notice being given to such last-mentioned i^erson, make such order as may be proper for having the question so determined ; (c) and where a defendant claims to be entitled to some remedy or relief over against a j)erson not a party to the action, he may, by (y) Royou v. Paul, 28 L. J. Ch. , SoG. (6) Ord. XVI, r. 13. See Long v. Croesley , («) Ord XVI, rr. 1, 4 and 13. Cf. Cox v. 13 Ch. D., 3SS. Barker, 3 Ch D., 359. (c) Ord. XVI, r. 17. (a) Ord XVII, r. 1. See Flower v. Buller, 15 Ch. D.,G65. 80 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. leave of tlie court or a judge, issue and serve on such person a notice, stating the nature and grounds of the claim ; (cZ) and the Rules of the Supreme Court provide in detail (e) for the conduct and effect of the proceedings in the action with respect to third parties served with either of these notices. § 109. Where, therefore, the adverse claim of a third person is strictly a question in the action, as, for instance, where the question is one of title dependent on the validity of the claim of a third party, the court has the jDOwer to invoke the attendance of that third party, and finally to settle the controversy ; and no doubt this power will be ex- tensively exercised. Where, on the other hand, the ques- tion between a plaintiff or defendant and the third x)arty is not strictlj^ a question involved in the action, the third party cannot be called in. § 170, In a case where the defendants (vendors) alleged that a bare trustee for them had occasioned the suit by re- fusing to concur in the conveyance, the Court of Appeal (the plaintiffs concurring in the application) gave the de- fendants leave to serve the trustee with notice (under Ord. XYI., r. 18) of the suit.(/) § 171. But where the defendants (purchasers from the mortgagee of property mortgaged by the trustee and ex- ecutor of a will) having, after accepting the title, received notice from unpaid residuary legatees under the will of a claim by them to the property, moved to have these lega- tees made i^arties to the action, the motion was refused with costs, on the grounds that there was nothing in the notice given by the legatees to prevent a decree being made which would bind both vendor and purchasers, and that the lega- tees were not parties whose presence was necessary in order to enable the court effectually and completely to decide all questions involved in the action, (p') § 17S. The new procedure, by way of counterclaim, affords another mode in which, in a proper case, a person who was not a party to the original action may be brought into the proceedings. (d) Ord. XVI, r. 18. (/) Treleven v. Bray, 1 Ch. D., 176, and 2 (e) Ord. XVI, rr. 19-21. id., 724. (fir) Harry v. Davey, 2 Ch. D., 721. GENERAL RrLE. 81 Thus, where second mortgagees brought an action against first mortgagee, wlio had contracted to sell the mortgaged property under his power of sale, claiming to have the sale completed and the sale moneys applied in satisfaction of the mortgagees, and the defendant delivered a counter- claim, to which he made the purchaser a co-defendant with the original plaintiffs, alleging that the concurrence of the latter in the sale was a term of the contract, and claiming specific performance; Hall, Y. C, held that the purchaser was properly made a party to the counterclaim. (7^) § 173. In actions for the specilic performance of contracts relating to land or a charge registered under the land trans- fer act, 1875, the court has a special statutory power of bringing into the action any persons who have registered estates or rights in such land or charge, {i) ' (74) Dear v. Sworder, 4 Ch. D., 476. (i) 38 and 39 Vict., ch. 87, § 93, infra, §§ 878, 1110. ' Rule as to parties having an interest in the subject of the agreement.] Where an estate lias been made the subject of a contract of sale, all paries interested in such estate are proper parties in an action for specific performance. Williams V. Leach, 28 Pa. St., 89; Seager v. Burns, 4 Minn., 141. All must join in the action. Slaughter v. Nash, 1 Litt. (Ky.). 322; Rochester v. Anderson. 6 id,, 143; Speri v. Robinson, 9 How. Pr., 325; McCotter v. Laurrence, G Thomp. & Cook, 392; 4 Hun, 107; Lavender v. Thomas, 18 Ga., 6G8; Craig v. Smith, 96 111., 469; Flemming v. Holt, 12 W. Va., 143. The appellate court will re- verse, if indispensable parties are omitted, even when the objection was not raised in the court below. Watson v. Gates, 58 Ala., 647. In Guard v. Brad- ley, 17 Ind., 60, it was held, that an infant could maintain a bill for specific per- formance, where the party who contracted in the infant's behalf was competent, and a full consideration had been paid. Specific performance of an agreement for the sale of land was sought by persons who were not parties to it, but had become vested with certain rights subsequent to the making of the contract. Held, that they were proper parties to an action to determine the rights of the parties thereto. Curran v. Holyoke Waiter Power Co.. 116 Mass., 90. While an action was pending to enforce specific performance, the respondent conveyed the premises to a third party, and a decree of performance was entered without bringing in such third party. The decree was reversed on appeal. Casady v. Scallen, 15 Iowa, 93. Riile us to adverse claimants.'] Where a party has adverse or inconsistent rights in the subject matter of the suit, he cannot be made a party plaintiff. Grant v. Schoonhoven, 9 Paige's Ch., 225. In Ilanchett v. McQueen, 33 Mich., 22, it was held that where the interests of the vendee, his wife and his assignee for creditors are conflicting, the vendor, in his bill for specific performance, might ask to have the respective rights of the claimants determined. U here the decree cast a cloud upon title— Held, that one who clainied title uiuler the vendor, might come in and be made a party. Carter v. Mills, 30 >Iiss , 43— A. purchased real estate at sherilf "s sale, and brought an action to compel a conveyance from the sheriff; the former owner claimed a right of redwinption. Held, that he had a right to be joined as party defendant. Crosby v. Davis, 9 Iowa, 98. An actionVas brought for the specific performance of a contract to convey an undivided interest in land. Held, that those who arc subject to the complainant's equity, and hold adversely to him, are necessary parties. Agard v. Valencia, 39 Ala., 292. 6 82 FRY ON SPECIFIC PEKFORMANOE OF CONTRACTS. CHAPTER II. OF A STRANGER TO THE CONTRACT. § 174. Can a stranger to the contract sue, or be sued, for its performance? It will be convenient to consider the two branches of this question separately. 1. As to a stranger suing. § 175. It is a general principle both at common law and in equity, that a stranger to the contract cannot sue on it ; and this is not varied by the mere fact that the stranger takes a benefit under it.(«)* § 176. Thus in a case, where protracted litigation had been undertaken by A. for the recovery of an estate, and in (a) Crow V. Rogers, 1 Str., 592; Ex parte Uery Co. v. Hawkins, 3 H. & C , 677. The Peele, 6 Ves., 602, 604; Ex parte Williams, dicta of Eyre, C J., In Fellmakers' Co. v. Buck, 13; Berkeley v. Hardy. 5 B. & C, 355; Davis, 1 B. & P., 102, and of Buller, J., in his Lord Southampton v. Brown, 6 id., 718; per N. P., 134, do not appear to be law. The Lord Langdale, M. R. , in Colyear v. Countess Scotch law diflTers from ours in this partlcu- of Mulgrave, 2 Ke , 98; per Cotton, L. J., In lar, recognizing the ju* qucuitum tertto. Stair Be D' Angibau, 16 Ch. D., 242 ; Hill v. Gomme, Inst, B. », 1. 10, § 5. 5My. &Cr.,250, 256; Chesterfield, etc., Col- 1 One who claims an adverse interest, which was vested in him previous to the agreement, is not a necessary party. Smith v. Sheldon, 65 111., 212; aff'g S. C, 44 id., 68. During the pendency of an action for the specific perform- ance of a contract to convey property, creditors of the vendor obtained judg- ment against him and sold such property. Held, that neither the creditors nor purchasers were necessary parties. Lecombe v. Sheldon. 20 How., 94. A stranger to the agreement claimed an interest in the purchase money. Held, that he might be made a party to the suit. Moon v. Wilkerson, 47 Miss., 633; Kimbrough v. Curtis, 50 id., 117; Boyce v. Francis, 56 id., 573. A third party, to whom the vendor had conveyed, and who had promised to pay the original vendor, was held to be a proper party defendant. Campbell v. Patter- son, 58 Ind., 66. In a proper case, a part may file a bill for specific perform- ance for all; e. g., the directors of a stock company may act for the stockhold- ers and need not join them all. Dana v. Brown, 1 J. J. Marsh, 304; Robinson v. Smith, 3 Paige's Ch., 322; Reese v. Police of Lee Co., 49 Miss., 639. Upon the same principle of privity an analagous case was decided in Penn- sylvania. Where a widow executed an instrument ''To all whom these pres- ents shall come," and purporting to be a general release of dower, it was held, that a son of the deceased, although not a party to the instrument, had, never- theless, such an interest as would entitle him to the benefit of the release. Gray V. McCune, 11 Harris, 447. In Louisiana, under the civil law, the doctrine of privitv is carried very far, and children, to the extent of the legitime, are not considered as heirs, but as creditors of their father's estate. Vide Succession Trimmel, decided in 1854. Opinion Book 24, page 328; Maples v. Mitty, 12 La. An., 759. A STKAXGER TO THE CONTRACT. 83 the course of these proceedings A. became greatly indebted to his solicitor, and, by a contract between A. and his brotlier B., A. agreed to relinquish his interest in the estate to B., in consideration of B.'s undertaking to pay the costs already incurred with interest, it was held,(&) that the solicitor, be- ing no party to the contract, and having given no consid- eration for it, could derive no benefit under it capable of being enforced by him.' § 177. There are, however, several apparent exceptions to this principle. § 178. Thus (1) there may be cases in which, where A. has, as a trustee for B., contracted with C, B. may be en- titled to sue both C. and A. for performance of the contract. The case of Touche v. Metropolitan Railway Warehousing Co., is a case of this sort. § 179. (2) There are cases of agency w^hich may wear the aspect of exceptions to the rule. In Hook v. Kinnear(6^ the two defendants were tenants in common of certain lands, and the defendant Kinnear, having been tenant of the de- fendant Philips' moiety, and in arrear to him for the rent, agreed with Philips to execute to the plaintiff such lease of the entire premises as Philips and the plaintiff should agree upon, and that all the rent should be paid to Philips till the arrears due to him were satisfied. The plaintiff was (6) Moss V. Balnbrlgrge, 18 Beav., 478, 482; (c) L. R. 6 Ch., 671. Distinguish Be Em- S. C, on appeal, 6 De G. M. & G., 292. press Engineering Co., 29 W. R., 342. (d) 3 Sw., 417, n. ' In the construction of an athena'um in ilarj-land, a subscription book was purchased, containing the name of the plaintiff as treasurer of the fund to be collected; also the names of six others as a building committee, with authority to call in the subscription in such installments as might be required in the course of construction. A resolution of the committee afterwards called in the unpaid subscriptions, "payable to the plaintiff." Held, that the plaintiff could not maintain an action against a delinquent subscriber in his own name. Git- tings V. ^layhew, 6 Md., 113. Upon an agreement by one person to become responsible for another for a part of the proceeds of an expected sale, an action by a third person will not lie, although tlie consideration moved from the third party. Tewksbury v. Hayes, 41 Me., 123. But it is also held, in the same State, that where a party, for a valuable consideration, stipulates with another by simple contract, to pay money, or do some act for the benefit of a third per- son, such third person, if there be no other objection than want of privity be- tween the parties, may maintain an action for the breach of the engagement; or he may, if he choose, disregard it, and seek his remedy tlirectly against the party with whom his contract primarily exists. Bohanau v. Pope, 42 Maine, 193. If A. contract to support B., and fraudulently refuse to fulfill his agree- ment, whereby B. becomes chargeable to the town, this does not entitle the town to proceed against A. in law or equity, although the original contract was intended to defraud some other party. Milton v. Story, 11 \ erm., 101. 84 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. no party to the contract ; Philips entered into another con- tract with the plaintiff for a lease of the premises to the plain- tiff at £30 per annum, and executed a lease of his moiety at £15 per annum ; the defendant declined to do the same in respect of his moiety, and it was objected that the plaintiff as a stranger conld not sue ; bnt Lord Hardwicke overruled the objection, on the ground that Philips might be taken as the agent of the plaintiff in the contract with Kinnear, and compared it to the case of stewards entering into con- tracts, and their masters enforcing them. § 180. (3) There are cases of persons claiming benefits nnder deeds who are not imrties to the deeds ; (e) of persons suing for the execution of the trusts of marriage settlements who are not parties to such settlements, (/) and of proceed- ings by children nnder contracts antecedent to the mar- riages of which they are the issne. But these either refer to executed and not to executory contracts, or attract the jurisdiction of the court on grounds other than that of the specific performance of contracts resting in fieri. § 1 8 1 . (4) There is a class of cases where the nearness of relationship of one party to the contract with the party to be benefited by it was supposed to give to the latter the benefit of the consideration and a right to sue on the con- tract. The Physician's case(^) was the leading authority on this point. There A. made a promise to his physician, that, if he would effect a certain cure, he would pay a sum of money to the physicians' s daughter ; and it was held that she might sue. In another case in assumpsit the jplaintiffs, who were husband and wife, declared that the wife' s father, being seized of lands which had subsequently descended to the defendant, was about to fell £1,000 worth of timber to raise a portion for his said daughter ; and the defendant promised the father that, if he would forbear to fell the timber, he would pay the daughter £1,000. A ver- dict was found for the plaintiffs ; but it was moved, in arrest of judgment, that the father alone could have brought the action, but not the husband and wife ; but, after two arguments, the objection was overruled on the ground of (e) 8 and 9 Vict., ch. 106, § 5. (p) Cited 1 Ventr., 6. (/)Cf. Re D'Angibau, 15 Ch. D., 228, 242, and supra, § 92. A STRANGER TO THE CONTRACT. 85 the nearness of relationship. (Z^) But these cases were in the year 1861 considered and deliberately disapproved by the court of Queen' s Bench, and can no longer be consid- ered law.(i)* § 1 82. (5) It seems that an exception may arise to the general principle that a stranger even though taking a benefit nnder a contract cannot sue on it, in cases where the con- tract is of such a nature and has been so far acted upon as to change the condition in life of the stranger, and to raise in him reasonable expectations grounded on the contract.* Such a case might be presented by a contract between A., a rich man, and B., a poor one, that A. should take B.'s child, bring him uj) as a gentleman, and leave him certain property, and a part performance of this on A.'s part. But here, any right which the child of B. might have to insist on the contract is derived, not from the contract alone, but from the conduct of A. in pursuance of it, and the wrong which the child would sustain, if the contract were carried out in part and not in whole. For no such equity would exist where the contract remained entirely in abeyance. (y)* (A) Dutton V Pool, 1 Ventr.,318, 33-2; 2 Lev., («) Tweodle v. Atkinson, 1 Best & Sni., 393. 210, affirmed In Cam. Scac. T. Raym., 302; (j) Hill v. Gomme, 1 Beav., 540; 5 My. & per Lord Mansfield, C. J., in Martyn v. Hind, Cr , 250; Lyons v. Blenkin, Jac, 245. Cowp., 443. ' Rule as to relationship. '\ The rule appears to be that a relationship which is more remote than that of parent, child or wife, carries with it no moral ol)liga- tion upon which a court of ecjuity will found a decree for the specific perform- ance of a mere executory contract. Bufford v. McKee, 1 Dana, 107; Hays v. Kersliom, 1 Sandf. Ch., 258; Reed v. Mauarsdale, 2 Leigh., 509; Caldwell v. Williams, Bailey Ch., 175; Chandlery. Neale, 3 Hen. it :Mumf., 124; Parker V. Carter, 4 id., 273; Hawrey v. Alexander, 1 Rand., 219. * In New Jersey it was held, that where an infant child was taken by an uncle, under an agreement between the father and such uncle that such child should be adopted as his own, and the child lived with the uncle twenty five years, and had no share in his father's estate. Held, that the child might maintain an action to enforce the aiireement. Van Dyne v. Vrcelaud, 11 N. J. Eq. (3 Stock.), 270. 3 Limitations in marriage settlements to collateral relations have been repeat- edly held, in England, tobe voluntary. Reeves v. Reeves, 9 Mod . 132; John- son V. Legard, 3 Yes., 352; Cormick v. Trapaud, Dnw., 3(5. So. for exam- ple, limitations to collaterals, in a marriage settlement, made by a tenant in tail, are voluntarily against a subsequent purchaser fur a valuable consideration, in the same manner as if the settler had had the fee. Cormick v. Trapaud, 6 Dow., 3(). Limitations in favor df issue of a second marriage seem to stand upon a different footing and to be held good. Clayton v. El Hilton, cited 3 Madd., 3(52; Ithell v. Beane, 1 Yes., 216. That the doctrine of ]>rivity in respect to collaterals has Ijccn carried to the same extent in this country as in England, is evidently not the case. The sub- ject has come but seldom before the courts, and was for a time a much mooted point ; but it now seems clearly to be established that collateral consanguinity 86 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. 2. ^.s' to a stranger being sued. § 183. Generally a stranger to the contract is not a proper defendant to an action for enforcing it. (A*) But this gen- eral rule is subject to exceptions. § 184. If a stranger to the contract gets possession of the subject-matter of the contract with notice of it, he is or may be liable to be made a party to an action for specific per- formance of the contract upon the equitable ground of his conscience being affected by the notice. § 1 'f^5. Thus, where S. contracted with P. for the sale to (;fc) See supra 8 140, and per Stuart. V. C. different where the action Is for rescission, in Bishop of Winchester v. Mid Hants Rail- See Aberaman Ironworks v. Wickens, L. K. way Co , 21, and West Midland Railway Co. 4 Ch., 111. V. Ni.\on, 1 H. & M., 176. The case may be is not a meritorious consideration, upon which a court of equity will specifi- cally enforce an executory covenant or agreement. The case of Buford's Heirs V. McKee. 1 Dana, 107, in the Court of Appeals in Kentucky, is directly in point. The defendants took the land by devise from one who in his life-time had executed a covenant to Buford (who was his nephew), to convey the same land to B. at the covenanter's death. On a bill by B.'s heirs for the specific performance of the agreement, it was refused by the court, on the ground that the covenant was voluntary, and that the relationship between the parties did not constitute a meritorious consideration. And in Hayes v. Kershaw, 1 Sandf. Ch., 258, the assistant vice-chancellor, after quoting "Buford's Heirs v. McKee " with approbation, decided that relationship, such as that of a brother, nephew, neice, etc., did not constitute a good consideration; that it carried with it no moral obligation as that of providing for a wife or children, or pareut, upon which a court of equity would found a decree for specific per- formance of a covenant. In Maryland it has been decided, that the considera- tion of mutual love and affection is sufficient in a deed; but a mere executory contract which requires a consideration as a promissory note, cannot be sup- ported on the consideration of blood or mutual love and affection; something more is necessary — some valuable consideration — or it cannot be enforced at law or in equity. Pennington v. Gittings, 2 Gill. & John., 208. In Virginia, a son and son-in-law promised in writing to pay a debt held against the estate of their deceased father and father-in-law. Neither of them was executor, and it did not appear that there was any deficiency of assets for the payment of debts, or that either of them had any larger portion of the estate than the other children. Held, that the promise was nudum pachim. Chandler v. Neale, 2 Hen. & M., 124; Parker v. Carter, 4 Mun., 273. A. being wealthy and child- less, verbally promised his brother B , who was poor and had many children, that if he would not remove to the west country, but would move to and set- tle on a lot of land of A. he would convey it to him. B. accepted the offer, and took possession of the land; held, that the promise was not supported by either a valuable or meritorious consideration, and would not be specifically enforced against the heirs of A. Reed v. Yannorsdale, 2 Leigh, 5G9. In Cald- well V. Williams, Bailey's Ch., 175, it is said, that "no agreement can be en- forced, cither in law or in equity, which is not founded on a consideration." Some agreements which are termed voluntary, are executed in equity, when made in favor of a wife or children ; but this is done only where the instrument is uuder seal, which imports a consideration, and renders the agreement valid at law; and there is no instance of an agreement being enforced, which is not only voluntary in the equity sense of the word, but also midum pactum at law. The rule, in this country, seems to have never been extended to relations more remote than children or wife. See, also, Hawey v. Alexander, 1 Rand., 319. A STKANGEFw TO THE CONTIIACT.^ 87 him of an estate, and afterwards conveyed it to C, who, at the time of the conveyance, had notice of P.'s contract, on a bill filed by P. against S. and C. for the enforcement of the contract between S. and P., Wigram, Y. C, decreed si)ecific performance of that contract, ordered all necessary parties to convey the estate to P., and gave the plaintiff costs against both S. and C.(Z). § 186. Again, a stranger to the contract may so mix him- self np with it by setting up a claim to some benefit result- ing from it, as to render himself lia):)le to be made a party to proceedings for the enforcement of the contract ; as, for instance, by claiming to be interested in the purchase-money tinder an arrangement antecedent to the contract. (77^) § 1 87. In some cases where a portion of the relief claimed might affect the person in actual possession of the property, that person may properly be made a party to an action for the specific performance of the contract ; as, for instance, where the i:)urcliasers, a railway company, being in posses- sion of the land contracted to be purchased leased it to another railway company, who opened and worked a rail- way over it, and the unpaid vendors filed their bill against both companies for performance of the contract, declaration of the vendors' lien, and the appointment of a receiver. (7?) "Ordinarily,'' said Stuart, Y. C.,(o) "a i^erson not being a party to the contract ought not to be brought before the court. But it is otherwise where possession is sought ])y the bill, and the person in possession will be affected In* the decree. Therefore the South Western Company (the lessees) have been j^roperly brought here." § 188. Lastly, there are provisions in the rules by which the present i^ractice of the court is regulated, (^>») and in the land transfer act, 1875,(<7) by virtue of which strangers to the contract may, in certain cases, be brought into the posi- tion of defendants to an action for enforcing its specific performance. (/) Potter V. Sanders, 6 Ha , 1 ; cf. Daniels Aberanian Ironworks v. Wickens. L. R. 4 V. Davison, 17 Vcs . 433; Holmes v. Powell, Ch., 101 ; Wilson v. Thomson, li W. K , 744. 8D.'<. M & G., 57-2; and (llstinguisli Lenty (?i) Ulsliop of Wiiichoeter v Mid-Hants V. Hillas. i De (i. & J., 110; Fenwlck v. Bui- Hallway Co., L. U 5 Eq., 17. Cl". Churchill man, L. U 9 Eq., lG.i. v. .Sallsl)ury and Dorset Railway Co., iS W. (m; West Midland Railway Co. v. Nixon, 1 K., .t.)4, ^iW. H. &M., 17G Consider Muston V. Bradshaw, (o) L. U. ."5 Kq., -21. 15 Sim., lii-2, where the interest claimed was (p) See § 168 et 8e»i. created subsequently to the contract, and cf. (?) See §§ i73, 1110. 88 FKT ON SPECIFIC PERFOKMANCE OF CONTRACTS. CHAPTER III. OF THE DEATH OF A PARTY TO THE CONTRACT. § 1 89. The general rule, that parties to the contract must alone be parties to the action, is further modified by certain circumstances, one of which, namely, the death of a party to the contract, will now be' considered. By this circum- stance, with the exception to be mentioned hereafter, (a) the obligation to perform, and the right to call for the perform- ance of, the contract devolve on the representatives of the party dying. § 190. If the vendor of real estate die before completion, the contract may be enforced either by the purchaser, (5)' or by the personal representative of the vendor ;(c)' but in both cases the heir(cZ) or devisee(e) must be a party,' as having an (fl) See Infra, § 199. («) Gallon v. Emuss, 1 Coll., 243; Half v. 6) Hinton v. Hinton, 2 Ves. Sen., 631; Bushill, 35 Beav.,343; Purser v. Darby, 4 K, Barker v. Ulll. 2 Rep. In Ch., 218. & J., 41 (costs). See, too, London and South- (c) Baden V. Countess of Pembroke, 2 Vern., Western Railway Co. v. Bridger, 12 W. K., 2].2 948. AB to l\\e cfi differ- ence that the legal estate is outstanding in a trustee.!/) As (/) Roberts v. Marchant, 1 Ha , M7; 1 Ph., 370. DislioguUh Fowler v. Llghiburne, 11 Ir. Ch.R., «.5. 600. brouijht this suit against the administrator and heirs of B. Held, that the heirs and devisees of two deceased children of B. should have l)een made j)arties. See Triplet v. Hill, 7 J. J. Marsh., 4;i2. In Kenny v. Collins, 4 Litt., 2m0, A. brought his hill against B., alleging a purchase of land by C. from I)., and a receipt of a bond from D. for the title; that C. sold the land to E., taking F^.'s bond for the price, which bond was assigned to the complainant — that E. had died without having disposed of the land; and that B. intermeddling with E.'s estate, had become e.\ecutor in his own wrong and had fraudulently obtained a deed of the land in his own name. The bill asserted a lien on the land, and prayed for a sale. Held, that A. was entitled to the benefit of C.'s lien on the land, but that the heirs of E. were necessary parties to the suit, and that the bill should be dismissed without prejudice. Carr v. Callaghan, '3 Litt., SG."); Berry v. Berry, 3 .Monr., 368. The widow and heirs of a decesised person sold lands of the estate, gave a bond for title, and took notes for the purchase money, in the name of the widow only. Held, that the heirs were necessary parties to a bill by the widow to compel payment of the purchase money, and that a sale of the land, under a decree in a suit by the widow alone, would not pass the title, Alexander v. Perry. 4 Humph.' 391. In Lee v. Marshall. 2 Monr., 30, it is decided that all the devisees must be made parties to a bill to enjoin executors from selling land belonging to the testator's estate. But the heirs of a devisor, who has devised lands to other persons, are not necessary parties to a suit for the land, under adverse claims. Meriwether v. Hite. 2 A. K. Marsh., 181. And in Georgia, the lands of a deceased debtor are liable in equity for the payment of his debts, without making the heirs a party to the suit. Telfair v. Kaf, 2 Cranch, 407. In New York, where a debt is specifically charged by the will of the testator upon certain real estate, such real estate is the primary fund for the payment of such debts, and the heirs at law are not necessary parties to the suit. Smith v. Wyckoff, 11 Paige, 49. ' Lacon v. Mcetins, 3 Atk., 1; Galson v. Emuss, 1 Coll. C. C, 243; Ruther- ford v. Green, 2 Ired. Ch., 121; Jacobs v. Locke, id., 28(>; Craig v. .Ttihnson, 3 J. .J. Marsh., .")92; Glaze v. Drayton, I Dessau. "s Dj., 10U;-Mori:an v. Morgan, 3 Wheat., 290; Buck v. Buck, 11 Paige Ch.. 170; Kobinson v. McDonald, 11 Te.x., 385; Burger v. Potter, 32 111., 66; Moore v. Murrali, 40 Ala., .'>73; New- ton v. Swazey, 8 N. H., 9; S. C, 9 id., 385; to the contrary, see Shannon v. Taylor, 16 Te.\ , 412. The object of making the heirs or devisees parties, being to divest them of the legal title which immediately vests in them upon the death of their ancestor, and which thev were bound "to convey to the vendee in a proper case. Mitchell v. Shell, 49 >iiss., lis. New York State provides, by statute, that the "supreme court or county court shall have power to decree and compel a specific performance by any infant heir, or other person, of any contract or agreement made by any party who may die before the performance thereof; on the petition of the executors or administrators of the estate of the deceased, or of a person or persons interested in such contract, bargain or agree- ment, see N. Y. Rev. Stat. (Gtli ed.), p. 200, S; 113. Where the executors have power to .sell, or there are devisees, the heir need not be made a party unless there is reasonable ground to denv the validitv of the will. Spier v. Robinson, 9 How. Pr., 325; West Hickory >Kniug A.^s. v. Heed. 80 Pa. Stat., 38. In Iowa the statute makes the executor or administrator a proper party to an action to enforce specific performance of the contract of a deceasid vendor, still it does not make him a necessary party. Rev. Stat, of Iowa. Jlii 2400, 2461 ; Judd V. ;Morely, 30 Iowa, 423. A \n\\ was brough to c(mipel .-"pecitic perform- ance of an agreement to a.ssign, by one of the distributees of an estate, of all his interest in the undivided a.ssets in the administrator's hands. HeM. that all the distribiitces are necessary parties. Bogan v. Camp. 30 Ala., 276. All the CO heirs of a deceased vendor should join in a bill for specific performance of a contract for the mutual sale of land. Where one of the parties has died, his death should be proved, excusing the omLssion of not raakmg him a party to the bill. Morgan v. ^Morgan, 2 Wheat., 290. 90 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS, a i)nrcliaser lias no right to insist on having the will proved against the heir, he is not a necessary party where there are devisees of the estate in question. (. That the heirs, and not the administrator, should file a bill, see House v. Dexter, 9 Mich., 246; Webster v. Tibbitts, li) Wis., 438. As to making the executors or administra- tors of a deceased vendee parties. Coke v. Evans, 9 Yerg. , 289 ; Peters v. Jones, 35 Iowa, 512; 1 Danl's Ch. Pr. (4th amend, ed.), 285; Harding v. Handy, 11 Wheat., 104; Downing v. Risley, 15 N. J. Eq., 93; Ashertz's App., 34 Pa St., 375; Jackson v, iMcCoy, 56 Miss., 78. 92 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. that which his ancestor was not bound to purchase, and perhaps never would have iDurchased.(5) § 107. In a case where, after a suit had been instituted by a vendor against a purchaser, and a reference of title and report in favor of it had been made, the i^urchaser died, the court, on the application of his real and personal represen- tatives, ordered the plaintiff to revive, or, in default thereof, that his bill should stand dismissed, {t) § 198. Where a person who has agreed to take a lease dies, the executors admitting assets may be compelled to take a lease, the covenants being so qualified as that the executors shall be no further liable thereon than they would have been on the covenants which ought to have been en- tered into by their testator. (?/^) § 199. The maxim actio personalis moritur cum persona, has no reference to legal proceedings arising from contract. But an exception to the devolution of the liability to per- form contracts by the death of one of the parties, arises in all cases in which the personal skill or taste of one of the contracting parties is required ; for in such cases the death of that party discharges the contract, and exempts his per- sonal representatives from liability for the breach of con- tract occasioned by non-performance after his decease («) — an exception obviously grounded on the same principle as the non-assignability of such contracts, hereafter consid- ered, (w?) On this principle it has been decided that, if an author contract to complete a work, and die before doing so, his executors will be dischargnd from the contract ; {x) or, if a master contract to teach an apprentice, and die be- fore the expiration of the term, his representatives will be equally excused, (2/) And in one case a contract to build a lighthouse was, from the skill and science involved in its performance, held to be a personal contract. (2') This prin- ciple would, of course, apply as much in actions for specific performance as in actions for damages. (s) Uroome v. Monck, 10 Vcs., 507; Buck, where the lease had been executed by the master v. Uarrop, 13 id , 471, 472; Savage v, It-ssor, but sot by the lessee, before the lat- Carroll, 1 Ball & B , 265, 281 ; Garnett v. ter's death. Acton,28 lleav., 333; Collier v.Jenkins.You , (f) Per Lord Wensleydale in Siboni v. 295. Consl.ler Ingle v. Klchards (No. 1), 28 Klikman, 1 M. & W., 423. Beav., 361, 364. (lo) see infra, § 203. (0 Norton v M'hlte, 2 De G. M. & G., 678. (.c) Marshall v. Broadhurst, 1 Tyrw., 349; (M) Phillips V. Everard, 5 Sim., 102; Ste- S. i v. Tweiil. 09 111., '20."). In Hanna v. Wilson, 3 Dratt., '2*Xi. it was held that the »iA.sigiiec mi'dit maintain an action for specific performance against the vendor, provided thcf assignor was made a party. Where the a.'isigiimeiit is ab.solute, and the assignor has no equitable interest, he need not be made a party. Urace v. llar- rin-'ton, 2 Atk., 'JoS; Tneothick v. Austin, 4 .Mason, 41; \\hitney v. McKin- nev 7 John. Cli.. 1-14; .Miller v. Hear. :J Paige's Ch.. 4(57; Colenick v. Hou|k.t. 3 liid . 310; Miller v. Wliittier, 32 Me., 2U3; Currier v. Howard, 14 Gray. 511 Tlie assignee of one of several obligees, in a bond for the conveyance of real property, commenced an actiim and subsctpiently acquired the interest of all the obligees iu the bond. Such action was no bar to a subst-ipient action for specific perfomnance, where the 8umc parties were interest, d concerning the same propa!isage-way on den after a given time. The land was" afterwards sold to C, subject to th<- vation. H. and C. were reipiested to make the passjige-way. and n ' r tin- eeen luisigned. all the a.ssignees, through whose hands it has passed, should Iw joinwl in an action for specirtc performance. Estill v. Clay. 2 A. K. Marsh.. 4y7; Allison v. Shilling. 27Te.\., 450. A!arty.] The ventlor of land execute»l a 1h)IuI for title, but did not receive the whole of the purchase money, and afterwartls became bankrupt. Held, that his assignee in bankruptcy was a pn>tH'r parly 94 FliY ON SPECIFIC PERFORMANCE OF CONTRACTS. for example, where tliore was a contract for a lease, which contained nothing to show that it was made with the assignor (who had become insolvent) from any personal motive, and the assign was solvent, the contract was en- forced in favor of the assign. (^*)' Similarly, where there is <}A PrnBi>iP V Tookp 1 Mv & K., 431; except upon the temis Of the assignor entcr- il'or^nnv HY^odJ,TtiiE But see Dowell Ing rnto the covenants of the lease This " Dew. 1 Y. & c: C. C. 345. where Knight ^ec.«on was a&rmedbv Lord Lynd Bruce, V. C. refused to grant specific perfor- 12 L. J . Ch , 153. bee mrra, fe JJD. mance of a contract for a lease to an assignee, defendant, and must be so made in an action for specific performance of the contract to convey. Lampson v. Rouse, 65 N. C, 34. Where property is sold under a decree.^ Wliere property is sold under a valid decree the purchaser of a vendor's title stands in his shoes, and may maintain an action for specific performance against the vendor. He may tile a bill to sell the premises in default of payment, and may discharge himself from the vendee's equities. The vendee, however, has no right to a decree of sale agamst the vendor for the purpose of paying the unpaid purchase money. Fitzhugh V Smith, 62 111., 486 After execution against the vendee, see Tomlinson v. Blackburn, 2 Ire'd. Eq., 50«J. Assigjiee's liubilily with notice; rule.'] A party having entered into an agree- ment for the sale of property, and afterwards assigns the same, or contracts to do so to a person having notice of the original contract. Held, that the assignee would be liable to perform it at the suit of the purchaser. All parties claiming any interest in the land, obtained after the date of the contract sought to be specifically enforced with notice, are necessary parties to the action to compel conveyance. Hersey v. Gillett, 18 Beav., 174; Foss v. Haynes, 31 Me., 81; Lanerty v. Moore, 33 N. Y., 658; New Barbadoes Bridge Co. v. Vreeland, 4 N. J. Eq. (3 Green), 157; Morris v. Hoyt, 11 Mich., 9; Seager v Burns, 4 Minn., 141; Stone v. Buckner, 12 Smed. & Marsh. 73; Scarborough v. Arrant, 25 Texas, 129; Fullerton v. McCurdy, 4 Lans. (N. Y.), 132. Notice to an agent is notice to the principal. Bryant v. Booze, 55 Ga., 438. As to liability with notice, see Bird v. Hall, 30 Mich., 374. Deed hell as escrow.'] A. held a deed as an escrow, and refused to deliver it. Held, that he was a proper party in an act for specific performance of the in- strument. Davis v. Henry, 4 W. Va., 571. Equitable title; action by holder.'] The holder of an equitable interest in land contracted to convey an interest in the same subject to the approval of the owner, but with his knowledge. The purchaser, at great expense, improved the value of the property. Held, that the contract would be enforced, subject to the rights of the holder of the legal title for a sum due him. Booders v. Murphy, 78 111., 81. > A., being the owner of a tract of land supposed to contain minerals, on the 21st of January, 1839, by a written instrument granted liberty to B. to dig a mine on such land, and to carry away any mineral which he might dig thereon within one year; and B., on the 11th of May, 1839, by a writing signed by him on the back of such instrument, assigned to C. all his interest, right and privi- lege in the land therein mentioned, with the appurtenances, and all the benefit and advantages derivable from such instrument; after which B. brought a bill in chancery against A. for specific performance of the agreement. Held, 1st, that the agreement was not of a fiduciary character, or in the nature of a per- sonal confidence, so as to be incapable of assignment; nor, 2d, was the interest of B. of that uncertain and contingent kind, that it could not on that account be transferred; and consequently that B. having parted with all his interest in the subject of the bill, it ought for that reason to be dismissed. Gaston v. Plum, 14 Conn., 344. The captain of a steamboat, as such, entered into a con- tract for carrying the mails on board the boat, and afterwards, freely and fairly, assigned it to the owners of the boat, by an instrument under his hand ASSIGNMENT OF THE CONTRACT. 95 nothing personal in the contract or the motives to it, a per- son who has appeared as agent may afterwards disclose him- self as a principal, and enforce the contract in his own name (c) And where A. contracted for an estate from B., A. having previonsly agreed with C. to sell the estate to him, and B. resisted performance on this amongst other grounds ; the price being adequate, and B. not suggesting that he had ever refused, or was unwilling, or would have objected to treat with C, or might have obtained better terms from him, had he knoAvn the real circumstances of the case, specific performance was granted at the suit of A. and C.{d) § 201, An assign of a contract by waj^ of mortgage may enforce his security by means of specific performance. Thus, in a case decided by Lord Hatherley (then Wood, V. C), where A. had agreed to sell certain projierty to B,, and then had mortgaged his interest under this contract to (c) Fellowes v. Lord Gwydyr, 1 R. & My., (d) Nelthorpe v. Holgate, 1 Coll , 203. S3. • and seal. Held, that the assignment was valid, and that the captain was estop- ped from denying that the contract was assignable. Roorback v. North River Steamboat Co., tt John. Ch., 469 The purchaser at a master's sale may assign his bid before the execution of the master's deed ; and on application by the assignee, the court will direct a conveyance immediately to liim. Proctor v. Farnan, 5 Paige, 614. In New York, any estate in personal property, and a mere possibility when coupled with an interest in real estate, has always been assignable. Lawrence v. Bayard, 7 Paige, 70. So may an assignee of an assignee of a copartner in a joint purchase and sale of lands, sustain a bill in equity against the other copartners ; and the agent of the partnership to compel a discovery of the quantity purchased and sold, and for an account and distri- bution of the proceeds. Pendleton v. Hambersie, 4 Cranch, 73. In McKee v. Hoover, 1 Monroe, 32, it is held that a contract by one person to serve another for a certain length of time, imposes on him an obligation of servitude, and such contract may be assigned so as to transfer the term. But perhaps the case is somewhat at variance with other opinions. See Davenport v. Gentry', y B. Monr., 427. The right to reclaim usury is assignable in equity. Brtckeuridge V. Churchill, 3 J. J. Marsh., 11. The claim to a legacj" is strictly an equitable claim, and the whole interest therein may be passed by the legatee by an assign- ment. King V. Berry, 2 Green's Ch. , 44. Entries of land are assignable in Kentucky; but not in Virginia, though warrants and surveys may be so passed. Hart V. Benton, 4 Bibb, 420, and 3 id. , 534. In Alabama, a widow may assign her interest in her husband's estate, and such assignment is sufficient, in equity, to pass such interest to the assignees. Powell v. Powell, 10 Ala , 900. An order drawn by a legatee for value, on the executor for the amount of his legacy, payable out of the fund provided by the testator for that purpose, is an equitable assignment of the legacy. Anderson v. De Soer, Gratt., 363. And in Nimmo v. Davis, 7 Texas, 26, it is said that all contingent and executory interests may be assigned in equity, and will be enforced if made for a valuable consideration; and all contingent estates of inheritance as well as springing and executory uses and possibilities, coupled with an interest, if the person to take is certain, are transmissible by descent, devisable and assignable. But it has been said that a contract is only assignable when the entire interest therein can pass by the assignment, both legal and equitable. White v. Buck, 7 B. Monr., 546. 96 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. C, and C. had assigned his mortgage to D., it was held tliat D. (submortgagee) might maintain a bill against the purchaser B. for the performance of the original contract between him A.(d) JJ •20'J. The assignability of contracts in equity is, how- ever, subject to some exceptions and limitations, which, for the most part, fall under one or other of the following classes, viz. : (1) where the contract is personal ; (2) where the contract contains a provision against assignment ; and (3) wliere the assignment is illegal or contrary to public policy. § 2{0:i. (1) It is an obvious principle, that where the learn- ing, skill, solvency, or any personal quality of one of the parties to the contract is a material ingredient in it, then tlie contract can be performed by him alone. It may be a matter of indifference to A. whether B. or C. be the pur- chaser of the stock or paid-np shares he is selling; but it is a matter of great moment whether a distinguished artist, or his nominee, paint a picture for which A. may have agreed to pay a certain sum. Accordingly, in the case of contracts of the latter kind, it is not competent to a person, who has appeared as agent for a principal on whose personal quali- ties reliance has been placed, to show himself to be the prin- cipal and to sue in his own name;(/) in respect of such contracts bankruptcy confers no claim on the trustee ;(5') and the benefit of such contracts is incapable of being assigned. (^) § 204. Thus, where a contract established a personal rela- tion between an author and his publisher, it was held that it was incapable of assignment, (i) So where a coachbuilder contracted with A. to supply him with a chariot for live years, and within that period the coachbuilder assigned the contract to a third person, it was held that A. had a right to have the benefit of the judgment and taste of the coach- builder to the end of the term, and conseqnently that an action brought by the coachbuilder and his assign against (e) Browne v. London Necropolis Co., 6 W. Mayor of Exeter, 1 Eq. Cas. Abr., 53 (and the R., 188. In this case, however, specific per- notes to Hovenden's edition of Freeman, vol. formance was, on another ground, refused. 2, p. 153); also Vandenanker v. Desbrough.a (/) Per Alderson, B., in Rayner v. Grote, Vern., 96; Moyses v. Little, id., 194. 15 M. & \V., 365. See supra, § 199. (h) Distinguish Jalabert v. Duke of Chan- (g) Per Lord Abinger, C. B., in Gibson v. clos, 1 Eden, 372 (keepershlp of walks). Carnithers, 8 M. & W., 343. Cf. Drake v. (i) Stevens v. Benning, l K. & J., 168. ASSIGNMENT OF THE CONTRACT. 97 A. could not be maintained. (/) So, also, where a lessee in insolvent circnmstances suffered another person to become the apparent owner of the farm, but with a secret trust for himself, and the landlord, supposing the trustee to be the rightful owner, and trusting to his solvency, entered into a contract with him to grant him a new lease— in a suit by the original lessee against the landlord, specific performance of this contract was refused, the court considering that the landlord had entered into it expecting to have the covenants of a man of substance, Avhich he could not do, as there would be no equity to compel the trustee to enter into the covenants. (>l-) And so again, if a landlord trusts to the skill of a person who is in fact a secret trustee, he will not be obliged to execute the contract for the cestui que trust. (I) § 205. How far, in the case of an ordinary contract for a lease, the intended lessor relies on the solvency of the in- tended lessee as a personal qualification, is a point on which somewhat different views have been taken.{my But it ap- pears to be now clear from the judgments of Lord Lyndhurst and Lord Chelmsford that such contracts are assignable and may be enforced by the assign, (ti) § 206. Again, it is presumably clear that if A. owed B. £1,000 and B. then agreed to buy from A. an estate for £2,000, no assign of A. could sue B. for performance except upon the terms of giving B. the benefit of the set-off of £1,000. (o) § 207. Again, where, though the relation established by the contract may have in it nothing j)ersonal, some previous personal relation of favor, or otherwise, between the con- (j) Robson V. Drummond, 2 B. & Ad., 303. also, Stocker v. Dean, 16 Beav., 161, where, (k) O'Herlihy v. Hedges, 1 Sch. & Lef., 125. Irom the personal nature of acts to be done, (l) S. C; per Grant, M. R., in Featherston- a right of pre-emption was held to be limited angh V. Fenwick, 17 Ves., 313. to the life of the person who had to do them. (771) Crosbie v. Tooke, Morgan v. Rhodes, (w) 12 L. J. Ch.. 104; Id, 2 Ch., 71. Dowell V. Dew, supra, § 200; Buckland v. (o) Boulton v. Jones, 2 H. & N., 564. Papillon, L. R. 1 Eq., 477, 2 Ch., 67. See, ' In Illinois, a note payable in mason work is not assignable, so as to enable the assignee to maintain an action thereon in his own name. Ransom v. Jones, 1 Scam., 291. So where a person received the use and occupancy of a farm, during his parents' lives, from a town, with a promise to give a deed upon their decease, upon condition that he would support his father, mother and idiotic brother, the contract was held not to be assignable. Clinton v. Fly, 1 Fairf., 293. A parol license to be exercised upon the land of another, is a mere per- sonal trust and confidence, and as such, cannot be assigned, although it may be binding as between the parties, it will not pass to the purchaser. Cowles v. Kidder, 4 Foster (N. H.), 394. 7 98 FKY ON SPECIFIC PERFORMANCE OF CONTRACTS. tracting parties has been a material motive to the contract, it can be enforced by that person only, and not by a con- cealed cestui que trust or principal or assign. This is illus- trated by the case of Phillips v. Duke of Buckingham \{'p) a negotiation had been entered into between the plaintiff and the duke for the purchase of an estate by the plaintiff, which had gone off ; the plaintiff then got the secretary of Lord Chancellor Nottingham to enter into a ut^gotiation on his behalf, but pretending it to be for the lord chancellor, or his son the solicitor-general ; the duke had several cases depending in chancery, and, wishing to oblige the lord chan- cellor, entered into articles ; but on discovering who was the real purchaser, refused to complete ; according to the report In Vernon, the plaintiff' s bill was dismissed, and the case is considered an authority for the princix^le established by such dismissal ; for, though it appears that specific perform- ance was ultimately granted, it seems to have been only on payment by the j^laintiff of the full value of the estate, being a sum greater than that originally agreed on. ((7) Lord Thurlow showed an inclination to disregard these personal motives, considering it to be immaterial in a contract for an annuity, that the defendant was in fact a trustee for the son of the j)laintiff, with whom he had refused to deal.(r) But Lord Eldon exi)ressed dissatisfaction with that decision \{s)^ and the law seems now to be that where one person is de- ceived as to the real party with whom he is contracting, and that decei^tion either induces the contract or renders its terms more beneficial to the deceiving party, or more oner- ous to the deceived, or w^here it occasions any other loss or inconvenience to the deceived party, there the contract can- not be enforced against him ; but that where none of these circumstances can be show^n to follow from the deception, the contract may be enforced. (^) § 208. "Does error in regard to the person with whom I contract," asks Pothier,('?(^) "destroy the consent and annul the contract \ I think that this question ought to be decided (p) 1 Vern., 227. See, also, Harding v. (r) Lord Irnham v. Child, 1 Bro. C. C, 92. Cox, id., n. See, also, Jordan v. Sawkins, 1 Ves. Jun., 402. (q) See Ralthby's note (quoting the Reg. (s) Bonnet v. Sadler, U Ves., 528. Lib.) at p. 229 of vol. 1 of his edition of Ver- {t) Fellowes v. Gwydyr, 1 Sim., 63; 1 R. & non. And see the casein Vernon, 1 St Leon. My., 83. Vend., 349, n (10th ed.). See, also, Scott v. (u) Traite des Obligations, § 19. See Smith, Langttaffe, cited Lofft., 797. v. Wheatcroft, L. R. 9 Ch. D., 223. ASSIGNMENT OT THE CONTRACT. 99 by a distinction. "Whenever the consideration of the iDerson with whom I am willing to contract enters as an element into the contract which I am willing to make, error with regard to the person destroys my consent, and consequently annuls the contract. ^ * * On the contrary where the consideration of the person with whom I thought I was con- tracting does not enter at all into the contract, and I should have been equally ^^"illing to make the contract with any person whomsoever as with him with whom I thought I was contracting, the contract ought to stand." § 209. The same principle, of course, ax)plies to assign- ments. So where a contract for a lease was entered into by a lady with her son-in-law for his personal accommodation in the mansion house and demesne lands, in the nature of a family transaction, the court refused specific performance at the suit of his assignees in bankruptcy. (^') § 210. (2) Where the contract stiiDulates that the instru- ment to be executed in performance of it shall contain a proviso against assignment, this oj)erates to prevent, not only an assignment of the interest when perfected, but also of the contract to grant it. (ic) But the benefit of the proviso may, of course, be waived for the purposes of specific per- formance ; as where the assign of the intended lessee was recognized by the intended lessor as tenant, (.r) § 211. (3) The statute, 32 Henry VIII, ch. 9, which is entitled the bill of bracery and buying of titles, prohibits any person from selling or buying any pretended rights or titles to any lands, except the vendor has been in possession of the same, or of the reversion, or in receipt of the rents thereof, for a year before the sale ; but it provides that it shall be lawful for the person in possession to buy in any pretended title. In Sharp v. Carter, (2/) and Hitchens v. Landor,(^) pleas founded on this statute were allowed. In a case (a) before the court of common pleas, A. the owner of a term died in 1828, and B. his brother, who had previ- ously been in possession of part of the premises, then took possession of the whole, and continued so until 1829, when (v) Flood T. Finlay, 2 Ball & B., 9. (2) G. Coop., 34. See, also, WaU v. Stubbs, (w) Weatherall v. Gearing, 12 Ves., .504; cf. 1 Mad., SO; S. C, 2 V. & B., 354. Jalabert v. Duke of Chandos, 1 Eden, .372. (a) Doe d. Williams v. Evans, 1 C. B., 717. {X) Dowell V. Dew, 1 Y. & C. C. C, 345; 12 See, also, per Montague, C. J., in Partridge L. J. Ch., 158. V. Strange, Plowd., 88. (2/) 3 P. Wms., 375. 100 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. he died, leaving all his interest in the property to C, who thereupon entered and remained in undisputed possession until 1841, when D., a brother of A., the original termor, took out administration to him, and sold his interest in the property, as such administrator, for £10, the transaction was held to be void both by the common law and under the statute. AVherever a contract gives rise to a pretended right or title to any lands and to nothing more, the assignment of such a contract would be within the statute. § ^12. But a transfer of an expectancy is not within the mischief of the statute ; for the sale of an expectancy is not an allegation of any present right or title, but of the possi- bility of one thereafter to exist. (&) § 213. The principle on which the statute of Henry YIII. is founded, and which gives rise to the doctrines of cham- perty and maintenance, namely, that persons ought not to be allowed to come in for the mere purpose of litigating rights which others are not disposed to enforce, applies to render void some cases of assignment which are not strictly within the above statute. Thus, whilst it is clearly laAvful to assign a right at the time undisputed, and if, from cir- cumstances afterwards discovered, a necessity arises for liti- gation against third parties, the assign may maintain his action ; (c) yet it is as clearly against public policy to allow of the assignment of a mere naked right to bring an action for a matter in dispute. (rZ) On this ground the Irish court of chancery refused its assistance to enforce the perform- ance of a contract by a person out of possession, to grant a present lease to a person who was at the time apprised that he could not obtain possession, except by a suit.(e)' " I do not hesitate to say," said Turner, L. J.,(/) "that, in my opinion, the right to complain of a fraud is not a marketa- ble commodity, and that if it appears that an agreement for purchase has been entered into for the purpose of acquiring (b) Cook V Field, 15 Q B., 460 that the Btatemeiat In the text does not apply (c) Wilson V. Short, G Ha. , 366. to a trustee in bankruptcy. Seear v. Lawson, (d) Prosser v. Edmonds, 1 Y. & C. Ex., 15 Ch. D., 426. -,, „ „. t> o-o t 481. With the distinction between this and (e) Bayly v. Tyrrell, -2 Ball & B., oo8. In the preceding case, compare the distinction this case the lease to the plaintiff had been between furnishing evidence for the recovery actually executed. ^ t. o /^u of property without a view to litigation, and (/) In De Hoghton v. Money, L,. K. 2 Ch., furni'hing evidence to maintain litigation 169; affirming S. C , L. R 1 Eq., 154. (Sprye v Porter, 7 El. & Bl., 58), and note 1 See Marshall v. Means, 13 Geo., 61. ASSIGNMENT OF THE CONTKACT. 101 such a right, the purchaser cannot call upon this court to enforce specific performance of the agreement. Such a transaction, if not in strictness amounting to maintenance, savors of it too much for this court to give its aid to enforce the agreement." § 214. Upon principles of public policy contracts by which railway or public comj^anies seek to devolve busi- ness, or delegate powers, with which they are entrusted, on persons to whom the legislature has not entrusted them, and on whom it has not attached the same responsibilities that it has on the companies, are incai)able of being enforced by a court of equity. (f/)' (ff) Johnson v. Shrewsbury and Birming- Winch v. Birkenhead, Lancashire and Che- ham Railway Co., 3 De G. M. & G., 914; Be- shire Junction Railway Co., 5 De G. & Sm , manv Rufford, 1 Sim. (X. .S.), 550; S. C, 7 562; London, Brighton and South Coast Rail- Rail. C, 4S; Great Northern Railway Co. v. way Co. v. London and South Western Rail- Eastern counties Railway Co., 9 Ha., 3u6; way Co., 4 De G. & J., 363. 1 Among those cases in wiiicli assignments will not be upheld either in equity or at law, as being against the principles of public polic3^ is the assignment of the commission of an officer in the army by way of mortgage. CoUyer v. Fal- core, 1 Turn. & Russ., 459. Neither is the full pay or half pay of an army or navy officer assignable, either by the party or by operation of law. Daves v. Duke of Marlborough, 1 Swanst. R., 79; McCarty v. Goold, 1 Bali & Beat., 387; Stone v. Littledale, 2 Aust. R., 538. But the claims of officers of the revolution for compensation for services, as promised by Virginia unpaid at the death of the officer, are as.sets, and assignable as other clioses in action. Mer- riwether v. Herran, 8 B. Monr., 162. "The same doctrine has been applied to the compensation granted to a public officer for the reduction of his emolu- ments, or the abolition of his office, who, by the terms of his grant, might be required to return to the public service. For in such a case the object of the government is to command a right to his future services, and to enable the party to perform the duties, witii suitable means to support him." Wells v. Foster, 8 M. & W., 149. In like manner the profits of a public office would seem, upon a similar ground of public policy, not to be assignable. Hill v. Paul, 8 Clark & Fin., 2'jr); Palmer v. Bate, 2 Bro. & Bing., 673. In reference to pensions which are held to be assignable, see Story's Eq. Jur., § 1040. The salary of the assistant parliamentary counsel for the treasury has been held not to be assignable. Cooper v. Reilly, 2 Sim. R., 560. But the grounds upon which the decision rested are the subjects of considerable doubt, and it is a much mooted question " whether a compensation or pension granted during pleasure, and not for any certain time, and revocable in its own nature, is prop- erly the subject of an assignment, as being of too uncertain and fleeting a character to pass by assignment — for although mere expectancies may pass by assignment, yet thej^ must be of a substantial character, and not ordinarily of such a nature as to rest in the pure discretion of the party granting or with- holding them, from time to time, at his pleasure." Story's Eq. Jur., § 1040 f, and note. A distinction has also been taken between the case of an assignment of the arrearages of full pay, or half pny, or other compensation connected with the right to future success, and the case of an assignment of the future accruing pay, or half pay, or other compensation, as the right to arrearages has become absolute, and the assignment thereof may not interfere with any public policy. Story's Eq. Jur., § 1040 f. And military prize money, although rest- ing in the mere bounty of the crown, is held to be different in its nature and objects from military pay, and treated as a right of property rather than as a personal ]3ension or reward. Alexander v. Duke of Wellington, 2 Russ. & 102 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. § 91 o. It must be added that, eA-en wliere a concluded contract would be assignal^le. tlie benefit of an offer cannot, it seems, be transferred by tlie person to whom it is made to a third person. "In case of an offer by A. to sell to B., an acceptance of the offer by C. can establish no contract with A., there being no privity." (7/) § 916. The assign of a contract may, as has been shown, sue on it ;(/) but he cannot, by notice to the other party to the contract, deprive him of tlie right to complete it with the original contractor, or make him responsible for any loss which may result to the assign from the completion of the contract with his assignor. (,/) § 917. Questions may of course arise as to the extent of the contract to the benefit of which the assign is entitled. Thus, where a lease was agreed to be granted to A. of an hotel near a station, and it was further agreed that A. should have the occupation of the refreshment rooms, the question arose whether the assign of the lease granted to A. was en- titled to sue for the occupation of the refreshment rooms. It was held in the affirmative. (^) §918. Where a contract has been entered into for the sale of property, and that x)roi5erty is afterwards aliened or assigned, or contracted to be aliened or assigned, and the alienee or assign has notice of the original contract, he is liable to its performance at the suit of the purchaser.' "If," said Lord St. Leonards, (Z) "the contract is a binding one, it can be enforced against any party in whom is vested (h) Meynell v. Surtees. 3 Sm. & Gif., 101, affirmed s. n. Shaw v. Foster, L. R. 5 H. L., 117; Boulton v. Jones. 2 II. & N., 564. 321 ; Crablree v. Poole, id. 12 Eq., 13. (i) Cf. Birmingham Canal Co. v.Cartwright, (k) Flanagan v. Great Western Railway 11 Ch. D., 421 (covenant to give right of pre- Co., L. R. 7 Eq., IIG. emption). {I) In Saunders v. Cramer, 3 Dr. & War., U) McCreight v. Foster, L. E. 5 Ch., 604; 99. Mylue, 35; Stephens v. Bagwell, 15 Ves., 139. It may be laid clown as a gen- eral rule, that, where an equitable interest is assigned, in order to give the assignee a locus standi injudkio in a court of equity, the party assigning such a right must have eitlier a substantial possession, or some capability of personal enjoj-ment in the thing assigned. Prosser v. Ildwards, 1 Younge & Col., 481. ' Langdon v. Woolfolk, 2 B. Mon., 105; Castle v. Wilkinson, L. li., 5 Ch., 530; Caldwell v. Carriuoton, 9 Pet., 86; Hoaglaud v Latourett, 1 Green Ch., 254; Glover v. Fisher, ll 111., 6G6; Wrio'ht v. Dame, 23 Pick., 55; Clark v. Flint, 23 id., 331; Baldwin v. Lowe, 33 Iowa, 867; Snowman v. Hareford, 57 Me., 397; W^alker v. Cox, 35 Ind., 357; Patten v. Moore, 33 X. H.. 383, Ful- lerton v. McCurdy, 4 Lans., 132; Stone v. Buckner, 13 Lon. & Marsh., 73; Morris v. Hovt, 11 Mich., 9; see Davis v. Henry, 4 W. Va., 571; Powell v. Young, 45 i\rd., 414. ASSIGNMENT OF THE CONTRACT. 103 the legal and beneficial interest in the property/' "If," said Lord Rosslyn,(m) "he is purchaser with notice, he is liable to the same equity, stands in his place, and is l)ound to do that which the person he represents Avould be bound to do by the decree." This principle has been acted on in numerous cases, (t*) § 919. In particular the principle applies to unregistered contracts relating to land in register counties. Such con- tracts may be enforced against subsequent purchasers who may have obtained conveyances which they liave registered, if they have notice of such prior contracts, (o) § 220. Where a person having a prior title gets in the subsequent estate which is affected by the contract, and has notice, he cannot protect himself from the performance of tbe contract by his elder title ; thus, where an equitable mortgagor entered into a contract for a lease, and then the mortgagee, whose mortgage was prior to the contract, bought the estate with notice, he was held bound to specifically jDer- form the contract \{p) and again where A., having only the equity of redemption, agreed to sell to B., and subsequently both A. and his mortgagee conveyed to C, who had notice of A.'s contract with B., it was held that B. might enforce specific performance against C.(g)' (»«) In Taylor v. Stibbert, 2 Ve8. Jun., 437. Sm. & G., 537; Goodwin v. Fielding, 4 De G. (n) Jackson's Ci.se, 5 Vin. Abr., 543, pi. 3; M. & G., 90; Waldron v. Jacob. I. R. 5 Eq. Howard v. Hopkins, 2 Atk , 371; Ford v. ISl; Reilly v. Garnett, id. 7 Eq., 1, and supra, Conipton, 2 Bro. C. C, 32, and Belt's n.. 2; § 184. See, too, Dyas v. Cruise, 2 Jon. & L., Jalabert v. Duke of Chandos, 1 Eden, 372; 4G0 (where a contract for a leaso was enforced Brooke v. Hewitt, 3 Vcs., 253; Knollys v. against a iirovisional assignee in insolvency); Alcock, 5 id., 648; Meux v. Maltby, 2 Sw., and as to the last mentioned case, cf. inlVa, 277; Spence V Hogg (before Shadwell.V. C., §225, and Lord Cottenhara), 1 Coll., 225; Dowell v. (o) Ter James, L. J, in Greaves v. Tofleid, Dew, 1 Y. & C. C. C, 345; affirmed 12 L. J. 14 Ch. D., 572. Ch., 158; Crofton v. Onnsby, 2 Sch. & Lef , (;)) .-^mith v. Phillips, 1 Ke.,694; Muniford 583; Potter v. Sanders, G Ha., 1; Ilersev v. v. stohwiusser, L. K. 18 Eq., 55(5. Giblett, IS Beav., 174; Shaw v. Thackra"y, 1 (. C , 1 llall. C., 173; tion Railway Co. v. The Magistrates o! Hel- before Shadwell, v. C, . Sim., 33(. cnsburgh, iM'Q., 394. 108 FKY ON SPECIFIC PERFORMANCE OF CONTRACTS. held to be bound by the contract entered into by the pro- moters before incorporation. "The question/' said Lord Cottenliain, in delivering jiidgment,(c) "is not whether there be any binding contract at law, but whether this court will permit the company to use their powers under the act in direct opposition to the arrangement made with the trus- tees prior to the act, upon the faith of which they were per- mitted to obtain such powers. If the company and the projectors cannot be identified, still it is clear that the com- pany have succeeded to, and are now in possession of, all that the projectors had before, they are entitled to all their rights, and subject to all their liabilities. If any one had individually projected such a scheme, and, in prosecution of it, had entered into arrangements, and then had sold and assigned all his interest in it to another, there would be no legal obligation between those who had dealt with the origi- nal projector and such purchaser ; but in this court it would l)e otherwise. So here, as the company stand in the place of the projectors, they cannot repudiate arrangements into which such projectors had entered ; they cannot exercise the powers given by Parliament to such projectors in their corporate capacity, and at the same time refuse to comply with those terms upon the faith of which all opposition to their obtaining such powers was withheld." The same principle was subsequently acted on by his lordship in the cases of Stanley v. The Chester and Birkenhead Railway Co.( Cutis v. Tho.ley 13 Sin, -.HHJ:,! Coll.. Heard V Pillev, L. R. 4 Ch . 54S. Distinguish 2-23, n.; Feiiton v. llughis , ^ es.. 2S,. Gla/brJok V Richardson. -23 W. R.. 51. (w) Wig;:ms v. Lord. 4 Beav., 30. 120 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. auctioneer has repeatedly been made a defendant to bills by the vendor or those claiming under him, and has been ordered to pay the deposit (less his charge [re]) into court. (2/) And on account of the auctioneer's right to bring an action for the deposit, and of his liability in respect of it, it has been said that he can be made a co-plaintiff with the ven- dor ;{z) or he may interplead. (a) § 248. Still, although it is the law that a stakeholder or auctioneer holding a deposit may be made a defendant, the proi^er practice is not to make him a defendant when the deposit which he holds is small ; unless, being applied to pay it into court, he refuses to do so. Where the deposit is large, the depositee may properly be made a defendant if he has not paid it into court before action. (&) § 249. The auctioneer being agent for both vendor and purchaser, and receiving the deposit as a stakeholder, is liable to an action for it if the sale goes off,(c) although he be also solicitor for the vendor ;(<:Z) and where the contract provided "that a deposit of £350 should be paid in part of the purchase-money to" the vendor's solicitors, it was held that they were stakeholders ;(e) but the vendor's agents, (/) including solicitors to whom the deposit is paid, " as agents for the vendor," are not stakeholders. (^)' (x) As to this, see St. Leon. Vend., 51-3, (c) Grey v. Gutterulge, 1 Man. & Ry.,614. and Blenkhorn v. Penrose, 29 W. R.. -239. Harington v. Hoggart, 1 B. & Ad, 577- (y) Anneeley v. Muggridge, I Mad., 593; id) Edwards v. Holding, 5 Taun., 815. Yates V. Farebrother, 4 id., 239. Cf. Blenk- (e) Wiggins v. Lord, 4 Beav , 30. horn V. Penroee, 29 W. R., 239. ( f) Duke of Xorlolk v. Worthy, 1 Camp., (z) Dan. (Jb. Pr., 17S. 337; Hurley v. Baker, 16 M. & W., 26. (a) Hoggart v. Cutts, Cr. & P., 197. (g) Edgell v. Day, L. R. 1 C. P , 80. (6) Earl of Egmont v. Smith, 6 Ch. D., 469, 474-5. ' Pleadinffs, what they must show.'] The pleadings must render clear the rights of the parties seeking specific performance; if they do not do so it will be refused. "Waters v. Brown, 7 .1. .J. Marsh., 123. Fraud must be alleged. Lawyer v. Mills, 20 L. J. Ch , 80; Maguioc v. Thompson, 2 Wall. .Jr., 209; Ellerbee v. Ellerbee, 42 Ala., 643. The plaintiff must show that he can- not be indemnified in damages if the contract is broken. Powel v. Central Plaukroad Co., 24 Ala., 441; McCloud v. White, 5 Minn., 178. A demurrer will lie if he does not do so. Bottsford v. Beers, 11 Conn., 369; Prewitt v. Jenkins, 1 Blackf., 294; Noyes v. Marsh, 123 Mass., 286; Kauffman's App. , 55 Pa. St., 383. In an action for the specific performance of an agreement to sell land, it was held that the bill might be so shaped as either to obtain specific performance, or that the contract be canceled. Mills v. 3Ietcalf, 1 A. K. Marsh., 477. In Pitts v. Cable, 44 111., 103, it was held that a bill which seeks specific performance must be framed with that view. Land was sold under an order of the court, and the purchaser failed to complete his purchase; the officer making the sale, who is the only necessary party complainant, could file his bill for specific performance, without direction of the court; a demurrer will not lie. Boune v. Bitter, 26 N. J. Eq., 456. The plaintiff must show AGENCY. 121 aflBimatively that he is entitled to relief. He need not, however, allege that the defendant has the ability to perfomi. ^lorev v. Farmers' Loan, etc.. 14 N. Y., 302; Clough v. Hart, 8 Kan., 487; Greenfield v. Carlton, 30 Ark., 547. The rules of pleacling are le.ss stringent than they are at law; but tiny are equally regulated by principle. Adams' Eq., 301. As to what was a sufliciont complaint in an action to compel a convej'ance, see Morrow v. Lawrence, 7 "Wis., .~)74. In the case of a grant, a deed must be alleged. King v Tice, 3 Ired. Eq., 5G8. Matters which the court takes judicial notice of, need not be set out in the pleadings. United States v. La Vengeance, 3 Dallas, 2'J7 ; Owings V. Hall, 9 Pet., 607. ' Where the Statute of Frauds applies to the contract, the bills is demurrable. Chambers v. Lecompte, 9 Mo., 575. As to where the statute of limitations applies, see Dunlap v. Gibbs, 4 Yerg., 94; "Wisner v. Bar- nett, 4 Wash. C. C, 631; Field v. Wilson, 6 B. Mon., 479; Maxwell v. Ken- ned}', 8 How., 210. "Where a contract was to have been approved by a corpo- ration, and was signed by its president, the fact that he was such officer must be set forth. Buffalo Catholic Inst. v. Betta et al., 87 N. Y., 250. Bule (I.S to loliut the bill imid shoic.'] Great accuracy of averment, and strict corresponding proof, are required in an action for specific performance. Daniel V. Collins, 57 Ala., 625; Hunter v. Daniel, 4 Hare, 4'iO; Forsythe v. Clarke, 3 "Wend., 657. The contract should be particularly stated. Light St. Bridge Co. v. Bannon, 47 Ind., 129. A waiver of objection to title was the ground relied upon for specific performance. Held, that that question must be put in issue by the pleadings, in order that evidence might be given to prove such waiver. Page v. Greeley, 75 111., 400. After a decree had been made; held, that it should not be set aside, because of defects in the petition. Despaiu v. Carter. 21 Mo., 231. The legal title must be .shown to be subordinate to the equitable title under which the plaintiff claims. Cameron v. Abbott, 3 Ala., 415. "Where an action is brought against heirs, and to specifically enforce their ancestor's contract, it must be averred and proved that the estate is not in process of administration, and that the defendant has assets of such ancestor in his hands. Taylor v. Roland, 26 Texas, 293. A. assigned to B. all his in- terest in an undivided estate. Held, that B.'s bill must show that A., at the time of the assignment, had an interest, and furnish the data from which such interest might be ascertained. Bogan v. Camp., 30 Ala., 276. The pleadings need not allege that the vendor died seized, or that title is in defendant. Moore V. Burvams, 34 Barb., 173. Where an agent executed a contract, the plcad- ing-s must .show that he was duly authorized. Roby v. Cossitt, 78 111., 638; Columbine v. Chichester, 2 Phil., 27; coittra, Harding.s v. Parshall, 56 111., 219; Fisher v. Bowser, 41 Texas, 222. They need not show the mode of execution, nor the manner in which the agreement was satisfied by the principal. Ilan- chett V. McQueen, 32 Mich., 22; Harding v. Parshall, 56 111 , 219; Gilpin v. Watts, 1 Col., 479. As to tru.st funds in agent's hands, see Gerrish v. Toune, 3 Gray, 82. All the essential terms of a contract must be clearly and definitely alleged as well as proved. .lones v. Jones. 49 Texas, 683; Anthony v. Left- witch, 3 Rand. (Va.), 238; Gaskins v. Reebles, 44 Texas, 390; Wiley v. Mul- lins, 22 Ark., 294. Where the object of the action is to charge particular defendants, the pleadings must show a ca.se against them by proper legal averments. Seager v Burns, 4 3Iinu., 141. It is" no objection that the exact agreement relied upon, is set out in the pleadings. New Barbadoes Toll Bridge Co. v. "Vreeland, 4 N. J. Eq., 157. Where the contract relied upon is required to be in writing, the pleadings will be had on demurrer, if thev do not show that it was so. Barkworth v. Young. 4 Deem, 1 ; Logan v. Bond, 13 Yes., 192; Piercy V. Adams, 22 Ga., 109; Carlisle v. Brennan, 67 Ind., 12. Walworth, Chancellor, said in Cosme v. Graham, 2 Paige Ch., 177: "If it is stated gener- ally that an agreement or contract was made, the court will presume it a legal contract until the contrary appears ; and the defendant niu.^t either plead the fact that it was not^in writing, or insist upon his (lefen.se in the answer." See, also, Wildbachu v. Bibidoux"; 11 Mo., 659; Richards v. Richards, 9 Gray, 314; Cran.shou v. Smith, 6 R. I.. 231; Farnham v. Clements. 51 Me.. 426; Dudley V. Batchelder, 53 id., 403; Ilubbel v. Courtney, 5 S. C, 87. Specific perform- ance will not be decreed of an agreement which differs materially from the one set out in the pleadings. Han-is v. Knickerbocker, 5 Wend.. 638. As to how land should be descrilied in pleadings, see Gray v. Davis, 3 J. J. Marsh., 122 FRY OX SPECIFIC PEUFOKMANCE OF CONTRACTS. 381; Allen v. Chambers, 4 Ired. Eq., 135; Mullory v Malloiy, 1 Bush. (N. C), Eq., 80; Sanderson v. Stockdale, 11 :\W., 5(33; Bast v. Alford, 20 Texas, 226; Goodenow v. Curtis, 18 Mich., 298; Baker v. Hathaway, 5 Allen, 103. In Abbott V. Dunivau, 34 INIo., 148, it was held that either party might aver and prove a mistake in the description of the land, in a contract sought to be spe- •cifically enforced. "Where a vendor seeks to enforce specific performance by a sale of" the land and application of the proceeds to the satisfaction of the con- sideration, he should allege in the pleadings, and prove, that the defendant agreed to pay the consideration. Copehart v. Hall, 6 W. Va., 547; Park v. Johnson, 4 Alien. 259 As to allegations of performance, all the facts consti- tuting performance should be alleged in the pleadings; it is not enough to aver " that he has done all that he is Ixjund by the contract to do," or " that he has offered, and has always been ready and willing, to comply with his contract." The pleadings must show that the complainant has fully performed everything iiecessarv to entitle him to performance of the contract bj^ the defendant. Bates v.'Wheeler, 2 111., 54; Underbill v. Allen, 18 Ark., 460; Brown v. Hayes, 33 Ga. Supp., 13(i: I\[cLerov v. Tulane, 34 Ala., 78; Bell v. Thompson, id., 633; Columbine v. Chichester, 2 Phil., 27; Davis v. Harrison, 4 Litt., 261; Hart V. ]\IcClellan, 41 Ala., 251; Duff v. Fisher, 15 Cal., 375; Low v. Heck, 3 W. Va , 680; Koy v. Willink, 4 Sandf. Ch.. 525; Bass v. Gilliland, 5 Ala., 761; Moore v. Higbee,"45 Ind., 487. As to insufficient allegations relative to a trust, see Pearson v. East, 36 Ind.. 27; Hanser v. Roth, 37 id., 89. "Where the plead- ings alleged that the purchase money had all been paid, and offered to pay whatever sum might be found to be due — held, sufKcieut, although a part of the money was found to be still due. Mix v. Beach, 46 III, 811. Partial per- formance was alleged in the pleadings. Held, that the plaintiff need not form- ally allege a readiness to complete the performance. Hatcher v. Hatcher, 1 McMullan Ch., 311. As to ■mutual and concurrent acts.'\ The pleadings in an action to enforce the specific performance of an agreement, in which the acts to be done by the par- ties are mutual and concurrent, was held good, where they alleged an offer to perform hj the plaintiff: and a refusal by the defendant. St. Paul Div. v. Brown, 9 Minn., 157. As to amendments, see Chess' App., 4 Pa. St., 52. As to consent ] "Where consent is necessary in order to enable the plaintiff to perform the contract — held, that the pleadings need not allege that such consent was obtained. Smith v. Capron, 7 Hare, 185. ^4.'* to refused and demand.'] "Where an action is brought to enforce an obli- gation to convey, absolute on its face, and the consideration is acknowledged, the pleadings need only aver a request and a refusal. Founger v. "Welch, 22 Texas, 417; Holman v.'Aiswell, 15 id., 394. The pleadings should state that the vendor had been requested to make title; his insolvency will not excuse the necessity of such request Carter v. Thompson. 41 Ala., 375. In Dodge v. ("lark, 17 Cal., 586, the omission of an allegation of demand was held to be fatal. As to dn)7iarjes.] The particular injury must be alleged and proved, where damages are claimed; it will not answer to aver that the plaintiff has sustained damages. Clinock v. March, of Ely, 2 H. ct M., 220. "UHiere a note has been lost, the pleadings must allege that the same has not been paid. Mason v. Fo.ster, 3 J. J. Mar.sh., 283. Belief; general jyrayer for.] The complaint should be dismissed, notwith- standing the complainant may be entitled to some relief : where the pleadings contain no prayer for general relief, and where they do not justify the relief prayed for. Boyl v. Laird, 2 Wis., 431; State of Conn. v. Sheridan, 1 Clark (N. Y.), 533. It is error to grant it, where neither party asks for specific per- formance. Cantrell v. Rice, 6 J. J. Marsh., 338. Afftrmntive relief^eross-bill.] The defendant must file a cross-bill, if he wishes affirmative relief, in an action for specific performance. Hanna v. Rat- 1ikin^ 4:! 111., 103; Bussey v. Gart, 10 Humph., 238; Wright v. Delafield, 25 N. Y. , 266. Where the answer admitted the contract, no cross-bill need be fid. D orsey v. Campbell, 1 Bland. Ch., 356. Where the purchaser files a AGENCY. 123 bill for specific pei-formanco, after the time fixed in the agreement, tlie vendor may, by answer, subniit to perform, and file a cross-bill, and compel the pur- chaser also to perform. Held, that he cannot, in such case, resist fulfillment, and, after depreciation of the property, enforce specific performance against the purchaser. Tobey v. Freeman, 79 111., 489. Bill dismissed.^ The cross-bill, with the original bill, makes but one action; -and. when the origiuall bill is dismissed, such dismissal carries with it the dis- missal of the crossbill. Elderkin v. Fitch, 2 Carter, 90. The cross-bill is a matter of defense, and it should not set up anything not contained in the origi- nal action. May v. Armstrong, 3 J. J. Marsh., 262; Daniel v. Morrison, 6 Dana, 18(3; Fletcher v. Wilson';' 1 Lon. & Marsh. Ch., 376; Gallatin v Erwin, Hopk. Ch., 48; S. C 8 Cow., 301; Josev v. Rogers, 13 Ga., 478; Slason v. Wright, 14 Vt., 208; Rutland v. Page, 24*id., 181; Draper v. Gordon. 4 Sandf. •Ch., 210. In Nelson v. Dunn, \o Ala., 501, it was held that a cross bill is not restricted to the issues of the original action. The written obligation on which the claim was based, was set out in the plaintiff's bill; the cross-bill did not set it out. Held, that it need not do so. Coe v. Lindley, 32 Iowa, 437. Equitable counterclaim under the Codes of the several States.'] The equitable counterclaim may take the place of a cross-bill, under the system of pleadings adopted I)v the codes in the several States where they are used. McAbee v. Randall, 41 Cal., 136. Change of parties.'] When a cross-bill is filed by the defendant, in which he seeks affirmative relief, he becomes the plaintiff, and the plaintiff in the original action becomes the defendant in the cross-bill. Ewing v. Patterson, 35 Ind., 326. Statute of frauds— demurrer.'] The statute of frauds must, in all ca.ses, be pleaded ; it differs, in that respect, from the statute of limitations. Where it is not done, a general demurrer is proper. Ridgwa)-- v. Wharton. 3 De G M. &G., 691; Wright v. Le Clair, 4 Green (Iowa), 420; Field v. Hutchinson, 1 Beav., 599; Wood v. Midgley, 5 De G. M. &■ G., 41; Adams v. Patrick. 30 Vt., 576; Hallv. Peer, 27111.. 312; Meach v. Perry, 1 D. Chip (Vt.), 182; Dryer v. Martin, 4 Scam., 146; Hollingshead v. ]\IcKenzie, 8 Ga., 457; Grant v. fcraig- miles, 1 Bibb., 203. A general denial does not raise the issue of the statute of frauds. Livesey v. Livesey, 30 Ind., 3!)8 Where the answer admitted a parol contract, the defendant must plead the statute of frauds, in order to avail him- self of it. Irildbahra v. Robidoux, 11 Mo., 659; Walker v. Hill. 21 N. J. Bq.. 191; Albert v. AVinn, 5 Md., 66; Talbot v. Bowen, 1 A. K. Marsh., 436; Small V. Awings, 1 Md. t h., 363; Artz v. Grove, 1 Md., 456; Newton v. Swazev, 8 N. H., 5?; Tilton v. Tilton, 9 id., 385; Dean v. Dean, 9 K J. Eq., 425; Smith Braisford, 1 Des. Eq , 350; Hutchinson v. Hutchinson, 4 Des., 77; Savir v. Dulin, 6 Jones' Eq., 195; Morrell v. Cooper, 65 Barb., 51. Defense that land is homestead.] Where the defendiint wishes to avail himself of this defense, he must set it up in his pleadings. Brown v. Eaton, 21 Minn., 409. The wife refused to release her dower. Held, that the defense would not avail, where the vendee offered to v.^aive the release. Carson v. ^lulranv, 49 Pa. St., 88. Neic matter.] It is no ground for denying the relief asked for, that new matter has been set up not responsive to the allegations of the bill, and not supported by the proof. Smoot v. Rea, 19 Md.. 398; see Laverty v. Moore, 33 N. Y., 658. 124 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. PAET III. OP THE DEFENSES TO THE ACTION. CHAPTER I. OF THE INCAPACITY TO CONTRACT. § 250. The incapacity to contract of either of the parties to a contract furnislies ground on which that party may resist si^ecific performance ; and on the principle of mutu- ality hereafter to be considered it may also furnish a defense to the other party, though himself perfectly competent. The incapacity to contract, and the incapacicy to execute a contract, are, of course, different questions ; the one must be judged of at the time of the contract, the other when its performance is sought.' • Personal incapacity.^ It is a perfect defense to au action for specific per- formance, that the plaintiff, at the time of filing the bill, was personally in- capable of performing. Flight v. BoUand, 4 Russ., 298; Richards v. Green, 23 N. J. Eq., 538. Specific performance will, of course, not be decreed, when the defendant cannot perform the agreement. This is true even where he has, by his wrongful act,»made it impossible. Green v. Smith, 1 Atk., .573; Dan- forth V. Phila. R. R. Co., 30 K J. Eq., 12; Columbine v. Chichester, 2 Phila., 27; Hallett v. Middleton, 1 Russ., 243; Ellis v. Coleman, 4 (Jur. S.), 350; Phil- lips v. Stanch, 20 Mich., 369; Dan ton v. Stewart, 1 Cox, 258; Greenaway v.. Adams. 12 Ves., 395; Smith y. Kelley, 50 Me., 64; Gumpton v. Gumpton, 47 Mo., 37; Renkin v. Hill, 49 Iowa, 270; Stearns v. Beckham, 31 Gratt., 379. Homestead law m loica.] In this State a husband agreed to convey land in which there was a homestead right in his wife. She refused to consent. Held, that specific performance would not be decreed. Yost v. Devault, 9 Iowa, 60; Barrett V. Mendenhall, 42 id., 296; Long v. Brown, 66 id., 160; see as to bad faith in the parties in such a case. Peeler v. Levy, 26 N. J. Eq., 330. PartUd performance only, possible.'] It is the substance, rather than the form of contracts, which equity regards; and the impossibility of a hteral fulfill- ment will not operate as a defense, when it can be substantially carried out. Shaw V. Livermore, 2 Green (Iowa), 338; Phila. R. R. Co. v. Lehigh, etc., Co., 36 Pa. St., 204; Hart. v. Brand, 1 A. K. Marsh., 159; Oliver v. Crosswell, 43 111., 41. Partial ability.] A defendant must perform, so far as he is able, and equity will compel him to do so. A ratable abatement of the contract may be de- creed. Rankin v. Maxwell, 2 A. K. Marsh., 488; Weatherford v. James, 2 Ala., 170; Jacobs v. Sale, 2 Ired. Eq., 286; Henry v. Lisles. 2 id., 407; Wright V. Young 6 Wis., 127: Ketchum v. Stout. 1 Head (Tenn.), 251 ; Bell v. Thomp- «SS' 'it''^'?-',,^'^'^' Ketchum v. Stout, 20 Ohio, 453; Covell v. Cole, 16 Mich., 223; Marshall v. Caldwell, 41 Cal, 611; Meek v. Walthall, 20 Ark., 648. INCAPACITY TO CONTRACT. 125 § Sol, The question as to the capacity of ])ersons to con- tract, as raised in actions for specific performance, being for the most part identical with the question as discussed at* common law, and having no peculiar relation to the juris- diction in specific performance, it is X)roposed only to refer to a few points of practical importance which may arise in actions of this nature. § SoS. The peculiar doctrines of equity with relation to married women make it necessary to allude to their capacity to contract. The principle on which the court proceeds is, that if a married woman have not separate property, she cannot, at any rate as a general rule, (a) contract at all; and if she have, she can contract, but only in respect of that, and the remedy is only against it, and not in ijersonam against her. (5) ^'■h. feme covert,'''' said Lord Cottenham,(c) "is not comi)etent to enter into contracts so as to give a personal remedy against her. Although she may become entitled to property for her separate use, she is no more capable of contracting than before ; a personal contract would be within the incapacity under which a feme covert labors.'" (a) See the case of Vansittart v. Vansittart v. Ashton, 1 My. & Or., 105. See, also, Hum- (4 K. & J., 62, affirmed 2 De G. & J. 249), phreys v. HoUls, Jac, 73. infra, § 259. (c) 1 My. & Cr., Ill, 112. (6) Francis V. Wigzell, 1 Mad, 258; Aylett ' Kfeine covert will be treated as a feme soU, only as to the dispositiou of her separate property; and her power of disposing of property, settled to her sepa- rate use, will be governed by a strict interpretation of the powers given by the settlement. Methodist Church v. Jacques, 3 John. Ch., 77. And, therefore,^ where a wife had poWer, under a marriage settlement, to "give and Itequcath " the property, at her death, "to whomsoever she pleases." but had no separate estate, and she executed au instrument under the power, therein styled a "will," and appointed A. her "executor;" held, that such instrument was a mere exe- cution of the power, and that A. therefore was uot au executor," but that he was an appointee in trust, and that the property vested in him for the benefit of creditors and legatees. Leigh v. Smith, 3 Ired. Ch., 442. But where a feme covert has a separate estate, she may dispose of it as she pleases, eveu to her husband, if done freely and vohmtarily, and the court will coutirm her dis- position. Dallam v. Wampole, Pet. C. C', 116. She may mortgage her sepa- rate estate for her luisband's debts; and a power of sale, in such mortgage, pursuant to the statute, is valid. Demarest v. Wynkoop, 3 John. Ch., 129 (Kent, Ch.). A married woman being, as to her separate estate, treated as a feme sole, may, in person, or by her agent, bind the estate for the payment of debts contracted upon the credit of such estate; and the assent of her trustee is not necessary, if the instrument creating the trust contains no restriction upon her power. North American Coal Co.^ v. Dyett. 7 Paige. 9. And ! Or if a contract be formal and complete, yet, i*" understood by the parties :as a jest, it is nat binding. Armstrong v. McGhee, Addis, 261. 132 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. (wlien a vice chancellor), who, both on that ground and on the nature of the judge's order, refused specific perform- ance. (^/) Tlie opposite view has been taken in some cases at common law, and it has been said that a contract is not tlie less a contract, and subject to the incidents of a contract, because there is superadded the command of a judge. (f)' (2) Are instructions for a settlement a contract for a set- tlement, or only instructions for a contract? This was a question on which the House of Lords was in one case much divided, (t?) (3) Are articles of association a contract between the com- pany and a third person named in them ? This is a question which, under special circumstances, has been answered in the affirmative. (f) (4) Is the recital in a deed evidence of a contract ? — is a question which also has been answered in the affirmative. (/) § 269. A much more common question is whether negoti- ations have passed from that state and resulted in actual contract.' If it were only doubtful whether the contract was concluded or negotiations still remained open, the court of chancery used to refuse specific performance, and leave the parties to their common law rights if any. {r/Y § 270. A binding contract, enforceable in equity, may be constituted by the proposal of one party and the acceptance of the other. (A) But as the prox)osal has no validity with- (6) Thames Ironworks Co. v. Patent Der- (/) Wilson v. Keating, 27 Beav., 121; afTd rick Co. ,1. J &H, 93. 4DeG. &J.,5S8 (C) Wentworth v. Biillen. 9 B. & C, 840; ig) Huddleston v. Bus-cop. ll Vee , 583.591; Llevesley V. Gilniore, L. R. IC. P.,570. See, Stratford v. Bosworth, 2 V. & B, 341 ; Skelton also, Tatham v. Piatt, 9 Ha., 660. v. Cole, 1 De G. & .J., S87. (d) Caton V. Caton, L. R 2 H. T-., 127. {h) The acceptance must be by the other (() Touche V. Metropolitan Railway Ware- party. An offer by A. to B. and acceptance housing Co., L. R. 6Ch.,671. by (5. constitutes no contract. Meynell v. buriees, 3 Sm. & Gil'., 101, 117. ' A party wrote to the owner of land inquiring the price. Held, that the reply of the latter stating the price, does not constitute a proposition to sell. Knight V. Cooley, 34 Iowa, 218; Erwin v. Erwin, 25 Ala., 23(5. Construction of the word immediately. Bruuer v. Wheaton, 40 Mo., 863. Itnle as to ncaiptance of terms.'\ In order that an acceptance may be binding, it must l)e distindt, unconditional ; it must not vary the terms of the offer, and it mu.st be communicated without unreasonable delay. Thomburry v. Bevill. 1 Y. ct C. C. C, 554; Eads v Caroudolet, 42 ]\Io., 113; Bruner v. Wheaton, 46 id., 863; Bethel v. Hawkins, 21 La. An., 620; Wilson v. Clements, 3 Mass., 1; Peru V. Tvu'ner, 10 Me., 185; Johnson v. Fisher, 7 Watts, 48; Hazard v. New England :\Iar. Ins. Co., 1 Sumn., 218; Carr v. Duval, 14 Pet., 77; Hartford and New Haven K. R. Co. v. .Tackson, 24 Conn., 514; Solomon v. Webster, 4 Col- orado, 353; Carter v. Shorter, 37 Ala., 253. ' Carr v. Duval, 14 Pet., 77. NON-CONCLUSION OF THE CONTRACT. 133 out the acceptance, a memorandum of offer differs essenti- ally from a memorandum of agreement. " In the case of an offer, no doubt, the party signing it may at any time before acceptance retract ; but if it be an agreement, thougli signed by one party alone, he cannot retract at his pleasure, but all he can do is to call upon the other party to sign or re- scind the agreement. A memorandum of agreement sup- poses that the two parties have verbally made an actual contract with each other ; and when the terms of such con- tract are reduced into writing and signed, that is sufficient to bind the party signing ; but if the memorandum is of an offer only, that assumes that there has been no actual con- tract between the parties." ' § 271. In order that an acceptance may be operative, it must be plain, unequivocal, unconditional and without vari- ance of any sort between it and the proposal, and it must be communicated to the other party, and that without un- reasonable delay, (y) § 373. The proposition that the acceptance must be plain, unequivocal, unconditional and without variance, is sup- ported and illustrated by a great variety of decisions. In tlie case of Kennedy v. Lee,(/t) the subject was much dis- cussed ; it was there unsuccessfully argued that the accept- ance introduced a term respecting the good-will of a busi- ness not included in the proposal. § 273. The unequivocal character of the acceptance that is requisite is well illustrated by a case in which A. made an (i) PerKindersley, V. C.in Warner v. 'Vil- thier, Tiaite fles Oblig., parti, cli. 1, s. l.art lington, 3 Drew , 531. See, also, M^vnell v. ],§2. Surtt^es (on appeal), 1 .hir. (X s), 737; 3 W (j< Oiieiital rnliiTl Steam Navijrfitinn Co. R., 535; Horstall v. G;iriiett, 6 1<1., 387. The (liM.it.eji') v KriiC^^s, 4 De G. F. & I., 191 distinction is the same b tween a. p'AlicHiiUn {!;) 3 Mer , 441 Si^e, too, 'I'tiornhury v. and a contract in the Koinan law. See Po- P>evill, 1 V. & C U. C , 554; Cayley v. Wal- pole, 18 VV. H,78-2. ' In the case of the Canal Co. v. Railroad Co., 4 Gill ct .J., 1, a contract, valid and binding at law, is defined to be a mutual consent of the parties con- cerned, respecting some property or right that is the object of the stipulation, or something that is to Ije done or forborne; a transaction between two or more persons, in which each party comes under an obligation to thfe other, and each reciprocally acquires a right to whatever is promised or disputed by tlie other; and any words manifesting a eongregatio mentiani, are sutlicient to constitute a contract. But this mutual consent — the congregatio mentium — cannot, of course, be attained without the assent of both parties. Therefore, if A. sign a writing that he will sell B. a house on certain terms, it is a mere proposition, and not an agreement, unless accepted by B. Tucker v. Wood, 12 John., 170. Nor is a paper. Hied in a cause by one party, offering to be bound b}* certain terms, if the verdict should be in his favor, but not accepted by the other party, binding on the party who filed it. Bower v. Blessing, 1 S. & R., 243. 134 FHY ON SPECIFIC PERFORMANCE OF CONTRACTS. oifer to B., by letter, to sell a lot of land; B. filed a bill against A., alle.rrinn; a contract in writing for the sale of this estate, and the answer offered to sell the estate ; the decree was in the alternative for a conveyance on the payment of the purchase money into the bank, or in default for the dis- Miissal of the bill ; the money was paid. The question arose between the heirs and devisees of B. as to the time when the contract became binding ; it was held that the bill did not amount to an acceptance so as to bind B. ; for he as l)laintill" might have dismissed his bill ; the decree did not, for it left an election to the plaintiff ; but the payment of the money into the bank did, for that was unequivocal. (Z) In another case, where the plaintiff had made an offer to take a farm, and had referred to certain persons as to his capabilities and capital, and in consequence of this offer the agents of the proposed lessor had, by his direction, prepared and sent to the proposed lessee a lease which they consid- ered to be in pursuance of the proposal ; Kindersley, V. C, held this not to be an acceptance, (m) on the ground that the act Avas ambiguous and conditional — ambiguous, be- cause the lease might have been sent in order to save time, and without any intention of departing from the right of accepting or refusing the offer of the plaintiff, according to the result of his communication with the referees ; and con- ditional, because the sending the draft lease, if an accept- ance at all, was an acceptance upon condition that the defendant accepted the draft lease. The case of Thomas v. Blackman,(7^) before Knight Bruce, Y. C, may also be re- ferred to as illustrating this doctrine. Here there had been a long correspondence, and the vice chancellor held that there never had been, in any part of it, a clear accession on both sides to one and the same set of terms ; and accord- ingly he decreed the dismissal of the bill, unless the plain- tiff accepted the terms of the defendant's original offer, which the jjlaintiff acceded to.' {D Gaskarth v. Lord I.owther, 12 Ves., 107. Cf. Horsfall v. Garnett, 6 W. R., 387. (tn Warner v. Willington, 3 Drew., 523. (n) 1 < oil., 301. ' The assent must be to the same subject matter, aud in the same sense that is offercfl. Hazard v. New England Mar. Ins. Co., 1 Sumner, 218. And the proposition must be accepted according to its terms; any qualification of, or departure from, them iuvalidates the offer, unless afterwards agreed to by the person making it. Carr v. Duval, 14 Pet., 77. Thus in Peltier v. Collins, 3 NON-CONCLUSION OF THE CONTKACT. 135 § 274. In illustration of the unconditional nature of the acceptance required, the case of Crossley v. May cock (o) may be referred to. There vendors wrote, in answer to an offer, " which offer we accept, and now hand you two copies of conditions of sale," and inclosed a form of contract con- (o) L. R. 18 Eq., 180. See, too, Lewis v. Brass, 2G W. R., 152. Wend., 459, it is said that there is no contract, if there be a material difl'erence between the note of the bargain delivered by a broker to a vendee and that de- livered to the vendor. In Corning v. Colt, 5 Wend., 253, where manufacturers in the country sent an order to merchants in the city for a quantity of plough castings, to he forwarded by canal, only a part of which were forwarded, and those by land carriage, by means whereof the expense of transportation was increased; it was held, in an action for the price of the property forwarded, that the jjlaintifls were not entitled to recover without showing an acceptance of the goods by the defendants It is said in Firth v. Lawrence, 1 Paige, 434, that a conditional acceptance of an offer by letter, never assented to by the party making the offer, is not binding upon either party ; and the party having once declined the offer as proposed, cannot, by any subsequent assent, ratify sifch original offer. The rigidity of the rule was displayed in the case of Elia- son V. Henshaw, 4 Wheat., 235. In this case A. offered to purchase of B. two or three hundred barrels of flour, to be delivered at Georgetown by the first water, and to pay for the same a stated price; and, to the letter containing the offer, required an answer by the return of the wagon by which the letter was sent. This wagon was at the time in the service of B., and employed by him in conveying flour from his mill to Harper's Ferry, near which place A. then was. His offer was accepted by B in a letter sent by the first regular mail to Georgetown, and reeeimd by A. at that place ; but no answer was sent to Har- per's Ferry. Held, that this acceptance, communicated at a place dilferent from that indicated by A., imposed no obligation binding upon him. See Glay- maker v. Sawin, 4 Whart., 36t). The principle upon which these cases proceed is, that no person shall be held upon the terms of a contract which he has never made, nor even intended to impose upon himself. And therefore if one party does not accede to a promise as made, the other party is not bound by it. Tut- tle V. Love, 7 John., 470; Bruce v. Pearson, 3 id., 534. And where R. agreed to pay for a quantity of hay, provided L. should pronounce it merchantable, and L. pronounced it "a fair lot, say merchantable, not (piite so good as I ex- pected; the outside of bundles somewhat damaged by the weather." Held, that R. was not bound. Crane v. Roberts, 5 Greenl ,419. Where a contract is made by a broker, and no sale-note is delivered, and the entry by him made in his sale-book varies from the contract as actually concluded, neither party is bound, inasmuch as no note or memorandum of the contract has been reduced to writing. Thus, when a contract is made for a quantity of iron expected from abroad, and the puichaser stipulates for siv vion.tJi.s credit, and ior tiie ar- rival of the iron in a reasonable time, and the broker omits to make an entry of those conditions, the vendors are not bound, although the conditions primarily were for tlie benefit of the purchaser, and he elects to waive them. l^:^y.'« v. Shields 26 Wend., 841; see Hutchinson v. Boker, 5 M. >k W . 535; Brodie v. St. Paul, 1 Ves. , 82« ; Gordon v. Norton, 4 M. & W., 155. But where the parties agree upon the terms of a contract it is binding upon them, though their under- standing of the terms be not precisely the same; as where one party under- stood a particular installment to bear interest, while the other party did not so understand it Neufeille v. Stuart, 1 Hill Ch., 109. But this rule is to be ap- plied in a limited sense; and if there has occurred any error or mistake in reler- ence to the obligations which the contract entails, the case will be otherwise. Thus in the case of the Hartford and New Haven Railroad Company v. Jack- son, 24 Conn , 514, it was said that where an application made by the deteud- ant'to the agent of a railroad company, to know at what juice he would carry 50 000 laths to a specified place, the agent inquired how many bundles that 136 I'KY ON SPECIFIC PKRFOKMANCE OF CONTRACTS. tainin,^r sundry special sripalations ; and it was held that the acceptance was conditional only. "If/' said Jessel, M. R.,( />) " there is a simple acceptance of an offer to pur- chase/accompanied by a statement that the acceptor desires that the arrangement should be put into some more formal terms, tlie mere reference to such a proposal will not pre- vent the court from enforcing the final agreement so arrived at. Bur if the agreement is made subject to certain condi- tions tiien specified or to be specified by the party making it, or by his solicitor, then, until those conditions are ac- cepted, "there is no final agreement such as the court will enforce.'" § 275 AVhere there is any variance between the terms of the proposal and those of the acceptance, no contract arises ; as where A. offered to purchase a house on certain terms, possession to l)e given on 'or before the 25th of July, and B. agreed to the terms, and said he would give possession on the 1st of August. (g) And where A. made the promoters of a railway an offer of a way-leave for the purpose of their railway, which was one for mineral traffic only, and it was subsequently accepted, but for the purpose of constructing a public railway for general traffic, this was held to be such a variation in the subject-matter as pre- vented anj^ contract from arising, (r) § 376. The introduction of a term in the acceptance which is not in the proposal is a variance which prevents their constituting a contract. Therefore, where the delend- ant offered certain terms for a lease, and the plaintiff ac- cepted the terms and offered an under-lease, there was held (p) L R 18 En , 181. affirmed bv Lorii Cranworth, 1 Jur. (N. S.), (9) Koiilli!d(,'« V. Grant. 4 Bing., 6.53 737, 3 \V R , 535, sanctioniug this argument, (r) Mcyiiell V Siirieea, 3 Sm. ^:) And where a railway company gave notice to treat for part of a manufactory, which w^as met by a counter-notice re- quiring tliem to take the whole, and the company then gave notice of their intention to apply to the board of trade for the appointment of a surveyor to deteiniine the value of the premises required by the notice to treat and of the further lands which the owner could lawfuUj^ require and (h) Ramsgale Victoria Hotr-l Co (limittd) auction to -withdraw fne property at any V. Moiiufl>re, I>. R 1 Ex., 100. lime bel'ore trie limnmer f.ills) Warlow v. (i) Tiiornhury v Revill, 1 Y. & C C. C ,554. Harrison, 28 L J Q. B . 18. See, also, Mi-viiell v. Snrtees, I Jur. (N. S.), ( /) W aruer v. Wiiiinaton. 3 Drew., 523; cf. 737; 3 VV. K , 535; Horsfall v. Gamett, 6 id., Ru'mmeua v. Robins, 4 De G. J. & S., 88 387; and cf. (a> to the right of a vendor at an (k) Ex parte Grahaiu, 3i) L J. Bank., 42. B. Ix'iiii,'' pressed by a creditor, draws a bill on A. iu favor of the creditor. It was held that A. was not bound to accept or pay a bill so drawn. It seems, also, that where a merchant receiving goods on consignment, under an offer of sale, after he had ascertained the value of the goods bj' actual sale of a large part of tiiem as factor, and. twelve days after the receipt of the goods, assented to the offer of the consignor, such assent will not be binding upon the con- signor. In the case of Mactier v. Frith, 6 Wend., 103, it is said that a willing- ness to enter into the agreement by the party offering, is presumed to continue for the time limited: and if that time be not limited by the author, then until it is expressly revoked or countervailed by a contrar}- presumption. But these remarks, though applicable to the case then under ccmsideration, it seems, are evidently not intended to be construed in their broadest interpretation. I NON-CONCLUSION OF THE CONTRACT. 141 had required the company to take ; it was held that the company might still withdraw their notice to treat. (Z) § 286. This right to retract is not affected by the fact that the offer itself specifies a time within which the accept- ance is to be made ; so that where A. offered to sell a house to B., and gave B. six weeks for a definite answer, A. was held entitled to withdraw his offer before the expiration of that period, (m)' § 287. Further, it is not necessary to the effectual deter- mination of a proposal by withdrawal before acceptance that any formal or express notice of withdrawal or retracta- tion should be given to the person to whom the proposal was niade.(yi) "It may well be that the one man is bound in some way or other to let the other man know that his mind with regard to the offer has been changed ;"(o) but as soon as the person to whom the offer was made in fact has this knowledge, as, for instance, by knowing that the proposer has sold the property to a third person, he will be taken to have sufficient notice of withdraAval, and he cannot after- wards, by accepting the offer, make a binding con- tract, (o) § 288. Where however the communication is not a mere offer to contract but a notice given in pursuance of a right of pre-emption, the notice may, according to the terms of the instrument giving this pre-emption, be incapable of being withdrawn. (/?) § 28». In the second place, the refusal of the person (0 Grierson V. Cheshire Lines' Conimitice, (o) Prr James, L J.. 2 Ch D , 472. Cf. L 11. i9 Eq , 83. Stevenson v. McLean, ^ Q B. D.,d4b; ouu- \?n) Uouiledgev. Grant,4Bing.,653; Cooke lamore v. Peacocke, 12 Ir. Ch. R., 300. V Oxley, 3 T. R.. 653. Cf. Dickenson v. (;>) See Uomlray v. FothergiU, L. K. 1 i!-q-, Dodds, 2Ch D.,463. 567. (n) Dickenson v. Dodds, 2 Ch. D., 463, 474. 1 If an offer is made, and instantly recalled, before acceptance, "although the other party was prepared to accept it the next, the offer is effectually with- drawn.' Pars. Coutr., vol. 1, p. 405; Mactier v. Frith, 6 Wend., 103. It is said, in The Palo Alto, Daveis, 344, that in all engagements formed inter ab- sentes by letters or messengers, an offer by one party is made, at law, at the time when it is received by the other. Before it is received, it may be revoked. So the revocation in law is made when it is received, and not before. If the party to whom the offer is made accepts and acts on the offer, the engagement willbe binding on both parties, though, before it is accepted, another letter or messenger may have been dispatched to revoke it. 142 FllV ON SPKiaKU: TKUFOUMANCE OP^ COXTRACTS. to wlioni the proposal is made puts an end to it ; and it will not be revived by a subsequent tender of acceptance. (^)' i; 290. As it is competent to the i)roposer to recall his proposal at any time before acceptance, so also he may vary it by the introduction of any new term into it. And as the person to whom the proposal is made may, of course, offer to accept the terms proposed with any variation or addition, it follows that each party may continue to add fresh stipu- lations to the proposed contract, until the terms proposed by one side have been definitely accepted by the other, (r) Therefore, where the owner of an estate made a proposal («7> Hyde V. Wrench, 3 Beav , 334. The probably cannot be maintained on this point decifiion in Hodgson v. Hutchenson, 5 Vin., (?) Honeyman v. Marryat, 21 Keav., 14, Abr., 522, pi. 34, which inferred an accept- affirmed in L>. P. 6 H L. C , 112. Distinguish ance from acts after an explicit refusal, Jolliffe v. Blumberg, IS W. R , 784. ' In the case of Boston, and Maine Railroad v. Bartleit, 3 Cush , 224, there was a proposition to sell land at a stated price, the answer to be given in thirty da3's Fletcher, J., in delivering; the opinion of the court, held, that though this offer was a continuing one, " during the whole of that time it was an offer every instant," yet, that it might be revoked at any time before acceptance. But if unrevoked at the time of acceptance, it become a valid and binding con- tract. See, also, Pars. Contr., 404 and 405; Foster v. Boston, 22 Pick., 33, is an interesting case decided on the same point. The case was this : In March, an offer was made to the city of Boston, by several memorialists, to relinquish their interest in the land which would be required to lay out a certain street, provided it should be opened within the year. In April the city voted to ap- propriate a certain sum for that year, to be paid to the memorialists in full for all expenses and damages when the street should be completed In June, two of tlie memorialists sent a letter to their associates and the mayor, explaining their offer to be to relinquish all damages for the land, but not the expense of removing the buildings, etc. In October, the city passed an order to lay otit the street, and it was done within the year. Soon after the passing of this order, the said two memorialists protested against the laying out such street, and said that they should claim damages, and accordingly made complaint. It was held that the offer was a continuing one for the year, if not revoked or re- jected; that the vote of April was not a rejection, but a distinct proposition; and that, by passing the order the cit}' accepted the offer as explained by the complainants, and tiiat it then became a binding contract, and that the offer was several in its operation, and not joint. It is, in all cases, the final assent, the positive and unqualified acceptance of the one party, that renders the offer obligatory upon the party making it. And, tlierefore, when an engagement is made by a party to decide, on the happening of a particular event, whether to accept an offer of a contract of sale, the contract is not completed on the hap- pening of the event, imtil the decision is made. Mactier v. Frith, 6 Wend., 103. In reference to an alleged want of consideration, in contracts of this kind, Fletcher, J., in the case of the Boston and Maine Railroad v. B-artlett, cited above, says: "The acceptance by the plaintiffs constituted a sufficient legal consideration for the engagement on the part of the defendants. It was pre- cisely as if the parties had met at the time of the acceptance, and the offer had then been made and accepted at once." It seems to be clear that these cases are no more invalidated for want of consideration, than those where an instan- taneous assent is given to the proposition offered. Pars. Contr., vol. 1, p. 406. Wright V. Bigg, 21 E. L. &; E., 5!)1; Frith v. Lawrence, 1 Paige, 434. Notice of refusal to accept is not necessary : it is sufficient if there is no evidence of acceptance; and whether there has been an acceptance or not, is a question for the jury. Corning v. Colt, 5 Wend., 253. NON-CONCLUSION OF THE CONTRACT. 143 requiring amongst other things the payment of £1,500 by way of deposit, and the jDiirchaser objected to it, and before he accepted the terms, the owner required it to be paid and the contract to be signed before a given day, or the treaty to be at an end, and this was not complied with, but a sub- sequent offer was made to sign the contract and pay the deposit ; the court held that there was no contract. (.v)' § 291. The Statute of Frauds requiring that the memo- randum of agreement shall be signed by the party to be charged therewith and not requiring the signature of both parties, it follows that where there is a writing under the hand of the defendant expressing the contract, there is no need to prove an acceptance in writing by the plaintiff of the terms of that contract, and the institution of the action is a sufficient acceptance. (^) If that writing leaves any term open to the election of the other party, the acceptance must, of course, be in writing to satisfy the statute. (?^)' § 293. But the cases have gone further, and it is now w^ell settled that where the writing is a memorandum expres- sing not a contract but a mere proposal, yet there the acceptance of this proposal (though it seems essential to convert the proposal into a contract), need not be in writing. This was so decided by Kindersley, V. C, in a case where he observed on the want of previous authority distinctly to establish the point, («) and his decision was subsequently followed by the courts of exchequer and exchequer cham- (s) S C (") I'J- (t) Boys T. Ayerst, 6 Mad., 316. l») Warner v. Willington, 3 Drew , 52a. 1 See Foster v. Boston, 22 Pick., 33. 5 A writiug signed by tlie party to he charged is sufficient within the statute of frauds. Hence, where the oHer embraces the whole of the iiroposcil agree- ment, so that a single assent only is required, a parol acceptance may be all that is needed to bind the party who makes the oiler, ^^arner v. \\ illinglou. 3 Drew, 523: Coleman v. Upcot. 5 Viu. Abr., 527: PI., 17; Palmer v beott. 1 K 6c M., 391; contra, Lane v. McLaughlin, 14 Minn., 72. A party made an offer by letter, which was verbally rejected. Held, that the writer was released from his oiler, unless he consent to renew the negotiation. Miel held C anal «. o. V Sheffield li. R. Co., 3 K. R. Cas., 121. Where a party mentally concludes to accept an olTer, but does nothing to indicate such acceptance— held, there \yas no binding contract. Firth v. Lawrence, 1 Paige's Ch., 434; White v. CorUss, 40 N. Y., 467. Teleqram 1 An offer maybe made and;accepted by telegraph that will be bind- ing on both parties. Duble v. Batts, 38 Texas, 312; Weils v. 3Iilwaukee K. R. Co., 30 Wis., 605. ► 144 FRY ON srECIFIC PEUFORMANCK OF CONTRACTS. her.{w) In tlie old case of Coleman v. Upcot,(^) where there was lirst an acceptance by the plaintiff by parol, and subsequently a subscription by the plaintiff, the parol ac- ceptance ai)pears to have been the ground of the decision tliat there wns a binding contract. § 293. When it has been once established that the ac- ceptance need not be in writing, it, of course, follows that it may be by acts as well as wovds.iy) Thus, for example, where an uncle of a young man sent proposals to the friends of a lady, to which no answer was returned, but the young man was admitted as a suitor, and the marriage ensued, it was held by Lord Nottingham to amount to a complete con- tract, which ought to be performed on all sides. (^) It is a matter of every day occurrence to infer assent from acts as well as from words.' § 294. Of course no action can be brought against any one on a parol acceptance of a proposal. § 295. In contracts constituted by proposal and accept- ance, it is obvious that the question may arise, at what time the treaty was converted into a contract. («?) The contract is X)erfected by the posting of a letter declaring the accept- ance, because thereby the acceptor has done all that is requisite on his part, and is not answerable for the casual- ties of the ]30st-ofRce.(6) Hence it follows that the contract dates from the posting, and not from the receipt of the letter of acceptance, (c) The current of authorities which estab- lish these propositions was somewhat interrupted by two cases. One was that of The British and American Telegraph Co. (limited) v. Colson,(fZ) where the acceptance having never been received by the proposer it was held that there was no contract, and it was laid down that the contract is not completed till the acceptance is delivered to or brought to the Ivnowledge of the proposer, unless this happen from (w) Smith V. Neale,2 C. B. (X. S.),67; Reuss (a) Cf. on this point, Dickenson v. Dodds, V. Picksley, L. R. 1 Ex., 342. See, also, 2 (;h. D, 4G3; supra, § 287. Mozley v. l inkier, 1 C. M. & R , 692; Liver- (b) Dunlop v. Higgins, 1 H. L C.,381; Dun- pool Horough Biink v. Eccles, 4 H. & N., 139. can v. Topham, 8 B., 2i5: Adams v. Lind- (X) 5 Vin. .\br., 527, pi. 17; cf. Palmer v. sell, 1 H & Al., 681; Stocken v. Collin, 7 M. Scott, 1 R & My., 391. & W., 51.5; Hams' Ca6e, L R. 7 Ch., 587. (y) Williams v. Williams, L. R. 2 Ch., 294. (c) Potter v Sanders,6 Ha., 1; Byrne v. Van (2) Parker v. Serjeant, Fluch, 146. Tiendoven, 5 C. P. D , 344. (d) L. R. 6 Ex., 108. ' Parol contract fuUj/ performed.] A parol contract for the exchange of lands, was clearly proved, and fully performed by the plaintiflf. Held, that specific performance would be decreed. Armes v. Bigelow, 8 Mc Arthur (D. C), 442. NOisr-cois^CLUsioisr or the contract. 145 liis own act or default. In the other case,(6) Malins, V. C, adopted the same view. But the authority of these cases is much shaken by the observations subsequently made on the former of them by James and Mellish, L. JJ.,(/) and by the expression of change of oiDinion by the learned vice chancellor, {g) § 296. In case of there being an agent for the proposer, the communication of the acceptance to him comiDletes the contract, though the agent may fail to make known the ac- ceptance to his principal, {hy (e) Townsend's Case, L. R. 13 Eq., 148. {g) Wall's Case, L. R. 15 Eq , 18. (/) Harris' Case, L. R. 7 Ch., 687. (/») Wright v. Bigg, 15 Beav., 592. ' An example of the full extent of this doctrine is afforded in Vassar v. Camp, 1 Kern. (N Y.), 441; the principal of which is, without doubt, the law of the State of New York. A. proposed, by mail, a contract with B., the parties being distant from each other. B , accepting the contract, deposited his acceptance in the post-office, addressed, and to be forwarded to A. A. did not receive the acceptance. Held, that the contract was complete and binding. Mactier v. Frith, 6 Wend., 103, is a decision of much importance on this sub- ject, and one which has, in a great measure, influenced the more recent de- cisions throughout the country. It was there held, that where a joint owner of a cargo of brandy ordered from France, and supposed to be at sea, wrote from St. Domingo to his co-owner, in New York, on the 24th of December, proposing that the latter should take the adventure solely on his own account, and he on the 17th, in answer to the proposition, said he would delay coming to a determination until he again heard from the party making the offer, and the owner in St. Domingo, on the 7th of March, acknowledged the receipt of the answer, saying he had noted its contents; and on the 28th of March, by another letter; confirmed the offer made in December, and the owner in New York, on the 25th of March, after the arrival of the brandy in port, wrote to the owner in St. Domingo, that he had decided to take the adventure to his own account, and had credited him with the invoice; that the offer to sell remained open, and that its acceptance on the 25th of March closed the bargain, notwith- standing that the letters of the 25th and 28th of March did not reach their des- tination until after the death of the party accepting, which happened on the 10th of April. Busbon v. Boyd, 4 Paige, 17, and Clark v. Dales, 20 Barb. , 42 are authorities to the same effect. In Connecticut, New Hampshire, Pennsyl- vania, Georgia, Kentucky and Alabama, the courts have followed the decision of Mactier v. Frith, and the English case of Adams v. Lindsell ; see Avenll v. Hedge, 12 Conn., 424; Beckwith v. Cheever, 1 Foster, 41; Hamilton v, Lycom- ing Ins. Co., 5 Barr, 339; Levy v. Coke, 4 Geo., 1; Chiles v. Nelson, 7 Dana, 281- Falls V. Gaither, 9 Porter, 605. In Tennessee the rule is the reverse. Gillespie V. Edmunston, 11 Humph., 553; as it is likewise in Massachusetts. McCullough v. Eagle Ins. Co., 1 Pick., 278. The variance between the law of the latter State and that of the Supreme Court of the United States is best illustrated by a comparison of the case of Tayloe v. Merchants' Fire Ins. Co., decided in that court, and the case of Thayer v. Middlesex Mutual Fire Ins. Co., found in 10 Pick., 326. In the former case, it was held, that m a corres- pondence to effect the insurance of a house, when the insurance company had made known their terms, and the other party had put a letter in the post-office accepting their terms, that the contract was complete; and the property havmg been destroyed by fire while the letter was still in transit, that the company were responsible. Thayer v. Middlesex Fire Ins. Co. was this : On the 15th of January, an application was made on behalf of the plaintiflf, who lived at Hop- kinton, to the defendants, an insurance company at Concord, for insurance upon the plaintiff's buildings. The defendants stated the terms on which they 10 146 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § «97. One species of contract by proposal and accept- ance is constituted by a promise or representation made by one person, and acts done by another person on the faith of such promise or representation. "A representation," said Lord Cottenliam,(/) "made by one party for the purpose of inthiencing the conduct of the other party, and acted on by him, will in general be sufficient to entitle him to the assist- ance of this court for the purpose of realizing such repre- sentation." § 298. Representations are of two kinds : the one of things past or present, the other of things future ; the one of things done or existing, the other of things to be done. With regard to the former class, whenever a representation as to something alleged as a then existing fact, which repre- sentation is not true, has been made by a person who knows it to be untrue, or does not know it to be true,(y) to another person in order to induce him to an act, and that act has been thereupon done by the second person to his prejudice, the person making the representation will not be allowed by the court afterwards to turn round and deny the alleged fact. "It shall be," said Lord Mansfield, C. J.,(^) " ^s rep- resented to be." Thus, for example, where one person represented to another, on a treaty for marriage with his (i) In Hammersley V. De Biel, 12 01. & Fin , (j) Per Grant, M. R., in Ainslie v. Medly- 62, n.; cl". Ayliffe v. Tracey, 2 P. Wms., 64, cott, 9 Ves , 21. which shows that where the act was not done (^•) In Monteflori v. Montefiori, 1 Wm. in reliance on the representation, no contract Black., 364. arises. would insure them, and prepared a written application and a premium note, both bearing date of the 16th, to be signed by the plaintiff; and upon their being returned to the defendants by mail, a policy bearing the same date was to be forwarded to the plaintiff. The plaintiff's agent, who was postmaster at Hopkinton, presented the written application and the notes to the plaintiff on the 28th, and the plaintiff signed them forthwith, and left them in the hands of the postmaster, to be forwarded to the defendants. There was a mail every Saturday, and these papers were mailed and forwarded on Saturday, the 3d of February; but the defendants refused to give the plaintiff a policy, the buildings having been destroyed by fire on the 31st of January. In an action for the loss, it was held that no contract of insurance had been completed between the parties, the papers signed being in the hands of his agent, and were not receivable until after the buildings had been destroyed. The cases may not, perhaps, be directly opposed to each other, but the principle upon which they rest are certainly not analagous. From the moment when the minds of the contracting parties meet, signified by overt acts, the agreement is obligatory, although a knowledge of such occurrence is not known at the time to both parties. Mactier v. Frith, G Wend. , 103. But this assent must, under all cir- cumstances, be signified by overt acts ; and therefore an intention to insert in a letter an acceptance of an offer by a person to whom it is directed, but which is accidentally omitted, i.< of no effect. Frith v. Lawrence, 1 Paige, 434. NON-CONCLUSION OF THE CONTRACT. 147 daughter, that a certain demand was not existing, he was afterwards restrained by the court from iDroceeding to re- cover the demand ;(Z) and where a father represented to a future husband of his daughter that she was entitled after the death of her parents to £10,000, and she was in fact only entitled to about half that amount, the balance was recov- ered from the father's estate. (???-) But in these cases, the court acts merely on the principle of preventing fraud, and not at all on contract •,{n) and they, therefore, do not prop- erly come in for discussion here. § 299. But with regard to representations of something future, and within the power of the party making the state- ment, the case is different ; for such a representation, made for a particular purpose by one person, and followed by conduct in pursuance of it by the other, constitutes a true and proper contract. "There is no middle term," said Lord Cranworth,(t)) " no th'tium quid between a representa- tion so made to be effective for such a puri^ose and a con- tract ; they are identical." In one case an uncle represented that he would buy a warehouse for his nephew, and at the uncle's instance the nephew entered into a binding contract to purchase the warehouse ; it was there held that the imcle's estate was bound to find the purchase money. (^) § 300. In order to enable the court to give relief on the ground of contract to a person who has acted on the faith of another's statements, the representation or promise on which he relies must be clear and absolute. Therefore, where a father, after declining to enter into a settlement, ad- ded that he should allow his daughter the interest of £2,000, and that if she married he migJit bind himself to do it, and pay the principal at his decease, it was held not to be an absolute contract ;($-) and so where the father of an intended husband made only a promise to recognize his son in com- mon with the rest of his family, but the promise was loose IJ) Neville v. Wilkinson, 1 Bro. 0. C, 543. (n) Per Lord Cranworth, L. J., in Money- See, also, Gale v Lindo, 1 Vern., 475; Scott v. Jorden, 2 De G. M. & G., 332. See, too, V. Scott, 1 Cox, 366; and at law, Monteflori v. Alderson v. Mad(Jison, 5 Ex. D., where Ste- Montefiori, 1 VVm. Black., 363; Pickard v. plien, J., lucidly classified the different kinds Sears, 6 A. & E., 469; Gregg v. Wells, 10 A. of false representations. & E., 90; Freeman v. Cooke, 2 Ex., 654; How- (o) In Maunsell v. White, 4 H. L. C, 1056. ard V. Hudson, 2 El. & Bl., 1 ; Foster v. Men- (;;) Skidmore v. Bradford, L. K. 8 Eq., 134; tor Life Assurance Co., 3 id., 48. cf. Ridley v. Ridley, 34 Beav., 478. (m) Bold V. Hutchinson, 20 Beav., 250; (q) Randall v. Morgan, 12 Ves., 67. See affirmed 5 De G. M. & G., 558, on different the observations on this case of Lord St. grounds. See, also, Jameson v. Stein, 21 Leonards in Mounsell v. White, IJon. & L., Beav., 5. 567. 148 FRY ON- SPECIFIC PERFORMANCE OF CONTRACTS. and vague, and defined no sum, Stuart, V. C, dismissed a bill filed by the son, but under the circumstances directed the costs to be paid out of the father s estate, (r) But, on the other hand, where on the treaty for a marriage the father of the intended Avife wrote to the intended husband, "At my (\ecease she (the intended wife) shall be entitled to her share in whatever property I may die possessed of," Lord Rom- illy, M. R., held that this amounted to a contract binding on the father and his estate, and was not too vague to be enforced. {s) ' ' When, ' ' said his lordship, {t)''a man makes a solemn engagement upon an important occasion, such as the marriage of his daughter, he is bound by the promise he then makes. If he induce a person to act upon a particular promise with a particular view which affects the interests in life of his own children and of the persons who become united to them, this court will not permit him afterwards to forego his own words, and say that he was not bound by what he then promised. It is upon these principles that the court has acted in aU such cases ; it exercises its jurisdiction for the enforcement of the truth, and makes a man' s acts square with his words, by compelling him to perform what he has undertaken." § 301. Where the representation is merely of what the person intends to do, or the promise is one for the perform- ance of which the person making it refuses to contract, and insists that the recipient shall rely on his honor, the engage- ment is of a merely honorary nature, and, therefore, not enforceable by the court. (2^) In one case the guardians of a young lady, who was a minor, objected to her marriage until a suitable settlement should be made on behalf of her intended husband ; his uncle, from whom he had expecta- tions, having been previously consulted on the matter, was informed of this resolution ; in reply to which he wrote to his nephew, " My sentiments respecting you continue un- alterable ; however, I shall never settle any part of my prop- erty out of my power so long as I exist. My will has been made for some time, and I am confident that I shall never alter it to your disadvantage. I repeat that my Tipj)erary (r) Kay v. Crook, 3 Sm. & G., 407. (m) Cf. Lord Walpole v. Lord Or ford, 3 (») Laver v. Fielder, 32 Beav., 1. See, too, Ves., 402; Infra, § 571. See, too, per Stephen, Coverdale v. Eastwood, L. K. 15 Eq., 121. J., In Alderson v. Maddison, 5 Ex. D., 296, (0 32 Beav, 12. 301. NON-CONCLUSION OF THE CONTRACT. 149 estate will come to you at my death, unless some unforeseen occurrence should take place." The letter further alleged that, as he had never settled anything on any of his nephews, his doing so in this case would cause jealousy in the family; this letter the writer desired might be communicated to the young lady's guardians. It was held that the intention of the uncle was not to settle his i^roperty, and that, therefore, the letter could not be treated as a contract. (■») § 303. The same principle governed the decision of the case of Money v. Jorden.(w;) The facts of the case were, shortly, that B. was under a bond for the payment of a sum of money to A. ; that B. being about to marry, A. said she should never distress him about the bond, that she had given it up, and would never enforce it ; but on l)eing re- quested to give up the bond, she declined to do so, saying that she would be trusted, and that B. might rely on her word. B. married, and A. subsequently having put the bond in suit, B. sought the interference of the court by injunction. The representations in question Avere held to be binding by Lord Romilly, M. E., in the first instance,' by Knight Bruce, L. J., on appeal, and by Lord St. Leon- ards in the House of Lords, whilst the contrary was ulti- mately decided by a majority in the House, consisting of Lords Cran worth and Brougham. The question was, in a considerable part, one of evidence. But Lords Cranworth and St. Leonards differed as to the effect of a representation of intention, the latter holding such to be binding, and the former not.(a;) § 303. On the same principle, where a settlement was not ready at the time of the marriage, and the lady married on the husband's engagement in honor that she should have the same advantage of the agreement as if it were in writing and duly executed, the court refused to interfere, as the en- gagement was merely honorary. (y) And, again, where let- ters were sent containing what only amounted to a general assurance that, if a tenant acted to the satisfaction of his landlord, he would deal honorably and handsomely with (V) Maunsell v. White, 1 Jon. & L., 530; Cross v. Sprlgg.t! Ha , 6:>3 ; I.aver v. KJehler. affirmed 4 H. L. C. 1039. 32 Beav.. 1 ; Covenlalo v. Eiistwooil, L R. 15 (to) 15 Beav., 372; 2 De G. M. & G., 318; 5 Eq.. 121 ; Loffus v. Maw, 3 Giff., 5'.f2, and HLC,185 Infra. §§311. 312 (a;) With regard to the force of an expres- (j/> Viscountess Montacute v. Maxwell, 1 elon of intention, see, besides tlie cases above P. Wms., 618. stated, Norton v. Wood, 1 K. & My., 178; 150 FKY ON SPECIFIC PERFORMANCE OF CONTRACTS. him in regard to renewing his lease, this assurance was dis- criminated irom a matter of contract, and was not enforced by the court. (2) ^ § 30-1. The circumstances of the case of Morehouse v. Colvin {a) \vBve these : A testator who liad, by his will, be- queathed £12,500 to his daughter, wrote a letter to an old friend of his in India, to whom the young lady was con- signed, and therein stated that, in case of her marrying with his approbation, her husband should have £2,000 on the marriage, and continued, ' ' nor will that be all : she is and shall be noticed in my will ; but to what further amount I cannot precisely say, owing to the present reduced and reducing state of interest, which puts it out of my power to determine at present what I may have to dispose of." The substance of these terms was communicated to the in- tended husband ; the testator revoked his will, and made another, omitting the legacy, and giving his daughter a residuary and contingent interest; Lord Romilly, M. R., and afterwards the court of appeal in chancery, held that there was no contract which could be enforced. § 305. Where, subsequently to representations of the sort which we have been considering, a settlement has been executed making a ^jrovision but taking no notice of the subject of the representations, a presumption arises that the settlement contains the whole contract, and this, if not rebutted, is, of course, a bar to any relief on the repre- sentations. (Z^) § 306. The same result more clearly follows where not only is there a settlement which is silent as to the promise, but where it appears that the marriage was determined on long before the promise. There it is evident that the prom- ise did not induce the marriage, (c) § 307. We will now proceed to consider the cases in which a representation, followed by conduct of the party to whom it is made, has been held to be binding. § 308. These cases have, for the most part, turned upon representations made in the course of marriage treaties, fol- lowed by marriage made on the faith of such representa- tions — a class of cases in which the court is inclined to (s) Price v. Assheton, 1 Y. & C. Ex., 441. Sands v. Soden, 31 L. J. Ch., 870; Re Bad- («) 15 Beav., 341. cock, 29 W. R., 278. (b) Loxley v. Heath, 1 De G. F. & J., 489; (cj Goldicutt v. Townsend, 28 Beav., 445. NON-COXCLUSION OF THE CONTRACT. 151 attacli more than ordinary weight to the language of the one party, when it is calculated to convey a false impres- sion to the other. (fZ) § 309. Where the proposal is in writing, the marriage, and other acts, are relied on only as evidence of acceptance ; but where the proposal has been verbal, the acts must be relied on also as constituting a case of part performance, for which purpose marriage alone is, from the words of the Statute of Frauds, not sufficient. The cases on part per- formance in connection with such contracts, (e) and also of marriage in fraud of a parol contract, (/) are represectively considered elsewhere. § 310. The x)rinciple of the cases now under discussion is established by several old decisions, to which it will be sufficient to refer (r/) before considering the more recent cases. § 311. In Luders v. Anstey,(^) a husband, before mar- riage, wrote a letter proposing a settlement of the lady's fortune, securing certain benefits to the children of the lady's first marriage. Shortly afterwards the marriage took place, and Lord Loughborough held that the husband jwas bound by the letter, though bonds to execute a settle- ment had subsequently been entered into, also securing benefits, but different ones, to the same children. "There is no locus poenitentice,'' said his Lordship, "in this case ; and I should require a positive distinct dissent ; and that could not be evidenced by anything but an actual settle- ment before marriage, varying from that. In Saunders v. Cramer, (/) a paper signed by a lady, expressing her inten- tion of leaving her granddaughter a certain sum/ to be se- cured by a bond, which offer was to be, and was, in fact, communicated to the intended husband of the young lady, and was followed by a marriage, was held a binding pro- posal. The mention of the bond went to show that it was intended to be binding on the party making it. § 312. In De Beil v. Thompson, (,;) in written proposals made on the marriage treaty the father expressed that he "intended to leave his daughter a further sum of £'10,000 (d) Per Lord St. Leonards in Maunsell v. ford v. Fotherley. 2 Id., 32-2; Ilalfpeniiy v. White, 1 Jon. & L., 563. Ballet Id.. 373; Cookcs v MascdU. Id.. 200. (e) See infra. §593 etseq. (h) 4 N es., .im, b. e... a m., .w. {/) See intra, § 553. _ , (•) 3 Dr. & War., 87. (g) Moorev. Hart.l Vcrn.,110,-201 ; Wank- O) 3Beav.,4G'J. 152 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. in his will, to be settled on lier and her children, the dispo- sition of which, supposing she had no children, to be pre- scribed by the will of her father." This was held to create an obligation. These proposals were made subject to re- vision ; but it was held that that power was determined by their acceptance by the intended husband, and the marriage with the father's consent. This decision of Lord Langdale, M. R., was affirmed by Lord Cottenham,(A-) and afterwards by the House of Lords. (Z) § 313. In Montgomery v. Ileilly,(/?^) the eldest son came into estates, subject to a jointure to his mother and portions to his brothers and sisters, and carried on a correspondence with a friend of the family with a view to the increase of these charges, and ordered the payment ©f the increased jointure and interest on the increased portions. On the faith of a representation made on the strength of these acts by the family friend, a daughter married ; the interest on the increased portion was continued to be paid to the daughter, and the agent's accounts in which these payments were stated passed ; and the eldest son took possession of some property under the arrangement with his brothers and sisters, to which he would not otherwise have been entitled. The House of Lords decided that there was a contract bind- ing on the eldest brother, and specifically enforced it. § 314. In Prole v. Soady,(7i) the court, notwithstanding a considerable conflict of evidence, came to the ccnclusion that previously to and in contemplation of the marriage of the plaintiff s father and mother, the natural father of the lady had represented to the intended husband and to other persons that a certain estate of his in Scotland and a sum of 105,000 sicca rupees were settled by him as a provision for his daughter and her children, and that the marriage was contracted in a confidence in that representation. It was part of the defendant's case that at the date of the marriage there w^as an existing testamentary settlement of the property in question in favor of the lady ; but the court held that such an instrument, if it existed, was made irre- vocable by the representations of the father, and it gave the plaintiff relief on the ground of the representation made. (*) 12 01. & Fin, 61, n. (m) 1 Bll. (N. S ), 364; S. C, 1 Dow (N. 8.), (0 12Cl.&Fin.; 46»«6n;i, ... I. 42U; accordingly, Underwood v. Hitlicox, 1 1 Upon an application to a court of chancery for a decree of specific perform- ance, in order to merit tlie interposition of its i)Owers. tlie agreement must be found to be fair and equitable, certain and consistent wilh pul-lie ivWiey. free from fraud or surprise, not voluntary, and just in all lis parts, or at lea.sl tend to produce a just end. Griimii v. Frederick County Hank. r. Odl vV .1.. 4U; Seymour V. IJelaneey, ;] Cow., 44o; Modisett v. Johnson. 2 Blaekf. 4.11 ; Mil- lard V. Ramsdell, Harrins. Ch., 37;i; Ohio v. Hauni. (J Ham.. :?s:{. I ule.ss the evidence offered in .suppcirt of a contract be fully sutlicienl and ample, a court of equity will not exercise it.s jurisdiction to enforce it. Colson v. Thompson, 2 Wheat., 33(5. * Negotiation.^ When any part of an agreement remains to be settled by lo6 FKV UN SPECIFIC PERFORMANCE OF CONTRACTS. § 319. The qualities of completeness, certainty and fair- ness, which will be now considered, will in great part be best explained by showing cases in which they have been con- sidered as being wanting. The qualities of completeness and certainty are not perhaps truly separable ; but under the former those cases will be rather considered where there is the absolute want of some term in the contract; under the latter head of certainty, those where it is not the entire want of the term, but the want of sufficient exactitude in it, whicli has furnished a defense to a specific performance, (e)' g :j!JO. It is evident that incompleteness may be in the contract itself —in which case there is properly speaking no contract, or in the evidence — in which case there is no suffi- cient memorandum. But nevertheless it seems not incon- venient to consider these defects together. § 3S1. The time at whicli the completeness of the contract is to be ascertained was the filing of the bill, and is now the commencement of the action ; so that it was not sufficient for the purpose of obtaining an immediate decree, to prove that the consent of a tenant for life, which was essential to the contract, was given before the hearing. (/) It is an obvious principle of justice, that the adoption of a contract by a third party shall not so relate back as to subject a party •to legal proceedings in respect of its non-i^erformance, the non-performance having at the time been justifiable. (^) § 322. To this principle there are some exceptions, or (e) See, also, the cases stated Infra, § 488. Mann v. Waiters, 10 B. & C, 626; Doe d' (/) Adams v. Brooks, 1 Y. & C. C. C, 627. Lyster v. Goldwin, 2 Q. B., 143. (g) Right V. Cuthell, 5 East, 491; Doe d. negotiation, it is incomplete. Potts v. Whitehead, 20 N. J. Eq., 55; Myers v. Forbes, 24 Md., 598. Incomplete co7i(raci.] Where a contract is incomplete, specific performance of it will not be decreed if that objection is raised. Hopkins v. Oilman, 22 "Wis., 476; Madox v. McQueen, 8 A. K. Marsh., 400; Ohio v. Baum. 6 Ohio, 383; Southern Ins. Co. v. Cole, 4 Fla., 359; Hammer v. Eldowny, 46 Pa. St., 334; McKibbin v. Brown, 14 N. J. Eq., 13; Neville v. Merchants' Ins. Co., 19 Ohio, 452; Johnson v. Johnson, 16 Minn., 512. Contract incompUte as to ti7ne.'\ Where the contract does not specify the time when it is to be performed, or fix the same, it is too incomplete to be enforced at equity. Time being included in the terms, may become of the essence of the contract. Potts v. Whitehead, 20 N. J. Eq., 55; Williams v. Stewart, 25 Minn , 516; Baker v. Glass, 6 Munf., 212; Hoff v. Shepherd, 58 Mo., 242; Wiley V. Roberts, 31 id., 212; see, however, Friebert v. Burgess, 11 Md., 452. ' Contract must he completely determined.'\ In order that a party shall be enti- tled to a decree for the specific performance of a contract, such contract must have been completely determined, and its terms definitely ascertained. Brown V. Brown, 33 N. J. Eq., 650. INCOMPLETENESS OF THE CONTRACT. 157 apparent exceptions, which it is well briefly to notice. When the contract is incomplete through the default of the defendant, and the incompleteness is one which can be remedied, the court will not refuse its aid ; thus, where a contract had been entered into for granting an annuity for three lives to be named, and the consideration had been paid, but through the defendant's refusing to proceed the lives had not been named, the plaintiff was allowed to per- fect his contract by nominating three lives who were in being at the time of the contract. (70' So where the defendant agreed to build a house on the plaintiff's land and the plain- tiff agreed thereupon to grant a lease which the defendant agreed to accept ; and the defendant pulled down the old house but neglected to build the new one ; the court held that the contract to accept a lease gave it jurisdiction ; that damages could be awarded under Lord Cairns' act for the non-performance of the contract to build, and that this con- dition being thus satisfied the plaintiff could have perform- ance of the defendant's contract to accept a lease. (^) § 323. An action may be maintained on a contract where, though some term be not ascertained, the court has the means of ascertaining it, on the principle of the maxim id cerium est quod cerium reddi potesi. Thus, in a contract for the sale of lands under the lands clauses consolidation act, in which the sum was not ascertained, the court decreed the defendants to issue their warrant to the sheriff to sum- mon a jury to settle the compensation ; {j) and the same principle is illustrated by the cases on the requisite com- pleteness as to subject matter and price. (/t) § 324. The necessary completeness of the contract may be considered in respect of (1) the subject-matter, (2) the parties to the contract, (3) the price, and (4) the other terms. § 3S5. (1) Every valid contract must contain a descrip- tion of the subject-matter ; ' but it is not necessary that it (h) Pritchard v. Ovey, IJ. & W., 396; Lord (j) Walker v. Eastern Counties Railway Kensington v. Phillips, 3 Dow, 61. Co , 6 Ha.. 5'Jl See, also, Owen v. Thomas, (i) Soamesv.Edge, Johns. ,669; Middleton 3 My.&K ,3.53; Monro v. laylor, 8 lla.,51. V. Greenwood, 2 De G. J. & S., 14-2. Distin- (fc) Infra, §§ 328, 335. guish Norrls v. Jackson, 1 J. & H., 319. • In Prater v. Miller, 3 Hawks, 628, it was held that though specific perform- ance would not be decreed of a contract uncertain in its terms, still, where the agreement may be made certain by means of references furnished by the con- tract, it will be enforced. ■■^ Befiniteness.'] The subject-matter of a contract must be defined with clear- 158 FKY ON SPECIFIC PERFORM AXCE OF CONTRACTS. should be so described as to admit of no doubt what it is ; for the itlentity of the actual thing and the thing described may be shown by extrinsic evidence. This flows from the very necessity of the case ; for all actual things, except the contract itself, being outside of and beyond the contract, the connection between the words expressing the contract and tilings outside it must be established by something other than the contract itself, that is, by extrinsic evidence ; the same rule is admitted, and from the like necessity, with, regard both to persons and things mentioned in wills ; {I) and in the cases of contracts within both the fourth and the seventeenth sections of the Statute of Frauds, parol evi- dence as to identity is admissible, (m) Thus, for instance, the expression "Mr. Ogilvie's house," was held sufficienl, and extrinsic evidence was admitted to show what house it referred to.{n)' In another case a subject-matter described as " the mill property, including cottages in Esher village," was held capable of identification by parol evidence. (o) The expressions "this ]3lace" (p) and "the lease" (q) have been held sufficient descriptions of the thing sold ; and "your word" has been explained by jDarol evidence of a IDrevious conversation, (r) So where a contract referred to another writing, parol evidence of the identity of a certain writing with that referred to was admitted ; (s) and in an- other case parol evidence was admitted to show the mean- er) See per Lord Cranworth (then Rolfe, B ) (q) Horsey v. Graham, L. R. 5 C. P., 9. in Clayton v. Lord Nugent, 13 M. & VV., 207. (r) Macdonald v Longbottom, 1 El. & El., (m) t^arl v. liourdillon, 1 C. B (N. S.), 188. 977. («) Ogilvie V. Foljambe, 3 Mer., 53 (s) CUnan v. Cooke, 1 Sch. & Lef., 21, 33. (o) McMurray v. Spicer,L. R. 5 Eq., 521. See infra, § 521. ip) Waldron v. Jacob, I. R. 5 Eq., 131. ncss; SO that the party and the court may know what is contracted for. King V. Ruckman, 20 N. J. Eq., 316; Carr v. Passaic Land Co., 22 id., 35; Ross v. Baker, 72 Pa. St., 18G; Miller v. Campbell, 52 Ind., 125; Holmes v. Evans, 48 Miss., 217; Bell v. Warren, 39 Texas, 10(j; Lynes v. Hayden, 119 Mass., 482. Extrinsic evidence may be used to explain ambiguous terms, or the relations sustained towards each other by parties. Warring v. Ayres, 4.0 N. Y., 357; Robeson v. Horntaker, 2 Green's Ch., 60; Fowler v. Redican, 53 111., 405; Mead v. Parker, 115 Mass., 413. Example.] A bond for the sale of real estate was in every respect unobjectiona- ble, except the description, which was incomplete, but consistent so far as it went. Held, that extrinsic parol evidence miglit be emploj^ed to complete it, if no new description was introduced into the contract, and the pleadings con- tained the necessary averments. Torr v. Torr, 20 Ind., 118; Price v. Griffith, 1 De G. M. & G., 80; King v. Wood., 7 Miss., 389; 1 Greenlf. Ev., § 287. ' Upon the same principle, specific performance of a contract will not be re- fused, because in the description of the land it omitted to state the town in which it lies, where the description is otherwise rendered definite. Robeson v. Horntaker, 2 Green's Ch., 60. INCOMPLETENESS OF THE CONTRACT. 159 ing of " £50 more of premium," and of " the profit rent of the present tenant." {t) A general description of the sub- ject matter is sufficient; as, e. ^., "the Bank End estate," although the contract itself may provide for the parcels being subsequently defined. (?^) § 3^0. Where it is necessary to call in extrinsic evidence, the connection of the subject-matter of the contract, and the thing in respect of which specific performance is sought, must be pleaded and supported by sufficient evidence. (c) § 327. It is, however, essential that the descrij)tion of the subject matter should be so definite, as that it may be known with certainty what the purchaser imagined himself to be contracting for, {w) and that the court may be able to ascertain what it \s.{x) And so in a case where there was a contract for the letting of "coals, etc," the statement of the subject-matter was thought by Knight Bruce, L. J., insuffi- cient, and specific performance was refused on that amongst other grounds, (y ) ' § 328. With regard to the description of the subject- matter, the maxim id cerium est quod cerium redd I potest applies. Thus, where the memorandum of the contract contained no specific description of the property sold, but referred to the deeds as being in the possession of a person named, the court thought that the property might easily be ascertained before the master, and held the description of the subject-matter suflacient.^^") And, again, a contract to sell an estate within certain ascertained boundaries, de- scribed as partly freehold, and partly leasehold, is not void for uncertainty, because it is a good contract to sell the vendor's interest in the property ; but the purchaser is enti- tled to have it reduced to certainty by the boundary of the properties of different tenures being ascertained, or shown to be capable of being so. («) «) Skinner v. M'Douall, 2 De G. & Sm.,265. (y) Price v. Griffith, 1 De G^ M. AG., 80. («) Haywood V. Cope, is Beav , UO. See, also, Inge v. BirmlnKhani, W olver- (w) Price V. Griffith, 1 De G. M. & G., 80. hampton and Stour \ alley liailway Co., 3 (?«) Stewart V. Allisiou, 1 Mer., 26, 33. De G. M. & G., (>6S. (a:) Kennedy v. Lee, 3 Mer., 441, 451; per (5) Owen v. Ihomas.S My & K , 353, cf. Lora Eldon in Daniels v. Davison, 16 Vea., Kay lor v. Goodall, ^0 " • K-. 18-.. 256 (a) Monro v. Taylor, 8 Ha., 51. ' The description of land, which is the subject-matter of the contract, is clearly an essential particular, and, as such, if indetiuite to such an extent as to be incaoable of being ascertained by the admission of extrinsic evidence, goes to its' essence and avoids the obligations of the agreement. McMurtrie v. Bennett, Barring. Ch., 13-1. 160 FRY ON SPECIFIC PERFORMAKCE OF CONTRACTS. ij 3*^1>. So tlie uncertainty of description of the subject- matter may ])e got over by the election of one party to the contract, wliere the effect of the contract is to give such a riglit of election. Thus, where a contract was made by the defendant to sell to the plaintiff for the purpose of a church- yard so much land as was necessary on the north side of the church, and the plaintiff obtained the sanction of the proper authorities to the consecration of three quarters of an acre of land adjoining the north side of the existing enclosure of the church and applied to the defendant to convey, it was held that the plaintiff being the person to do the first act under the contract had a right of election, and that if other- wise there was uncertainty of description he had sufficiently ascertained the land to be conveyed, {b) A similar decision was pronounced in a case where the difficulty arose on a contract to let a glebe "except thirty-seven acres," and it was held that the right of election was with the lessee as the person who had the first act to do.(c) With these cases may be compared the cases on executory contracts for the sale of goods not specified, where the appropriation by the party entitled to elect converts the executory contract into an actual sale and passes the property to the vendee. (^) § 330. (2) The contracting parties must appear in the contract, or the memorandum of it, in order to constitute a binding contract ;(e)' but they may so appear either by name or by description, or by reference sufficient to ascertain their identity. (/) Where the defendant made a written offer to take a lease, beginning " Sir," but without address, and the plaintiff's agent wrote an acceptance, but there was no document signed by the defendant showing the intended lessee's name, it was held that there was no w^ritten con- tract, (p') (6) Rumble V. Heygate, 18 W. R , 749. v. Whitton.lH. L.C.,333; Williams v. Lake, (c) Jenkins v. Green, 27 Beav., 437. 3 El. & El.. 349. Ct. Skelton v. Cole, 1 De G. (d) See the cases colKcted in Benjamin on & J., 5S7, 596. Sales, Book II, oh. 5. (/) Potter v. Duffield, L. R. 18 Eq , 4. (e) Champion v. Plummer, 1 N. R., 253; (g) Williams v. Jordan, 6 Ch. D., 517. Warner v. WiUington, 3 Brew., 523; Squire * It is not however, necessary that in all cases the names of both parties to an instrument appear upon its face, in order to obtain relief in equity. Thus, where the owner of laud transmitted to a proposed purchaser a memorandum of an agreement to purchase, with a request that he would sign it in case he wished to purchase, which was signed accordingly, it was held that it was binding upon both parties, though it contained no promise to sell, and was not signed by the vendor. Butler v. O'Hear, 1 Dessau., 383. INCOMPLETENESS OF THE CONTRACT. 161 § 331. The contracting parties may be indicated by de- scription instead of by name, provided the description is sufficient to jireclnde any fair dispute as to the identity ;(/) or, in other words, is certain within the legal maxim, id certum est quod certum reddi potest ;{h) and provided this description is not by reference, but to the contract itself. "It is scarcely possible," said Lord Romilly, M. R.,(/) "to look at an auction list without seeing property sold by a mortgagee, or by executors, or by trustees, without the name being disclosed, and bought by somebody whose name is not given until the conveyance is prepared. It is the ordinary practice." §33^. "Your lordships," said Earl Cairns, addressing the House of Lords, "have frequently seen conditions of sale not merely by auction but by private contract, in which it is stated that the sale is made, sometimes by the owners, and sometimes by the mortgagees^ and a form of contract is annexed in which an agent signs for the vendors, and no other specification ui)on the vendors' part is inserted, and I never heard up to this time that a contract under those cir- cumstances was invalid. In point of fact, my lords, the question is, is there that certainty which is described in the legal maxim id certum est quod certum reddi potest. If I enter into a contract on behalf of my client., on behalf of Tnj principal, on behalf of mj friend, on behalf of those whom it may concern, in all those cases there is no such statement, and I apprehend that in none of those cases would the note satisfy the requirements of the Statute of Frauds. But if I, being really an agent, enter into a con- tract to sell Blackacre, of which I am not proprietor, or to sell the house No. 1, Portland Place, on behalf of the owner of that house, there, I apprehend, is a statement of matter of fact, as to which there can be perfect certainty, and none of the dangers struck at by the Statute of Frauds can arise. "(,/) §333. In one case already referred to,(^') the sale was stated to be by direction of the executors of Admiral F., (/) Potter V. DiiffieUl, L. R. 18 Eq., 4. U) Rossiter y. Miller, 3 App. C, 1140. The (h) Rossiter V. Miller, 5 Ch. D.,643; 3 App. Italics are not in the report. ^ t> p ir C 1124 1140 (*) Hoo«i "^^ J^'^""^^ BarruiKton, L. R. 6 Eg., Ti) Hood v'. Lord Harrington, L. R. 6 Eq., 218. See. too, Towle v. Topham. 37 L. T., 218. See, too, Bourdlllon v. Collins, 19 W. 308; Webb v. Kirby, 3 Sm. &(:r.,337. B., 556. 11 162 FRY ON SPECIFIC PEKFORMANCE OF CONTRACTS. and, in another, (Z) the vendor was stated to be a trustee selling under a trust for sale ; and in each case the descrip- tion was held sufficient. Again, where the contract stated the sale to be by direction of the proprietor, that was held to be a sufficient description. (77i) In another case, where property was sold by ten persons incorporated, who worked the property in the name of a company, it was held that the description " the vendors" was enough, because it appeared from the conditions of. sale and memorandum of the con- tract, that the vendors were in possession; that the abstract would be an abstract of the company' s title, and that it was thfi interest of the company which was being sold.(72,) § JI34. But where the contract did not disclose the ven- dor s name, but stated the auctioneer's name, and the auc- tioneer signed the contract as confirming it "on behalf of the vendor," the memorandum was held insufficient, because the question who sold the estate (?'. e., the question of the contract) was left to be decided by parol evidence, (o) § 335. (3) In all cases of sale it is evident that price is an essential ingredient of the contract, and that where this is neither ascertained nor rendered ascertainable, the contract is void for incompleteness, and incapable of enforcement. (^)' Accordingly where A. agreed to sell an estate to B. for £1,500 less than any other purchaser would give, the con- tract was held void ; for if the estate was not to be sold to any other purchaser than B., it was impossible to know what such a purchaser would give for it. {q) So, again, where there was a contract to sell at a price to be fixed by two surveyors, and they made their valuation, but that did not sufficiently and finally ascertain the price, specific perform- ance was refused ;(r) and the like was the result of a similar (l) Catling V. King-, 5 Ch. D., 660. (o) Potter v. Diiffield, L. R. 18 Eq., 4. (7M).Sale V. Lambert, L. It. 18 Kq., 1. See, (p) Elmore v. Kingscote, 5 B. & C, 583; too, Robsiter V. Miller, 5Ch. I>.,648; 3 App., Goodman v. Griffiths, 1 H. & N., 574. Con- C, 1124; Beerv. London and Paris Hotel Co., sider Langstaff v. Nicholson, 25 Beav., 160. L. K. 20 Eq , 412; and Thomas v. Brown, 1 (q) Bromley v. Jeflferies, 2 Vern., 415. Q. B. D , 714. (r) Hopcraft v. Hickman, 2 S. & S., 130. (n) Commins v. Scott, L. R. 20 Eq., 11. ' Price must be fixed.] A contract will not be specifically enforced unless the price is fixed. Darby v. Whitaker, 4 Drew, 134; Graham v. Call, 5 Munf., 396. Contract cannot be changed.] A contract cannot be changed, and then en- forced, even by a court of equity. Valetti v. White Water Canal Co., 4 McLean, 192; Cassady v. Woodbury, 13 Iowa, 113; Haskell v. Allen, 23 Me., 44b'; Gray v. Tubbs, 43 Cal., 359; Philadelphia R. R. Co. v. Lehigh Co., 36 Pa. St , 2u4 INCOMPLETENESS OF THE CONTKACT. 103 case, where the valuation was such as the court could not act on, by reason of circumstances of great imi)ropriety on the part of one of the valuers, and the valuation being based on an erroneous view of the facts. (5) § 336. It is not, however, necessary that the contract should in the first instance determine the price. (^) It may either appoint a way in which it is to be determined, or it may stipulate for a fair price. § 337. Where the contract appoints a way of detennin- ing the price, the courts have in some cases deemed that way essential ; in other cases they have deemed it non- essential,, and have treated the contract as essentially one to sell at a fair price. In all cases where the princi23al subject of the contract is to be valued in a specified manner, the manner has, it is believed, been held essential •,{u) the man- ner has often been held non-essential where it is aj^plied only to an incident to the main subject, as timber to land, fixtures to a house, or plant to a business. § 338. Where the contract specifies a way of ascertaining the price which is essential, the contract is conditional till the ascertainment, and is absolute only when the price has been determined. In case of default in this respect the con- tract remains imperfect, and incapable of being enforced ; for the court will never direct the payment of such a sum as A. may fix.(«) § 339. If the contract be between A. and B. to sell and buy at such a price as valuers to be named by them shall fix, it seems that either A. or B. may refuse to name a valuer, and the contract will remain incapable of completion without any liability on the part of the refusing party, (•zo) But if the contract between A. and B. be to sell and buy at such a price as C. shall fix, neither A. nor B. can rightfuMy prevent C.'s determination and the comx)letion of the con- tract ; and it is presumed that an action might be main- tained for such prevention. (^) ^^ Act us inceplus,'' says one of Lord Bacon's maxims, (2/) ^^cujus perfedio pendet ex xoluntate parti um^ revocar I potest ; si autem pendet ex riol- (s) Chichester v. Mclntyrc, 4 Bli. (N. S.)i 419- Consider Baker v. Metropolitiin Kall- 78. way Co., 31 Beav., 504. (t) See Loii-lon Guaraatic Co. v. Fearnley, (w) See as to the French law on this point, 5 A pp. C , 9-20. TroplonK. De la Vento, § 157. (u) Millies V. Gerv, 14 Ves., 400. 408 (x) Smith v. Petera, L. K. 20 £q.,5n, Infin, («) Uarby v. Whitak. r, 4 Drew., 134; Til- §343. lett V. Charing Cross Bridge Co. , 26 Beav., (y) No. 20. 164 FKY OX SPECIFIC PEEFORMANCE OF CONTRACTS. vn tate terticc personcB ml ex contingently non potest y One of his illustrations is this : " If I contract with you for cloth at such a price as J. S. shall name, then if J. S. refuse to name, the contract is void, but the parties cannot discharge it, because they have put it in the power of the third person to perfect. (^) 5< :i 10. The conclusion that a valid sale could be effected at 'such a price as a third person should lix was not arrived at in the Roman law without great doubt, or finally settled until the time of Justinian. Ofilius and Proculus main- tained the validity of such a sale ; Labeo and Cassius denied it. {a) ' ' Sed nostra decisio, ' ' says Justinian, after adverting to the doubts of the ancients, ''ita hoc constituit, ut quo- tiens sic composita sit mnditio qnanti ille cBstimaverit, sub hac condicione staret contractus ut, si quidem ipse qui no- minatus est pretium definierit, omnimodo secundum ejus cBstimationem et pretium persoUatur et res tradatur, ut , mnditio ad effectum perducatur, emptore quidem ex empto actione, mnditore autem ex mndito agente. Sin autem ille qui nomiiudus est ml noluerit ml non potuerit pretium de- finire, tunc pro nihile esse mnditionem, quasi mdlo pretio statutoy{h) The principle thus established by Justinian is embodied in the French law,(c) and has found its way into our jurisprudence. § 341. The persons nominated to value are sometimes, though inaccurately, spoken of as arbitrators. Arbitrators are appointed to settle a pre-existing dispute; valuers to ascertain the value of the subject-matter of the sale. It fol- lows that the provisions of the common law procedure act, 1854 (17 and 18 Vict., ch. 124, s. 12), are not applicable to valuers named in a contract. (cZ) § 343. Of the first class of cases, viz. : those in which the contract provides the mode of ascertaining the price, and this provision is an essential term, Milnes v. Gery,(6) may be considered as the leading case. There was there a contract that land should be sold at a price to be fixed by one valuer api)ointed on each side, or their umj)ire ; the valuers could not agree ; and Grant, M. R., held the contract to be incom- plete, and that the court could not supply the defect by (z) Maxims, ed. 1G36. pp. 71, 73. ^ (c) Code Civil, art. 1592. (a) Troplong, De la Vente, § 156. (d) Collins v. ColUns, 26 Beav., 306. (6) Inst. Lib., 3 tit. 23, § 1. («) 14 Ves., 400. INCOMPLETENESS OF THE CONTRACT. 165 appointing other persons as valuers, wliicli would be to execute a contract different from that of the parties ; although, where it is merely a contract to sell at a fair price, that is a matter which the court can ascertain. "A man," said Leach, V. C.,(/') "who agreed to sell at a price to be named by A., B., and C, could not be compelled by a couit of equity to sell at any other price." This principle lias governed the decision of several other cases of specific per- formance, {g) and may further be illustrated by the cases at common law.(^)' § 343. The difficulty has in several cases prevailed, not- withstanding the fact that the obstacle has arisen from the defendant's default. Thus where the contract was to sell at a price to be lixed by arbitrators, but, in consequence of the defendant having refused to execute the arbitration bond, it was uncertain whether any award would be made, the court refused to proceed ;(/) and the same result fol- lowed where the refusal of one of the valuers to proceed appeared to arise from the information given to him by the defendant, of his intention not to complete. (,/) But where a vendor had agreed to sell a public house for £10,700, and the furniture and fixtures in it at a fair valuation to be made by L., and after L. had commenced taking the inventory, the vendor refused to allow him to complete it, Jessel, M. R., on an interlocutory application, made an order that L. be permitted to enter the premises for the purpose of complet- ing the valuation. (A-) In a case where the price was to be (/) In Morse v. Merest, G Mad., 26. (i) Wllks v. Davis, 3 Mer., 507; Vickers v. (f/) Blundell v. Brettargh, 17 Ves., 233; Vickers, L. R. 4 Eq., 529. Cf. Morse v. Mer- Gourlay V Duke of Somerset, 19 Ves., 429; est, 6 Mad., 26. „. ^. ^ Agar V. Macklew, 2 S & S.,418; Darbey v. O; Darbey v. Whltaker, 4 Drew.,134; Vlck- Whitaker, 4 Drew., 134 ers v. Vickers, L. R. 4 Eq , 529. (h) E. g , Thurnell v. Balburnie. 2 M. & W., (k) Smith v. Peters, I.. R. 20 Eq., 511. 786; Morgan v. Birnie, 9 Bing.,672; Milner V. Field, 5 Ex., 829. ' A. and B. built a mill together. A. agreed to convey bis moiety to B. on his paying to him the amount which it cost A. , and they further agreed to refer it to several persons named to ascertain the cost. The referee's could not agree, and A. refused to have an umpire chosen. B. filed a bill for a specific perform- ance of the contract by A., praying an account of the cost by A . that Jie re- ceive that sum, and make a conveyance. Held, that to grant the prayer 6f the bill would be to make a contract for the parties, and tlien e.\ecute it ; and that the agreement of A. was not to convey on payment to him of the cost of his part of the mill, but on the payment of the cost as ascertained by the arbitra- tors named. Nortleet v. Southall, 8 Mur., 189. In Graham v. Call. 5 Munf., 396, where, by an agreement for the sale of land, the price was to be ascer- tained and fixed by the parties, and one of them died before that price had been fixed by them, it was held that the agreement was too incomplete and un- certain to be enforced specifically in equity. 166 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. ascertained by one of two alternative modes, and no election had been made as to the mode of ascertainment, the court held that no contract had been constituted. (Z) § 344. In a case between a landowner and a railway com- pany, a contract had been entered into under which the company was to do certain works. By a subsequent con- tract an estimate of the cost of completing the works was to be made by the company's engineer and submitted to A., the landowner's agent, "for approval;" in case of differ- ence the amount was to be determined by B. ; the amount "when agreed or determined" was to be paid to the land- owner by the company in discharge of their obligations as to the works. A. died before approving any estimate. , B. was living; it was held that by A.'s death the contract became incapable of enforcement, {m) § 345. Again, where a railway company contracted for the purchase of land with a charitable corporation who had no power to sell except under the lands clauses consolida- tion act, and the price had not been ascertained by sur- veyor's certificate pursuant to the provisions of that act, the court held that no final contract had been arrived at.(?i) It may here be noticed that, when once the price has been fixed pursuant to the act, the purchasing corporation is compellable to complete the purchase, (o) § 340. The second class of cases embraces those contracts which are substantially for the sale of the property in ques- tion at a fair price, the mode of ascertainment, though indi- cated by the contract, being subsidiar}' and non-essential ; and where consequently, if that mode of ascertainment has failed, the court will have recourse to some other means of coming at tlie fair x^rice and of thus carrying into effect the contract in its essential parts.' As- already remarked these cases are principally of the valuaticm of incidental matters and not of the principal subject-matter of the contract. § 347. Grant, M. R,., not only indicated, in his judgment in Milnes v. Gery,(p) the distinction of the two classes of il) Morgan v Milman,3 De G M. & G.,24. (o) Harfllng v. Metropolitan Railway Co , (m) Firth v. MMland Railway Co., L. R. L R. 7 < h., 154; supra, § 113. 20 Eq , 100. (p) 14 Ves., 400. (Ti) Wycombe Railway Co. v. Donnington Hospital, L. R. 1 Oh., 268. ' Smith V. Peters, L. R, 20 Eq., 511; Whillock v. Duffeld, 1 Hoffm. Ch., 110; Vandoren v, Robinson, 16 N. J. Eq., 110. INCOMPLETENESS OF THE CONTRACT. 1G7 cases, but in two other cases before him acted upon it. In the earlier, in consequence of the lunacy of the vendor, the valuers could not be nominated ; but the master of the rolls did not consider this an insurmountable difficulty, saying that, "if there was a valid and binding contract, the super- vening incapacity of one party cannot deprive the other of the benefit;" and he accordingly directed an issue as to the lunacy, as a preliminary step in the cause. (^) In the other case, there was a contract to grant a lease, to contain such conditions as A. B. should think reasonable and proper ; and his honor referred it to the master to settle the lease, and not to A. B. — considering the agency of A. B. not to be of the essence of the contract, and that the court would not grant relief through the medium of a reference compulsory on the other party, (r) And so in a case before Stuart, V. C, where there was a contract to sell land and bleachworks at a sum fixed, and the plant and machinery to be taken at a value to be ascertained by valuers to be aj^- pointed by the parties, it was held that this was a subsidiary stipulation only, and that it did not form an obstacle to sx)ecific performance, which was accordingly decreed, with costs, (.s) The same view was taken both by Stuart, Y. C, and on appeal by Lord Hatherley in a case where the main subject of the contract was the sale of an estate for £24,000, and a provision was inserted for the valuation of certain furniture and articles \{f) and in another case where a i)art- nership contract contained a provision for a valuation at its expiration, which fell through from there being no provision as to an umpire, the court ascertained the value. (?/) The main object of the contract there was the partnership ; the defendant had had the benetit of that contract, and could not be allowed to escape from the subsidiary contract as to sale on the ground of the difficulty as to the valuation. § 348. In another case before Stuart, V. C, he remarked that, where possession is referable to a contract to give a fair consideration, the amount of which has not been settled, the court will, in favor of possession and expenditure referable (q) Hall V. Warren, 9 Ves., 605. referees as to price ought to procoed. ami on (r) Gourlav v. Duke of Somerset, 19 Ves., what urounds they may ileterminc, see Eads 429 V. Williams. 4 De G. M. \^ Ci , 674. (s) Jackson v. Jackson, 1 Sm. & G., 184; (0 Richardson v. Smith, I>. U. ^ Ch., 648. Paris Chocolate Co. v. Crystal Palace Co., 3 («) Diuham v. Bratll»rd, L. U. 5 Ch., 619. Sm. & G., 119, 123. As to the way in which 168 FKY ON SPECIFIC PEKFOKMANCE OF CONTEACTS. to this contract, endeavor by every means within the legiti- mate bounds of its jurisdiction to ascertain the amount of the consideration. ('«) § 349. (4) It is, of course, essential to the completeness of the contract, that it should express not only the names of the parties, the subject-matter, and the price, but all the other material terms. What are, in each case, the material terms of a contract, and how far it must descend into details to prevent its being void as incomplete and uncertain, are questions which must, of course, be determined by a con- sideration of each contract separately. It may, however, be laid down that the court will carry into effect a contract framed in general terms, where the law will supply the de- tails ;(zo) but if any details are to be supplied in modes which cannot be adopted by the court, there is then no con- cluded contract capable of being enforced. (^) § 350. i'jiough it may be impossible to define what is the necessary completeness in the terms of a contract, it is easy to give instances in which contracts have been held insuffi- cient in this respect. Such was the case where it was not stated from what time an increased rent was to com- mence \{y) where the contract did not state,' either directly or by reference, the length of the term to be granted ;(2) where a contract for a lease for lives neither named the lives nor decided by whom they were to be named ;(«) where an auctioneers' s receipt was set up as a contract, but it did not refer to the conditions of sale, or show the proportion which the deposit was to bear to the price \{b) where there was a term as to the expenses which was not settled by the con- tract ;(c) where there was a contract for a partnership, which defined the term of years, but was silent as to the amount of capital and the manner in which it was to be pro- iv) Meynell v. Surtees, 3 Sm. & Gif., 101, 5 De G. M. & G., 888; Ridgway v. Wharton, 113; affirmed, 1 Jur. N. S., 737; 3 W. R., 535. 6 H. L. C. 285; Rummens v. Robins, 3 Deft. See, alio, Cheslyn v. Dalby, 2 Y. & C. Ex , J. & S., 88; infra, § 361. 170. (y) Lord Ormond v. Anderson, 2 Ball. & (M))In Hampshire v. Wickens (7 Ch. D., B , 363. 555), the power of the court to enforce a con (2) Clinan v. Cooke, 1 Sch. & Lef., 22; Gor- tract to accept a lease " to contain all usual don v. Trevelyan, 1 Pri., 64; Bayly v. Fitz- coyenants and provisions" appears to have maurice, 8 El. & Bl., 664. been admitted. Of. Haines v. Burnett, 27 (a) Wheeler v. D'Esterre, 2 Dow, 359. But Eeav., 500; Kendall v. Hill, 6 Jur. N S., 968; query whether the lessee cannot name the Poyntz V . Fortune, 27 Beav., 393; Blakeney lives when the contract Is silent. See, also, V. llardie, I. R.8 Eq.,381 ; and consider Gull- Lord Kensington v. Phillips, 3 Dow, 61. lamore v. Peacocke. 12 Ir. Ch. R , 354, 3Gi). (6) Blagden v. Bradbear, 12 Ves , 466. {X) See South Wales Railway Co. v.Wythes, (c) Stratford v. Bosworth, 2 V. & B., 341. INCOMPLETENESS OF THE CONTRACT. 169 vided : {ciy and where a document showed the amount of rent to be paid by a party to a mining enterjirise, but was silent as to other terms, (e) § 351. Contracts are often incomplete from their reserv- ing some matter for future agreement ; unless, perhaps, in cases where, in the absence of such agreement, the law de- termines the matter, (/') such contracts are necessarily incomplete until the further agreement has been come to. A contract to contract is nothing. § 3dtJ. Where the contract provides for the determina- tion of any material thing by some third person, and this has not been done, the contract is in the same j)redicament as when the price has been neither expressed in tlie con- tract nor ascertained. Cases have occurred where Ituiklings or works have been stipulated to be done in such manner as a third person may direct, and where such direction has either been refused or not given ; and in these cases specific performance has been refused. (<;) § 353. Besides the express terms of the contract, there are others which, in the absence of any expression to the contrary, are implied by law. (7^) With regard to such terms, therefore, whether they be necessary terms or not, the silence of the contract does not render it incomplete, thus a contract to sell property described merely as cottages and land purchased by the vender of persons named was construed as referring to, and importing the sale of, the whole of the vendor's interest. (i) A contract to sell a house simply implies that the interest sold is the fee simple ;0') and a contract to renew is presumed to be for the same term as the preceding lease, {k) (d\ Downs V. Collins, 6 Ha., 418 of the contract, being Implied In It unless («) Caddick v. Skldmore, 2 De G. & J., o2 expressly excluded, but capable of being (/) Hall V. Conder, 2 C. B. N S„ 22. thus excluded without subverting the con. (g) TUlett V. Charing Cross Bridge Co., 26 tract; and, 3d, the things that are iiccidental. Beav., 419; Earl of Darnley t. London, Chat- The terms in qmstlon correspond, of course, ham and Dover Railway Co., 3 De G. J. & with the second of these clashes. Pi.thicr, S., 24 (cf. 8. C, 1 Id , 204; L. R. 2 H. I, , 43). Tr. dos Obllg., Part I, chap. 1, sect. 1, art. 1, (A) The elements of all contracts have, by § 3. some jurists, been placed in three classes: (t) Bower v. Cooper, 2 Ila., 408. Ist, those things which are essential, without (j) Hu>;hes v. I'arkcr, ? M. & W., 243. •which the contract cannot exist; 2d, those (k) Price v. Asshcton, 1 Y. & C. Ex , 82. which are of the nature but not of the essence ' Baker v. Glass, 6 Arunf., 212, is a case in point. There, a contract for the sale of land, by which the vendor agreed to take, in part payment, a liouse and lot of the vendee at its ca.sh value, to be fixed by two persons, and the parties agreed to appoint such persons, but not within any specified time, and never did so, was held to be too incomplete to be enforced in equity. 170 FRY ON SPECIFIC PERFOKMANCE OF CONTRACTS. § 354. Tn every contract for the sale of land, a con- dition is implied for a good title, (Z) and for the delivery 11 p of the deeds ; so that where this was prevented by the accidental destruction of the deeds subsequent to the con- tract, it was held that the vendor could not enforce the sa]e.{m.) The title to be shown, of course, varies according to the nature of the property to be sold ;{n) in the case of the sale of a lease, it formerly included the title of the lessor, (o) except in the case of a bishop's lease. (^) But by the vendor and purchaser act, 1874,(2') it has been jorovided that under a contract to grant or assign a term of years whether derived or to be derived out of a freehold or lease- hold estate the intended lessee or assign shall not be entitled to call for the title to the freehold ; and by the same act certain other provisions of a kind very common in contracts of sale are, in the absence of stipulation to the contrary, made imi:)lied terms in contracts for the sale of land. § 3o«>. The terms entitling a purchaser to title are con- ditions for the benefit of the purchaser, and may accordingly be waived by him, though the vendor may desire to insist on them as a ground for discharging himself from the con- tract, (r)' § 356. On principle there seems much in favor of the view, that a contract for an under lease implies that the sub- lessee is to be subject to all the covenants in the superior lease, and it is not unsupjDorted by authority. (5) But it has been determined that this implication can only arise where (i) Doe (1. Gray v. Stanion, 1 M. & W., Preston, 25 L. J. Ex., 287: and see Infra, § 695, 701; Worthlngton v. Warrington, 5 C. B., 1318. 635 ( p) Fane v. Spencer, 2 Mer., 430, n. {m) Bryant v. Busk, 4 Russ.. 1. (q) 37 and 38 Viot., c. 78. (n) Curlingv. Flight,6Ha.,41; S.C.,2Ph, (r) Bennett v. Fowler, 2 Beav, 302. 613. (s) Cosser v. Collinge, 3 My & K , 283; (o) Fildcs V. Hooker, 2 Mer , 424; Souter Smith v Capron, 7 Ha., 185; Grosvenor v. V. Drake, 5 B. & Ad, 992; Hall v. Betty, 4 Green. 7 W. R., 140; cf. Collins v. Stutely, Man & Gr., 410 As to ilie contract for the id , 710. sale of a contract for a lease, see Kintrea v. _ '_ Unless the vendee expressly assumes the risk as to title, although no pro- vision is made in the contract for a covenant of warranty to be inserted in the deed, if tlie vendor cannot give a good title, equity will not, as a general rule, decree its specific performance. Bates v. Delavan, 5 Paige, 299 ; Watts v. Wad- dle, 1 McLean, 20U. And not only mu.st the title not be a defective one, but it must be such an one as the vendor covenanted to convey. Tomlin v. McCord, 5 J. J. Marsh., 135; Jarman v. Davis, 4 Monr., 115. But where a person agree- ing to sell lands has a good title, and was able to convey at the time of the bar- gain entered into, and no delay can be imputed to him in performing his part of the contract, the contract is considered in equity as then executed; the subse- quent conveyance being only matter of form, the substance being the bargain. Kay v. McCulloch, Conf. Cam. & Nor., 492. INCOMPLETENESS OF THE CONTRACT, 171 the purchaser had a fair opportunity of ascertaining for himself the i)ro visions of the original lease ',{t) and if the contract were silent, and unusual provisions were found in the head lease, the court would probably not enforce specific performance on the ground of the imjplication referred to.{u) Possession taken by the intended lessee is a strong circum- stance to fix him with an acceptance of the terms of the head lease. («) But it is not conclusive, and the circum- stances under which the possession was taken may dejDrive it of this effect. ('M)) § 357, The question whether or no there is an implica- tion in executory contracts in favor of the insertion in the executed contract of all such stipulations as are usually in- serted in such contracts, appears one still open in our»law, (re) § 358, An implied term may, of course, be rebutted by the contract or conditions of sale ; as where they limit the title to be deduced, or provide that the purchaser shall simply take the vendor' s interest, (y) And further, although an express term of a contract is in nowise affected by notice, (£•) yet notice is sufficient to rebut the presumption of an implied term ; fpr that is something not growing out of the contract itself, but given by law, and a matter therefore not of contract but of notice. («) So that, for instance, where a purchaser has notice that the vendor is only a lessee, he cannot insist on the implication which might otherwise arise, that the contract is for the fee. (5) § 359. Again, a material term may well be supplied by construction or inference where the circumstances Justify it; but if neither supplied by expression, construction, nor in- ference, the contract is incapable of performance. Tlius, a contract for the grant of a term of years may be construed to be for a term of years commencing from the date which the memorandum of the contract bears ;(e) but where the contract is either undated, or there are stipulations for things to be done before the commencement of the term, which show that the date of the contract could not be in- (<) Hvde V. War.len. 3 Ex. D , 73. (y) Frerae v. W-right, 4 ^Jaj^ . 364^ (V) FllRht V. Baslin, 3 Aly. & K., 282. (z) Barnet v. Wheeler. .SI. & W 36 (V) Cesser v. ColUnge; Smith v. Capron. (n) Ogilvie v. Foljambe, 3 Mer , 53, 61. ubi BUBra (*) Oowley v. ^^ atts, 1* Jur.. 17-2. (w) Hyde V. Warden, ubi supra. (c) Doe d. Phillip v. Benjamin 9 A. & E , \x) Ricketts v. Bell, 1 De w. & Sm., 335, 644; Hersey v. Gibli-tt, 18 Beav., 1/4; Jaqiies where the question was much discussed by v. Millar, 6 CIk D., 153. See, too, Wesley v. Knight Bruce, V C. Of. Blakeney v. Har- Walker, 26 W. R., 368. die, I. R. SEq., 381. 172 FKY UN SPECIFIC PERFORMANCE OF CONTRACTS. tended to be the coiiimencement of the term, there the con- tract is incomplete, because a material item in it is entirely wanting. (<^) j< :i«0. Where A., being lessee of a house and shop for the unexpired residue (fifty-nine years) of a term of eighty years, agreed to sub-let the premises to B. (who did not know the nature of A.'s interest) at a fixed yearly rent, but the duration of the under-lease was not specified in the contract, and B. went into and remained in possession, and laid out money in improving the premises, and ulti- mately, when the head lease had still twenty years to run, brought his action for specific performance of the contract ; it was held, by Bacon, Y. C, that B. was entitled to an under-lease for the whole of the residue of the term, less one day; and the court of appeal affirmed the plaintiff's right to an under-lease of defined duration, though they varied the vice-chancellor's decision by directing A. to grant an under-lease for the residue of the term, less one day, if the plaintiff should so long live.(e) (d) Blore V. Sutton, 3 Mer , 237 (where it W. U., 4S7; reversing S. C, 12 W. R., 704; does not appear that the memorandum bore Dolling v Evans, 15 VV". R , 394 any date); Xesham v. Selby, L, R 13 Eq., re) Kusel v. Watson, II Ch. D., 129. Cf. 191; 7 Ch.,406; Cartwright v. Miller, 36 L. Browne v. Warner, 14 Ves , 156; Re Kings T.. 398 See, too, Southern v. Harriman,14 Leasehold Estates, L. R 16 Eq.,521; Wood v. Beard, 2 Ex. D., 30, UNCERTAINTY OF THE CONTRACT. 173 CHAPTER IV. OF THE TJNCERTAIXTY OF THE CONTRACT. §361. It is obvious that an amouiit of certainty must be required in proceedings for tlie specific performance of a contract greater than that demanded in an action for dam- ages. For to sustain the latter proceeding, the proposition required is the negative one, that the defendant has not performed the contract— a conchision which may be often arrived at without any exact consideration of the terms of the contract ; whilst in proceedings for specific performance it must appear not only that the contract has not been per- formed, but what is the contract which is to be performed. It is, perhaps, impossible to lay down any general rule as to what is sufficient certainty in a contract ; but it may be safely stated that the certainty required must be a reasona- ble one, having regard to the subject-matter of the con- tract, (a)' and the circumstances under which and with (a) See Arist. Eth. Mc. lib. i., c. 3. 1 Notwithstanding the terms of a contract are general, yet equity will en- force it if the law supplies the details; but it will not do so if details are omit- ted which the law cannot adopt. Ridgway v. Whorton, 6 House of Lords, 285; Nichols v. Wilhams, 22 N. J. Eq., 63; Tiernan v. Gibney, 24 Wis., 190; Clark V. Clark, 49 Cal., 586; Riley v. Farusworth, 116 Mass., 223; Picket v Merchants' Nat. Bank, 32 Ark , 346. An agreement did not call for a deed with full covenants. Held, that the vendee was only entitled to a good de_ed to convey the title in fee simple. Lounsberry v. Locander, 2;j N. J. Eq., oo4; Thayer v. Tony, 37 N. J. Law, 339. . Agreement to convey good title.] A covenant to convey a "good title," does not necessarily entitle the party to a warrantee deed, a "good title being effectually vested in him by a quit claim deed. Gazeley v. Price, lb John., 267; Potter v. Tuttle, 22 Conn., 512; Kyle v. Kavanaugh, 103 Mass , dob; contra, Hoback v. Kilgores, 26 Gratt., 442. Tax assess7nents.] The vendee is liable for tax assessments iCTied subsequent to the sale, where real property is sold, and a title bond given. Hall v. Denckla, 28 Ark., 506. Tiine of cmnpletion may be implied.'\ This maybe done from the nature or condition of the subject-matter of the contract. McKay v. Carnngton, 1 Mc- Lean, 59; Hoyt v. Tuxbury, 70 111., 891. Contract to convey land; rule as to certainty.] The certainty required for the specific performance of an agreement to sell land, refer's as well to the descrip- tion of the property as to the estate to be conveyed. O'Brien v. Pentz, 48 Md., 174 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. 562; Shrivcr V. Seiss, 49 id., 384; Sliakspcarc v. Markham, 10 Hun, 311; Cox V. Cox, 59 Ala., 591. PncNon in contracts.] The following cases should be consulted under this head- Colson v. Thomson, 2 Wheat., 336; Carr v. Duval, 14 Pet., 77; Kendall V \lmv 2 Sumn 278; Boweu v. Waters, 2 Paine, 1; Morrison v. Rossignol. s'Cal 64- 'Minturu v. Baylis, 33 Cal., 129; Miller v. Cotton, 5 Ga., 341; Fitz- patriciv v' Beatty 6 111. (Gilm.), 454; Burk v. Creditors, 9 La. An., 57; Mc- Murlrie v. Bennette, llarr. Ch. (Mich.), 124; Montgomery v. Norris. 2 Miss. (How ) 499' Rockwell v. Lawrence, 6 N. J. Eq. (2 Halst ), 190; Lockerson v. Slilhveli 13 N. J. Eq. (2 Beas.), 257; Waters v. Brown, 7 J. J. Marsh., 123; Goodwill V. Lyon, 4 Port. (Ala.), 297; Madeira v. Hopkins, 12 B. Mon., 593; Graham v Call 5 Munf., 396; Aday v. Echols, 18 Ala., 353; Sheid v. Stamps, 2 Sneed. (Tenn.), 172; Agard v. Valencia, 39 Cal, 292; Talman v. Franklin, 3 Duer 395; Lobdell v. Lobdell, 36 N. Y., 327; Wiswell v. Teft, 5 Kans., 263; Lon<>- V. Duncan, 10 id., 294; Johnson v. Johnson, 16 Minn , 512: Hardesty v. Rich°irdson 44 Md., C17, Hyde v. Cooper, 13 Rich. Eq., 250; McKibbin v. Brown 14 X. J. Eq., 13; Welsh v. Bayard, 21 id., 186; Huff v. Shepherd, 58 Mo., 242; Roundtree v. McLean, Hempst., 245; Lloyd v. Wheatley, 2 Jones, 267- Duvall v. Myers, 2 Md. Ch., 401; Wadsworth v. Manning, 4 id., 59; Clark V. Rochester R. R. Co., 18 Barb., 350; Wright v. Wright, 31 Mich., 380; Odell V. ]\Ionn, 5 Oregon. 96; Mehl v. Van der Walleke, 2 Lans., 267; Fott v. Webb, 59 Barb., 38; Munsel v. Loree, 21 Mich.. 491; McClintock v. Laing, 22 id.. 212; Allen v. Webb, 64 Rl., 342; Buckmaster v. Thompson, 36 N. Y., 558; Bowman v. Cunningham, 78 Rl., 48; Schmeling v. Hiesel, 45 Wis., 325; Blan- chard v. Detroit R. R. Co., 31 Mich., 44; Carson v. Percy, 57 Miss., 97; Mat- terson v. Scofield, 27 Wis., 671; Reynolds v. O'Neil, 26 K J., 223; Ring v. Ashworth, 3 Iowa, 452; Cornell v. Mulligan (21 Miss.), 13 Smeed. & Marsh., 388. Examples of sufficient descrijjtion of land.] "Land, whereon the vendor re- sides." "The D. G. Roe farm." This is sufficient, provided it can otherwise be sufficicntlv identified. Simmons v. Spenill, 3 Jones' Eq., 9. "Land lying on the southwest side of Black river, adjoining land of Wm. Hoffland and Martial." Kitchen v. Herring, 7 Ired. Eq., 190. "Land lately bought by A. from B., to wit: a part bounded by the section line running from the northeast corner of said tract to the stake put by C. on the southeast ; thence in a due northea-st course until it strikes the main road; thence along the said road, then it strikes the northern line of said tract; thence to the beginning." Hooper v. Laney, 39 Ala., 338. Land was located on the south side of a river in a deed, referring to a patent which placed the land on the west side of such river. The identity sufficiently appearing— Held, that the discrepancy was immaterial, Munson v. Davis, 20 Tex., 419. The town in which the land Hes need not, of necessity, be stated. Robeson v. Hoonbacker, 3 N. J. Eq., 2 Green, 60. A contract of conveyance described a right of way, in which the length of the way was not stated ; the terminal points were given, and the line of way so fixed as to be readily determinable by the government surveys. Held, sufii- cient. Puttman v. Haltey, 24 Iowa, 425. The grantor agreed to convey a right of way eighty feet wide over a tract of land, and the grantee subsequently entered and laid out his road with the acquiescence of the grantor. Held, that the contract was sufficiently definite, and that specific performance would be enforced in equity. Purinton v. Northern 111. R. R. Co., 46 111., 297. Examples of insufficient descnption of land.] " That a house should be put in repair, and handsomely decorated." Taylor v. Partington, 7 De G. M. & G., 328. " The necessary land for making a railway through the estate." Pearce v. W^atts, L. R., 20 Eq., 492. The contract recited that a definite sum was to be paid, on a given day, for 120 acres of land in Shannon county. Mo., pro- vided it shall not have been sold before that time. Miller v. Campbell, 52 Ind., 125; see, also, Lynes v. Hayden, 119 Mass., 482. For the sale of the hou.ses in Smithfield street, without other description, or disclosing to whom they be- longed. Hammer V. McEldomney, 46 Pa. St., 334. A. subscribed $50, and a lot to build upon, for the purpose of building a church, without stating the extent or boundaries of the lot. Church of the Advent v. Farrow, 7 Rich. Eq., 378. These were all held to be too indefinite to be enforced. The follow- ing cases should be consulted under this head : Camden and Amboy R. R. Co. v. UNCERTAINTY OF THE CONTRACT, 175 regard to which it was entered into, {by Thus, in one case, where there was a contract between two railway companies, (6) Marsh v. Milligan, 3 Jur. N. S., 979; (Wood, V. C) Stewart, 18 N. J. Eq., 489; McGuire v. Stevens, 43 Miss., 724; Whelau v. Sul- livan, 103 Mass , 204; Ellis v. Deadman, 4 Bibb., 467; Johnson v. Craig. 21 Ark., 533; Jordan v. Fay, 40 Me., 13i); Graham v. Hcudren, 5 Munf., iSo; Parish v. Koons, 1 Pars. Eq. (Pa.) Sel. Cas., 79; Jordou v. Deaton, 23 Ark., 704; Ferris v Irving, 28 Cal., G45; Millard v. Ramsdell, Harr. (Mich.), 373; Shelton v. Church, 10 Mo., 774; Prater v. Miller, 3 Hawkes. 628; Copps v. Holt, 5 Jones' Eq., 153; Patrick v. Horton, 3 W. Va., 23; Taylor v. A.shley, 15 Texas, 50; Brakin v. Hambrick, 25 id., 408; Dobson v. Litton, 5 Coldw. (Tenn.), 616; Reynolds v. Warring, You., 34ij; Dav v. Griffith, 15 Iowa., 104; Gelston v. Sigmund, 27 Md., 334; Nichols v. Williams, 22 N. J. Eq., 63; Grace v. Demison, 114 Mass., 16; Martin v. Halley, 61 Mo., 196; Carr v. Pas- saic Land Co., 22 N. J. Eq., 85; Soles v. Hickman, 20 Pa. St., 180; Kemble v. Kean, 6 Sim., 333; Franks v. Martin, 1 Ed., 309. In Launderson v. Cocker- mouth R. R. Co., 11 Beav., 497; White v. Hernian, 51 111., 243, the courts held that they would endeavor to put a reasonable interpretation upon vague ex- pressions in an agreement. 1 Where the terms of a contract are indefinite or uncertain, specific perform- ance will not be decreed. McMurtie v. Bennett, Harring. Ch., 124; Millard v- Ramsdill, id., 373; Colson v. Thompson, 2 Wheat., 336; Walton v. Coulson, 1 McLean, 120; Kendall v. Almy, 2 Sumn., 278; Carr v. Duval, 14 Pet., 79; Prater v. Miller, 3 Hawkes, 628; Waters v. Brown, 7 J. J. Marsh., 123; Fitz- patrick v. Beatty, 1 Gilm., 454; Goodwin v. Lyon, 4 Porter, 297. So where a tenant, holding by a lease under seal, in consequence of a diminution of value in the leasehold property, was about to leave, and the lessor told him that if he would stay he would reduce the rent, without specifying how much, it was held to be so uncertain that equity could not relieve the tenant. Smith v. An- krim, 1 S. & R., 39. Neither will a contract, to convey a quantity of any land which the obligor may own, be specifically enforced. A specific performance will be decreed only where a specific thing is to be conveyed. Shelton v. Church, 10 Mis., 774. And specific performance of a verbal contract, which is execu- tory and depends on a future event which may never happen, will not be de- creed. Bradley v. Morgan, 2 A. K. Marsh., 369. It seems that the rule, that a specific performance will be refused where the contract is vitiated by uncer- tainty, is applied with more than ordinary stringency against assignees and rep- resentatives of the contracting parties. Kendall v. Almy, 2 Sumn., 178; Mont- gomery v. Norris, 1 How. (Miss.), 499. Though specific performance will not be decreed of a contract uncertain in its terms, yet if the agreement may be made certain, by means of references furnished by the contract, it will be enforced. Prater v. Miller, 3 Hawkes, 628. And in Wiswall v. McGowan, 1 Hoff. Ch. 126, it is said that where a contract refers to the subject-matter by vague and insufficient description, the defect may be supplied by other documents, commg from, or adopted by, the party against whom the contract is to be euforeed, pending and connected with the transaction. It will be no objection to decree- ing specific performance of a part of a contract, that another part is uncertam. So, where A. purchased property of B. at a low price, and agreed to give the chil- dren of B. the benefit of it, on being repaid the purchase money and interest no uncertainty existing in respect to that part of the agreement which provided for the conveyance to the children of B., the court had no difficulty in decree- ing performance of that part of the contract, notwithstanding that another pol-tion of the contract was indefinite. Sartcr v. Gordon, 2 Hill. Ch., 121 In Andrews t. Andrews, 28 Ala., 432, the objection of imcertainty in the terms of the contract being raised, the court held, that while great certumty and pre- cision in contracts were indispensable prerequisities to their specific peri orm- ance, in view of the looseness and inaccuracy of the language, which showed that the parties and witnesses were uneducated, and construing the inartificial expressions of the parties by their subsequent declarations, showing the mean- ing which they attached to the words, the terms of the contract were suffi- ciently certain. 176 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. that the one should have the right of running with their engines, carriages and trucks, and carrying traffic upon the line of the other, Parker, V. C, held that this was not too uncertain to be enforced. (c) "It means," he said, "a reasonable use— a use consistent with the proper enjoyment of the subject-matter, and with the rights of the granting party." (rZ) And we have already seen that where the terms of tiie contract are general, but the details are such as the law will supply, the contract will not be considered as ob- jectionable for vagueness and uncertainty, (e) In one case a contract by a railway company with a landowner, to make such roads, ways and slips for cattle as might be necessary, was held not incapable of being performed by the court ; but it is to be observed that in this case the company had entered and made the railway. (/) In another case, where a rector had agreed to grant a lea.se of his glebe, "except thirty-seven acres thereof" (which were not specified), Lord Romilly, M. R., held that the contract was not void for un- certainty, inasmuch as the lessor had a right to select the thirty-seven acres at any time before the execution of the lease. His lordship held, however, that this right must be so exercised as not to interfere with the lessee' s bene- ficial enjoyment of the lands included in the lease. (^) § 36^. Where the terms of the contract are originally uncertain, but the contract has been acted on, and a user and course of dealing have existed between the .parties which gives certainty to what was originally uncertain, the court has, in some cases, had regard to this as removing the original difficulty. (^) § «tO«t. The mere fact of indefinite words, such as "e^ ccBtera^'^ being used in a contract does not necessarily make it too uncertain for performance. Such words may be un- derstood with sufficient certainty by reference to the words to which they are added and the surrounding facts of the case»(i) Again, where, by the contract for a lease, the ten- (c) Great Northern Railway Co. v. Man- 4 Jur. N. S., 183 (Stuart. V. C); S. C, 2 De Chester, Sheffield and Lincolnshire Railway G. «& J., 559, and supra, § 318. Co.,5 DeG. & Sm.,138. (g) Jenkins v. Green (\o. 1), 27 Beav., 437; (d) 5 De G. & Sm., U9. and see supra, § 329. (e) Per Turnf^r, L. J., in South Wales Rail- (h) Oxford v. Provand, L. R. 2 P. C, 135. way Co. V. Wythes, 5 De G. M. & G., 888; See, also, Laird v. Birkenhead Railway Co., Bupra, §349. Johns., 500. (/) S. In another case, wdiere there was a contract in general terms for the construction of a railway according to the terms of a specification to be prei)ared by the engineer of the company for the time being, it was held too vague, obscure and uncertain to be enforced \{;u) the like was held in the case of a contract to give the plaintiffs accommoda- tion for the sale of their articles in the refreshment-rooms of the defendants, and to furnish them with the necessary appliances. (y) The like was again held where one partner proposed to sell to the other his share in the business, and that a large portion of his capital should remain in the business, but the writing did not state how much, for how long, or at what interest, and this proposal was accepted. (w) And again, where on the sale of a piece of land there wnre stipulations that, in the event of there being any coals or ironstone under the land, a royalty of so much per ton should be iDaid thereon by the i)urchaser to the vendoi-, and also that any mines required to be left by a certain inilway company were to be paid for, as if the same had bnen got- ten, out of the money to be received from the railway com- pany ; it was held, with regard to the latter stipulation, that it was incapable of being worked out, inasmuch as if the company bought the mines, the contingency whether there was any coal or ironstone under the land would re- main undecided ; and as to the former stipulation, that the parties seemed to have intended to work it out by a reserva- tion of mines to the vendor, and a lease of them by the vendor to the purchaser, but that there was nothing to guide the court as to the stipulations to be included in such (s) Lord .Tames Stuart v. London and North («) South Wales Railway Co. v. Wythes, 5 Western Uailway Co., 15 Beav., 513; S. C.,1 De G. M. & J., t«0. . , ., , DeG. M & G.,721. Cf. Bellaney V Knight, (f) Pans Chocolate Co. v. Crystal l"Hlac« 10 W R '2S9 Co., 3 Sm. & Gif., 119. (0 Lancaster v. De Trafford, 31 L. J. Ch , (w) Cooper v. Uood, '26 Beav., 293. 55t. 180 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. a lease, except the rates of royalty : and the court accord- indy declined to enforce the contract for sale.(^) Jj ilttT. The same certainty will not be required in cases where there is any element of friiud as in simple cases of specific performance of a contract. Thus where A. agreed with B. in elfect that if B. would not try to buy a certain estate, A. would try to buy, and in case of success would cede a portion of the estate to B. at a certain price ; and B. acted on his bargain and allowed A. to purchase ; and A. having purchased refused to perform his part and set up the uncertainty of the part to be ceded ; the court held that the defense could not avail and directed an inquiry to ascertain the portion to be given up and the price. It seems that if this could not have been ascertained, B. might have claimed the whole estate. (?/) (X) Williamson v. Wootton, 3 Drew., 210. Co., 3 K. & J., 675; ftturge v. Midland Rail- See further as to uncertainty, Harnett v. way Co.. 6 W.R., 2SS; Jeflfery v. Stephens. Yielding, 2 Sch.&Lef., 549; Tatham v.Platt, 8 id., 427; Firth v. Ridley, 33 Beav., 516, 9 Ha, 6C0; Taylor v. Gilbertson, 2 Drew., supra, §71. „ .,. x^ ,,, 391; Holmes v. Eastern Counties Railway (y) Chattock v. Muller, 8 Ch. D , 177. WANT OF FAIRNESS IN THE CONTRACT. 181 CHAPTER V. OF THE WANT OF FAIRNESS IN THE CONTRACT. § 368. There are iiuuiy instances in which, though there is notliinu- that actually amounts to fraud, there is neverthe- less a want of tliat equality(a) and fairness in the contract which, as we have seen, are essential in order that the court may exercise its extraordinai-y jurisdiction in specific per- formance.' In cases of fraud(&) the court will not only not perform a contract, but will rescind it ;' but there are many (a) As to the equality which natural justice (b) Thp jnris'liction to rescind is. of course, requires lo fiu'l place in contract see Gro. not co fined to cases of actual Iraua. See tious, De Jure Belli ac Pads, iib. il, cap. 12, per James, L.J.,in Ti)rrance v. Bolton, L R. §8, et seq. !^ Ch.. 1-24 1 No rule in equity is more clearly estnblished than that upoi] an application for a specific performance of a coiJtract, the court must be satisfied that the claim is reasonable and just, and the contract equal in all its parts; if these points be not established by the complainant, he will be left to liis remedy at law. Modisett v. Johnson. 2 Black., 481 ; Seymour v Delancey, 3 Cow., 445; Cabeen v. Gordon, 1 Hill. Ch., 51. ' Agreements will also be decreed to be delivered up for cancellation upon the ground of surprise. Thus, in Willan v. Willan. 16 Ves.. 72, wiiich was a case^concerning a lease with a covenant for perpetual renewal, at a fi.xed rent, of premises under a church, renewable upon fines continually increasing, neither party understanding the effect of their contract, the agreement was ordered to be canceled. Twining v. Morrice, 2 Bro. C C, S2(], a case to the same elTect, was quoted by Lord Elden. with approbation. And in America the prmciple there established has been received and acted upon Gillespie v. .Moon. 2 .John. Ch., 598; Seymour v. Delancey, 3 Cow., 445. There appears to have l)een a difference of opinion concerning the meaning which courts of equity atta(-h to the word surprixe, which we have just mentioned, as atlbrding a ground of re- lief. See Eden, Injunc. (2d Am. 'ed ), 21 and 27. notes. .Mr Jeremy (2 Lq. Jur., ch. 2, p. 36()) seems to suppo.se that there is somethmg technical in its meaning Surprise, he says, " it seems is a term for the immediate result of a certain species of mistake, upon which this court will relieve." He also says that surprise is often used as svnonymous with fraud; but that " they may, perhaps, be distinsuished by the circumstance, that in instances to which the term fraud is applied, an vinjust design is presupposed; but that in those to which surprise is as.siiined. no fraudulent intention is lo be presumed i" ^"e former case, one of the parties seeks to iiiiure the other; in the latter, both of them act under an actual inisconeeptlon of the law." Mr. Justice Story seems to be of the opinion, that this explanation does not render the dehnition ot .Mr. Jeremy any clearer than it was before; and he proceeds to say, tliat. "there does not .seem anything technical or peculiar in the word surprise, as used m courts of equity." The common definiticui of Johnson sunu'ieiitly explains its sen.se. lie defines it to be the act of taking unawares; the state of being taken unawares; sudden confusion or perplexity. When a court of e( pi ity relieves on the ground of surprise, it does so upon the ground that the parly has been taken unawares, that he has acted without due deliberation, and uiuKt con- 182 FRY OX SPECIFIC PEKFOliM ANCE OF CONTRACTS. cases ill which the court will stand still, and interfere neither for tlie one ijurpose nor the other. (c)' ij :Ui9. Tlie unfairness in question may be either in the terms of the contract itself, or it may be in matters ex- trinsic and the circumstances under which, it was made ; with regard to the latter, parol evidence is of coarse ad- missible. (<^)* (c) Per Lord Eldon in Willan v Willan, 16 monds, 1 Cox, 406; Redshaw v. Governor & Ves , 83 See Savage v Taylor, Forr.,234; Co of the Bedford Level, 1 Eden, 346. Twli'iing V. Morrice. 2 Bro. C. C , 326; Sav- (.d) Davis v. Sy monds, 1 Cox, 402 age V. Brocksopp, 18 Ves , 335; Davis v. Sy- fuscd and sudden impressions. The case of Evans v. Llewellyn, 3 Bro. Ch., 150, is a direct authority to this very view of the matter. There may be cases where the word surprise is used in its more lax sense, and where it is deemed presumptive of, or approaching to, fraud. (1 Fonbl. Eq. B , 1, ch. 2, § 8, p. 125; Earl of Bath and Montague's Case, 3 Ch. Cas., 56, 74, 103, 114.) But it ■will be always found that the true sense of it is, where something has been done, which was unexpected, and operated to mislead or confuse the parties on a sudden, and on that account has been deemed a fraud." Story's Eq. Jur., § 120, p. 13i, note (1). It has been said that a decree in equity is seldom based upon the ground of surprise alone; and that there must be other circumstances of fraud or mistake connected with it in order to become a proper subject of equitable relief. This is probably erroneous. The basis of Lord Eldon's de- cree in Willan v. Willan was, that the parties were ignorant of the effect of their agreement. There was no misunderstanding in the case ; but a total Idck of under. tiandin;/. Mutual misapprehension of rights, as well as the effects of the agreement, may properly furnish in some cases a ground of relief. For if both parties acted \mder a mutual misconception of their actual rights, they could not justly be said to have intended what they did. Story's Eq. Jur., § 123; Willan V. Willan, 10 Ves., 72; Anderson v. Smith, I A. K. Marsh., 51. ' Specific performance is a matter of judicial discretion, and not of arbitrary right; and a court of chancery may refuse to rescind a contract, where it would refuse to enforce a specitic performance of it at the suit of the other party. It is not more binding upon tlie court to set aside every contract that it will not specifically perform, than to perform every contract which it will not set aside. St. John V. Benedict, John. Ch., Ill; Minturn v. Seymour, 4 id., 497; Sey- mour v. Delancey, 6 id., 222; Jackson v. Ashton, 11 Peters, 229; McNeil v. Magee, 5 Mason, 244; Howard v. Moore, 4 Sneed (Tenn.), 317; Acker v. Phetnix, 4 Paige, S05; Revell v. Hussey, 2 Ball & Bea., 288; Clitherall v. 01- givie, 1 Dessau., 257; Barker v. May, 3 J. J. Marsh , 436; Osgood v. Franklin, 2 John. Ch , 23. ^ Neio cmitvacA. inconsisteht with former one.'\ Anew contract was inconsist- ent with and rendered impossible of performance by a former one between the same parties. Held, that the first was rescinded, upon the principle that a sub- sequent act of the Lesrislature repeals a former act, the two being inconsistent. Paul v. Meservey, 58 Me., 419. Written contract changed hy presumption of a new contrari.'] Lord Eldon said, in Const V. Harris, T. & R., 496, 523: "In ordinary partnership, nothing is more common than this, that though partners enter into a written agreement stating the terms upon which the joint concern is to be carried on, yet if there be a long course of dealing, or a course of dealing not long, but still so long as to demonstrate that they have all agreed to change the terms of the original written agreement, they may be held to have changed these terms by conduct." See, also. Geddes v. Wallace, 2 Bligh, 270, 297; Jackson v. Sedgwick, 1 Swanst., 460; Smith v. Jeyes, 4 Beav., 505. Hew contract by parol; waiver of written.] Nolwithstandiug the original con- tract was in writing, a new contract may be made by parol, where there has been acts of part performance. Wallis v. Long, 16 Ala., 738; see, also. Hunt WANT OF FAIRNESS IN THE CONTRACT. 183 § 370. The fairness of the contract, like all its other qualities, must be judged of at the time it is entered into, or at least when the contract becomes absolute, and not by subsequent events ;(e) for the fact that events, uncertain at the time of the contract, may afterwards hapjjen in a man- ner contrary to the ej«pectation of one or both of the par- ties, is no reason for holding the contract to have been unfair.' "The period," said the Irish Lord Chancellor Manners, "at which the court is to examine the agreement between the parties is the time when they contracted." (/) § 371. In the case, however, of contracts to sell at a price to be fixed or any other condition to be performed be- fore they become absolute, it may be urged that the time when the contract becomes absolute, and not the date of its signature, is the time to judge of its fairness. Unfairness in the valuation is certainly an objection. § 372. The principle of judging of the fairness of a con- tract at its date applies to compromises and settlements of family and other questions. "Where parties whose rights are questionable, have oqual knowledge of facts, and equal means of ascertaining what their rights really are, and they fairly endeavor to settle their respective rights amongst themselves, every court must feel disposed to support the conclusions or agreements to which they may fairly come at the time, (.7) and that notwithstanding the subsequent dis- covery of some common error "(7^) or a subsequent judicial decision showing the rights of the parties to have been different from what they supposed, or that one party had nothing to give up.(/)' And the uncertainty which may (e) So as to hardship, see infra, § 398. (A) Per Lord Langdale, U. H., in Pickering (/) In Revell v. Hussey, 2 Ball & B., 2S8. v. Pickering, 2 Beav , 56; Frank v. Frank, I See infra, § 398. Cas. in (Jh.. 84 (g) Cf. per Turner, L. J., in WHliams v. (i) Lawton v. Campion, 18 Beav., 87. Williams, L. R 2 Ch., 304; Bucknell v. Buck- nell, 7 Ir. ch. R., 130. ^^ V. Barfield, 19 id., 117; Adams v. Nichols, 19 Pick., 275. What are parol con- tracts ? A verbal contract, and a writing not under seal, is a parol contract;- they are both on the same footing. A verbal contract is of as high a grade as a writing not under seal, and it may be released, abrogated, or modified by aa agreement either written or verbal. Bishop v. Busse, 69 111., 40;{; Rhodes v. Thomas, 2 Carter (Ind. ), 638; Liuard v. Patterson, 'S Blackf., 358; SmiUi v. Addleman, 7 id., 119; Woodruff v. Dobbins, 7 id., 582. ' Therefore, fluctuations in the value of property, caused by events subse quent to the making of the contract, will be regarded by the court, if the con- tract be fairly entered into at the time. Low v. Treadwell, 3 Fau-f., 441. 2 Courts of equity will sustain agreements or compromises of this nature, upon grounds of public policy, provided that the couchisions of the parties have been fairly entered into, made with deliberation, and reasonable in thera- eelves. Story's Eq. Jur., § 121 ; Pickering v. Pickering, 2 Beav., 31. 184 fi:y ox specific ivKUFouMANcno of contracts render ;i coini)roniise fair, and therefore binding, may be either in some future and uncertain event, or the future ascertainment of some event past and therefore in itself certain, as, for instance, whether a son was legitimate or not,(,/) or wliether an nncle had made a yjarticular will or not.(^) sj ;i7;i. The principle just stated is, ])erhaps, most fre- quently illustrated by cases of family arrangement or of compromise; but it is applicable to contracts of whatsoever nature. The case of Parker v. Palmer, (Z) which came be- fore the court in the fourteenth year of Charles IT, illus- trates this. Parker, as it appears, had, during the com- monwealth, sold a lease which he had from a dean and chapter for three lives, to Palmer, the price agreed on being £4,;32(). Subsequently the purchaser agreed with the ven- dor that, if he would abate him £420, he would reconvey the lease whene^'er the king and dean and chapter were re- stored. The abatement was made, the king and church were restored, and thereupon the vendor sued for a recon- veyance, whi(^h was accordingly decreed by the then master of the rolls, and aflirmed by Lord Clarendon and Sir Or- lando Bridgeman. Again, where a man agreed to sell for £20 an allotment thereafter to be made to him under an inclosure, and it turned out to be worth £200, he was never- theless compelled to perform his contract \{7n) and so in a case before Leach, V. C, where he maintained a contract entered into without any fraud or concealment, by which one partner agreed with the retiring partner to give him £2,000 for the concern, though they knew the partnership to be insolvent, his honor said: " Supi)ose the case of -a trade attended with great risk, one X)ai'tner desj)airing, the other confident and willing to buy the share of his partner, and give him £2,000 for it; on what possible ground could this contract be invalidated ?"(7i) The cases in which the thing sold is described in general terms — as, for examj^le, a manor — and the extent and value of it are at the time un- certain, (o) and also the cases in which the vendor only sells such interest in the property as he has, where that which 0') Siapilton V. Slapilton. 1 Atk., 2. im) hnnn. Itefore .Tokyll, M. R, cited in 0.) Heap V. rons. 9 Ha., 9j. Cooth v. Jackeon, 6 Ves., 24. V) 1 Cas in (Jh., 42. („) Ex parte Peake, 1 Ma. In another case there was a farm which appears to have contained 181 acres, and had coal under it, which was known or believed to be traversed by a fault ; the own- ers agreed to demise to A. the minerals under a portion of the farm whicli lay to the eastward of an upthrow fault to tlie east ; the quantity was described as supposed to be 98 acres or thereabouts. There were to be a rent certain and royalties on the coal raised. It turned out that the fault left 178 instead of 98 acres to the east of it. The court of appeal in cliancery thought it clear that of such a contract specific performance could not have been _gran ted at the suit of the lessee. (6-) § 377. In contracts to sell at a price to be fixed by a third person, the court would no doubt consider the unfairness of the valuer's conduct as a bar to the right to specific j)er- formance. So in one case, where the court came to the con- clusion that it was doubtful whether the valuation had been made with a due attention to accuracy, Lord Eldon refused specific performance of the contract to sell.(^) § 378. In another case, where the amount of rent to be paid was referred to arbitrators and an umpire, one of the arbitrators so far misconducted himself as to rest his de- cision, not on his own judgment, but on the will of one of the parties interested, and the umpire proceeded on the foot- ing of an outlay of money by the tenant for which the con- tract contained no stipulation, the House of Lords reversed •a decree for specific performance pronounced by the Irish court of chancery, (i/,) § 379. In another case, where the referees consulted the umpire and made their award as to the value of coal upon (r) Baxendale V Scale, 19 Beav., 601. (t) Emery v. Wase, 8 Ves., 505. Distin- («) Davis V. Shepherd, L. R. 1 Ch., 410. guish Collier v. Mason, 25 Beav , 200 (u) Chichester v. Macintire, 4 Bli. (N. S ), 78. WANT OF FAIRNESS IN THE CONTRACT. 187 his estimate, though one at least of the referees thought it wrong, this circumstance was held fatal to the vahiation and the suit. (6^) Other objections were discussed, and it was held that the objection (1) that the valuers did not ex- amine witnesses, and (2) that one of the valuers did not go down the mine but acted on the report of his grandson, were not sustainable ; but another objection, that the valu- ers did not sign their award together, was held entitled to much weight though not determined to be valid. This case is a very instructive one as to the duty of referees or valuers. § 380. In judging of the fairness of a contract, the court will look not merely at the terms of the contract itself, but at all the surrounding circumstances — such as the mental incapacity of the parties, though falling short of insan- ity, {w) their age or povertj^ the manner in which the con- tract was executed, the circumstances that the parties were acting without a solicitor, that the property was reversion- ary, or that the price was not the full value, (re)' § 381. Therefore whenever there are evidences of distress in the party against whom performance is sought, (2/) or he is an illiterate person, or whenever there are any circum- stances of surprise, or want of advice, (^) or anything which seems to import that there was not a full, entire and intel- ligent consent to the contract, (a) the court is extremely cautious in carrying it into effect. Still, it is not the doc- trine of the court that a man cannot contract without his solicitor at liis elbow,(5) or that aman in insolvent circum stances, or in prison, is disabled from selling his estate ; (V) Eads V. Williams, 4 De G. M. & G., 674. (a^ The nature of the proper consent to a (««) Clarlsson v. Hanway, 2 P. Wms., 203; contract seems not incorrectly expressea m Gartsitle v. Isherwood. 1 Bro. C. C, 5.58; the follONTins extract: " Consens.is debet Bridjrman v. Green, VVilni. Not.. 58, 61 See esse (1) verus seu iiiternus et nuituus; (2) supra 261 aliquo siffno exturno expressus; (3) liber et (x) Bell V. Howarfl. 9 Alod , 302; Martin v. plene deliberatus; (4) serius, cum ammo se Mitchell, 2 J. & W.. 413, 423; Stanley v. Rob- oblieandi." Mariani Examen, § 278_ in80D,lR. &M.,527. (6) Llghtfoot y. Heron, 3 Y. & C. Ex . 586, iy) Kerneys v. Hansard, Coop , 125; John- Habi-rd.ishers' Co. v. Isaac, 6 Jur. (.\. b.)^ son V. Nott. 1 Vern., 271. 611 (Wood, V. C). (z) Stanley v. Robinson, 1 B. & M.. 527; Helsham v. Langley, 1 Y. & C. C. C, 175. ' Where a youug man, just arrived at his majority, contracted for the pur- chase of land, after an examination utterly insufficient to ascertain its value, with a person who was more than a match for him, from his want of sagacity, experience and advice, and who described the advantages of the purchase in exaggerated terms, for a grossly inadequate price, the court refused to decree specific performance against him, although there was no fraud, nor any legal incapacity to contract on his part. Gasque v. Small, 2 Strobh's Eq., 72. 188 FliV oX SPECIFIC PEUIOUMAXCK OF CONTRACTS. and if a coiitrart made under such circumstances will bear the careful examination of the court and the full light of day, it will be specifically performed, (c) i; :i>»-J. It is enough, generally speaking, to induce the court to refuse i)erfornian{'e, that there are any circum- stances about the making of the contract which render it not fair and honest to call for its execution ; it is not need- ful that there was any intentional unfairness or dishonesty at the time.{d) A leading case on this subject is Twining V. Morrice,(e) where the bill was by a purchaser against a vendor ; at the sale, which was by auction, the solicitor, who was known to be the agent of the vendor, had made some biddings for the plaintiff, which, from his known re- lationship to the vendor, were thought to be the biddings of a puffer, and so damped the sale ; the act was done in inad- vei-tence by the solicitor ; but as it was done at the plain- tiff's Instance, specific performance was refused by Lord Kenyon, M. E,. S; ;is:j. Unfairness arising from misstatements is consid- ered under the head of misrepresentation ;(/) and cases re- lating to the silence or suppression of a fact by one party are considered in the chapter on fraud. (. See, also. Hill v. Buck- complete .•>ee infra, § 871. ley, 17 Ves., 394; Neale v. Mackenzie, 1 Ke., (q) VVillmott V. Barber, 1.^) Ch. D., 96, 107. 474; Rede v. Oakes, 4 De G. J. *; S., 505. WANT OF FAIRNi:ss IX THE CONTRACT. 191 under circumstances of improvidence and likely to prejudice the owner of the estate, for the sake of immediately realiz- ing money to pay his creditors, the court i)ursued the same course. {I) And where, on the sale of trust i)roperty, it was agreed that the purchaser should, out of the purchase- money, retain a private debt due to him from the trustee, a demurrer to a bill by the trustee was allowed. (7O Again, where trustees entered into a contract for a lease which was in excess of their power ;(/) and, again, where they entered into a covenant for renewal which was ultra circs, the court on this ground, in both cases, refused specific per- formance, (-z^) § 390. Where trustees for sale misrepresented the value of the property, when they had the means in their power of stating it correctly, and the conditions of sale stipulated for compensation on either side ; one of the grounds on which the House of Lords reversed a decree for compensation was, that the court would not give effect to a condition which would injure the cestuis que trust, by reason of the neglect of the trustees in making the misdescription which was the ground for compensation, {x) § 391. In another case, the court refused performance of a contract for the sale of leaseholds by one of two executors, on the ground that, under the circumstances of the case, it would be an injury to the cestuis que trust, and expose the executor to extraordinary risk from them, and that either of these grounds was sufficient to stay the interference of the court. (2/) § 392. But where trustees, who had without authority granted leases, put up the property for sale under conditions which expressly provided that no objection sliould be made in respect of such leases, and that the purchaser should take subject to such interests as the tenants might be entitled to thereunder, the court held the purchaser precluded from objecting on the ground of breach of trust, (r) It is con- (0 Orel V. Nopl, 5 Ma.l , 4:58. firmed. 7 De G. M & G.. 399. See, also. (u) Thonipsou v. ]i(ack»toiie, 6 Beav , 470. Magrane v. AnliU.l<1. I Oow. U17. Trappes (V) Harnett v. Yielding, -1 >ch & Lcr., 549. v. Lol.b, IC W. li., U, ; N.iy or v. «.,oodall. -Jt, AccorUlnKly B} rne v. AClou. 1 Uro. 1'. C, id.,l(>J. hut in IJarrt-tt v. Kli.g. •-' Mn. A GU., J86 6 J J 4;j^ Stuart, V. C. compelled trustees of a (to) Bellringer v. Blagrave, 1 Dc G. & ss, 63. Koad to complete a contract lor >»le which IX ) White V Cudiiou. 8 C. & Fin.. 700; re- hail been ma. I 192 FUV ox SI'KCIFIC PEllFOUMANCE OF COXTKACTS. reived, however, tliat trustees generally cannot by contract prevent the operation of the court's usual unwillingness to enforce any transaction resulting in injury to third persons. ij ti9:t. Even where there is nothing amounting to a dis- tinct breach of trust the court will be delicate of interfering against trustees ; so that where, in a contract for sale by them, there is any want of a business-like character, the court will not, it seems, interfere, unless the price be shown to be equal, or more than equal, to the value of the prop- erty. («)' § 301. The doctrine does not apply only to persons standing in the position of formal trustees, but, it seems, to all cases of trust and confidence. So, that if a con- tract were the result of a gross breach of duty by an agent towards his principal, the court would not, it seems, enforce the consequences of that act.(&) And so, railway directors having duties towards the shareholders, the court will not enforce any contract amounting to a breach of duty to the prejudice of all or any of the shareholders at the instance of a plaintiff cognizant of the circumstances, (c) § :i95. The court has on this ground not only refused specific performance, but in a case where the purchaser must have known that assignees in bankruptcy were deal- ing without sufficient knowledge, and that the creditors who were to ratify it were equally ignorant, tjie court, on the ground of the breach of trust of the assignees (as well as other grounds), set aside the contract. (fZ) § 396. In one case Lord Romilly, M. R., took into con- sideration the injury likely to arise to the public from the specific performance of a contract relating to the level of a railway, and on the ground of that injury refused to compel the company to lower the level of their line. But the case was reversed on appeal, (e) (a) Goodwin v. Fielding, 4 De G. M. & G., Co., 4 De Q. M. & G., 115; affirmed, and this 90. principle approved, 6 H. L. C , 113. (6) Mortlock v. Buller, 10 Ves , 292, 313. (d} Turner v. Harvey, Jac , 169. (c) Shrewsbury and Birmingham Railway (e) Raphael v. Thames Valley Railway Co., Co. V. London and North Western Railway L. R. 2 Eq., 37; 2 Ch., 147. ' But where a trustee sells property, having authority so to do, in order to invest the proceeds more advantageously, he must exercise his opinion fairly and honestly ; and if it appears that he was swayed by private interests and selfisl^ ends, and that the price was utterly disproportionate to the real value of the property, a court of equity will not sanction the act. Wormley v. Worm- ley, 8 Wheat., 421. IIAKDSIIII' OF TlIK (•(»NTI:A('T. V.i'S I CHAFPER VI. OF THE JIAKDSIIII' OF TlIK ( ONTILVCT. § 397. It is a well-established doctrine that the court will not enforce the specific performance of a contract, the result of which would be to impose u,Teat hardship on either of the parties to it ;(«)' and this althougli the party seeking specific performance may be free from the least impropriety of con- duct. (/>y § 398. The question of the hardship of a contract is gen- erally to be judged of at the time at which it is entered into; if it be then fair and just and not productive of hardship, it will be immaterial that it may, by the force of subsequent circumstances or change of events, have become less bene- ficial to one party, (c) except where these subsequent events («) Per Lord Brougham in Gould v. Kemp, (c) Lawder v. Blarlifurd. Heat , .VJi; Webb 2 My. &K., 308. v. Direc.t Loniton and Portt^niouth Uailway (b) Per Kindersley.V. C.inFalckev. Gray, Co ,9 Ha., 12!) (S. C. on appual, I D. .\l A G., 4 Drew., WO. 521). ' Hard and unconscionable bargains are not of .sucli a nature that a court of equity can decree their performance. Kimberly v Jennings, (5 Sim., 340; Ohio V. Baum, 6 Ham., 883; Tobey v. County of Bristol, 3 Storv, 800; Canuu- day V. Shephard, 2 Jones' Eq. (N. C), 224; Cathcart v. Robinson, 5 Pet., 263; Seymour v. Delancey, 3 Cow., 445. So, in Clarke v. Rochester, Loekport and Niagara Falls Railroad Co., 18 Barb. Sup. Ct. Rep., 350, the court would not adjudge a specific performance by a railroad company of the duty imi)o,> s A»k . ^\-i: S. C was that, on the true construction of the con 1 An agreement to submit a question to arbitration depends on the honor and good faith of the parties. It is revocable, before the award is given; and it cannot be made irrevocable by any agreement of the parties. But though revocable both in equity and at law, before the award is duly made, yet if already made and published, it is too late for either party to revoke the submis- sion without the consent of the other. And a declaration by one party that he will not be bound by the award is then of no avail. Courts of equity, it is said upon these grounds, refuse to enforce agreements of this nature ; though an award made under such an agi-eement will be carried into execution. Tobey V County of Bristol, 3 Story, 800; Clement v. Hadlock, 13 N. H., 185. 19G FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. this, and was in circumstances wliicli rendered him practi- cally unable to redeem, in a suit instituted by the intended lessee, the court refused specific performance, but granted the alternative prayer of the bill for recis.sion.(^-) 5j •I0»2. Notwithstanding these cases the general rule seems to be, that evtMits subsequent to the contract, and not so in- volved in it as to render it unequal at the time it is entered into, cannot be brought forward to show the hardship of enforcing it. But where the subsequent events alleged for this purpose are acts of the plaintiff himself, or events in some sense within his power, the court may have regard to them in exercising its discretionary jurisdiction in specific performance. There are cases in which the court has con- sidered that, by means of these events, such a change has taken place in the relative position of the plaintiff and de- fendant, as to render it inequitable specifically to enforce the contract against the latter. ' ij 40:{. The leading case on this head is the Duke of Bed- ford V. The Trustees of the British Museum, (Z) before Plu- mer, M. R., and Lord Eldon. Lord William Russell and Lady Rachel his wife, being in the occupation of South- ampton House (afterwards called Bedford House) as their residence, in 1675 conveyed to Mr. Montagu adjoining land, for the purpose of his erecting on it a mansion, with suita- ble appendages of gardens and offices ; and Mr. Montagu entered into covenants with Lady Rachel Russell not to use the land in a particular manner, with a view to the more ample enjoyment of the adjoining lands. Lady Rachel Russell, or those claiming under her, subsequently covered these lands, or a considerable part of them, with houses, and Southampton House was j)i^^illed down to make way for streets and buildings. On a motion by the Duke of (A) Costlgan V. Hastier, 2 Sch. & Lef., 160. {I) 2 My. & K., 552. ' There is no difference l)etween a contract unreasonable when made, and one whicli becomes so afterward, if the applicant be in fault. Garnett v. Ma- con, 6 Call, 308; S. C, 2 Brock., 185. Thus, a very great change in the value of property is a serious objection to a decree for specific performance, where the vendor is in fault, as it may affect the arrangements of the vendee for a compliance with the contract. Garnett v. Macon, 6 Call, 308. Again, in Forde v. Herron, 4 Munf., 316, it is said that a sale ought not to be set aside upon the grounds of smallness of price, where the complainant was himself in fault. And (Jlay v. Turner, 3 Bibb., 53, is a case to the effect that equity will rescind a contract, although the parties cannot be reinstated, if the act of the party plaintiff shall have prevented it. HARDSHIP OF THE CONTRACT. 197 Bedfoi'd, who claimed under Lady Rachel Russell, for an injunction to restrain the defendants, who claimed under Mr. Montagu, from using the land in a way at variance with the covenants of the deed of IGTo, Plumer, M. R., and Lord Eldon held that the duke or his predecessors having altered the state of the property in the way mentioned, it would be inequitable, unreasonable and unjust, thus to en- force the covenants specifically, and the plaintiff was left to his remedy at law.(/7?,)' And so, long acquiescence in a variation from the mode of renewal, pointed out by a cove- nant for that purpose, has been held a reason for not spe- ■cifically enforcing the covenant in its original terms. (7i) § 404. Where the conduct of the plaintiff" subsequent to the contract has led the defendant into a trap, though the plaintiff's conduct may have been unintentionally injurious, the court will refuse specific performance. Thus, in one case, the contract for sale of leaseholds liable to a covenant to insure stipulated that the contract should be completed on the 20tli July; the insurance expired on the 24th June; one of the vendors renewed for a month only, to the 24th July ; the contract in fact was not completed before the 26th August, when the j)arties met for that purpose, and it was discovered that the insurance had expired and the leaseholds had become liable to forfeiture ; and the pur- chaser refused to comj)lete. Kindersley, Y. C, held that the property was at the risk of the purchaser ; but as the vendors' conduct had operated as a trap to the purchaser, he refused specific performance. (c>) § 405. It would seem that, in considering the hardship which may flow from the execution of a contract, the court will consider whether it is a result obviously flowing from the terms of the contract, so that it must have been present at the time of the contract to the minds of the contracting parties, or whether it arises from something collateral, and so far concealed and latent, as that it might not have been (m) See per Knight Bruce, L J, in Shrews- (n) Davis v. Hone, 2 Sch. & Lef., 3U. bury anfl Birmingham Kailway Co. v Mour (,o) Dowbou v. Solomon, 1 Dr. & Sm., 1. Valley Railway Co., 2 De G. M. & G , b-82. » Low V. Treadwell, 12 Me., 441; Brasbier v. Gratz, 6 Wheat., 528; Me- chanics' Rank v Lynn, 1 Pet., 38;J; Taylor v. Lonf,nvortli. 14 id., 17;!; Willard V. Taylor, 8 Wall., 537; Marble Co. v. Ripley. 10 id.. o30. Where the subse- quent changed circumstances were caused by the plaintitl's wrongful acts, this will be a ground for refusing specific performance. Stone v. Pratt, 2") 111., 35. 19S KKV ON SPKCTFIC PEKFOKMANCE OF CONTKACTS, tlins ])resent to their minds. (/v) It is obvious that a far lii^^lier d(\nTee of hardship) must be present in the former, than in the latter class of cases, for it to operate on the dis- civtioTi (»r tlie court.' i; 1015. 'i'he cases whicli liave been already quoted as showin^j; that the hardship must be judged of at the time • of the contract also illustrate another obvious i)rinciple, namely, that where the hardship has been brought upon the defendant by himself, it shall not be allowed to furnish any defense against the specific i^erformance of the con- tract, (^) at least whenever the thing he has contracted to do is "reasonably i30ssible."(r) § 407. It will not constitute a case of hardshij) that the ultimate object Avhich a party had in view in entering into a contract may have become impossible ; the mere failure of the purchaser's speculation will not discharge him from his obligations to the vendor. Thus, where one i:»erson con- tracted with another for the puichase of a piece of land on whicli he intended to erect a mill, for which the consent of a corporation was requisite, the refusal to give this consent furnished no defense to the purchaser, although he had, in consequence of the object he had in view, given a very high price for the ground, (s) And so also the fact that a mine which the defendant had contracted to take for £1,400 turned out literally worth nothing was held to be no de- fense to a suit for specific performance of the contract. (^) § 408. In cases against companies, the court will not consider the hardship which may result to the individual members from enforcing a contract made by the whole body ; for " the court cannot recognize any party interested in the corporation, but must look to the rights and liabili- ip) See e. jr cases stated, § 409. V. C , in Webb v. Direct London and Ports- (7) See per Lord Hardwicke in Pembroke moutli Itailway Co., 9 Ha., 140 ; per Lord T. Thorpe. 3 Siv., 44.3 n Uomilly, M. R , in Lord James Stuart v. (r) Per Knight Uruce, V. C . in Storer v. London and North-VVestern Railway (Jo., 15 Great Western Railway Co., 2 Y. & O. G. C, Reav., 52?. (as to ttiese last two cases see ^2; infra, § 96ri). Distinguish Bray v. Briggs, 20 («) Adams v. Wetre, 1 Bro. C C, 567; Mor- W R., 962. ley V. Claverlnp, 2'J Beav , 84; per Turner, {t) Haywood v. Cope, 25 Bcav., 140. ' T/ie mere naked hardship of a contract is not in itself a valid objection to its enforcement in equity, in a case where the contract is otherwise equitably enti- tled to be specitically enforced. Morrison v. Pray, 21 Ark., 110; Coke v. Bishop, :^> Swanst., 401 ; Chubb v. Peekham. 13 N. J. Eq , 207; Corson v. Mul- vany, 49 Pa. St., 88; Low v. Trcadwcil, 12 Me., 411; Eames v. Eames, 16 Mich., 348; Lee v. Kirby. 104 Mass., 420; Addiugton v. McDonald, 63 N. C, 389; Morgan v. Scott, 26 Pa. St , 51 ; Nims v. Vaughn, 40 Mich., 336. IIAKDSHIP OF THE CONTUA(JT. 199 ties of tlie corporation itself ;"(w) and tliongh, as we have seen,(?') the decision of the case in whicli this language was used b}^ Lord Cottenham has been disapproved of in the House of Lords, this principle seems to be untouched, and to rest on solid reasoning. § 409. If the execution of the contract would render the defendant liable to a forfeiture, the court will regard this as a circumstance of hardship; so where a man was entitled to a small estate under his father's Avill, on condition that, if he sold it within twenty-live years, half the putchase money should go to a brother ; the owner agreed to sell it, but Lord Hardwicke held that the hardship was sufficient to determine the court not to interfere. (?o) So where a lessee sold certain lots of building ground, and agreed to make a road, which it was found he could not do without incurring the risk of for- feiting a piece of leasehold land through whicli it was to pass, or of being sued by the lessor, the court, granting the purchaser specific performance of the contract for sale, re- fused to enforce this stipulation, but gave him compensa- tion for the non-performance of it.(ir)' § 410. But the court will give no effect to this defense unless it clearly appear that the forfeiture will follow on the judgment for specific performance. The mere apprehension of such a result is not enough. Nor will tlie court give much, if any, consideration to this defense where the for- feiture is the result of other acts of the defendant himself. So where a lessee of a theatre, having, by his lease, po^ver to lease forty-one boxes, agreed to let a box to the plaintiff, and in defense alleged that he had already let forty-one boxes, so that to perform his contract with the plaintiff would work a forfeiture, his defense failed. (?/) (M) Per Lord Cottenliam in E.lwards v. (v) See supra, g -234. . . „ ^ _ „ „,,_ Grand Junction Railway Co . 1 My & Cr., (w) Fame y. IJiown. cltPd 2 Ves Sen , 3<»7. 674; Hawkes v. Eastern Counties Railway (x) Peacock vPenson, 11 Ueav.i.s. Co., 1 De G. M. & G., 737, 754; cl. supra, (y) Heiling v. Lumlt-y, 3 De G. & J., 4.«. § 394. ' Forfeiture.^ A contract of sale provided that if the vendee failed to make his payments at the time agreed upon, "strictly and literally, without any de- fault the contract shall become void, and the ri-lits and iiileresis thereby created cease and determine, and the property revert to, and revest iii, (he vcri- dor without any declaration of forleiture or act of re-entry, or ^vilhout any right on the part of the vendee of reclamation or compensation. Held, that ■where the notes given for the purchase money were not paid, it was competent for the vendor to declare a forfeiture whhout otfeniig to return the notes. Phelps V. Illinois Cent. 11. K. Co., 63 III, 4G8. 200 IKY OX SPECIFIC PEUFORMANCK OF CONTRACTS. J5 411. To this head of hardship we may, perhaps, best reftM- the eases wliich establish tliat, wliere the vendor is li:il)h- to certain covenants, and has not expressly stipulated that thr puichaser shall indemnify him a^^ainst them, yet the ])inrhaser, so soon as he has notice of them, whetlier by the particulars of sale(^) or subsequently to the con- tract, (^/) is l)ound to elect either to rescind the contract or to execute an indemnity to the vendor ; for otherwise the vendor would lose his land but retain his liability in respect of it. In the earlier of the cases cited, it was only decided that the pin-chaser as plaintiff could not enforce specific per- formance without entering into such indemnity ; but, in the latter, that the vendor as plaintiff might ])ut the purchaser to his election. § 412. In one case where trustees had joined their cestuis que trust in a contract for sale, and had personally agreed to exonerate the estate from the incumbrances, and it did not appear whether the purchase-money would be sufficient to discharge them, or what would be the extent of the de- ficiency, the court refused specific performance on the ground of hardship, although the i:>laintiff' had had posses- sion of the estate, and could not be dt-prived of the benefit of his contract without great inconvenience. (6) In another case a mortgagee with power of sale had obtained a fore- closure decree, and, intending to sell as absolute' owner, en- tered into a contract for sale to the i^laintiff. In the contract there was copied, by inadvertence, from conditions of sale of other parts of the estate drawn up some time Vynfore, a clause stating the vendor to be a mortgagee with power of sale ; the vendor offered to convey as owner under the fore- closure decree ; the purchaser insisted on a title under the power of sale ; but the court held that, to impose on the vendor the risk of opening the foreclosure decree l)y such a sale, was a hardshii) which it would not put on him, and accordingly dismissed the bill unless the plaintiff would nccei)t the conveyance which the defendant was ready to execute, (c) ij 4111. But wdiere a tenant for life had agreed to grant a (2) Moxh.-iy V. Imicrwick, 1 Dc G. & Sin., (b) Wedgwood v. Adams, G Beav , 600. 7( « \.c) WatBon v. Marston, 4 De U. M. JIe, G., 230. (o) I.ukey v. lMj;g8, 24 L. J. Ch , 495 iKind- erulcy, V C). IIARDSTITP OF THE CONTIIACT. 2Ul mining lease, and to a hill l)y the intended lessee he ol)jected that he was only tenant for life, and that he eonld not grant the lease in question under his power, and that lie shoidd be accountable for waste, Lord Nottingham ai)i)ears to have considered this to be no defense, and he decreed the de- fendant to execute the contract so far as he was capable of doing, (('i) § 414. In one case Lord Hardwicke, on the ground of hardship, refue-ed specific performance of a covenant to leave buildings in rej^air contained in an ecclesiastical lease, the fact of the description of the buildings being continued from lease to lease without variation showing that the build- ings in question might not have been in being at the time of the making of the lease. (^0 And where a lessee of mines covenanted that if at any time before the expiration of the lease, the lessor should give notice of his desire to take the machinery and stock abont the mines, the lessee would at the expiration of the lease deliver the articles specified in the notice to the lessor, on his paying the value, to be ascer- tained by valuation, the court held the covenant thus framed to be so injurious and oppressive to the lessee that it refused specific performance, and would not interfere to prevent a breach l)y injunction. (/) Again, where A. , in consideration of B.'s not joining in barring an entail, agreed to convey to him, his heirs or assigns, the fee of such parts of the estates, which were situate iu three counties, as he or tliny should choose, to the yearly value of £200; the inconvenience and hardship to which such an option might expose the party who had granted it was one ground on which specific per- formance was refused by the House of Lords, (z/) In another case the court refused to enforce a contract for service by which a young man placed himself almost entirely in the power of certain great traders, by whom he was employed as traveler and clerk. (A) § 415. Where a contract, if enforced, would make a man buy what he could not enjoy, the court will, on the ground of hardship, refuse to interfere, as in the case of a contract (d\ Cleaton v. Gower. Kinrh, 1C4; but see (A) Klmberley v. .Jennings. 6 SJm..:U't; this the cases stated supra. § 3S5 et se.,. case has been overriatMl but on «no her (e) Dean of Ely v Stewart, '2 Atk . 44. point, by Luniley v. W agner. 1 Oe U. M. & (/)Talbot V. Ford, 13 Sim., 173. G., C04. 07) Uamilton v. Grant, 3 Dow, 33, 47. 202 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. to sell a piece of land to which no way could be shown, the contract itself being silent as to any right of way.(/) g 4145. 'i'lie principle applies equally to contracts between companies as to those between private individuals ; and, therefore, where the result of such a contracjt was to divert from its legitimate channel a considerable i)ortion of the profits of one part of the line of one company for the benefit of the other, without securing any corresponding i)orti(m of profits of the other line, the court refused to interfere by way of specific performance, irrespective of the considera- tion whether such contracts were legally binding or not.(y) §417. The inadequacy of the consideration on the one side or the other is a form of hardship frequently alleged. This will be considered separately in the next chapter." (t) Denne v. T.ight, 26 L. J. Ch., 459; 8 De (j) Shrewsbury and Birmingham Railway G. M F TJIE CONSIDERATION. §418. We now proceed to inquire liow far the inade- quacy of the consideration for a contract may furnish a defense against its specific performance. The inadequacy may, it is evident, in contracts for sale be either on the side of the vendor or of the purchaser ; either in the purcliase money or in tlie thing sohl ; or again, in other cases, it may consist in the inequality of the contingencies to which the contract has reference. (a)' § 419, It has been justh^ remarked that there is a great difference between the defense grounded on the inadequacy of purchase money set up by the vendor, and on the excess of it set up by the purcliaser ; for whilst the court can ascertain the former by a reference to the general market value of such property, it has no satisfactory means of de- termining what represents the money value to a particuhir individual of a particular estate. (^) § 420. There is no doubt that inadequacy of considera- tion, when combined with any case of fraud, misre])resenta- tion, studied suppression of the true value of the prop- erty, (c) or with any circumstances of oppression, or even of (a) Hannilton v. Grant, 3 Dow, 33 (c) Deane t. Rastron, 1 Ans , 6-t. (b) Dart, Vend., K83. ' Bhamples of sufficient consideration.'] In Curlin v. Heudrieks, 25 Te.x., 225, it was held that it was sufficient, if some profit is to enure to the proniissor, or some detriment to the promisee. Where a person is prevented from performing an intended act (as making gifts, or arrangements hy will, or otherwise) by the promise of another, a court of equitj' will di'cree specitie performance of such promise. Alead v. Randolph, 8 Tex., 1!»1 ; Coles v. Pilkington, L. li., lit Eq., 174. A written contract was made before, and in consideration of marriage. Held, that the court would aid in enforcing it. Geuers v. Wright, 18 N. J. Eq., ;);iO. In a controvers}^ concerning a will, there was an agreement to com- promise. Held, that specific performance would be decreed, without iutjuiry into the sufficiency of the consideration. Leach v. Forbes, 11 Gray. .50G. Lautl was dedicated to a coimty on consideration that a certain town should be made the county seat. Held, that sucli contract should be spreifically enforced if the town was so made. Reese v. Lee Co., 4it Miss.. C.;}!) ; see, also, Twiss v. George, 33 Mich., 23;5; Watsou v. Mohan, 20 Ind., 223; Thomas v. Kyles, 1 Jones' Eq., 302. 204 lUY (».\ SPKOIFIC PEKFOUMANCE <»F CONTRACTS. in-noraiKva^/) i^ a most material ingredient in the ciise, as amu'tinu- the discretion of the court in grantini^- specific per- formance ; and, further, it may materially concur in consti- tuting a casp for setting aside a transaction. Thus, in Cockell V. Taylor, (r) Lord Romilly, M. R., set aside an alleged sale of land to the plaintiff, where the consideration was about ten times the value of the land— the purcliase having been made the condition of a loan v.hich the plaintiff was very anxious to negotiate in order to prosecute his claim in chan- cery to some valuable property, and he being in humble circumstances a,nd illiterate. "Coupled vrith such circum- stances," said his lordship, "the evidence of over-price is of great weight, and if the case had stood here I should have been of opinion that this transaction was one which could not stand." (/) Inadequacy of consideration may also concur with other circumstances to show tliat the trans- action was in the nature not of a contract for sale but of a gift, in respect of which, therefore, the court would not in- terfere, as it does not decree the specific performance of incomplete gifts. '(/7)'' § 4»21. The question, however, which has been principally dis(nissed, is the effect on contracts of the inadequacy of consideration taken by itself and abstracted from all other circumstances. § 43S. With regard to it as a ground for the setting aside (d) Young V. Clarke, Prec. Ch , 538; see, (e) 15 Beav., 103 also, per Kindernlfv, V. C, in Falcke v. (/) 15 T.cav.. iir). Grav, 4 Orew.,660; Lewis v. Lord Lechmere, ig) CiUUtghan v. Callagrhan, 8 CI. & tin., 10Moressure or circumvention. Lord Alvanley, M. R., refused, on a cross- bill, to set aside the contract , but he also refused specific performance of it on the ground of its being a hard bar- gain. (A:) And in an earlier case, where a purchaser had, during the South Sea mania, purchased a house under the court for £10,600, and paid a deposit of £1,000, the pur- (h) Griiath V. Spratley, 1 Cox, 383, 388-9; 2 ij) Tilly v. Peers, cited by Sir S. Ilomilly, Bro. C. C. 179; Fox v. Miickreth,2 Dick., arg., U) Ves..301. __ 683. See, too, Harrieon v. Guest, De (-i. M. (/;) Day v. Newman, 2 Co^. ... b. C , cuea & G., 4-.>4, affirmed in D. P., 8 U L. C, 481. by air S. RomiUy, arg , 10 Yes., JOO. (i) Stilwell V. Wilkins, Jac, 280. \ 1 It would seem to be equally the settled rule of this country, that inadequacy of price is to be looked upon merely as evidence of fraud ; tbat ot itselt, it affords no ground for the interference of courts of chancery, \vhicii have never yet, in Enoland or America, attempted to fix the prices at which owners may dispose of their property. But the consideration of a contract niay be so grossly disproportionate as to amount to conclusive evidence ottnuul ; ana in lliesc cases only will the agreement be set aside. Wright y. Wilson, 2 ^ org . -J-4; Green v. Thompson, 2 Ired. Ch., 3G5; Butler v. Has^cell. 4 Dessau Ool; New- man v. Meek, 1 Freem. Ch., 441; White v. Flora, 2 Overton. 42b; llardman v. Burge, 10 Yerg., 202; Knobb v. Lindsay. 5 Ham 4(,b Osgood v Frajikl n. 2 John. Ch., if Wintermute v. Snyder, 2 Green's Ch.. 489; btubbleheld v. Pat- erson, 3He;., 128; McCormick v. Malin. f. Blackf. 509; Juzan v. Toulm.n 9 Ala., 662; Delafield v. Anderson, 7 S. & M., 630; Holmes v. > resh 9 Miss 201. There is a class of cases, however, where the defendant is an heir or ex- pectant, in which inadequacy of price is alone sufticicnt to obtain relief m equity. Story's Eq. Jui-., § 336, and notes 1, 2, 3, 4. 200 FRY ON SPKOIFIO PERFORMANCE OF CONTRACTS. chaser, sii}>niittiii,u- to forfeit his deposit, was discharged by- Lord Macclestiekl on the ground of the general delusion which the nation was under at the time of the contract, and the iinauinary values then put by people on estates, and this in spite of a most able argument by Lord Nottingham, who argiied on behalf of his granddaughters the plaintiffs. (Z) i; IrJI. But ir seems now to be established by the de- cisions of Lord Eldon and Grant, M. R., that mere inade- quacy of consideration is no defense to specific performance,' (/) Savile v. Savile, 1 P. Wm8.,'745; S. C, 5 Vin. Abr., 516, pi. 25. See. also, Vaughan v. Thomas, 1 Bro. C. C, 550. > Inadequate consideration.^ Mere inadequacy of consideration is not, in itself a .sufficient reason for refusing specific performance of a contract, and furnislies no suJlicient •ause for setting it aside. Heywood v. I'ope 25 Beav., 140- Wliite V Flora, 2 Ovurton (Tenn.). 42G; Newman v. Meek, 1 Frecm. Ch. fMiss) 141- Wintermute v. Snyder, 2 Green's Cli., 489; Eyre v. Potter, 15 How 4->- Avres v. Baumgarteu, 15 III. 444; Harris v. Tyson, 24 Pa. St., 347; Kidder v ' Chamberlain, 41 Yt., 62; Judge v. Wilkins, 19 Ala., 795; Charles v. Brady 10 Fla. 133; Maddox v. Simmons, 31 Ga., 512; Holmes v. Fre.sh, 9 Mo 201- Harri.son v. Town, 17 id., 237; Sheplierd v. Bevin. 9 Gill, 32; Potter V Everett 7 Irod. Eq., 152; Mann v. Bctterly. 21 Yt.. 326; Stearnes v Beck- bam 31 Gratt. 379; Lee v. Kirby, 104 Mass., 420; Booten v Shefler, 21 Gratt., 474'Saiter V. Gordon, 2 Hill. Cli. (S. C), 121; Stailton v. Miller, 14 Hun, 383; S. C. aff'd, 58 N. Y., 192. W/u'>: iuadequncy of consideration a defense.] In a case where the inadequacy of the consideration is such as to shock the moral sense of mankind, it will constitute a defense in an action for the specific performance of a contract. Fraudulent contract should be pleaded. Osgood v. Franklm, 2 John. Ch., 1; Garnett v. Macon, 2 Brock.. 185; Fripp v. Fripp, Rice's Ch. 84; Hardiraan v Buro-e 10 Yer"- 202; Juzan v. Toulmin, 9 Ala., 662; Davidson v. Little, 23 Pa St 245; White v. Thompson, 1 Dev. & Bat. Eq., 493; Burtch v. Hoagg, Han. (ilich.), 31; Rodman v. Zilley, 1 N. J., Eq., 320; Yiele ^^ Troy R. R. Co 2 Bail)., 581; ^Yestern R. R. Co. v. Babcock, 6 Mete, 346; Hayes v Hol- lis 8 Gill 357; Hale v. Wilkinson, 21 Gratt., 75: Clement v. Reid, 9 Sm. & Marsh 535; Modiset v. Johnson, 2 Blackf., 431; Graham v. Pancost, 30 Pa. St., 89; Clitheral v. OgUvie, 1 Uessau 's Eq., 250; Bunch v. Hurst, 3 id., 273; Butler 'v. Haskell, 4 id., 651. Rule as to inadequacy of consideration.'] Where this is relied upon as ade- fense in an action for the specific performance of a contract brought against the vendor, it must be shown that it resulted from the fraud, surprise, misrep- resentation or concealment on the part of the purchaser, or that the purchaser took unconscionable advantage of the vendor's weakness or ignorance. This is the only safe rule. Lowther v. Lowther, 13 Yes ,113; Wall v. Stubbs, 1 Mad. 81; Cadman v. Harner, 18 Yes., 10; "\Yestern v. Rus.sell, 3 Y. & B , 187; Luke'y v O'Donnel, 2 Sch c^ Lcf., 471 ; Robinson v. Robinson, 4 Md. Ch., 182; Powers v. Hale, 25 N. H., 145; Eastman v. Plummer, id., 478; Lee v. Kirby, 104 Mass., 420; Davis v. Parker, 14 Allen, 94; Todd v. Grove, 33 Md., 188. Examples inhere the consideration was held to he .^sufficient.] A party agreed to pay twice the value of real property, but the transaction was free from fraud and he examined the property himself, although most of the land was covered with snow. Held, that specific performance would be decreed White v. McGannon, 29 Gratt., 511. Where the vender sold as trustee— held, that the inadequacy as to price might be set up as a defense; but not where the same was fair although afterwards there was an opportunity to sell at a much greater sum. Goodwin v. Fielding, 4 De G. M. & G., 90. A parent made a contract with bis son, to give him all his property, in consideration that the son should ' INADEQUACY OF THE CONSIDERATION. 207 unless it amount to an evidence of fraud, and so would fur- nish a ground even for cancelling the contract. (?72,) " Unless the inadequacy of price.'' said Lord Eldon in one case, "is siich as shocks the conscience and amounts in itself to con- clusive and decisive evidence of fraud in the transaction, it is not itself a sufficient ground for refusing a specific per- formance. "(?ij And in an earlier case, where, a sale by auction having taken place for about half the value of the estate, Lord Rosslyn had refused specific performance, Lord Eldon, on a rehearing, although he ultimately decided the case on a question of evidence, doubted the principle of the decree, and expressed an opinion that a sale by auction could not be set aside for mere inadequacy of 'price. (o) His lordship also applied the same principle in the instance of an annuity transaction. (jp) The doctrine Avas adopted by Grant, M. R., and Lord Erskine, and is noAv, it is conceived, the well-established rule of the court. (^) An illustration of it may be found in the case of Abbott v. Sworder,(r) where an estate was bought for £5,000, the value of which svas considered by Knight Bruce, V. C, to be £3,500; but this (m) Per Lord Eldon in Stilwell v. Wilklns, Lord Erskine in Lowther v. Lowther, 13 id., Jac.,28-2; cf Harrison v. Ciuest, 6 De G. M. 103; Collier v. Brown, 1 Cox, 428; Rower v. & G., 424, affirmed in D P , S H. L. C 481. Cooper. 2 Ha., 408; Borell v. Dann, 2 id ,451. (n) In Coles V. Trecothick, 9 Ves., 246. See, also, Griffith v. Spratley,2 Bro C. C, (o) White V. Damon, 7 Ves, 30 179; 1 Cox, 383; .Stephens v. Hothani, 1 K. & (p) Underbill v. Horwood. 10 Ves., 209. J., 571 ; Holmes v. Howes, 20 W. R., 310. (q) Burrowes v. Lock, 10 Ves., 470; per (?) 4 De G. & Sni.,44S. support bis parents during their live.s. Held, sufficient. Lester v. Lester, 28 Gratt., 737; Lorentz v. Lorentz, 14 W. Ya., 761. Public sale; bid much under value.'] Where a sale at public auction has been apparently fairly conducted, specific performance will be decreed, unless there is strong proof 'of fraud or imposition. Bun-ows v. Lock, 10 Ves., 470; Low- ther v. Lowther, 13 id., 103; Collier v. Brown, 1 Cox, 42G; Bower v Cooper. 2 Hare, 408; Borel v. Dann, 2 id., 459; Gri tilth v. Sprightly, 2 Bro. C. C, 179; S. C, 1 Cox, 383; Stephens v. Hotham, 1 K. & .J., 571; Kussell v. Stimseu, 3 Hayw. (Tenn.), 1; Newman v. Meek, 1 Freem. Ch (:Miss.), 141; Delafield v. Anderson, 7 Smed. &: M., 6:J0; Ready v. Noakes, 29 N. .1. I-:q., 497; Erwiu v. Parham, 12 How., 197; Byers v. Surget, 19 How., 309. Inadequacy of price, coupled with other circumstances, may be a controling element in determining whether a public sale was fair or not. Benton v. Shreeve, 4 Ind., 66. Time of the inadequacy of the consideration.] The inadequacy of considera- tion of a contract sought to be specifically enforced, must be determined with reference to the time the agreement was made. The date of the contract should be looked to, and if, at that time, the consideration was adequate, it is enough. Hale V. Wilkinson, 21 Gratt., 75; Mortimer v. Capper. 1 Bro. C. C, 156; Woodcock V. Bennett, 1 Cow., 711. See, however, where payment v\a.s to be made in confederate money. Love v. Cobb, 63 N. C, 324; Hud.>1'KCIFIC PEKFOKMANCE OF CONTIiACTS. ina(l(Hiu:icy of considenition was held both by liim and by Lord St. J^ouai'ds to be no bar to speciiic performance, whifli was accordingly decreed at the suit of the vendor.' ij •1*J5. One case before Kindersley, V. C, must be re- ferred to, as it appears to break, the recent current of authori- ties. Ills lionor there considered the older cases on the subject, and came to the conclusion that mere inadequacy of price, without the least impropriety of conduct on the part of the plaintiff, was a sufficient defense ; and his honor did not advert to the proposition that such inadequacy must amount to evidence of fraud, but treated it as one form of hai-dship which jDrevented the action of the court.(5) § 4"J6. The general rule tliat the hardship of a contract (s) Fatcke v. Gray, 4 iJrew., '151. ' In Westervelt v. Matheson, 1 Hofl". Ch., 87, the court refused to set aside a purchase of land made for $2,9(i0, its highest value being estimated at $3,500, upon tlie ground tliat the inadequacy was not so gross as to indicate a fraud. Seymour v. Delance}', o Cow., 445, was a case on appeal from the decision of Chancellor Kent. The learned senator who delivered the prevailing opinion admitted that, when the inadequacy of price was strong evidence of fraud, the contract would not be carrieil into execution. "It is not to be denied," he observed, "that it is the settled doctrine of the court of chancery, that it will not carry into effect, specifically, a contract, when the inadequacy of the price amounts to conclusive evidence of fraud." But he could not admit that inade- quacy of price, not amounting to fraud, was sufficient to stay the application of a court of equity to enforce the specific performance of a private contract to sell. It should be remarked that, although the decision was reversed, it was upon a different point, a question of fact; and that the views of Chancellor Kent were concurrent with the opinion of the court of errors. "Excess of ])rice over value, though considerable," it is said in C'athcart v. Robinson, 5 Pet., 208, "if the contract be free from imposition, is not in itself sufficient to prevent a decree for specific performance." And no doctrine of equity is bet- ter settled than this, whether in regard to vendor or vendee. Garnett v. Macon, 2 Brock., 1H5; Rodman v. Zilly, Saxtou, 820; White v Thompson, 1 Dev. &, Bat. Ch., 498: Tripp v. Tripp, Rice's Ch., 84; Bean v. Valde, 2 Miss., 126. In the recent case of Viele v. Troy and Boston R R. Co., 21 Barb. Sup. Ct. Rep., 581, it was decided that, where a bill for the specific performance of a contract was brought before a court of equity, the court would make no inquiry into the adequacy of the consideration, unless the inadequacy be so great as to raise a conclusive presumption of fraud. This is undoubtedly the law of the State of New York at the present time. There is, perhaps, a distinction to be taken between cases of private sales and sales at auction. In reference to the last, it has been several times decided that inadequacy of price did not, in any case, amount to conclusive evidence of fraud. White v. Damon, 7 Ves., 80. In the ca.se of Borell v Dann, the vice-chancellor said : Fraud, in the purcha.se, is of the es.seucc of the objection to the contract, on the ground of inadequacy. The only exception to the rule for decreeing the specific performance of an un- executed contract, on the ground of inadequacy of consideration, is that it is so gross that, of itself, it proves fraud or imposition on the part of the pur- chaser. The case, however, must be strong, indeed, in which a court of justice shall say that a purchaser, at a public auction, between whom and the vendors tliere has been no previous communication affecting. the fairness of the sale, is chargeable with fraud or imposition, only because his bidding did not greatly exceed the amount of the vendors' bidding. See Willard's Eq. Jur., § 1, ch. 4, 425. INADEQUACY OF THE CONSIDERATION. 209 is, independently of fraud, a ground for refusing its specific performance, would seem to carry with it the particular rule that inadequacy of consideration, when amounting to hardship, but not to fraud, should yet be a defense. But there appears (notwithstanding an expression of opinion from the bench to the contrary[^]) great good sense in re- fusing to adopt such a rule. To make a contract for an insufficient consideration incapable of enforcement by the l')urchaser, would be practically to prevent a man from sell- ing his property at less than its value — however impossible it might be to sell it at its value, however desirous he might be to sell it for the price actually obtained, however desira- ble it might be for his interest that he should do so, and however unwilling or unable the purchaser might be to pur- chase at its full value. The rule would, when it did not stop the sale, yet further reduce the amount receivable by the vendor, because the purchaser would, in effect, indem- nify himself for the risk he ran by offering less purchase money than he otherwise would have done. The freedom of contract, including in it the freedom to enter into en- forceable contracts, should never be infiinged without suffi- cient cause. But furthermore, if inadequacy of considera- tion short of fraud were a bar to specific performance, the question would arise as to the amount of inadequacy which should so operate — a question not easy to answer. § 4S7. In the later Roman law, these difficulties in the way of relieving against inadequacy of consideration in cer- tain cases were overcome, at least as to immoveable prop- erty. By a constitution of the Emperors Diocletian and Maximian, the right of recission for inadequacy of consid- eration was first introduced. (w) Their constitution was adopted by Justinian. It fixed the arbitary standard of half the real price as that which would give the sufferer a right to the interference of the law ; when the price paid did not amount to half the real value of the thing sold, the vendor might put the purchaser to his election, either to take back the purchase money and restore the thing sold, or to keep the thing, and make up the deficiency in the purchase money. (zO The old French law adopted the same (0 Xott V. Hill, 2 Gas. in Ch., 120. (i") Cod. lib. Iv, tit. 44. 2. (w) Troplong, De la Vente, § 730. 14 210 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. principle, except in the case of sales between co-heirs and co-proprietors, where a defect of one-qnarter of the price liad the same effect as a like defect of one-half in other cases. (?r) The present law of France is embodied in article 1674 of the Code Civil, which is remarkable for the strin- gency of its i)rovisions and for the discnssion in the Coun- seil d'Etat of which it was the result, a. discussion in which the first consul took a prominent part.(.'c) It enables a ven- dor of an immoveable to require recission, if he suffers in- jury to the extent of more than seven- twelfths of the price, though he may by the contract have expressly renounced such right, and have declared that the price given is the full value. § 428. The question of the inadequacy of the considera- tion must, of course, be decided at the time of the contract, and not by the light of subsequent events.' It is true that, in a case(?/) already stated, the circumstance of the con- tract having been made during the excitement caused by the South Sea scheme was allowed as a reason why the court relieved a j)urchaser from the performance of his con- tract ; but the case is one which cannot now be considered as law, and the principle involved seems unjust. It is now, therefore, well established that the time of the contract is the time for judging of its consideration : thus, to give one exami^le, where an annuity for life forms j^art of the con- sideration, and the life drops before any payment is made, this does not render the consideration necessarily inade- quate, (z) § 429. Where the contract refers the price to a valuer for him to ascertain between the parties, this fact does not of itself preclude the court from inquiring into the adequacy of the consideration, (a) and this inadequacy of considera- tion would, of course, be strengthened as a defense if any circumstances arose which threw a doubt on the accuracy with which the valuation was made.(&) § 430. The effect of an undervaluing by the valuers is a (ic) Pothler, Tr. des Obllg., Part I, ch. 1, port in Gilbert, the case was decided or § 1, art. 3, § i. another point. (X) Troplong, De la Vente, § 787 et seq. («) Mortimer v. Capper, 1 Bro. C. C, 156. (y) Savile v. Savile, supra, § 423. See Klen (a) Parken v. Whitby, T. & K., 366. V. stukeley, 1 Bro. P. C, 191, where the same (b) Emery v. Wase, 8 Ves., 505. ground was urged; but according to the re- ' Batty V. Lloyd, 1 Vem., 141. IXADEQUACY OF THE COXSIDEP.ATION. 211 question wliicli lias, however, been but little discussed in our courts : it lias been debated with the usual diversity of opinion by the writers on civil law.(c) It is conceived that, if the undervalue were such as to convince the court that the valuers had acted under fraud or mistake, the contract would be incapable of enforcement in equity : otherwise, if the undervalue did not so convince the court. § 431. The question of inadequacy of consideration in a sale of reversionary interests, Avhether arising in a suit to set aside the sale or in a suit for the performance of the con- tract, was formerly governed by special considerations. The law upon this question has, to a certain extent, been altered by statute. It is necessary, therefore, to consider liow^ the law stood before the legislative alteration, and Avhat is the extent of that alteration. § 432. Before the statute hereafter to be referred to, the defense of inadequacy of consideration in respect of con- tracts for the sale of reversions had two peculiarities which distinguished it from the like defense in the case of ordinary contracts. It was clear (1) that the proof of inadequacy was a sufficient defense, though there were no accompanying cir- cumstances of fraud or oppression, and though the inade- quacy did not amount to evidence of fraud \{d) (2) that the burthen of proof lay on the plaintiff purchaser : it rested on him to show that the price was adequate, not on the de- fendant vendor to show that it was inadequate, (e) § 433. The principle on which the court acted in these cases was that a man possessed only of a future interest sells at a disadvantage ; it, therefore, did not apply where the tenant for life and the reversioner concurred, as they together "form a vendor with a present interest ;''(/) and so where a vendor had a rent-charge of £500 in possession and an estate in reversion, and he sold a perpetual rent- charge of £500, he was not considered as within the prin- ciple now under consideration, he having it in his power to secure a perpetual rent-charge of that amount in posses- sion. (<7) § 434. The mere fact, however, that some interest in pos- i,\ Trn«imicr TIP la Vpnte S 15S (/) Woocl V. Abrcy, 3 "Mad., 417. S Pla?fo;f V playfordf 4 H^; 54G. (P) Wardle v. Carter, 7 Sim.. 490. (e) Kendall v. Beckett, 2 R. & My., S8 ; Hincksman v. Smith, 3 Russ., 433. 212 FKY OX SPECIFIC PERFOEMANCE OF CONTRACTS. session was sold together Avitli the reversion, did not, at least where the foniier was not considerable, take the case out of the rule \{h) as, for instance, where an annuity in possession was sold together with the reversion, the estimated value of the annuity being only about one-sixth of that of the reversion. (/) § i:i5. Again, the principle did not apply where the re- versionary interest was sold by auction \{j) and this for two reasons. First, "there being no treaty between vendor and purchaser, there can be no opportunity for fraud or im- position on the part of the purchaser. The vendor is, in no sense, in the power of the purchaser. "(A*) Secondly, it being clearly established that the market price of the reversionary interest, and not the estimate of actuaries, was the criterion by which the court decided the question of undervalue, (Z) and a sale by auction being a mode of ascertaining that market price, it followed that the consideration for the transaction and the value in the eye of the court must in such cases be one and the same, and that, in the absence of fraud, no question of undervalue could arise. § 436. Such was shortly the state of the law before the statute 31 Yict., ch. 4. By that statute it was enacted that no purchase made bona fide and without fraud or unfair dealing of any reversionary interest in real or personal estate, should thereafter be opened or set aside merely on the ground of nndervalue. § 437. As regards actions for the rescission of contracts for the sale of reversions, the operation of this act is clear. It makes mere inadequacy no sufficient gi'ound for relief ; but it leaves entirely unailected the jurisdiction which re- lieves against the fraud which infects catching bargains with heirs, reversioners, or expectants in the life of the father. The doctrines of the court which throw protection round unwary young men in the hands of unscrupulous persons ready to take advantage of their necessities are entirely unchanged. (m) (h) Per Lord Eldon in Davis v. Duke of 460; Edwards v. Burt, 2 De G. M. & G.. 55. Marlborough, 2 Sw., 154. Consider Perfect v. Lane, 30 Beav.,197; 3 De (i) Earl of Portmore v. Taylor, 4 Sim., 182. G. F. & J.. 369; Lord v. Jeffkins, 35 Beav., 7. O') Shelly V. Nash, 3 Mad., 232. (w) Tyler v. Yates, L. R. 11 Eq., 265; C Ch., (k) Per Leach, V. C, id., 236. 664; Earl of Aylesford v. Morris, Id. 8 Ch., (I) Wardlev. Carter, 7 Sim., 400; per Wig- 484; Beynon v. Cook, 10 Ch., 389; O'Rorke ram.V. C, in Borell v. Dann, 2 Ha., 4.52; v. Bolingbroke,2 App. C.,S14; Nevill v. Snel- Earlof Aldborough V. Trye,7Cl. &Fin.,430, ling, 15Ch. D.,679. INADEQUACY OF THE CONSIDERATION. 213 § 438. But tlie act is silent as regards the specific i^er- formance of contracts relating to reversions. Does it, there- fore, leave the law just as it was ? or does it for all purposes place sales of reversions on the same footing- as other sales so far as regards the question of inadequacy of considera- tion? No decision has, it is believed, l)een given upon these questions : but it is submitted that the true conclu- sion is, that every contract for the sale of a reversion which cannot be relieved against ought prima facie to be per- formed ; that the object of the act was to place bona fide and honest sales of reversions on the same footing as other sales : and that henceforth in specific performance actions there will rest on the defendant the burthen of proving in- adequacy of consideration, and such inadequacy as shocks the conscience of the court and constitutes evidence of fraud, or as is accom]5anied by other circumstances of op- pression or unfairness. § 439. It only remains to add as affording some support to this conclusion that the rule throwing the burthen of proof of adequacy on the purchaser was adopted in specific performance suits in obedience to decisions to that effect in suits to set aside the transaction ; and not on any inde- pendent ground affecting such suits in particular. (o) (o) See Kendall V.Beckett, 2 R. & My., 884; the cases there cited and relied upon in Hinckeman v. Smith, 3 Ru8s.,433; and notice judgment. 214 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. CHAPTER Aail. OF AVANT OF MUTUALITY IN THE CONTRACT. § 440. A contract to be specifically enforced by the court must be mutual — that is to say, such that it might, at the time it was entered into, have been enforced by either of the parties against the other of them.(«)' Whenever, there- fore, whether from personal incai)acity to contract, or the nature of the contract, or any other cause, the contract is incai)able of being enforced against one party, that party is equallj' incapable of enforcing it against the other, though its execution in the latter way might in itself be free from the difficulty attending its execution in the former.'' (a) In Williams v. Williams, L. R. 2 Oh., verbal family arrangement. ConsiderTurner 294, 304, there was lield to be mutuality in a v. May, 32 L. T. (N. S.), 56. ^ Mutualitii as to obligation and remedy. ] A contract whicli is sought to be specificallj' enforced must be mutual, both as to the remedy and the obligation. Boucher V. Yanbuskirk, 2 A. K. Marsh., 345; Hutchinson v. McNutt, 1 Ohio, 14: Ohio v. Baum, 6 id., 383; Cabeen v. Gordon, 1 Hill Ch. (S. C), 51; Mc- Murtree v. Bennett, Harr. Ch., 124; Hawley v. Sheldon, id., 430; Benedict v. Lvnch, 1 John.'s Ch., 370; German v. Machin, 6 Paige Ch,, 288; Beard v. Lin- thicum, 1 Md. Ch., 345; Bodine v. Gladdins:, 21 Pa. St., 50; Jones v. Noble, 3 Bush. (Ky.), 694; Rider v. Gray, 10 Md.,^282; Reese v. Reese, 41 id., 554; O'Brien V. Pentz, 48 id., 562; Ewins v. Gordon, 49 N. H., 444; Richmond v. Dubuque R. R. Co., 33 Iowa, 422; Taw v. Scott, 4Breu 's (Pa.), 49; Cooper v. Pena, 21 Cal., 403; Duvall v. Myers, 2 Md. Ch , 401; IMeason v. Kane, 63 Pa. St., 335; Luse v. Deitz, 46 Iowa, 205; Maynard v. Brown, 41 Mich., 298; Smith V. Smith, 63 Ga., 184; Bronson v. Cohill, 4 ]McLean, 19; Snyder v. Neefus, 53 Barb., 63; Marble Co. v. Ripley, 10 Wall., 339; Mastin v. HaWey, 61 Mo., 196; Vassault v. Edwards, 43 Cal., 458. Option.l An optional contract to sell property, or renew a lease, without any covenant or obligation to purchase or accept, and without any remedy that is mutual, will be enforced by a court of equity, when it has been made upon proper consideration, or forms part of a contract between the parties, that may he the true consideration for it. Classon v. Bailey, 14 Johns., 484; In re Hun- ter, 1 Ed. Ch , 1; Woodward v. AspeuAvall, 4 Sandf., 272; Hawralty v. War- ren, 18 N. J. Eq., 124; Vandoren v. Robinson, 16 id., 256; Green v. Richards, 23 id., 32; Schroeder v. Gemeinder, 10 Nev., 355; Cor.son v. Mulvany, 49 Pa. St., 88; Boston, etc., R. R. Co. v. Bartlett, 3 Cush., 224; D'Arras v. Keyser, 26 Pa. St., 249. Continuing offer to 8ell.'\ An agreement to sell, provided another will pur- cha.se, is in the nature of a continuing offer, and when accepted completes the contract. De Rutte v. Muldrew, 16 Cal., 505; Laffan v. Nagle, 9 id., 662; Hall V. Canter, 40 id., 65; Willard v. Taylor, 8 Wall., 557; Napier v. Darling- ton, 70 Pa. St., 64; Manlin v. Perrj-, 35 Md., 353. " No rule in equity is more thoroughly settled than this. Benedict v. Lynch, 1 John. Ch., 370; Bromley v. JeflEers, 2 Vern., 415; German v. Machin, 6 WANT or MUTUALITY IN THE CONTRACT. 215 § 441. Thus a tenant in tail cannot enforce a contract entered into by a tenant for life, because the tenant in tail could not be sued on it :(6) an infant cannot sue, because he could not be sued, for a specific performance :{c) a pur- chaser from a person who at the time of the sale had no estate in the proj^erty sold, may defend himself on the score of the vendor's original incapacity to perform his part:(<^) a father cannot enforce a contract on the part of his mother- in-law to pay him an allowance in consideration of his giv- ing up to her the custody of his infant children during a specified part of every year :(e) and where A. agreed with B. not to join in barring an entail, and B. agreed to convey to A. certain parts of the estate on his entering into pos- session, and it was held, on the authority of Collins v. Plummer,(/) that such a contract could not be specifically enforced against A., a specific performance of B.'s part of the contract was refused at the suit of A.'s representa- tives. (^) On the same principle it would seem that a con- tract entered into by several devisees in trust for sale, of (b) Armiger v. Clarke, riumb.,lU; Rick- party of full age. The infant cannot recover ett V. Bell, 1 De G. & Sm., 335. a deposit paid on the contract, except on the (c) Flight V. Bolland, 4 Russ., 298. The ground of fraud. Wilson v. Kearse, Peake, case of Clayton v. Ashdown, 9 Vln. Abr , 393, Add. Cas., 196. may perhaps be explained on the ground of (rf) Hogsart v. Scott, 1 R. & My., 293. Cf. a ratilication by the infant after attaining bis Forrer v. Nash, 35 Beav., 107. majority, or asbelng au application in equity («) Kennedy v. May, 11 W. R., 358. of the legal principle that the contract, (/) 1 P. Wms., 104. though voidable by the infant, binds the (g) Hamilton v. Grant, 3 Dow, 33. Paige, 288; Woodward v. Harris, 2 Barb. S. C. R., 439; Phillips v. Berger, id., 611; confirmed on appeal, 8 id., 527; see, also, Rogers v. Saunders, 4 Me. R., 92; Tyson v. Watts, 1 Maryl. Cli. Decis., 18; Beard v. Liutbicum, id., 345; M'Miirtrie v. Bennet, Hamng. Cli., 124; Hawley v. Sheldon, id., 420; Cabeen V. Gordon, 1 Hill. Ch., 51. In Bronson v. Cahill, 4 McLean, 19, a bill was brought in equity, b}^ tlie vendors of certain laud, to enforce specific execution of the contract of sale. It appeared, however, that a part only of the vendors had agreed to make a good and sufficient title to the land. Held, that there was a want of mutuality in the contract, and that specific execution could not be enforced. The same question arose in Tyson v. Watts, 1 3Iaryl. Ch. Decis. 13. There, the manifest object of the jiarty resisting a decree for the specific performance of a contract, and one which he supposed he had secured bj- the contract, was to have the minerals on his farm worked as well as explored; by the contract he gave A. full power to make explorations and work the mines; but the only engagement on the part of A. was limited to explorations, and he W'as not bound to work the mines. Upon this state of the case the court de- cided the contract to be deficient in reciprocity of obligation, and refused its specific performance. A party not bound by the agreement itself, has no right to call upon a court of equity *to enforce specific performance against the other contracting party, by expressing his willingness, in his bill, to perform his part of the engagement. His right to the aid of the court does not depend upon his subsequent offer to perform the contract on his part, but upon its original obligatory character. Duvall v. flyers, 2 3Id. Ch. Decis., 401; see, also, the case of Bodine v. Gladding, 21 Penu. (9 Harris), 50. 216 FIIY ON SPECIFIC PERFOEMANCE OF CONTRACTS. whom one Avas a married woman, would be unenforceable by either side.(7i) So where the relief sought was analogous to the speciiic i^erformance of a grant of an office, the court held that, the duties and services incident to the office being personal and confidential in their character, specific per- formance could not have been decreed against the plaintiff at the suit of the defendant ; and consequently, that the plaintiff could not sue the defendant, though there were no personal duties to be performed by the defendant. (i) Again, where the plaintiffs had agreed to perform certain services in working a railway, \vhich were of such a confi- dential nature that the court could not have enforced them If the defendants had sued the plaintiffs ; and the de- fendants were to pay money, and do nothing else ; the court refused specific performance, on the ground, amongst others, of want of mutuality. (/) The like objection pre- vailed where the plaintiff sued on a contract under which he was to construct a railway, and offered to make the railway and asked for payment. (A-) § 442. A doubt was at one time entertained whether there existed the proper mutuality between a 23erson having entered into a contract to take a lease from a tenant for life with a leasing power and the remainderman :{l) but that doubt is now resolved, and it seems clear that such a con- tract may be enforced by either of these parties, (m) § 443. The mutuality of a contract is, as we have seen, to be judged of at the time it is entered into ; so that it is no objection to the plaintiff's right, that the defendant may by delay, or other conduct on his part subsequent to the con- tract, have lost his right against the plaintiff. (;?)' And ac- (h) That the purchaser could not enforce and wife Is not bad for want of mutuality, such a contract has been decided. Avery v. and may be enforced by them. Fenelly v. Griffin, L. R. 6 Eq , 606. Anderson, 1 Ir. Ch. R., 7()6. The grounds of (t) Pickering v. Bishop of Ely, 2 Y. & C. C. this decision do not appear very conclusive. C-. 249. Cf. Avery v. Griffin, h. H. 6 Eq., 606. ij) Johnson v. Shrewsbury and Blrming- (k) Peto v. Brighton, Uckfield, and Tun- ham Railway Co., 3 De G. M. & G., 914; bridge Wells Railway Co., 1 H. & M., 468. Stocker v. Wedderburn,3 K. & J ,393; Ord (0 Per De Grey, C. J., in Campbell v. Leach, V. Johnston, 1 Jur. (N. S.), 106:!; 4 W. R., 37 Ambl., 749. gtuart, v. C). .-^ee, also, Hill v. Gomnie, 1 (m) Shannon v. Bradstreet, 1 Sch. & Lef., Beav , 540 ; Bromley v. JeflVrieK. 2 Vern , 41.5, 52, particularly 04. See infra, § 506. sed qu. it has been decided in Ireland that (n) South Eastern Railway Co. v. Knott, 10 a contract by a i)urchaser with a husband Ha , 122. ' And the rule which applies to cases in which there is not such mutuality of remedy at the time the contract is made, is not applicable to cases in which the mutuality of remedy is taken away by a subsequent contingent event. Moore V. Fitz Randolph, 6 Leigh, 175. See Walton v. Coulson, 1 McLean, 120, which js a case agreemg precisely with the Southeastern Railway Co. v. I^nott, cited in the text. WANT OF MUTUALITY IN THE CONTRArT, 217 cordingly it lias been held to be no defense on the part of a railway company for them to show that they had after the contract suffered the time during which, by their statutory powers, they could purchase the lands to expire :{o) if such a defense were sustained, it would be to allow defendants to take advantage of their own neglect. From the time of tlie execution of the contract being the time to judge of its mu- tuality it further follows, that the subsequent performance by one party to terms which could not have been enforced by the other will not prevent the objection which woukl. arise from the presence of such terms, (i?) § 444. The exceptions or apparent exceptions and limita- tions to the doctrine of mutuality may now be considered. § 445. (1) The contract may be of such a nature as to give to the one party a right to the performance wliich it does not give to the other— as for instance, where a lessor covenants to renew upon the request of his lessee :((^) or where the contract is in the nature of an undertaking, (r) But these are merely cases of conditional contracts : and when the condition has been performed, as for instance, in the case above stated, by a request to renew, the contract becomes absolute and mutual and capable of enforcement alike by either party. (5) § 446, In cases arising out of such contracts, the court will exercise its discretion as to specific performance with great care, and, it seems, view even somewhat narrowly the conduct of the party claiming the benefit of his unilateral right to make the contract absolute. (^) § 447. (2) Mutuality may be waived by the subsequent conduct of the person against whom the contract could not originally have been enforced: thus, where a purchaser contracts for an estate with a person having no title, or not such as he affects to sell, and the contract, therefore, is not mutual, for want of interest in the vendor— yet, if the pur- ee) Hawkes v. Eastern Counties Railway ip) Hope v. Hope, S Do ^- M- & «.. 731,746, Co ,1 De G. M. & G., 737, 75.'); S. C, 5 H. L. overruling the obs.rvnlions of Lord Uonillly, C., 331,365. The observations 01' Lord Gran- M. K., in S. C, 'Ji Beav . 3(.4 worth (then L, J.) in Stuart v. London and Ui) Chesterman v Mann. '.I Ha , .H, p. C*). Btruction. (,0 Chesterman v. Mann, 9 Ua, 2*. 0. 218 Fliy ox SPECIFIC PERFOmiANCP: OF CONTRACTS. chaser investigate the title and make requisitions or concur in proceedings for the purpose of remedying the defect, -he is afterwards precluded from setting up the original want of mutuality in the contract.(?/0 g 448. And so where, from the relation of the parties to one another, the contract is originally binding on the one and not on the other, the latter may by action waive that want of mutuality, and enforce the speciiic performance of the contract ; as in the case of an action by a cestui que trust against his trustee for the performance of a contract for sale, such a contract being originally binding on the trustee, and not on the beneficiary. («) The case of a con- tract for sale by a voluntary settler is similar, for though he is incapable of enforcing the contract against an unwil- ling purchaser, (w) the purchaser may waive the want of mutuality and enforce it against him. (re) § 449. (3) Another apparent exception to the principle in question is afforded by the doctrine which was estab- lished very soon after the passing of the Statute of Frauds, that in case of contracts which by that statute are required to be in writing, a party who has not signed the contract may enforce it against one who has. (2/)' § 450. It has been alleged in support of this doctrine, in the first place, that the statute only requires the contract to be signed by the iDarty to be charged therewith or his agent, and is silent as to the signature of the other party. (^) But this reasoning seems inconclusive ; because the doctrine of mutuality is independent of the statute, and where one party has signed and the other has not, the rights of the (u) Salisbury v. Hatcher, 2 Y. & C. C. C, (j/) Hatton v. Grey, 5 Vin. Abr., 525, pi. 4, 54; Hoegart v. Scott, 1 R & Mv.,293. in 36 Car. ii; S. C, 2 Cas. in Ch., 164; Buck- (f) Ex parte Lacey, 6 Ves.,625. house v. Crosby, 2 Kq Ca. Ab.,32, pl.44; and iw) Smith V. Garland, 2 Mer., 123; Johnson see, as to the interest of the party who has V. Lepard, T. & R , 281; Clarke v. Willott, L. not signed, Morgan v. Holl'ord, 1 Sm. & Giflf., R. 7 Ex., 313. In Peter v. Nicolls, 1>. R. 11 101. See, too, infra, § 497. Eq., 391, Stuart, V. C. . held that the rule (z) Coleman v. Upcot, 5 Vin. Abr , 527, pi. establi-jhed by Smith V. Garland did not ap- 17; Child v Comber. 3 Sw., 423 n.; Back- ply to a purchaser who admitted that he was house v. Mohun, id., 434 n.; Seton v. Slade, a willing purchaser, but objected to the title. 7 Ves , 265; Lord Ormond v. Anderson, 2 See supra, § 3>7, and note there. Ball & B., 363. (x\ Buckle V. Mitchell, IS Ves., ion ; and see Rosher v. Williams, L. R. 20 Lq., 210. ' In support of this exception, see Seton v. Slade, 7 Ves., 275 ; Fowle v. Free- man, 9 id., 357; Clason v. Bailey, 14 John. Rep., 184; McCrea v. Purdy, 16 "Wend., 40f3; \Yoodward v. Aspinwall, 3 Sandf. S. C. R , 273; Sutherland v. Briggs, 1 Hare, 34. But see the comments of Lord Redesdale in Lawrence v. BMtler, 1 Sch. & Lef., 13; and of Verplanck, senator, in Davids v. Shields, 26 Wend., 36-2. WANT OF MUTUALITY IN THE CONTRACT. 219 parties, wliicli before the statute were mutual, have by force of it ceased to be such, (a) A more satisfactory reason is that, by instituting proceedings, the phiintiff has waived the original want of mutuality, and rendered the remedy mutual. (Z') §451. On the same ground, a contract contained in a deed-poll was enforced, notwithstanding an objection taken from the unilateral nature of the instrument. (c) § 452. (4) Where the vendor has not substantially tlie whole interest which he contracted to sell, he cannot enforce the contract against the purchaser, and yet the purchaser can generally enforce it against him by compelling him to convey what he can, with an abatement of the purchase- money as compensation for the deficiency. This subject will be found discussed in a subsequent chapter. (dZ) § 453. In two Irish cases decided by Lord Redesdale, in each of which the party seeking to enforce the contract was at the time w^hen he entered into it aware of the defect in the other party's title, (e) the principle stated in the last preceding section was held not to apply. § 454. In one of these cases, a tenant for life entered into a contract with the plaintiff to grant a lease, which he could not do without the consent of trustees :(/)' the consent was refused, the contract being in fact intended to give a fine to the tenant for life in fraud of the power : the intended lessee filed his bill against the tenant for life, and contended that he w^as at least entitled to such a lease as the tenant for life could grant out of his estate. But Lord Redesdale dis- missed the bill for want of mutuality. "No man," he said, "signs an agreement but under a supposition that the other party is bound as w^ell as himself : and, therefore, if the other party is not bound, he signs it under a mistake ; ''(//) (a) SeeperLeach.V.C.inBoysv.Ayerst, (c) Otway v. Braithwaitc. Finch, 405. So, 6 Mad 3'3 also, of a bona, Butler v. Powia, 1 Coll., lo6. (6) Clifld V. Comber, 3 Sw., 423 n. ; Seton v. () But in the latter case the court is, it seems, anxious to find some means of executing the contract so far as it may be done without violating the law,(c)' (a) See infra, § 464. nington v. Briecoe, S Mod., 51; and intra, (b) Atkinson V. Ritchie, 10 East, 530, 534; § 894. Barker v. Hodgson, 3 M. & S., 267; Esposito (c) Betteswortli v. Dean of St. Paul's, Sel. v. Bowden, 4 El. & Bl., 963. See, also. Win- C. in Ch., 66; Infra, § 986. ' Bide as laid doirn by WalicortJi, Ch. (in Pratt v. Adams, 7 Paige's Cb., 615.)] " It is a well-settled principle of the common law, that no court of justice will lend its aid to enforce the performance of any contract or agreement which was intended by the parties thereto to contravene to provisions of a positive law, or the performance of a contract which is contrary to public policy." Consult, under this head, Knowles v. Harylton, 11 Yes., 1G8; Ewing v. Oshaldistone, 2 Myl. & Cr., 53; De Beguis v. Arm'istead, 10 Bing., 107; Gas-light Co. v. Turner, 7 Scott, 779; Wetheuil v. Jones, 3 B. & A., 221 ; Seidenbender v. Charles, 4 Serg. &Rawle, 159; Hall v. Mullin, 5 Har. & Johns., 193; Scott v. Duflfy, 14 Pa. St., 18; Boutwell v. Foster, 24 Yt., 485; Brian v. Williamson, 7 How. (Miss.), 14; Buxton V. Hamblin, 32 Me , 448. Even where the parties consent, such a con- tract cannot be decreed. Fowler v. Scully, 72 Pa. St., 456. It cannot be en- forced, even if after the making of the contract the statute has been repealed. In such case the court will carry out the intention of the parties, so far as it can do so without a violation of law. Galliland v. Phillips, 1 S. C, 52; Bet- tersworth v. Dean of St. Paul, Sel. Cas. in Ch., 66. Contract in contravention of public policy.^ "The power to declare a contract void for being in contravention of sound public policy, is a very delicate and undefined power, and, like the power to declare a statute unconstitutional, it should be exercised only in cases free from doubt." Richmond v. Dubuque R. R. Co., 26 Iowa, 191. Parties to the contract not equally guilty.'} The court will afford relief to the more innocent party, where ecjuity requires it ; unless, however, the parties to a contract sought to be specifically enforced are in pari delicto, as well asparti- ceps crirninis. "Where both parties are in delicto, concurring in an illegal act, it does not always follow that they stand in pari delicto, for there may be, and often are, very different degrees in their guilt. One party may act under cir- cumstances of oppression, imposition, hardship, undue influence or great ine- quality of age or condition, so that his guilt may be far less in degree than that of his associate in the offense. And besides there may be, on the part of the court itself, a necessity of supporting the public interest, or public policy, in ILLEGALITY OF THE COXTUACT. •?-23 §457. In the case of foreign contracts, they luu-i, in order to be enforced here, be legal according to the law of this country ; and this notwithstanding that such foreign contracts may have been made with a view to performance al)road and to foreign laws. It is not enough that they are valid according to the law of the country where they were made. For "when the courts of one country aiv called upon to enforce contracts entered into in another country, the question to be considered is not merely whether the con- tract sought to be enforced is valid according to the laws of the country in which it was entered into, but whether it is consistent with the laws and policy of the county in which it is sought to be enforced. "(cZ) § 458. What constitutes illegality in all the various spe- cies of contracts which may exist between man and man is a subject of enormous dimensions, regulated in part by the statute law of the realm, in part by considerations of public policy, (e) and in part even by the rules which the courts have adopted for the general protection of all suitors. (/)* (d) Hope V. Hope, 8 De G. M. & G., 731, Brownlow, 4 H. L. C, 1, and the cases there 743; per Lord Ellenborough, C. J., in Potter collected. V. Brown, 6 East, 131. (/) Cooth v. Jacksou, 6 Ves., 12. (e) As to this class, see Egerton v. Lord ming V. State, 23 lud., 416; Scottou v. State, 51 id., 52; Saudfoss v. Jones. Cal., 481; Reynell v. Sprye. 21 L. J. Chan., G31. 651; Tracy v. Talina-:e, 14 Y. 162; Freelove v. Cole, 41 Barb., 318; Ford v. Harriugton, 16 N. \ ., 285; Demm<: 35 N. ^. ...-, ^.^. , , - -, Lowell V. Boston and Lowell R. R. Co., 23 Pick., 24; Mount v. Waite, 7 John., 434; Atlas Bank v. Nahaut Bank, 3 Met., 581. Consideration unlatcfuh'] The illegality may refer to either tlie consideraticm or to any of the stipulations of an agreement. A contract will not be specitl- cally enforced, which grew immediately out of, or is connected with, an act or other contract which is immoral or illegal. Paton v. Stewart, 78 111.. 491 ; Whittaker V. Bond, 63 N. C, 290; Armstrong v. Talor, 11 Wheat.. 2o8; \\i\- son V. Spencer, 1 Rand., 76; Bowman v. Cunningham, 78 111., 48; Uoilson v. Swan, 2 W. Va., 511 1 Cases of illegality of contract proceed in violation of public policy or of some fixed and artificial rule of the law, and are, therefore, considered as analo- gous with cases of constructive fraud; which, "although not onginaling in any actual evil design or contrivance to perpetuate a frauil or injury upon other persons, are yet, by their tendency to deceive or mislead other persons, or to violate private or public coutidenee, or to impair or injure the puldic interests (note). Cases of illegality of contract. ] Foremost in contracts of this nature are ngrce- ments respecting marriage, known as marriage brokage contracts by which a party agrees, for a certain compensation, to negotiate a marriage for the other. 224 fi:y on specific pekformat^^ce of coxtracts. It will be needful here only to enter into tlie subject so far as it i^ecnliiirly affects actions for specific performance. i< l.*>». The' nature of a defense founded on the illegality Courts of equity relieve against them, on grounds of public policy. Drury v. Hook 1 Vern..41'2; Key v. Bradshaw. 2 id., 102; Duke of Hamilton v. Mohun, 2 id. 'g.")2; Ke'af v. Allen, id., 588; Toclie v. Atkins, 1 id., 451; Gale v. Lin- coln id., 475; Kemp v. Coleman, 1 Selk., 156; Baker v. White, 2 Vern., 215; ijoyiiton V. Hubbard, 7 Mass., 112. They are deemed incapable of confirma- tion and money paid under them may be recovered. Cole v. Gibson, 1 Ves., 503; Smith v. "Bruning, 2 Yern., 392. See, also, the case of Williamson v. Gih'on, 2 Sch. ct Lefr., 355, in which the doctrine of the court was carried to its utmost limits. Contracts in restraint of marriage are void.'] England v. Downs, 2 Beav., 542; Conrad v. Williams, 6 Hill, 445; Hailley v. Rice, 10 East, 22; Lowe v. Peers, Burrows, 2225; Baker v. White, 2 Vern., 215; see, also, Woodhouse v. Shipley, 2 Atk , 535; Key v. Bradshaw. 2 Vern., 103. But conditions, annexed to gifts,' legacies and devises, in restraint of marriage, are not void, if they are reasonable'in themselves and do not directly or virtually operate on an undue restraint upon the freedom of marriage. Story's Eq. Jur., §280. Neither is it any objection to a contract that, by its terms, it postpone the day of marriage, provided that the postponement be not unreasonable. Scott v. Tyler, 2 Dick., 719; Stackpole v. Beaumont, 3 Ves., 96. A condition that a xmloio shall not marry, it is said, is not unlawful. Story's Eq. Jur., § 285. Contracts in restraint of trade are also void.] Mitchell v. Reynolds, 1 P. Will., 181; Pierce v. Fuller, 8 Mass. Rep., 223; but contracts in restraint of trade in a particular vicinity are valid. Webb v. Noah, Edw. Ch., 604. A(jreements whereby parties agree not to bid against each other at public auction sales are void. Jones v. Caswell, 3 John. Cas., 29; Doolin v. Ward, 6 John. R., 194; Wilbur v. Howe, 8 id., 444; see Piatt v. OUver, 2 McLean, 267. Where contracts are eiitered into between parties pending a bill in parliament for the charter of a corporation for private purposes (as, for example, a rail- way), and the agreement is to be concealed from parliament, in order to pro- cure the bill to be passed without the knowledge thereof, and thereby to produce a false impression, or to mislead or suppress inquiry, or to withdraw public opposition therefrom, on grounds of public or private general interest, such contracts will be held void, as a constructive fraud upon parliament, as well as upon the public at large. Story's Eq. Jur,, § 293, and note 3 of cases. An agreement made for a remuneration to commissioners, appointed to take tes- timony, and bound to secrecy by the nature of their appointment, upon their disclosure of the testimony so taken, is void. Cooth v. Jackson, 6 Ves., 12. An assignment of the fees and profits of the office of keeping a house of correc- tion, and of the profits of the tap-house connected with it, is void. Wethwold v. Halbank, 2 Ves., 238. An assignment oftlie half pay of a retired officer of the army is void. Stone v. Lidelledale, 2 Anst., 533; McGarty v. Goold, 1 Ball and Beat., 389. Agreements founded iipon the suppression (?/c?'«rt«;«a? prosecutions, fall under the same consideration. Johnson v. Ogiliby, 3 P. Will., 276, and note (1). Wager contracts which are against the principles of public policy or duty, are void. De Costar v. Jones, Coop., 729; Atherford v. Beard, 2 Y. Rep., 610; Gilbert V. Sykes, 16 East, 150; Story v. Salmon, 71 N. Y., 420. So are contracts which tend to encourage champerty. 1 Powler v. Knowler, 3 Atk., 224. Contracts for the buying, selling or procuring t>/ public offices are void. Ches- terfield v. Janseen, 2 Ves., 124; Hartwell v. Hartwell, 4 id., 811; Boynton v. Hubbard, 7 Mass. R., 119; see Becker v. Ten Eyck, 6 Paige, 68. The question as to what is a wager contract of wheat, etc., depends upon the question as to whether the intention was to deliver or not. Bigelow v. Benedict, 9 Hun, 429. illeCtALity of the conti:act. 225 of a contract differs in its nature from most other defenses : the objection is rather that of the public speaking through the court, than of the defendant as a party to the ac- Agreetiients founded on corrupt considerations, or moral turpitude, are void. Hence, all agreements, bonds and securities, given as a price for future illicit intercourse (prcrmium pudoris) or the commission of a public crime, as for tlie violation of a public law, or for the omission of a public duty, are deemed in- capable of confirmation or enforcement. Story's Eq. Jur., g 2!»G, and note of cases. Contracts affectimj public elections are void : so are assignments of rights of property, pendente lite, when they amount to or partake of the charctor of main- tenance or champerty. Waller v. Duke of Portland, 3 Ves., 494; Stevens v. Bagwell, 15 Ves., 139; Strachan v. Bander, 1 Eden's R., 303. In aises of nsury. where iJte tender coming into a court of ecjuity, asks for re- lief, it will be denied him, and the contract held as void. Story's Eq. Jur., § 301; Fanning v. Dunham, 5 John. Ch., 122. Cases relating to gaming contracts are void, and equity will decree the giving lip and cancelling of gaming securities. Robinson v. Bland. 2 Burr., 1077; Rawdon v. Shadwell, Ambler's R., 269: Woodruff v. Farnham, 2 Vern.. 291; Skipwith v. Strother, 3 Hand., 214; Woodson v. Barrett, 2 Hen. ,l.dburv, 7 ConI 567; Conrad v. Willlan^s, 6 Hill, 444; Enghtnd ^^ Downes 1 Beav.: 96; Rarltey v. Rice, 10 East, 22j Sterling v. ^^i^ii't' ^ o"- ^.f ''"l^' •^^.• Eldred V. Malroy, 2 Col. (Ter.), 320; loung, ex parte C B.^ 53. A mai- ria"-e brokerage contract. Roberts v. Roberts, 3 P. ^V ms. , , 4 ; Drurj \ ^ Uooke. iVern 412; Smith v. Aykwell, 3 Atk., 566; Boynton v. HnJ.bard, . Miu... nl A contract for the ^hase of land ^on^f.^^^^^^^^'f^ fvmd of the laws of the same. Brake v. Ballon, 19 Kan., 3J- , Mniin v. joun ion 37 Ala!, l£ ' The contracts of a public enemy; no o-;?- -f"-^; -- for his benefit. Brandon v. Nesbitt 6 Term. Rep., ^'^ • fj !.7,\"^;;,^;,J"te "u- 2 V. & B., 323; Musson v. Tales 16 Mass.. 334. ,f^,.^^'^"^'^'^.\.J ""^iVpicr fnropd which is in restraint of trade or business. Alger \ . UKitcntr, t J i icw., ^1^ bS'v Cofeman. 4 S, isi; Craig v. State of Missouri, id., 4S6. 228 FRY ON SPECIFIC PERFOEMANCE OF CONTRACTS. advantage of, contrary to the real justice between him and the plaintiff— by accident, if I may so say."(70 Where the defendant has received the benefit of the contract, this de- fense is evidently an unrighteous one, and will accordingly be received by the court with some degree of disfavor. (/) J5 460. The principle on which this defense reposes is shown by the cases on the specific performance of awards ; for the illegality of the act directed to be done by the award will be a ground for refusing specific performance, although the unreasonableness of the act would be no ground, it being a decision by the judge chosen by the parties. (./) It is further illustrated by this, that where, in a suit for sx)ecific performance, a fact not put in issue by either party has come out on the evidence affecting the legality of the con- tract, it has been noticed by the court, which has not pro- ceeded without directing an inquiry. (^) § 461. As to the clearness of the illegality which will be a bar to specific performance, there is perhaps some slight diversity of expression. In Johnson v. Shrewsbury and Birmingham Railway Co.,(Z) Knight Bruce, L. J., laid it down that, before the court would enforce the specific per- formance of a contract, it must be satisfied that there is not a reasonable ground for contending that the contract is illegal or against the policy of the law: and in another case,(m) Turner, L. J., refused to enforce a contract for sale which he held to have been entered into for the purpose of acquiring the right to set aside a transaction for fraud com- mitted on the vendor to the plaintiff : he declined to deter- mine whether the contract was tainted Avith champerty or maintenance ; but held that the right to complain of fraud was not a marketable commodity. But in a case on a con- tract by a solicitor retiring from a firm, to allow his name to be used after his retirement, Lord Hatherley (then Wood, V. C.) observed, "the agreement must be legal or illegal, and it is not within the discretion of the court to refuse specific performance, because an agreement savors of ille- gality. It must be shown to be illegal. "(''O (h) In Holman v. Johnson, Cowp., 343. (k) Parken v. Whitby, T. & R., 366; Evans (I) Shrewsbury and Birmingham Railway v. Richardson, 3 Mer., 469. Co. V. London and Xorth-Western Railway (Z) 3 De G. M & G., 914. See, also, City of Co., IG Beav., 44. See, also, supra, § 318, and London v. Nash, 3 Atk., 512; S. C, 1 Ves. cf. Williams v. The St. George's Uarbor Co., Sen., 12. 2 De G. & J., 547. .5.58. (m) De Hoghton v. Money, L. R. 2 Ch.,ie4. 0) Wood V. Griffith, 1 Sw., 43. (n) Aubin v. Holt " K & J., 70. ILLEGALITY OF THE CO^sTTRACT. 229 § 462. Where a trust is constituted, designed to give effect to a contract in itself incapable of being enforced, and the trust is in itself perfectly lawful and independent of the contract, except so far as that may be necessary to explain the constitution of the trust, there the trust may be en- forced, and by means of it the contract incidently per- formed. This principle was acted on in the case of Powell V. Knowler,(o) before Fortescue, M. R., wdiere A. and B. entered into a contract for the division of an estate to be recovered, which was incapable of being enforced on the ground of champerty, and the party who, according to the contract, w^as to convey part of the estate to the other, by a codicil directed the contract to be carried into execution, and created a trust for that purpose ; the trust was specifi- cally enforced against the trustee. § 463. The principle of this case is in analogy with that of several other cases. Thus where an act, though the result of an unlawful contract, is itself lawful, it may foim the consideration for a lawful contract, as, for instance, the actual transfer of stock, the contract for which was illegal, (i^*) Similarly a trustee into whose hands money is paid on account of a third person cannot set up the ille- gality of the trust under which the money was so paid, though the cestui que trust could not have enforced his right against the payer directly, as in that case he could only have got at the money through the illegal contract. (-C. isle Railway Co. v. North-Western Railway (c) In South Yorkshire Railway and River Co., 2 K. & J., 293; Hare v. London and Dun Co. V. Great Northern Railway Co., 9 North-Western Railway Co., 2 J. & H., 80; Exch., 84: accordingly Batenian v. Mayor, Midland Railway Co. v. Great Western Rall- «tc., of Abhton under Lyne, 3 II. & N., 323. way Co., 21 W. R , 657. {d) Before Lord Cottenham, 2 Mac. & G , CONTRACT BEING ULTRA VIRES. 235 SO, there would be no impediment, it was urged, to two companies bringing their funds into a common stock, and dividing them amongst their shareholders in any stii^ulated proportion. § 469. It would be foreign to the objects of this treatise to discuss the very numerous cases which ha\re arisen on this doctrine of ultra tires ^ involving, as they almost always do, a careful consideration of the statutes in force with re- gard to the class of corporations in question, the charter or act of parliament or memorandum of association of tlie particular corporation and the contract in question in each case.((e) § 470. The question of ultra vires as applicable to cor- porations must be carefully distinguished from the question of ultra tires as applicable to the agents or officers of those bodies. An act which is beyond the powers of the corpora- tion can never be good and can never be made good by ratification or acquiescence or in any way short of act of parliament. (/) On the other hand, an act which is within the powers of the body, but beyond the powers of the board of directors or other managers, may, and often does, become binding on the corporation by its ratification or acquies- cence ; and so, again, acts which are beyond tlie powers of the managers, except on the observance of certain condi- tions, may, if within the powers of the body corporate, be held good by a judicial inference from the conduct of the corporation that the conditions have been observed. The first class of acts are void from the nature of the corpora- tion ; the second are objected to as having been beyond the scox)e of the agenf s authority." («) See Brlce's Doctrine of Ultra Vires. (/) See Ashbury Railway Carriage and Iron Co. V. Rlche, L. K. 7 H. L., 653. 1 Distinction between corporatiom and individuals.'] The former can exercise no powers which are not conferred by their charters, while the hitter may make any contract which the law sanctions. Head v. Providence Ins. Co.. 2 Crauch, 127; Bank of N. S. v. Danbrid?e, 12 Wheat., G4: Ilannable and St. Joseph R. K. Co. v. Marion, 36 Mo., 2'J4; Mathews v. Spinner, 02 id., 329; National Bank v. Taylor, 56 Pa. St., 15. Scope of corporations.] The charter of a corporation, with reference to its powers and capacities, must, like anv other statute, be construed as an entirety. White's Bank v. Toledo Ins. Co., 12 Ohio St., 601; Toledo v. North American Coal Co., '6 Head (Tenn.), 837. The general purpose for which the corporation was formed must be considered, and such reasonable construction be given to the terms employed, as will tend to bring about such purpose. Vandall v. South San Francisco Dock Co., 40 Cal., 83. A corporation possesses all such 236 FltY ox SPECIFIC TEKFOKMANCE OF CONTRACTS. § 47 1 . Hence it must not be assumed tliat the question of nUra v/'rcs is in all respects the same when it arises be- tween the members of a company and its directors, and when it arises between the company and a third person. powers as are necessarily incident to those specifically granted, or are essential to the purposes and objects for which the corporation was organized. It is not limited to the powers specifically granied. Bank of Augusta v. Earl, 13 Pet., 519; Whitman Minim,' Co. v. Baker, 3 Nev., 386; Coleman v. Eastern Counties R. U. Co., 10 Beav.,l7; Ketchum v. City of Buffalo, 14 N. Y., 356; Le Cou- teulx V. City of Buffalo, 33 id., 333; Shammut Bank v. Plattsburgh R. R. Co., 81 Vt., 491. Municipal corporntiorif:.] Such corporations are held more strictly to their charters than others. Parties dealing with them are bound to know their powers at their peril. City of Leavenworth v. Rankin, 2 Kan., 357; Thomas V. City of Richmond, 13 'SVall., 349. Different securiiy from that prescribed.^ The charter of a corporation pre- scribed what species of security should be taken of its officers. Held, that if a different sort was taken, it could be enforced against the party who gave it. Bank of South Carolina v. Hammond, 1 Rich., 281 ; Mott v. United States Trust Co., 19 Barb., 568; United States Trust Co. v. Brady, 20 id., 119; Little- wort v. Davis, 50 Miss., 403; see, however, Spendon v. Mayor, etc., of New York, 7 Bosw., 601 ; S. C, 21 How. Pr., 395. Corporation may waive its rights.] In a case where the provisions of a cor- poration's charter were designed to protect it, it was held that such provisions might be waived, and that such waiver might be shown by a repetition of acts of a like or similar character. Hood v. N.^Y. and N. H. R. R. Co., 22 Conn., 503. Legality of corporate act presumed.] "The dealings of a corporation which on their face, or according to their apparent import, are within its charter, are not to be regarded as illegal or unauthorized, without some evidence tending to show that they are of such a character. In the absence of proof, there is no legal presumption that the law has been violated. On the contrary, these artificial bodies, like natural persons, are entitled to the benefit of the rule which imputes innocence, rather than wrong, to the conduct of men. A differ- ent doctrine would require a corporation, even in many of its ordinary transac- tions, to show that it had not transcended the limits of its charter." Chautauqua County Bank v. Risley, 19 N. Y., 369; Farmers' Loan and Trust Co. v. Clowes, 3 id., 470; De Graff v. American, etc., Co., 21 id., 124; Yates v. De Bogert, 56 id., 526; Farmers' Loan and Trust Co. v. Perry, 3 Sandf. Ch., 339; Peru Iron Co., ex parte, 7 Cow., 540; Safford v. Wyckoff, 4 Hill, 442; Morris and Essex R. R. Co. v. Sussex R. R. Co., 20 N. J. Eq., 542; Charleston Turnpike Co. V. Willey, 16 Ind., 34; Dana v. Bank of St. Paul, 4 Minn., 385; Mitchell v. Rome R. R. Co., 17 Ga., 574; Oxford Iron Co. v. Spradley, 46 Ala., 98. Definition of incidental pover.] "An incidental power is one which is directly and immediately appropriate to the execution of the power granted, and not one which has a slight or remote relation to it." Hood v. New York and New Haven R. R. Co., 22 Conn., 1; People v. Utica Ins. Co., 15 John , 358; New York Firemen's Ins. Co. v. Sturges, 3 Cow., 664; Same v. Ely, id., 678; Broughton v. Manchester Water AVorks, 3 Barn. i.\;Ald., 9; People v. Trus- tees of Geneva College, 5 Wend., 317; Trustees v. Pcasley, 15 N. H., 317; Downing v. Mt. Washington R. R. Co., 40 id., 2X0; Fuller v. Trustees of Plain- field School, 6 Conn., 532; Commonwealth v. Erie R. R. Co., 27 Pa. St., 339; Dartmouth Colletre v. Woodward, 4 Wheat., 518; Pacific R. R. Co. v. Sealy, 45 Mo., 212; Town of Petersburgh v. Metzker, 21 111., 2U5; see, however. Hart V. Rensselaer and Saratoga R. R. Co., 8 N. Y., 37; Quimby v. Yauderbilt, 17 id., 306; Bissell v. Michigan Southern R. R. Co., 22 id., 258; Buffet v. Troy and Boston R. R. Co., 40 id., 168. Unless the powers claimed to be implied are immediately and directly appropriated to the execution of the specific powers, and the same are a careful and necessary means to give them effect. CONTRACT BEING ULTRA VIKKS. 237 § 473. Some contracts are of such a nature that every one must know them to be beyond tlie powers of the cor- poration with wliich he is dealing, as e. r/., a contract by a railway company to buj' a thousand gross of green specta- such implied powers will not be held to be within the scope of the cliarter. Curtiss V. Leavitt, 13 N. Y., 157, 158. Unauthorized act by corporation. '\ Such an act is void, and cannot be en- forced eitlier at law or equity. Mutual Life and Fire Ins. Co. v. McKelway, 1 Beasley's Ch., 183; Pennsylvania Co. v. Danbridge, 8 Gill. & John., 248; Pearce V. Madison R. R. Co., 21 How., 441; Haynes v. Corringtou, 13 Sm. A: Marsh., 411 ; Little V. O'Brien, 9 Mass., 423; Commercial Bank v. Nolan, 7 How. (.Mi.ss.), 508; Littlewort v. Davis, 50 Miss., 403; Matter of Brooklvn R. R. Co., 72 N.Y., 245; Bank of Michigan v. Niles, 1 Doug., 401; all'g S.'C, I Walker (Mich.), 99; Brown v. Winnismap Co., 11 Allen, 326. Corporate acts impliedly proMbited.'\ Any intentional use by a corporation of any of its powers, with the intention of defeating the objects for which it was created, will be prohibited \>y implication. East Anglican R. R. Co. v. East- ern Counties R. R. Co., 11 C. B., 775; S. C, 7 Rail. Cas , 150: McGregor v. Dover and Deal R. R. Co., 18 Q. B.. G18; S. C, 7 Rail. Cas., 227; Gage v. Newmarket R. R. Co., 18 Q. B., 457; Eastern Counties R. R. Co. v. Hawkes, 5 House of Lds., 347; South Yorkshire R. R. Co. v. Great Northern R. R. Co., 9 Ex., 55, G43; Patchin v. Doolittle, 3 Vt., 457; Common v. Inliabitants of Cambridge, 7 Mass., 158; Parks v. Boston, 8 Pick., 218; Dudley v. Cilley, 5 N. BT., 55s ; Goodwin v. Milton, id., 458; Third Turnpike Co. v. Champnav, 2 id., 199; Knowle's Petition, 32 id., 361; Dudley v. Butler, 10 id., 281 ; Guern- sey v. Edwards, 26 id, 224; Springfield v. Harris, 107 Mass., 532; Townsend V. Hoyle, 20 Conn., 1. Private party contracting with corporation.'] A contract may be ziltra fires with respect to the officers or stockholders of a corporation, and not so in rela- tion to a private party. Mount v. Shrewsbury R. R. Co., 13 Beav.. 1; Cohen V. Wilkinson, 5 Rail."Cas., 741; Beaman v. Raffard, 7 id., 48, 75; Simpson v. Dennison, 10 Hare, 51. To effect a private party, he must have known, at the time of entering into the agreement, that it was intended for a purpose foreign to the incorporation of the company. Osipee Mauuf'g Co. v. Canuey, 54 N. H., 295. Act entirely complete on jylaintiff'a part] It is a well-settled rule that the de- fense of ultra vires cannot be pleaded by a corporation, in a case where the con- tract has been fully postponed, and the corporation has had the advantage of the performance. Parish v. Wheeler, 22 N. Y., 494; Silver Lake Bank v. North, 4 Johns. Ch., 370; Palmer v. Lawrence, 3 Saudf.. 161; State of lud. V. Woram, 6 Hill, 37; Chester Glass Co. v. Dewev, 10 Mass., 94; Steamboat Co. V. McCutchen, 13 Pa. St.. 13; Steam Nav. Co. v. Weed, 17 Barb.. 378; Whitney Arms Co. v. Barlow, 63 N. Y., 62; Chippendale, ex parte. 4 De G. M. & G., 19; In re National Soc, L. R.. 5 Cli., 309; In re Corle. etc, R. C, 4 id., 748; Fishmongers Co. v. Robertson. 5 Mc. & G., 131; Allegheny City v. McChu-kson, 14 Pa. St., 81; Bradley v. Ballard, 55 III. 413; Rock River Bank V. Sherwood, 10 Wis., 230; Farmers' Bank v. Detroit R. R. Co., 27 Wis.. 372. Repayment can he compelled.'] Where a contract made with a corponition is void, and for that reason the party cannot maintain an action \ipon it. he may recover what has been paid, when" the parties arc not in pari delicto. Robinson V. Bland, 3 Burr., 1077; Howsou v. Hancock, 8 Term. R., 577; Utica Ins. Co. V. Scott, 19 .Tohn., 1; Same v. Cadwell, 3 Wend., 296; Same v. Bloodgood. 4 id., 652; Little v. O'Brien. 9 .Mass.. 423; Episcopal Soc. v. Episcopal Church, 1 Pick., 372; White v. Franklin Bank, 22 id., 181: Rich v. Errol, 51 N. H., 361; Whitney v. Peay, 24 Ark., 22. Where money has been paid in advance to a corporation, upon a contract Avhich is vltra jv/rs— Held, that the party so paying might recover the same, and that he need make no previous demand. Dill V. W^ireham, 7 ]\Ietc., 438. Surrender of possession before action brought.] "The cases in which posses- sion must be surrendered before an action for the purchase money can be 238 FRY ox SPECIFIC PERFORIMANCE OF CONTRACTS. cles, or a contract by a company formed to make a railway from A. to B. for the construction of a railway from C. to D. Such contracts as these are equally void, whether the ques- tion arise between tlie company and a stranger or between members of the corporation. But the case is quite different as regards many other contracts which may or may not be really entered into for the purposes of the company. Direc- tors nright buy iron rails not really for the purposes of the line but for speculation. This contract would be void as against the shareholders, but might be perfectly good in favor of the vendor to the company. In short, the mere fact that a contract by the directors is ultra mres, as be- tween them and the shareholders, does not necessarily dis- entitle the other party to the contract from suing upon it. To do so, it is further necessary that the party suing should have known at the time of the contract that it w^as intended for a purpose unconnected with the incorporation of the company. The nature of the contract will show this in some cases : in others it will i\ot.{g) § 473. From this principle it follows that, where a public company is authorized to take land for extraordinary pur- poses, a person who agrees to sell his land to this company is not bound to see that it is strictly required for such pur- poses ; but if he acts bona fide and without knowledge that, the land is not so required, or that the transaction is any misapplication of the funds of the company, the contract is binding in his favor, and may be enforced by him in equity \{h) and the same holds goods where the company, really requiring part of an estate, purchase more than is required, (z)' ig) Per Lord Campbell, C. J., ami Erie, J., Green v. Nixon, 23 Beav., 530; Royal British in Mayor of Norwich v. Norfolk lialhvay Co , Bank v. Turquand, 5 El. & Bl., 248; 6 id., 327. 4 El. & Bl , 397. 415, 443 ; per Lords Campboll {h) Eastern Counties R'way Co. V. Hawkes, and St. Leonards in Eastern Counties Rail- 5 H. L. C, 331, 349, 355. way Co. V. Uawkes, 5 U. L. C. 338, .355, 372; (i) S. C. Re Contract Corporation, L. R 8 Eq , 14; brought, are those where a contract has been made, and possession has been taken thereunder, and the vendee seeks to rescind the contract on the ground of defective title, or tlie inability of the vendor to perform the contract on his part, or of some fraudulent representations inducing its execution. In these cases the vendee must offer to restore whatever he has received before he can call upon the vendor to refund the purchase money. Where the contract is void, there is nothing to rescind ; no rights are acquired, and there are, in consequence, no rights to restore." McCracken v. City of San Francisco, 16 Cal., 591. * In the case of the Southern Life Insurance and Trust Co. v. Lanier, 5 Fla., 110, a contract with a corporation was held to be binding on the parties, although it was an abuse of the corporate powers, for which the corporation was answerable to the government who created it. CONTRACT BEING ULTRA VIRES. 239 § 474. Fnrtliermore, a contract will not be void as against a third person dealing hona fide with the corporation, be- cause there may have been the omission to observe some fonnality required by the terms of its constitution, or be- cause there may have been some irregularity on the part of the directors or officers of the body entering into it on their behalf. Thus, for instance, it has been held to be no defense to an action against a company upon a debenture sealed with their common seal that the borrowing of the money thereby secured was not sanctioned by the resolution of an extraordinary general meeting as required by its deed of settlement, (y)' (j) Royal British Bank v. Turquand, 5 El. Case, 1 De G. J. & S., 4S8; Prince of Wales & Bl.,248; G id., 327; Agar v. Athenreutn Life Assurance Co. v. Harding, El. B. & E., 183. Assurance Society, 3 C. B. N. S., 725; Grady's 1 The case of Kean v. Johnson, 1 Stockt. (N. J.), proceeds upon this same principle. There, an incorporated company were engaged in a prosperous un- dertaking. The majority of stockholders and board of directors wished to sell out, and invest the capital in other enterprises, and the minority came for relief to the court of chaucgry. It was held, that in cases of joint-stock com- panies there was a contra^st between all the stockholders and the board of directors, that the joint funds should be used for certain specified purposes, and that any material deviation was a breach of this contract which would not be permitted. 240 FRY ON SPECIFIC PEHFOKMAXCE OF CONTRACTS. CHAPTER XI. OK THE STATUTE OF FRAUDS AND THEREIN OF PART PERFORMANCE. § 475. By the fourth section of the Statute of Frauds {a) it is, amongst other things, enacted that no action shall be brought whereby to charge any person upon any contract or sale of lands, tenements, or hereditaments, or any interest in or concerning them, "unless the agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing and signed by the party to be charged therewith, or some other person thereunto by him lawfully authorized." § 476. This section affects not the contract itself, but the right of either party to sue the other upon it. Hence it has been decided that it refers not to the solemnities of the con- tract, but to the x-)rocedure, and consequently that an action will not lie in this country on a contract made in a foreign country, and valid there, which, if made here, would have been incapable of being sued on by reason of this section. (&) This decision, though still law, has not escaped criticism, (c) and is difficult to reconcile with the well settled rule(fZ) which requires that the writing relied on as taking a case out of the statute should be in existence before action brought ; a requirement which would be unreasonable and contrary to the usual practice, if it related only to procedure and did not go to the solemnities of the contract. § 477. It is obvious that in many cases a defense to an action for specific performance may be grounded upon this fourth section of the Statute of Frauds. It is, therefore, proposed to consider (1) how such a defense may be raised, and (2) what constitutes a sufficient agreement or memo- (a) 29 Car. II, c 3 the fourth section is matter of procedure in (6) l.eroux v. Brown, 12 C. B., 801. the judgment of the Queen's Bench Division (c) Williams v. Wheeler, 8 C. B X. S., 299, In Jones v. Victoria Graving Dock Co., 2 Q. 316; Gibson V.Holland, L. R.IC. P., 8. The B. D., 323. case is, however, cited as an autliority for the (d) Bill v. Bament, 9 M. & W., 36. proposition that the signature required by STATUTE OF FRAUDS, ETC. 241 randum or note of agreement within the meaning of the statute. And as, notwithstanding the express language of the statute, it was held by the court of chancery, and is now the law of the land, that certain circumstances may preclude a defense founded upon the statute, it is necessary to con- sider a third question, namely, (3) what, according to the principles of equity, takes a contract out of the statute.' 1. How the defense may he raised.'' § 478. In order to make intelligible the decisions on the present mode of pleading, it will be necessary to state briefly ' StaUs in wliicJi the contract is void, if not in conformity loiih the statute] The English statute (Mercantile Law Amendment Act, 19 and 20 Vie, 185(5) has been in substance re-enacted in many of the States. In the following tlic con- tract is void, if not in conformity with the provisions of the statute : Alabama Code, 1867, § 1862; California Code, § 1741; Michigan Comp. Laws, 1871, vol. 11, p. 1455, ch. 166, § 8; Minnesota Stats., 1873, vol. 1, p. 692, § 12; Nebraska Stats., 1873, p. 392, ch. 25, § 5; New York Rev. Stats. (6th ed.), vol. 3, p. 141; Oregon Gen. Laws, 1872, ch. 8, § 775; Wisconsin Stats., 1871, vol. 11, ch. 106, § 8. ' ' T7ie statute is not a mere rule of evidence, but a limitation of judicial authority to afford a remedy. It requires that contracts for the sale of lands, in order to be enforced by judicial proceedings, must be substantiated by some wrUing. This provision of law cannot be dispensed with, merely for the reason that the want of such writing was occasioned by mistake, accident or fraudulent rep- resentations, unless some other ingredient enters into the case to give rise to •equities stronger than those which stand upon the oral contract alone, which estop the other party from setting up the statute." Wells, J., in Glass v. Hul- bert, 102 Mass., 25; Stockbridge Iron Co. v. Hudson Iron Co., id., 45. Assignee's contract to pay original purchase money. \ The assignee of a bond for title, entered into a contract to pay the purchase money to the original vendor. Held, that it was not a parol promise to pay the debt of another, nor a parol contract for the sale of land, and that it would be specifically enforced. Ford v. Finney, 85 Ga., 258. Securities.'] "The words of the statute have never yet been extended bv any court beyond securities which are subjects of common sale and barter, and which have a visible and palpable form." Somerly v. Buntin, 118 Mass., >.9, per cur. Gray, C. J. Examples of promise within the statute.] A judgment to sell a stock of goods, and, as a part of the transaction, the seller verbally agreed to give the purchaser a three years lease of the store— Held, within the statute, and the action dis- missed. Strahl V. Evers, 66 111., 77; Schulter v. Bockwinkle, 19 ^^lo^ 6-4; William and Mary's Col. v. Powell, 12 Gratl., 372; Bryant v. Jamison, , Mo., 106. « In order that a bill may be taken advantage of under these circumstances it must not only show the want of an agreement conformable to the statute of frauds, but it must also omit to make any allegations of part performance. Thus, in the case of Field v. Hutchinson, 1 Beav., 599; S. C, 3 Jur.. <.».) it is said, "where the want of a signature to an agreement for the sale of lands cleariy appears on the bill, the objection may be taken advantage ot by general demurrer; but the statements of this bill not beiu- inconsistent with a signa- ture by the party to be charged, and containing allegations of part perform- ance, a general demurrer thereto was overruled." 16 242 FllY ox SPECIFIC PEKFOKMANCE OF CO^•TRACTS. what was the nietliod of taking advantage of the statute be- fore the judicature acts. § 479. Under the old practice, then, the want of a con- tract within the statute might, when clearly appearing on the bill, have been taken advantage of by general de- niurrrer,((?) or by a demurrer alleging the want of such a contract. (/) In this respect, there was held to be a wide difference between the Statute of Frauds and the statute of limitations. (.(7) § 4S0. The benefit of the statute might also have been had by i^lea ; and, notwithstanding a doubt of Lord Mac- clesfied,(70 by plea alone and without answer. §481. To a bill alleging a parol contract and part per- formance, a plea averring that there was no contract in writing, and an answer insisting that the alleged acts did not amount to part performance, was a sufficient defense. (/) Though such a bill could not, it seems, have been met by a plea alone, for a plea in bar to such a bill w^ould contain two distinct points— namely, the denial of the written con- tract and of the acts of part performance, and w^ould there- fore have been multifarious and bad.(y)' § 482. The benefit of the statute might also have been obtained by the defendant's answer; and either by an answer denying or not admitting the contract (which was sufficient, without special reference to the statute, to throw upon the plaintiff the whole burthen of proving a valid (e) Field v. Hutchinson, 1 Beav., 599; cf. 9 Mod., 86; Moore v. Edwards, 4 Ves., 23; Heard v Pllley, L R. 4 Ch., 548. Bowers v. Oator, id., 91; Evans v. Harris, 2 (/) Wood v.Midgley, 5 1)6 G.M.&G., 41; V. & B., 361. S C ,2 Sm. &Gir., 115; Barkworth v. Young, (j) Whltbread v. Brockhurst, 1 Bro. C. C, 4 brew 1. See, also, Howard v. Okeover, 3 404; and see Belt's n. and Redes. Plead., 268. Sw 421 n ''ee, also, as to this plea, Child v. Comber, 3 ((7) Per Lord Cranworth In Ridgway v. Sw., 423 n. ; for a plea to a parol contract Wnarton, 3 l>e G. M. & G , 691 ; Ut-ysv. Ast- varying a written one, Jordan v. Sawkins, 3 ley 4 De G J & S., 34. Bro C. C, 388; and I'oi a plea alleging revo- (h) Child V. Godolphin, 1 Dick , 39. cation of agency. Mason v. Armitage, 13 (i) Whitchurch v Bevis, 2 Bro. G. C 559; Ves., 25. S. C.,2 Dick., 664. See, also, Hosier v. Read, 1 The case of French v. Shotwell, 5 John. Ch., 555. is a somewhat analogous case. There, to a bill for relief against a judgment, on the ground of fraud, a plea of the judgment, and an answer denying the fraud, were held good. A plea must contain a denial of all the facts charged in the bill which would, if true, defeat the plea; and it must reduce the defense to a single point. Bogar- dus V. Trinity Church, 4 Paige, 178: Saltus v. Tobias, 7 John. Ch., 214. If a plea be double, the plaintifl'may demur for duplicity; but, if he reply, he must answer both parts of the plea. Barrett v. Ruill, 3 Ired., 881. STATUTE OF FKAUDS, ETC. 243 contract capable of being enforced), (/i) or by an answer ad- mittino- a contract, and expressly pleading tlie statute. (/) §483. If the benefit of the st:itute was not claimed in one or other of these ways, it could not be had at the hear- ing. (;m) § 484. A great change has been effected by the provisions of the judicature acts in this matter. Order XIX, r. -23, provides that " AVhen a contract is alleged in any pleading, a bare denial of the contract by the opposite party shall be construed only as a denial of the making of the conti-act in fact, and not of its legality or its sufficiency in law, whether with reference to the Statute of Frauds or otherwise." Pleas, it may be added, find no place in the present system of pleading. § 485. From these provisions, the following inferences have been or may be drawn, viz.: (1) That the benefit of the statute can no longer be liad by plea. (2) That where the statement of claim alleges a contract without alleging it to be in writing, a demurrer will not now lie, but the statute must be specially pleaded ;(;?) and this has been held to apply even to a case in which the state- ment of claim alleged circumstances in anticij^ation of an objection grounded on the statute, and these circumstances were traversed by the defense. (o)' (3) That where the statement of claim itself shows that the contract was not in writing, and does not show any equita- ble circumstances taking it out of the statute, then the statute may be taken advantage of by demurrer. This point has not yet, it is believed, been the subject of direct decision. (^) (k) Uidewav v. Wharton. 3 De G. M. & G., («) Catlinp v.King,5Ch D .(JG i.GfiS; Towle 677, >. C in U. P., 6 H. L. C, 238. v. Topham, 37 1- T., 308; SluHnllow v. Cot- (/') Cooth V. jaokson, 6 Vec. VI; Moore v. terill, W. X. (1881), 2. t , ^ t> Edwards, 4 id , '23; per L,ord Eldon in Rows (o) Clarke v. Callow, -16 L. J. Q. B., 53. V. Teed, 15 Id., 375; Blagden v. Bradbear, 12 See, also, Johnasson v. Bonhote, i Ch. D., id, 466; per Lord Eldon in ex parte Whit- 298 , ,. , • , ^ bread, 19 id., 212. See contra, Mussell v. (p) It appears tiiat this may be inferred Cooke Free Cli 533 from the decision in > ale of Neath Colliery (m) IJaskett v. Cafe, 4 De G. & Sm , 388. Co. v. rurness, 24 W. It., 631. 1 A defendant in a suit in cliancerv cannot put in several distinct defen.ses, bv plea, to the whole of the complainant's bill, or to the same part of the bill, without the special leave of the court. Nor can he set up two distinct defenses in the same plea without rendering such plea bad for duplicity. To justify the court in departing from this general rule, the defendant must make out a very special case of hardship and 'inconvenience to him if he should be reipiired to make his several defenses by answer. Where it would be necessary to set out 244 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. (4) That wliere a pleading states a contract ."generally, the opposite party's proper mode oi cUiiniing the benefit of the statute is to plead it specially in his next pleading. (5) That to such pleading the old rule applicable to answers applies, viz., that the benefit of the statute must be claimed distinctly and unambiguously. Under the former practice it was held tliat when the answer alleged that no formal note of the contract was made, and denied that any binding con- tract ever existed, but did not expressly claim the benefit of the statute, the defendant was not entitled to have that benefit at the hearing. (65 Ch. D., 284. (r) Per Wlgram.V. C, In Beatson v. Nich- (s) See Ord. XXIX, r. 10. Olson, 6 Jur., 621. Cf. as to the distinctness very long accounts, and in cases where the discovery sought by the bill would be productive of injury to the defendant in his business, the court will grant its indulgence. Didier v. Davison, 10 Paige, 515. ' This is clearly the rule. Osborn v. Endicott, 6 Cal , 149; Lingan v. Hen- derson, 1 Bland, 236; Kinzie v. Penrose, 2 Scam , 520; Thornton v. Henry, id., 218; Talbot v. Bower, 1 A. K. Marsh., 4:W; Bean v. Yalle, 2 Miss., 126; Tarleton v. Vietes, 1 Gilm., 470; Woods v. Dille, 11 Ohio, 405; Small v. Ownings, 1 Md. Ch Dec, 363; Hollingshead v. McKenzie, 8 Geo., 457. "> What the rrntinrj muM contain to mtisfy the statute] It may be informal, but it must contain all the terms of the contract, either expressly or by necessary inference. In it must be found the names of the parties, the consideration, the subject matter, the promise and the signature of the party sought to be charged ; nothing must be left open for future negotiation. Laythoarp v. Brj^ant, 3 Bing. (N. C), 735; Ogilvie v. Foljambe, 3 Mer., 53; Nichols v. Johnson, 10 STATUTE OF FJIAUDS, ETC. 245 gnnls the contracts now under consideration, to prevent the niiscliiei' arising from the resort to parol evidence to prove the existence and the terms of the alleged contract, it is obvious that the mischief is avoided wherever there exists, under the hand of the party sought to be charged, a written statement containing, either expressly or by necessary infer- ence, all the terms of the contract — that is to say, the parties (described either by names or descriptions or reference suffi- cient to preclude any fair dispute as to their identity), (^) the subject matter of the contract, («) the consideration and the X3romise(^) — and leaving nothing open to future treaty. (io) § 487. This, therefore, is sufficient to satisfy the statute, and provided this be found, no formality is required, nor does it signify at all what is the nature or character of the document containing such written statement — whether it be a letter written by the party to be charged to the person with whom he contracted, or to any other person, or a deed, or other legal instrument, or an affidavit, (ic)' (0 Potter V. DuffieUl, L. R. IS Eq . 4. See, did not refer to any plant, sipnol a mcmo- for a further discussion of the mode of de- randuni referring !•« the contract, wan hum scription. Part IH, chap, iii, § 330 et seq., to be sufficieHtly incorporated with the con- where the cases are cited. traci, and to control the description in It (u) See Nene Vall y Drainage Commls- (u» Laythoarp v. liryant, 2 Bing. N. C , .«. Bloners v. Dunkley, i Ch. D., 1, where a plan (w> Oi;ilvle v. Foljambe, 3 Jler, 53. on which the parties, contemporaneously (x,i Bariiworth v. Young, 4 Drew, 1, 14. with their signature of the contract (which I Conn., 192; Doty v. Wilder, 15 111., 407; McConnell v. Brillharil, 17 id.. :«4; Jolmsou V. Dodsre, id., 4^3; McFarsoii's App., 11 Pa. St., .'iOS; Sanbornc- v Flagler, 9 Allen."474; Stone v. Browning, bS X. Y., .598; Helsa v. lUNa, 8 Mo. , b93 ; Huff v. Shepard, 58 id. , 242. It need not be sealed nor acknowleilged. and words of inheritance need not be employed, ^vhere an intention to pas.s the fee appears. McFarson's App., 11 Pa. St., 503. The writing may be by a pleading, an affidavit or a receipt, and it may be found in one or more letters It may be in the language of both parties, or either of them. Barkworthv. Young, 4 Drew, 13; Ewing r. Gordon, 49 N. H., 444; Tripp v. Bishop, ob Pa. St., 424; Joseph v. Holt, 37 Cal., 250; Welford v. Beazely. 3 Atk., 5U,J; Deut- son V. McKenzie, 1 Dessau.'s Eq., 289. The entire agreement must be written or printed, and may be in pencil. Cary v. Hyde, 49 Cal.. 470: 1 atlon v. Uevc- lin's,2Phila., 1U3; Draper v. Pattina, 2 Speers. 292; Merrill v. Clasor, 12 Johns. 484. A contract by parol, or in writing, is presupposed by the statute ot frauds. The memorandum, which is necessary to its validity, and the agree- ment itself, are verv different things; one maybe made at one time, and the memorandum at some other. If the promise of one of the parties is the con- sideration for the promise of the other, in such case both niu.st be concurrent, and obligatorv upon both at theisame time. Lester v. bennctt, 1- Hurli., .)U-: Jones v, Noble, 3 id. (Kv.), 694; Yerger v. Green, 4 Gill, 472; Duvall v. Myers. 2 Md. Ch., 401. 1 In Barrv v. Coombe, 1 Pet.. G40, it is said that courts of (•(luily are not rigid with regard to the direct and immediate purpose for which t lie written exndence of a^'contract was created: -'It is written evidence llial the statult- of fraud requires and a note or letter mav be sufficient to bring the case withm the statute." Thus the following paper was held to be a sutlicieut uicmoran- 240 vny ux simx-ific PERFOiniANCE of contracts. The (|iiestion of wliat is necessary to be settled, and tliere- iore wliat is necessary to be exi^ressed, in order tliat a writ- dum of the turms of an agreement to sell land within the statute of frauds : "Ellswortii, Dec. 15th, \SU. Received of D. B. and C. S. U. $1,000, to be accounted for, if they shall furnish me satisfactory security for certain lands on the Naraguagas river, say 119,000 acres for $113,000, on or before Friday morning next: otherwise to be forfeited — John Black." Clark v. Burnham, 3 Story, 1. And a receipt in these terms: "Received from A. $20, on account of the purchase of a house and lot. No. 38 Hammond street, at $2,900, subject to a lease to B. for four years from the tirst of May next: $1,000 may remain by bond and mortgage: the balance the first of May, when the deed will be executed and possession given" — amounts to a valid contract for the sale of land, under the statute in New York. Westervelt v. Matheson, 1 Hoff. Ch , 37. Again, in Hutcher v. Hatcher, 1 McMuUan's Ch., 311, land having been sold on execution against A., B. agreed, by parol with A., to advance the money to the purchaser at the slieriff s sale, "to take a conveyance to himself, and t.) reconvey to A. upon being reimbursed for the sum so advanced. Upon a sub- sequent payment by A., under the agreement, B. gave him a written receipt therefor, as in part payment of the land, describing it, and concluding thus : "This in part payment to redeem the land from B." It was held, that there was a sufficient memorandum of the contract, within the statute of frauds, and that extraneous written evidence was admissible to show the consideration. Thomas _y. Todd, 3 Litt., 337. is a case somewhat in point It was there held, that an advertisement describing the situation and quality of land, signed by a vendor, and being the onl}' printed or written memorandum of the contract on his part, was held to contain the particulars with which he was l)Ound to com- ply; and where he was unable to do so, the contract for a purchase of the land was decreed to be rescinded. See Gray v. James, 4 Dessau., 185; Little v. Peason, 7 Pick., 301, is a case of the same nature There A. paid B. .$100, re- ceiving from B. a note payable to A. or order, on demand for $100 and interest, with the following memorandum: " N. B. This note is to be given up when I give him a deed of the land, which I have engaged to give him. " Signed by B. It was held that this was a sufficient memorandum whereby to compel a conveyance. But the following writing, to wit: "4th January, 1808. Re- ceived of J. E. $ , in part pay of a lot bought of me, in the town of V., it being the cash part of the purchase of said lot. Nathan Deadman. Test., Will. Atwood " — was held not to be a sufficient memorandum to take the agree- ment out of the statute. Ellis v. Deadman, 4 Bibb , 46fj A memorandum must contain, within itself, or by reference to some other writing, the terms of the agreement with reasonable certainty. Parkhurst v. Van Cortland, 1 John. Ch., 274; Coles v. Bowne, 10 Paige, .526. Therefore where A. proposed, in writing, to sell to B., all that piece of property known as the TJnion Hotel property," it was held not to be a sufficient description to take the case out of the statute of frauds, parol evidence being necessary to show what property was comprehended under the words " Union Hotel property." King v. Wood, 7 ]Miss.. 389. But the memorandum need contain only the substance of the contract, and not a detail of all particulars; so that if the memorandum recog- nize that an estate, chargeable wntli certain annuities, is sold subject to them, by mentioning when the payment of the annuities by the purchaser is to begin, it is sufficient. Ives v. Hazard, 4 li. I., 14; see Kay v. Curd, 6 B. Monr., lOO. Handbills and newspaper notices, published at the time of the sale, are not ad- missible as explanatory evidence, the memorandum containing no reference to them. O'Donnell V. Leman, 43 Me. 158. Whether or not the consideration must be expressed upon the face of the instrument, is subject to different rules in the different States. In England the question has long since been well- settled. There the leading decision on the subject is Wain v. Warlters, 5 East, 16, decided at law by Lord Ellenborough, who then took occasion to explain the meaning of the word agreement, as used by the Statute of Frauds, defining it to be a mutual contract between two or more parties," and excluding its more loose acceptation of a promiie or an xindertdkivrj. He said that the statute was never meant to enforce any promise which was before invalid, merely be- STATUTE OF FRAUDS, KTC. '2A1 ten memorandum shall be evidence of a coniijleted contract will be found more fully discussed in the chapterfy) on the incompleteness of the contract.' (y) Part III, chap. Hi. And see Blakeney v. Hardie, I. R. 8 Eq., 381 ; Carrlpv v. llrock (collateral contract), I. U. 5C. L., 5e. 4 Sm. i&Mar.sh., 91. "Where an instrument of guaranty is under seal, this ex- presses sufficient consideration to be deemed a comi)liance with the .'^tntute requiring it to be expressed. Ro.seubamn v. Guuter, 16 N. Y. (2 Smitli), 415. And where the consideration of a written guaranty is expressed to be for value received, it is sufficient under the Statute of Frauds. Cooper v. Dcdrick. 23 Barb., 316; Day v. Elmore, 4 Wis.. 190. If a contract be in its nature- entire, and in one part it satisfies the statute, and in another it does not. tht'n, it has been decided at law, it is altogether void. Cooke v. Toombs, 2 Anstr., 420; Lea V. Barber, id., 425; Charter v. Beckett, 7 Term R., 201; Vaughan v. Han- cock, 3 C. B., 76G; Lexington v. Clarke, 2 Vent., 223; Mechrlen v. \\ Maw, 7 Ad. & El., 49; Thomas v. Williams, 10 B. & Cr., 664; Loomis v. Ni-wliall. 15 Pick., 159. In Irvine v. Stone, 6 Cu.sh.. 508, it was lu-ld that a contract for the purchase of coals at Philadelphia, and to pay for the freight of the same to Boston, if void by the Statute of Frauds as to the sale, is v.. id also and cannot be enforced as to'the freidit; thou-;h the latter, if it stood alone, wuuhl not l»e within the statute. See Thayer v. Roeh. 13 Wend.. 53. But if the parts arc severable, then it may be good in part and void in part. Mayfield v. ^\ adsley, 3B. ct C, 357. ' Subject matter of contract imufflciently dexcrV>td. ] Tlie memonuulum n-lating to realestate in the following cases was indefinite, and tliercfore insulUcicnt : Holmes v. Evans, 4S Miss.,"'247; Pipkin v. James, 1 Humph . 325; Meadows V. Meadows, 3 IMcCord, 458; Church of the Advent v. Farn.w, 7 Rich '.s Kq., 378; Ray v. Curd, 6 B. M., 100; Ives v. Armstrong. 5 R. 1.. 5(i7; Jslieid v. Stamps, 2 Sneed, 172; Farwell v. iVIather, 10 Allen, 322. Examples inhere tJie description iras held to be s'/jfinVht ] If a surveyor can locate it, a contract is sutlieientlv desrriiitive. White v. Hermann. 51 111., 283; Wiley V. Robert, 27 Mo.. 38S; "Boardman v. Ford, 6 Pet.. 345; lIoo|K-r v. 248 FUY ON SPECIFIC PEMFOKMANCE OF CONTRACTS. § 48H. There is, of course, no binding contract when the writing appears only to be terms agreed on as a basis for a contract, and not the contract itself ;{z) or wliere it provides tliat any of the terms are afterwards to be settled ;(«) or where the matter is nnconcliided, and one party may still withdraw his consent ;(&) or wdiere there appears any de- sign of furtlier negotiation ;(c) or where one of the parties was, at the time when the memorandum was signed — which is the point of time at which the statute requires the plain- tiff to prove a concluded contract existing(fZ) — incapable of contracting binding]y.(e) Therefore where the purchaser's solicitor offered £25, 000 for the purchase of an estate, which the defendant's agent accepted, " subject to the terms of a contract being arranged between his (the vendor's) solicitor and yourself," the court considered this to be a contract to enter into a contract with respect to which some terms were already agreed on, and the rest w^ere to be settled by future arrangement, and that if they could be agreed on, this was to become a valid contract ; but such a contract never having been come, to, the court dismissed the purchaser' s bill ask- ing for a specific performance. (/) On this principle the ap- (2) Frost V. Moulton, 21 Beav., 596. C, 6 H. L. C, 112. See, too, Winn v. Bull, 7 (a) Wood V. Mifialey, 5 De G. M. & G., 41. Ch. D., 29. Whether the expression in the (6) Earl of Glengal v. Barnard, 1 Ke., 7G9, memorandum that the contract is subject to aflirmedasLordGlengal v.Thynne, .St. Leon, the approval of the title by the purchaser's Law of Prop., o6. see, too, Hussey v Home- solicitor is enough to make the contract con- Payne, 4 App. C., 311. dltional appears doubtful. Compare the (c) Tawney v. Crowther, 3 Bro. C. C, 318; observations of Lord Carlns In Hussey v. Stratford V. Bosworth, 2 V. &B., 341; Wilco.x HornePayne, 4 App. C, 321, 322, with the V. Redhead, 28 W. R., 795. judgments of the Court of Appeal in S. C, 8 (d) Mundayv .\ sprey, 13 Ch. D., 857. Oh. D., 675 et seq. See, also, Hudson v. (e) Avery v. Griffin, L R. 6 Eq., 606. Buck, 7 Ch. D., 683. (/) Honeyman V. Marryat, 21 Beav., 14; S. Lanej^ 37 Ala., 338; Hatcher v. Hatcher, 1 McMullan's Eq., 311 ; Mos.s v. An- derson, 44 Cal., 3; Simmons v. Spruill, 3 Jones' Eq., 9; Ives v. Hazard, 4 R. I., 14; Spangler v. Danforth, 65 111., 152; Simpson v. Breckenridge, 33 Pa. St., 287. Parol evidence to identify the property sold.'] Wells, J., in Hurley v. Brown, 98 Mass., 545, says : "It is not a question of the sufficiency of the writing under the Statute of Frauds, so much as it is the right to resort to parol evidence in aid of the writing where an ambiguity exists in respect to the property intended to be sold, or to which the contract relates. The most specific and precise de- scription of the property intended requires some parol proof to complete the identification. A more general description requires more. When all the cir- cumstances of pos.session, ownership, situation of the parties, and their relation to each other and to the property, as they were when the negotiation took place and the writing was made, are discIo.sed, if the meaning and application of the writing, read in the light of those circumstances, are certain and plain, the parties will be bound by it as a sufficient written contract or memorandum of their agreement." Bee, also, Ross v. Parker, 72 Pa. St., 186; Murdock v. Anderson, 4 Jones' Eq., 77; Mead v. Parker, 115 Mass., 413; see, as to usage and customs in trade, Salmon Falls Manuf'g Co. v. Goddard, 14 How., 446; Barry v. Combe, 1 Pet., C40. STATUTE OF FEAUDS, ETC. 249 proval of a draft does not of itself constitute a con- tract. {(/) §489. The court will refuse to act even where it only "rests reasonably doubtful whether what jjassed was only treaty, let the progress towards the conlines of agreement be more or less-'X^**) § 490. But the mere fact, though appearing on the paper, that a more formal contract is intended to be executed, will not prevent a paper duly signed and containing all the terms from being a contract, an^' more than will a reference to deeds thereafter to be executed, (z) Therefore where A. wrote to B., "I offer you £3,000 for the estate," and B. replied. '^ accept your offer, and, if you approve of the inclosed, sign the same, and I will, on receipt of the deposit, sign you a copy" (the inclosure was not produced), the court held that there was a binding contract, and treated the inclosure as a mere means of carrying that contract into elfect;(y) and in another case, a correspondence about the taking of a house was held to constitute a sufficient contract, though the agent of the lessor accepted the offer thus, "These terms I have submitted to Mrs. S., and I am authorized to say they are accepted, and that her solicitor will draw up a proper agree- ment for sio:nature, which I will forward to you."(^) § 491. But wherever the formal contract contemplated is to be anything more than merely ancillary to the real con- tract — wherever any new term not expressed or implied in the earlier contract might be introduced into the formal one, the first document will not by itself be binding. And wherever the concluded nature of the arrangement does not evidently a^Dpear on the writings, the fact that a subsequent and more formal contract was intended to be entered into will be strong evidence that the previous negotiations were not intended to amount to a contract. (Z)' (g) Doe d. Lambonrn v. Peiigriph, 4 Car. & 1 Ke., 741 ; Cowley v. Watts, 17 Jur, ITi; and P., 312. Biipra, § JSti. (h) Per Lord Eldon In Hiiddleston v. Bris- (;') Glbbins v. North Kastcrn Metropolitan coe, 11 Ves., 592. Aevluni District, 11 Ucuv., 1. (i) Fowle V. Freeman, 9 Vi'!>., 351 ; Kennedy (Ai skinner v. M'I)o\vall,J DeG. A Sm.,2t». V. Lee, 3 Mer., 441. See per Lord Cranworth (/) Kidgwiiy v. Wharton, G II L. C , JSS, in Ridgway v. Wharton, (; II L. C, 264; per and particularly PP- '-*>*'. •^• Lord Langdale, M. K., iu Thomas v. Dering, ^ How to make a bindinr/ contract within the !. C. 83. Receipt for purchase money, when sufficient] Where the vendor of real estate .signs a receipt for a part of the purchase money, this may constitute a suth- 2o2 lllY ox SI'IX'IFIC PKia-OiniAXCE OF CONTRACTS. J< 494. "If," said Jessel, M. R , in another case, "there is a simple acceptance of an offer to pnrchase, accompanied by a statement that the acceptor desires tliat the arrange- ment should be put into sonin more formal terms, the mere reference to such a proposal will not prevent the court from enforcing the final agreement so arrived at. But if the agreement is made subject to certain conditions then speci- fied or to be specified by the person making it, or by his solicitor, then, until those conditions are accepted, there is no linal agreement such as the court will enforce. (?!) § 495. In a case in which estate agents received an offer for sale, and replied that they were instructed to accept it, and had asked their principal's solicitor " to prepare con- tract," it was held that notwithstanding these words the acceptance was complete, [u) § 490. In the case of Rossiter v. Miller, (?)) the agent of the plaintiffs (vendors) wrote to the defendant (purchaser) reciting a parol offer which the defendant had made to him, and accepting it on behalf of the plaintiffs, and said: "I have requested Messrs. H. & M. to forward you the agree- ment for purchase." The purchaser replied in terms of ac- ceptance ; and it was held by the House of Lords that the contract was complete, notwithstanding the expressed inten- tion to forward a formal contract. § 497. The statute requiring that the agreement, or the memorandum or note thereof, shall be signed by the party to be charged therewith, or his agent, and not requiring that it shall be signed by both parties to the contract, it has (t) Crossley V. Maycock, L R. 18 Eq., 181. observations ef James, L. J., in Smith v. (M) Honnewell v. Jenkins, 8 Ch. D., 70. Webster, 3 Ch. D., 56, and rlistinguish Brif n (V) 3 A pp. C. 1124, reversing the decision v. Swainson, 1 L. K. Ir., 135. of the Court of Appeal, 5 Ch. D., G48. Cf. the cient memorandum of sale, where it describes the land sold, and states the price. Westervelt V. Matherson, 1 Hoffm.'s Ch., 36; Barrickman v. Kuyken- dell, 6 Black., 21; Ellis v. Deadman, 4 Bibb., 406; Soles v. Hickman, 20 Pa. St., 180; Holman v. Bank of Norfolk, 12 Ala., 369. All the terms oftlie contract must be assented to on both sides, in order to take such contract out of the statute by letters. Nesham v. Sclby, L. R., 13 Eq., lUl; aff'd, L. R., 7Ch.,406. States in ichich the consideration need not be expressed in the icriting.'\ Illinois, St. of 1877. vol. 3, p. 210, §§1,2; Indiana, St., ch. 66, § 1; Kentucky, K. S., ch. 22 ^ 1; Maine, R. S., ch. 3, § 1; Massachusetts, Gen. St., 1873, ch. 105, ^ 2; :>Iichigan, Comp. Laws, 1871, ch. 100, i< 9; Nebraska, St., 1873, ch. 25, § 24; Virsiinia, Code 1849, ch. 143, |5 1; West Virginia, Code, ch. 98, §1. STATITK OF FRAI'DS, ETC. 253 been held botli in the courts of equity, (w) and coninioii law,(cT) that a signature by the party against whom the con- tract is sought to be enforced is sufficient. § 498. The statute requires a signature and n(jt a suij- scription ;(?/) therefore all that is requisite to satisfy the statute as to the signature is, that the name be inserted ])y the party in such a manner as to govern and autlienticate the entire instrument. Accordingly, a letter l)eginning "Mr. Foljambe presents his compliments" was held didy signed.(2r) The same was the case where A. wrote, "A. has agreed," etc.;{a) and where B. wrote "A. agreed with B.," etc. (5) An affidavit made by a person has been also held sufficient, (c)' (w) See supra, § 440. («) Ogilvie v. Foljambe, 3 Mer., 53 {X) Kgertonv. Mathews, G East, 307; Allen (o) Propert v. Parker, IK. & Mt , o:-">. V. Bennet, 3 Taunt.. 16i); Laythoarp v. Br>- See. also. Western v. KusBell, i \ . & ii , \>, ; ant, 3 Hing. N. C, 735. See. the editors' note Morieon v. Tumour, 18 \ es., \,o. to Sweet V. Lee, 3 Man. & Gr., 402. {b) Bleakley v. Smith. 11 Sim., I.jO. (w) Per Lord Westbury in Caton v. Caton, (c) Barkworth v. louug, 4 Drew., 1. L. K. 2 H. L , 142. 1 States in which the writing must be '^subscribed" by the party to be cJiarged-l Alabama, Code of 1867, g 1862: California, Code, § 1624; :Miclii.iran, Coinp. Laws 1871, ch 166, i^ 8; Minnesota, St. of 1873. vol. 1, pp. 691, 692, ^.^ 6. 12; New York, R. S. (6t'h ed.), vol. 3, pp. 141, 142; Oregon, Gen. Laws 1872, ch. 8, § 775; Wisconsin, St. of 1871, vol. 2, ch. 10(3, g 8. In New York, where the value of the property is more than fifty dollars, the agreement must be signed by both parties. Justice v. Long, 2 Rob. , 333. Who must sign the memorandum.'\ It depends entirely upon the language of the statute: where the same provides that it " sliall be signed by the parly to be charged," it is sufficient if the party or his authorized agent, aganist ■whom it is "sought to be enforced, has signe'd it; but in tho.se States where tlie ■writing is recpured to be " subscribed by the party or his agent making the lease or sale," it is indispensable that he should sign it. Ilatton v. Gray. .'» \ in. Abr., 525; Buckhou.se v. Crosby, 2 E(i. C"as. xVbr., 32; Egerton v. Matlicws, b Ea.st, 307; Allen v. Bennett, 3 Taunt . I(i9; Laythropc v. Bryant. 2 Bing. ^N. C), 735; Fararell v. Lowther, 18 111., 252; Ivorv v. Murpliy. ;J6 Mo.. 534: Smith v. Fleck's App., 6!) Pa. St . 474; Perkins v. Adsell. 50 111.. 216; Estes V Furlong 59 id., 298; Barstow v. Grav. 3 .Me., 409: Getehel v. .lewett. 4 id . aoO- ]\I()rin v. Martz, 13 Minn., 198; l)om,dass v. Spears. 2 Nott A: McConl, 207' Old Col. R. R. Co. v. Evens, 6 Grav, 25; Fenley v. Stewart. 5 Sandf., 401; Justice v. Lang, 42 N. Y., 493: S. C, 52 id., 323; AVarrall v. Mann. 5 id.. 229; Bleccker v. Franklin. 2 E. D. Smith. 393; Van Sault v. Edwards. 43 Cal.. 4.>S; Ruttenburudi v. :Main, 47 id., 213; Lowrv v. MehalTy. 10 Watts. 387: Tripi) v. Bishop ,56 Pa. St 424; Slater v. Smith, 117 3Iass , 90; ^\ oodward v. Aspm- Avall 3' Sandf., 272; :McCiea v. Purmort. 16 Wend., 460; SlurUy v. ShcrUy, 7 Blackf., 452; Cabott v.Cabott, 3 Pick.. 83: Ives v. Hazard, 4 K. 1.. 14; 1 arish V. Koons, Parson's Sel. E(i. Cas., 76. The word -'signed" in the statute.] The English statute provides tliat the ■writing .shall be "«V//i(rf." This languaire has been adopted by many of the States, viz.: Arkansas, St.. ch. 73, ?; 1; Illinois. St. (ed of 1874). vol. 3. P- 210; Iowa. Code of 1873. i? 3663; Kentucky, R. S.. ch. 22. S; 1 : Ma.s.s,uhu,setls. H. ^.. ch 105. ij 1; Missouri. St. of 1870. ch. 62, ^ 5; Nebia.ska. M. of 18.3. ch. V). § 5; New Hampshire. St. of 1867. ch. 201. t^ 12: New .lerscy. Nixon s l)|i:. (4th ed.) p. 358. ii 4: North Carolina, Code. ch. 50. ^ U; Ohio, R. b. of 18.0, ch. 47, i5 5: Rhode Island, St. of 1872, ch. 193, ^ 8; Tennessee, St. of 18.1, 254 FIIY ox SPKCirif rERKOiniANCK OF CONTKACTS. § 199. Tlie siuiiatm-e must l)e tile actual writing of the ii:niie, or the doinu' of some act intended by the person to bn equivalent to the .-ictual signature of the name, such as a murk by a marksman. Therefore a letter beginning "My dear Kobert," and concluding Avith the words ''Do me the justice to believe me the most affectionate of mothers," was held not to be signed within the statute. (fZ) jj 500. A signature in pencil is not necessarily delibera- tive, and may be equally binding within the statute as one in ink.(e) And even a printed name may avail ; so that where a vendor inserted in a printed invoice with his name on it the name of the x>ni"chaser, it was held that there was such a ratification and adoption of the printed name as made it a signature, and satisfied the statute. (/') In like manner a stamp may, no doubt, be used for the purpose of signing. (.(/) And the writing of the name of the sender of a telegiam by the telegraph clerk, where the sender hcid himself signed the instructions for the message, has been held to be a good signature by an agent in that behalf. (^)' It seems, too, that the setting down of the initials may be a sufficient signature. (/) § 501. It cannot be denied that there is some conflict of authority on the question, how far the writing of his name by the jjarty must be with the intent of signing. There is (cuted, the legal title is acquired, it is a fraud in the purchaser to refuse to do what was promised, and claim to hold discharged of it, which will constitute him a trustee ex maleficio." Sharswood, J., in Wolford v. Herrington, 74 Pa. St., 311 : Wells, J., in Glass v. Hulbert, 102 Mass., 24, holds in a case where "the pro- posed reformation of an instrument involves the specific enforcement of an oral agreement within the Statute of Frauds, or where the terms sought to be added would so modify the instrument as to make it operate to convey an in- terest or secure a right which can only be conveyed or secured through an iusstru- ment in writing, and for which no writing has ever existed, the Statute of Frauds is a sufficient answer to such a proceeding, unless the plea of the statute can be met by some ground of estoppel to deprive the party of the rights to set up the defense. The fact that the omission or defect in the writing, by reason of which it failed to convey the land, or express the obligation which it is sought to make it convey or express, was occasioned by mistake, or bv de- ceit and fraud, will not alone constitute such an estoppel. There must occur, also, some change in the condition or position of the party seeking relief, by reason of being induced to enter upon the execution of the agreement, or to do acts upon the faith of it, as if it were executed with the knowledge and acquiescence of the other party, either express or implied, for which he would be left without redress if tlie agreement were to be defeated." See, also, Wil- son V. Watts, 9 Md., So^i; Heth v. Woodbridge, fi Rand, 605; Chetwood v. Brittin, 1 Green's Ch., 438; Luckett v Williams, 37 Mo., 38«; Espv v. Ander- son, 14 Pa. St., 30'^; Markle v. Wehrheim. 32 111., 534. The respondent is entitled to more latitude in the introductions of parol proof to vary a written agreement, than is the petitioner. Quinn v. Roath, 37 Conn., 16. Where the parties agree, in the writing itself, that parol evidence may establish its terms, it is, of course admissible. Fowler v. Redicom, 52 111., A(^% Rule where the properij/ lias been obtained b>/ frai/d.] "If the defendant en" tered into the arrangement with the premeditated design to mislead the confi- dence of the plaintiff, and of practicing upon his credulity and want of caution to get the title of the property into his own hands, and then convert it into tlie means of oppressivelv using it for his own benefit, the case would be out of the Statute of Frauds." Storv, J., in Jenkins v. Eldridge, 2 Story, 181 ; see. also. Kinard v. Hierz, 3 Rich's Eq., 423; Teague v. Fowler, 56 Ind., 563; McDonnald V. :Mav. 1 Rich.'s Eq., 95; Schmidt v. Gatewood. 2 id., 162; Gill V. Bickuell, 2 Cusli , 355; Willink v. Vanderveer, 1 Barb , 599. JVo ovisideraiionfor the parol agreement.'] The Statute of Frauds always ap- plies to a contract, in a case where the only defense is, that one party was guiltv of a fraud in refusing to perform his part of the agreement: e. ;/ . A and B. both being present at the sale, made a verbal arrangement to the effi ct that A. should bid off the estate in his own name, pay the vendor, and enter into a written contract for the purchase of the land; that the same should be con- vened to them as tenants in common, B. agreeing immediatelv to refund one- hnlf of the price paid bv A.: both parties mutually agree! to join in the mort- gages required to be given; all of which was done. Held, "a p Wood V. Savage, Walk. Ch., 471; see Livingston v. Livingston, 3 .John.'s Ch., 537, decided by Kent, Ch.; Argenbright v. Campbell, 3 Hen. & M., 144. 2 See Bean v. Yalle, 2 Mis. , 126. But a different rule is laid down, at law, in Stern v. Drinker, -^ E. D. Smith, 401. In that case, which came before the court on appeal, the plaintiff's complaint alleged that he recovered a judgment a."-ainst one Nusbaun for |45; that he issued an execution thereon, and levied on sufficient property of the defendant to satisfy the judgment; that the de- fendant agreed with him, that if the plaintiff would release and abandon the levy, and "deliver the property to the debtor, he, the defendant, would pay the plaintiff the amount of the said judgment; that the plaintiff did abandon such levy, and therefore claimed to recover from the defendant the amount of the judgment. But the complainant did wd state that this promise was in writing." Woodruff, J., in delivering his opinion, said, * * * " this is the first instance within my observation, in which judgment was ever ordered for a defendant, upon a demurrer to a declaration, because the promise declared upon was not averred to be in writing. It is not necessary, in declaring upon a promise (although it be confessedly within the statute, and if not in writmg, void), to aver that it was written. It is suflicient for the plaintiff if it appear in evidence on the trial in writing. And for the well-settled reason that the statute introduces a new rule of evidence only, and not a new mle of pleading. And this rule is applicable to all contracts within the statute. Whether the evidence will support the claim, is a question which does not arise upon the 2)leading, but upon the trial of an issue thereon. For it is only necessary in pleading to state the legal effect, to wit, the promise. And if it appears on the trial that the defendani made no binding promise, then in judgment of law he made no promise." In support of this position, were cited Roberts on Frauds, 156, 202; Buller's N. P., 279; 3 Burr., 1890; 1 Saund. R., 276, note 2, to Duffe V. Mayo; Case v. Barber, 3 Raym., 451; Birch v. Bellamy, 12 Mod., 540; Hutchinson v. Hew.son, 7 T. R. 350, n.; 3 id., 159; Read v. Brookman, by Lord Kenyan, 2 Chit. PI., 121, n. s.; 123, n. x. ; 2 Saund. PI. and Ev., 546; see, also, on tills point, the case of Miller v. Upton, 6 Ind., 53. STATUTE OF FRAUDS, ETC. 273 ing prevails in all the divisions of the high coui-t : and now an allegation of a contract is sufficient without stating it to be in writing, and the defendant who admits the contract in fact, but denies its sufficiency with regard to the statute, must specially raise the point by his defense. (/)' § 537. Another important provision of the rules is to the effect that where a contract does not arise from an express agreement, but is to be implied from a series of letters or conversations or otherwise from a number of circumstances, it is sufficient in pleading to allege such contract as a fact, and to refer generally to such letters, conversations, or cir- cumstances without setting them out in detail ; and that if in such a case the i^erson so pleading desires to rely in the alternative upon more contracts than one, as to be imx)lied from such circumstances, he may state the same in the alternative. (,y) 3. What takes a contract out of the statute. § 538. Courts of equity hold that, notwithstanding the express language of the statute, a case may be taken out of its operation by any one of the following circumstances : (1) by the sale being by the court ; (2) by an admission in the defense of a contract in fact, where the defense does not insist on the statute; (3) by fraud, (/l*) and (4) by a parol contract and part performance, which is, as we shall see, but a particular case of fraud. In the two first cases the reason is, that the danger of that which the statute was meant to guard against does not arise, and in the third and fourth that the statute shall not be made use of to cover a fraud. § o39. (1) It was held that a sale in the court of chancery by private contract, in pursuance of an order confiiming a (i) Ord. SIX. r 23. Cf. as to the distinct- (i) Ord. XIX, r. 27. . , , , ness now required in pleadings, Byrd v. (k) See, too, Intra, § ifel: (mistake). Nunn, 7 Ch D., 284; and see supra, § 485. 1 The statute of frauds is no defense where the coutract is admitted, and the defendant fails to plead the statute. Morse v. Merest, 6 Mad., 26; Ridgway v. Whorton, 3 De G. M. & G., G77; Lincoln v. Wright, 4 id., 1; .Jenkins v. El- dridge, 3 Story, 181; Willink v. Vanderveer, 1 Barb., 599; Trapnall v. Brown, 19 Ark., 39; Shield v. Tramell, id., 51; contra, Box v. Starford, 13 Smed. & Marsh., 93; see, also, Glass v. Hulbert, 102 Mass., 38. 18 274 FRY ON SPECIFIC PEllFOKMANCE OF CONTRACTS. master's report," was exempted from the Statute of Frauds, and consequently might be enforced against tlie representa- tive of a purchaser who had not signed it. (Z) The consid- erations upon which tliis decision was based are that the judicial character of the proceeding is such as to jorevent the hazard of uncertainty and perjury which the statute was intended to prevent, and moreover that, in such a case, the purchaser having been a party to the proceedings in which the order for sale to him was made, is bound by the order, and Avould be guilty of contempt in refusing to pay the 2:)urchase money. § 540. The same rule was held to apply to sales in the ordinary way by auction before a master, (?7z) and would no doubt apply to sales under the present practice ;(7z) but not to ordinary sales by public auction, because, it is said, such sales might be without written or printed particulars and conditions, and also, no doubt, because they are in no way proceedings connected with the court. (o) § 541. (2) An admission of a parol contract in the answ^er of a defendant to the bill of complaint was, under the old practice, held to take the case out of the statute where the answer did not insist upon the statute, and this because the admission took the case out of the mischief which the statute was designed to remedy. C^;')'' Another reason sug- gested for the rule was that the contract, though originally in parol, was, after admission, evidenced by writing under the signature of the party, which would be a sufficient compliance with the statute as interpreted by the decided cases. (§') (I) Att-Gen. V. Day, 1 Ves. Sen., 218; per (o) Blapdeii v. Braflbear, 12 Vrs., 466,472. Grant, M It., in BlagdtMi v. liradbear, 12 Ves., See, too, Mason v. AraiUagc, 13 iil , 35 472; per Lord Cottenham In bx parte CiUts, (p) Gunterv Halser, Ainbi., 586; Liinond- 3 Deac , 207: Lord v Lord, 1 Sim., 503. sou v. .'iweed, GIU>., 35. See, aiso, per Lord (m) Att -Gen. v. Dav, ubi supra. Rosslyn in Kendeau v. Wyatt, 2 II. Bl , 68. («) See St. Leon. Vend , 86; Uart, Vend , (,q) Story, Kq. Jur., § 75o. 197 (5th ed.). ' See the cases of Gordon v. Sims, 3 McCord's Ch., 151, and of Jenkins v. Hogg, 2 Const. Rep., 821. Cases of tliis class are there rather considered to resf upon the same basis as ordinary auction sales — i. e., the fact that the mas- ter or commissioner is essentially the agent of both parties— than treated as exceptions because of their legal nature. - Woods V. Delle, 11 Ohio, 455. But the doctrine is firmly established that, even where the answer confesses the parol agi-eement, if it insists, by way of defense, upon the protection of the statute, the defense must prevail as a com petent bar. Story's Eq. PI., § 763; Thompson v. Todd, 1 Pet. C. C, 388; STATUTE OF FRAUDS, ETC. 275 § 543. The substantial result of the present system of pleadini!,- is to continue this effect of an admission of the contiact in fact, and furthermore to treat tlie contract as admitted unless it is actually denied. For it results from the rules of court, (^") that if the contract be not expressly- denied to exist in fact, and expressly stated not to satisfj^ the Statute of Frauds, it will be held that the defendant has admitted both its existence and its sufficiency to satisfy the statute. § 543. In the case of the death before judgment of the person making such an admission, his representatives will be bound by his admission on being made parties to the ac- tion in the manner provided by the rules. (.9) But the ad- mission b}^ a vendor that he had contracted to sell an estate to a person since deceased will not bind the personal repre- sentatives of such deceased purchaser ; nor will an admis- sion by a purchaser that he had contracted to buy an estate bind the real representatives of the alleged vendor ; for it is now clearly settled that, in order to entitle the real or per- sonal representative to enforce the execution of a contract to the ijrejudice of the other, there must have been, at the death of the deceased contractor, a contract by which he was legally bound, and which the court would have com- pelled him specifically to execute ; and it is consequently open to any of the parties interested, notwithstanding the admissions or submissions of any of the other parties, to take every objection which the deceased might himself have taken if living, (z^) Thus the admission of a contract by the executors of a testator, will not bind the residuary legatee. (?/.) 5< 544. (3) The principle upon which the court regards fraud as forming an exception to the statute was stated by Lord Eldon as follows: "Upon the Statute of Frauds, though declaring that interests shall not be bound except (r) Orrl \IX rr 17 "0 23 11 W-. ^■IS, overruling Laeon v. Merlins, 3 (.s) Att.'Gen.'v.bay,"l've8. Sen., 218,221; Atk., 1 _ see, also, Potter v. Potter, 1 Ves. Ord L rr " i 5 Sen., 437. (i) BilckHLaster v. Harrop, 7 Ves., 341 ; S. (n) Buckmaster v. Ilarrop, 7 Ves., 341 ; S. C, 13 id., 4r>G. See Earl of Uailnor v. Shafto, C, 13 ul., 4.56. Steams v. Hubbard, 8 Greenl., 330; Harris v. Knickcrbackcr 5 Wonrl., G38; 1 Suo- Vend & Purch. (G Am. cd.). 137; Whitbrcad v. Brockhurst. 1 Bro. C. C. (Am. ed., 1844), 407 (note 3) ; Wbitcburch v. Bcvis, 3 id., 009 (note i); Moore V. Edwards,' 4 Ves., 23 (note a). 276 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. bv writing, cases in this court are perfectly familiar decid- ino- that a fraudulent use shall not be made of that statute ; where this court has interfered against a party meaning to make it an instrument of fraud, and said he should not take advantage of his own fraud even though the statute has de- clared tliat, in case those circumstances do not exist, the instrument shall be absolutely void," One instance is the » Fraud on the j>art of tlie defendant.'] "The rule that fraud takes the case out of the statute is too well-settled to admit of doubt; and for the purpose of showin"- that fraud has been committed, or is being attempted, parol evidence has alw-^ivs been held to be admissible. The difficulty has been in determining what amounted to fraud in the particular case; and to this difficulty is reiera- ble'those conflicts of opinion which seem occasionally to have trenched upon the rule itself. The rule, however, is universally acknowledged, and there is no case, in which the conduct of the defendant was held to be fraudulent, that he has been allowed to shelter himself behind the statute." Cope, J., in Hid- den v Jordan 21 Cal., 93; see, also, Fannin v. McMullin, 2 Abb. Pr. (N. S.), 224; iiyan v.'Dox, 34 K Y., 807; S. C, 36 id., 511; Nelson v. Worrall, 20 Iowa, 469. Statuteof Frauds, no defense for fraud.'] "We recognize the doctrine, then, that a court of equity will not permit the Statute of Frauds to be set up as a defense by a party infected with fraud, and that parol trusts of real estate may be established in'direct contradiction to the statute on the ground of fraud ; and that whenever a case of fraud is made out by the bill, parol evidence will be received for the purpose of sustaining the case, even though the effect of such evidence be to alter or vary a written instrument, and though the benefit of the statute be insisted upon by the defendant." Miller v Gotten, 5 Ga., 346. See, however, Woodward, J., in McCulloch v. Cowher, 5 Watts & Serg., 4-27, where he says, "unless there be something in the transaction more than is implied from the" violation of a parol agreement, equity will not decree the pur- chaser to be a trustee. And the distinction is indispensable, otherwise there would be a repeal of the statute, under the pretense of preventing fraud, by decreeing an express trust, which would be introductive of the very evils the statute was designed to prevent." Parol trust in fraud of creditors.] A parol trust cannot be set up, where the effect or design is to delay, hinder or defraud creditors. Murphy v. Hubert, 16 Pa. St., 50; S. C, 7 id., 420; Hills v. Elliott, 12 :Mass., 26. Fraud at puUic sale.'] " It is not now an open question that, when a party a<^rees before the sale to purchase property about to be sold, under an execu- tion ao-ainst a party, and to give such party the benefit of the purc])ase, the asreement is binding, and will be enforced. The defendant, upon the faith of such agreement, may have ceased his efforts to raise the money for the purpose of paying off the execution, and thus preventing a sale of his property. It will not do to say that the party promising was moved merely by friendly or benevolent considerations, and may, therefor, at his option. d"ecline a compli- ance with his agreement. Such considerations constitute the foundation of almost every trust, and the trustee should be held to account, as nearly as pos- sible, in the same spirit in which he originally contracted. But it is said that the ao-reement, if in fact made, was void under the Statute of Frauds. The statufe has reference alone to a sale of lands, and not to a contract to purchase of one person for the benefit of another." Per cunam in Soggins v. Heard, 31 Miss., 428; see, also. Walker v. Hill, 21 N. J. Eq., 191; Sandfoss v. .Tones, 35 Cal., 4S1. " Can it be tolerated that a creditor shall, at a sale of his debtor's property, lull him to sleep, and keep off other purchasers by an agreement under which he buys in the land for a small sum much below its value, and then that he shall declare that the agreement was void under the Statute of Frauds, and that the other party should have no benefit from the agreement, whilst he reaped STATUTE OF FRAUDS, ETC. 277 case of instruction upon a treaty of marriage ; the convey- ance being absolute, but subject to an agreement for a de- feasance, Avhich, though not appearing by the contents of the conveyance, can be proved aliunde — and there are many other instances. ' ' {v) § 345. Thus, if it can be shown that the written contract which is sought to be enforced Avas only signed in conse- quence of some collateral contract having been come to, the plaintiff must either submit to the collateral contract or have his action for specific performance dismissed ; and this, although the collateral contract is not evidenced in writing. Thus, in Clarke v. Grant, (zy) where trustees of a charity sought specific performance of a written contract to take a lease, and the main defense was a parol contract of the same date as the written one and alTecting the parcels, Grant, M. R., held that evidence to prove the parol contract was admissible, and that, if it were proved, it would be against equity and a fraud on the defendant to insist upon his per- formance of a contract, which he had only signed on the faith of an alteration being made in one of its terms. § 346. In the last-mentioned case the defendant set up the collateral contract ; but the cases go much further, and show that the plaintiff may, on the ground of fraud, obtain the benefit of a collateral parol promise which the person who claims under the written contract fraudulently refuses to recognize. In one case Lord Thurlow allowed the plain- tiff to give parol evidence that, at the time the contract {V) Mestaer v. Gillespie, 11 Ves., 627. {w) 14 Ves., 519, 525. all the fruits ? Surely not. Courts of justice would be blind, indeed, it they could permit such a state of things." Fraud must be at the time of the sale.'\ In Wheeler v. Reynolds, 66 N. Y., 227. it was lield that where fraud was relied upon in a purchaser at a sherill s sale, to make such purchaser a trustee ex maleficio, that it must be found at the time of the sale. Mortgage properti/ frauchiknily purchased.^ "But even in this class of cases so important it is to maintain the utmost confidence in the efhcicncy of judicial sales, the purchaser should be protected against all pretenses of a trust by parol, unless his ?H(//rt>(/('.5 be proved by the clearest and most complete evi- dence. But where such demonstrative proof exists, and where the contract between the defendant in execution, and the ]nirchaser, is not of such a charac- ter as to affect injuriously the rights of creditors, a court of equity will frus- trate the contemplatable fraud by enforcing the contract specitically between the parties." Beaslev, C. J., in Merritt v. Brown, 21 N. J. Eq., 401; see, also, Green v. Ball 4 Bush, 586; Combs v. Little. 3 Grei n's Ch., olO; iMarlatt v. Warwick, 18 K J. Eq., 108; S. C, 10 id., 480; Rose v. Bates, 12 Mo., 30. 278 FIJV ox Sl'i:clFIC rKlJFOKMAKCE or CONTRACTS. (vvliicli was subsequently reduced tf) writing) was entered into, an undertaking had been given by the assignee of the lease to tlie assignor for indemnity against tlie rents and covenants ; his lordship laying down that, ^' where the ob- jection is taken before the party execute the agreement, and the other side promise to ratify it, it is to be considered a fraud on the party if such promise is not kept.(rr) § 547. So, in -the case of transactions which are really for mortgages or charges, if the written instrument be in terms absolute and have been obtained on a promise to exe- cute a defeasance, or if the clause for redemption have been fraudulently omitted, the mortgagor or chargor has been allowed to come to the court and to reduce the absolute conveyance to a mortgage or charge, (j/) § 548. So, again, in Jervis v. Berridge, ( >") where the plain- tiffs assigned the benefit of a contract to the defendant upon certain terms, some only of which were reduced into writing, it was held that, under the circumstances of the case, the memorandum was only ancillary to the verbal contract, and any use of it by the defendant for a purpose inconsistent with the verbal contract was fraudulent. Lord Selborne, in the course of his judgment, (a) stated the principle now in discussion in words which have already been quoted. (Z>) § 549. So, again, if A. have in his hands money of B., and at B.'s request lay it out in the purchase of an estate, A. cannot, on the ground that the land is conveyed to him, claim the estate as his own, and exclude parol evidence that he was a trustee for B.(c)' (X) Pembcr v. Mathers, 1 Bro. C. C, 52. (a) L. R. 8 (;h., 360. In his speech in the Cf fincllinff v Th.-mas, h. R. 17 Eq , 303. House oi L'^rds. in liussey v. Ilorne-Payne, where the plaintiff failed to establish tnecul- 4 App. C , 323, Lord Selborr.e expr-ssly re- lateral contract alleged by hlni afflrme(i the doctrine laid down lu the quota- (»/) 1 Eq Ca Abr., 20, pi. 5; Walker v. tion relerred to in the text. Walker, 2 Atk., 98; England V. Codringt'.u, (6) Supra, § 502. , t,„i „ 1 Eden, 169; Williams v. Owen, 5 My. & Cr.. (c) Per Kindersley. V. C, in Lincoln v. 303. 306 ; Lincoln v. Wright, 4 De G. & J., 16 ; Wright, 28 L. J . Ch. , 707 n. ; S. C , on appeal, Dougla.s V. Culverwell, 3 GllT., 251; S. (J., 4 4 De G. & J., 16 See Ryall v. Kyall, 1 Atk , De G F & I 20 59; WilU.s v. Willis, 2 id , 71 ; per Grant. M. (z) L. K. 8 Ch., 351. R • i" Leuch v. Lench, 10 Ves., 517. ' ImpUed tnisf.-i are nof tltOHe to inhtch the Siniute of Frauds referx.'] Bigelow, J., in Stone v. Hackett (12 Gray, 227), says: "It is certainly true that a court of equity will lend no assistance toward perfecting a voluntary contract or agreement for the creation of a trust, nor regard it as binding, so long as it re- mains executory. But it is equally true that if such an agreement or contract be executed by a conveyance of property in trust, so that nothing remains to be done by the grantor or donor to comiilete the transfer of title, the relations of trustee and cestui que trust is deemed to be established, and the equitable rights and interests arising out of the conveyance, though made without consideration, I STATUTE OF FRAUDS, ETC. 279 § 550. Ill all these cases, to exclude parol evidence and to adjudge specific performance of tlie contract as evidenced by the writing alone, would be to work the very mischief which the statute was intended to prevent, viz., to fix the party sought to be charged with a contract which he never, in fact, entered into.' § 551. So, again, the want of writing could not be set up successfully by a man who had fraudulently prevented the writing from coming into existence. (2; Williams v. 3Iorris, 5 Otto, 457; Evans v. Lee, 12 Nev., 393; Ryan v. Dox, 34 N. Y., 307. STATUTE OF FRAUDS, ETC. 28B contract. "In tlie real contract," says Sir Henry Maine, "performance on one side is allowed to im})()se a legal duty on the otlier, evidently on ethical grounds." (/i) § 557. In order thus to withdraw a contract from the operation of the statute, several circumstances must concur: 1st, the acts of part performance must be such as not only to be i-eferable to a contract such as that alleged, but to be referable to no other title : 2ndly, they must be such as to render it a fraud in the defendant to take advantage of the contract not being in writing : 3rdly, the conti-act to which (k) Ancient Law (6th ed ),. ^2. See, also, pige 338. Wftat must be sliown, in order that part performmice may take agreement out of the operation of the statute.'] Where part performance is relied upon, it must be something performed with the actual or constructive knowledijce and assent of the other party. It must directly refer to the agreement, and be a partial execution of it ; and the party who seeks to complete the same must be dam- aged, if it is not enforced. Anderson v. Chick, 1 Bailey's Eq., 118; Smith v Smith, 1 Rich.'s Eq.. 130; Hatcher v. Hatcher, 1 McMull.'s Eq., 811; Woolf V. Frost, 4Sandf.'s Ch., Ti; Eckert v. Eckert, 3 Prim. & Watts, 333; Dale v. Hamilton, 5 Hare. 381; Buckmaster v. Hanop, 13 Ves., 4.'56; Lacon v. Meetius, 3 Atk., 1; Powell V. Lovegrove. 8 De G. M. & G., 357; Eaton v. Whiltaker, 18 Conn., 22:i; Kidder v. Barr, 35 N. H., 235; Moale v. Buchaunan, 11 Gill. & John., 344; Morphett v. Jones, 1 Swaust.. 172; Peckham v. Barker, 8 R. I., 17; Richmond v. Foote, » Lans.. 244; Hedrick v. Hern, 4 W. Ya., G20; Welsh v. Bayard, 21 N. J. Eq., 18G; Lester v. Kinne, 37 Conn., 9; Billiugslea v. Ward, 33 Md , 48; Wright v. Puckett, 22 Gratt , 370; Davenport v. Mason, 15 Mass., 84; Stoddart v. Luck, 4 Md. Ch., 475; Semmes v. Worthiugloii, 38 Md., 289. Part performance must have sole relation to the agreement.'\ In order that a parol contract for the sale of land may be removed from the operation of the Statute of Frauds, the evidence must establish the following facts: The bounda- ries of the land audits quality; the amount of consideration must be fixed; possession must be taken under the agreement soon after it was made; change of possession must be continuous, notorious and exclusive, and the part per- formance must be such that he cannot be reasonably compensated in damages. Hart V. Carroll, 85 Pa. >t., 508. The acts of part performance which will be sufficient to prevent the opei-ation of the statute must be certain, and refei- to an agreement of which they form a part, and which they partially execute; they must have no other end in view than the contract in question. Wheekr V. Reynolds, GO N. Y., 227; Thyue v. Lord Glengall. (i H. of L., 153; Ralhbuu V. Rathbun, C. Barb., 98; Mundorff v. Howard, 4 ild., 45!J; Aday v. Echols, 18 Ala., 353: Whitridse v. Parkhurst, 20 Md , (52 ; Brema v. Wilson, 17 N. J. Eq., 18<»; Smith v. Crandall, 20 Md., 482; Bnntou v. Smith, -0 :<- H., 352; Charpiot v, Sigersou, 25 Mo., 63; Wallace v. Brown, 10 N J. E.|., 3U8; Cole V. Potts, id., 67; Williamson v. Williamson, 4 Iowa, 279; Eyre v. Eyre, 19 N. J. Eq., 102; Petrick v. Petrick, 19 id., 3;-!9; Goodhue v. Barnwell, Rice's Eq., l!)8; Owiugs v. Baldwin, 8 Gill., 337; Carlisle v. Flemming, 1 Harring. (Del.), 421. The question of assent should he carefully considered.'] A contract cannot be predicated upon a chance or loose conversation, notwithstanding the ])arties may seem to have come to an agreement The que.-tion of assent shou'nl be carefuUv considered as it is important; ail the attendant circumstances should be Aveidied as well. The following instruction was held sound, and sustained. "If the jury believe that all the terms of the contract were not finally arranged the first day, but that the entire contract was to be arranged and reduced to writing the next day, there was no binding contract between the parties unless a contract was proved to have been made on the next day, or on some subse- quent day." Per curiam, Brown v. Finne}', 53 Pa. St., 373. 284 FRY ON SPECIFIC PEIlFOmrANCE OF CONTRACTS. tliey refer must be such as in its own nature is enforceable by the court : an-l 4thly, th>^ve TTiiist l)e 2:)roper parol evidence of the contract which is let in by the acts ofpart i)erfoniiMnce. jj 058. First, then, it seems evident that all that can be gathered from acts of pjart performance is the existence of some contract in pursuance of which they are done, and the general character of the contract : they cannot, unless pos- sibly in some very singular case, be themselves sufficient evidence of the particular contract alleged, because they cannot in themselves show all the terms of the contract from which they flow. They may be evidence of an un- known contract, but the making known what that contract is, must be the result of the evidence which the acts in question are allowed to introduce. (Z) It cannot be denied, that there is some want of exactitude in the statements sometimes made in this respect, as, for instance, where it is said that the acts must, be referable to the alleged contract ; and Lord Redesdale seems to have held that, to admit parol evidence, the part performance must be such as to show the very same contract as the plaintiff alleged. So, that in a case where the plaintiff stated a parol contract for a lease for three lives, and payment of rent in part per- formance, and the defendant admitted a contract, but for one life and not for three, his lordship said that the Statute of Frauds put it out of the power of the court to execute the contract for the lease for three lives, the part perform- ance being perfectly consistent with the contract alleged by the defendant, and that, therefore, there was no case to ad- mit proof of a further contract, (m) § 550. The true principle, however, of the operation of acts of part performance seems only to require that the acts in question be such as must be referred to some contract, and may be referred to the alleged one ; that they prove the existence of some contract, and are consistent with the contract alleged. This is very well illustrated by a case in the common pleas on the 17th section of the Statute of Frauds, by which acceptance is treated as such an act of part performance as disp>enses with the necessity of (0 SeeperLorfl Vlvanlev, M. R , in Forster (m) Limlsav v. Lynch, 2 Seh. & Lef.,1,8. V Hale, 3 Ves., 71'2; per Wigram, V. C, in See infra, § 613. Dale V. Haiiiiltoii, 5 Ua., 381. STATUTE OF FRAUDS, ETC. 28.") writing, (tz) It was there held that bare acceptance of the goods by the vendee was sufficient to satisfy that section of the statute, so that, although the vendee, immediately after accepting them, stated that he did so on terms differ- ent from those on which the vendor delivered them, yet the acceptance having established the fact of a contract of sale, parol evidence of its terms was admissible. It was there strongly urged that tlie acceptance must be equivalent to a memorandum in writing, and must show all the terms of the contract ; but the doctrine was denied by the learned judges, both during the argument and by their decision of the case. Williams, J., in the course of his judgment, said, "The legislature has thought that where there is a fact so consistent with the existence of a contract of sale as the actual acceptance of part of the goods sold, the necessity of a written evidence of the contract might safely be dis- pensed with. But it is clear that it was not meant to go to all the terms of the contract ; and that acceptance is no evi- dence of the price, but only establishes the broad fact of the relation of vendor and vendee. So, where there is proof of part performance, the jury must settle all the other facts that go to make up the contract, "(o) § 360. In like manner Mr. Austin, in one of his Frag- ments, has called attention to the "distinction between such solemnities of a contract as are merely evidence of a con- tract, and such as are evidence of a contract and of its terms:' "Earnest, for instance," he adds, "is merely evi- dence that a contract was made : its subject, its terms, etc., must be established by evidence allunde:\iS) § dGl. To make the acts of part performance effective to take the contract out of the Statute of Frauds, they must be consistent with the contract alleged and also such as can- not be referred to any other title than a contract, nor have been done with any other view or design than to X)erform a contract \{q) therefore, if a tenant in possession sue for the specific performance of an alleged contract for a new lease, the mere fact of his continuance in possession will have no weight as an act of part performance of the contract, being (n) Tomkinson v. Stalght, 17 C B., 697. (?) Gunter v. Halscy, Ambl.. 686. Consider (o) 17 C. U., 707. Trice v. Salusbury, 32 Beav., 44b. (p; Lectures (.3d ed.), 940. 286 FRY ON SPKCIFIC PEIIFMIJ-MAXCE OF COXTUACT.S? referable to liis cliaracter ns tenant. (r) Where a tenant untler a term alleged the rebuilding of a xmrty-wall, which was in a ruinous state during his term, as part x^erformance of a contract by liis landlord to grant a renewed term : it was held that the act was equivocal, as it might have been done by him in respect of his new title under the old as well as under the alleged new term. (5)' The cases in which pos- session is an act of part performance will be considered IDresently.(Y) § SGH. Secondly, the principle upon wdiicli the court exercises jurisdiction in adjudging specific x>erformance of parol contracts followed by part performance, is the fraud and injustice which would result from allowing the party chai'ged to refuse to ])erform his part, after performance by the other upon tlie faith of the contract and wdth the knowl- edge of the party charged :{tc) and this j^rinciple extends not only to contract w^liich, but for such part performance, would be void by reason of the Statute of Frauds, but also to such as, being entered into by corporations, are invalid for want of their corporate seal.(??) §*»<>!$. "Courts of equity," said Lord Cottenham,(?o) (r) Wills V Stradling-, 3 Ves., 378 See, (0 Infra, § 576 et seq too. per Lord Eulon in Ex parte Hooper, 19 (m) Per Grant, M. R., in Buckmaster v. Har- i(l.,479; per Plumer, M. K., in Morphett v. rop, 7 Ves., 346. Jones, 1 Sw, 181; 5 Vin, Abr , 323, pi. 41; (v) See infra, § 622, and Steevens' Hospital Phillips V. Aldenon, 24 W. K., 8; and Brm- v. Dvas, 15 Ir. Ch. R., 4'».i, 421. nan v. Boiton, 2 Dr. & War., 349. (w) In Mundy v. Jolliffe, 5 My. Cr., 177. (s) Frame v. Dawnon, 14 Ves., 386. ' la Crocker v. Iliggiu.s (7 Conn., 342), it is decided that an agreement within the Statute of Frauds, carried into execution on one part by acts performed ■with a irieic to the af/reement claimed, is thereby taken out of the statute, and may be proved by parol evidence. It was held, in Harris v. Knickerbacker (5 "Wend., 68S), that an act alleged as part performance must be such as would not have been done, except on the contract. In Carlysle v. Fleming (1 liar- ring. Ch., 421), it is said that the acts alleged must appear unequivocally to have been done in pursuance of the contract. Ellis v. Ellis (I Dev. Ch., lii> ), is almost a repetition of the words used in Gunter v. Ilalsey, cited in the text. In that case it is said, tliat an act under a parol contract must l)e of such a nature, in order to take a case out of the statute, as a part performance, it could not have been done, except witii reference to the contract. In Anderson v. Chick (1 Bailey's Ch., 11«). it is said that the act claimed as part performance must have been, and intended to have been, done in pursuance of the contract. In order to show part performance of a contract to convey land, the claimant's pos.session must be referable to the agreement to convey. Jervis v. Smith, 1 Hoff. Ch., 470. To take a case out of the statute, on the ground of part per- formance, it is held, in Fiiilips v. Thomp.son (1 .John. Ch., 181), that the con- tract must be clearly proved, and the act must be in part performance of that particular contract. Lord v. Underdunk (1 Sandf. Ch., 4C), is precisely a parallel case with .Jervis v. Smith, already cited. See Smith v. Underdunk, 1 Sandf. Ch., 57i); Byrne v. Romaine, 2 Edw. Ch., 445; Casler v. Thompson, 3 Green's <'h., 5!i; MclMurtrie v. Bennett, Harring. Ch., 124; Hatcher v Hatcher, 1 Mc^ilullan's Ch., 811. • STATUTE OF FRAUDS, ETC. 287 " exercise their jurisdiction, in decreeinc; specific perform- ance of verbal agreements, where fhere has been part per- formance, for the ]mi-pose "f preventing the great injustice which would arise from permitting a party to escai)e from the engagements he has entered into, upon tlie ground of the Statute of Frands, after the other party to the contract has, upon the faith of such engagement, expended his money or otlierwise acted in execution of the agreement. Under such circumstances, the court will struggle to prevent such injus- tice from being effected ; and, with that object, it has, at the hearing, when the plaintiff has failed to establish the precise terms of the agreement, endeavored to collect, if it can, what the terms of it really were." § 564. Such being the principle on which the court acts, it follows that, wherever the acts of the party to be charged have caused no change of circumstances in the other party, (rr) and wherever the acts of part performance by the one are not such as to render refusal by the other party to perform the contract a fraud in him, however clearly they may evidence the existence of a contract, there the jurisdiction in question can have no application; and this may be the case either from the character of the person per- mitting the acts, or from the nature of the acts themselves. § 565. From what has been said, it appears that the acts of part performance must in all cases be done by the person asserting the contract with the knowledge of the person sought to be charged that the acts are being done and are being done on the faith of the contract; without such knowl- edge there would be neither injustice nor fraud. § 566. On the ground that the character of the person permitting the nets prevented the notion of fraud, it has been decided that where a plaintiff seeks to enforce against a remainderman a parol contract entered in!o between the plaintiff and the tenant for life, acts of part performance which would have bound the tenant for life will not bind the remainderman, unless it can be shovrn that he permitted the acts of the plaintiff with a knowledge of the contract entered into by the tenant for life.(?/) For to constitute in ( Redesdale in Shannon v. Uradfctrett, 1 irca. sou. 28S FIIY ox SPECIFIC PERFORMANCE OF CONTRACT^. fraud, tliere must coincide in one and the same person knowledge of some fact and conduct inequitable having regard. to such knowledge. And again, on the same princi- ple, where the acts are those of persons not parties to the contract, they will not be binding ; so that, for instance, acts done by arbitrators towards the performance of their duty, are not part performance of a parol contract for a compromise and division of estates by arbitrators. (^) § 567. From the nature of the act it follows, that though, as we shall hereafter see, it has been a question how far the acceptance of part of the iDurchase money binds the ven- dor, the payment of this on the part of the purchaser can in no wise bind him, because to refuse to complete the con- tract after paying "jDart of the purchase money, would be no fraud upon the seller, but his own loss."(ct) The ques- tion was raised in a case where the co-heirs of a purchaser sought the enforcement of the contract against his personal representatives, and set uj) his i^art payment as a part per- formance, making it a binding contract ;(6) but, on the ground above stated, Grant, M. E,., decreed against the claim of the heirs. § 568. Upon the same principle it seems doubtful w^hether any acts which admit of alternative remedies, one by the e:^e- cution of the contract and another by some other means, as, for instance, a compulsory taking under the lands clauses consolidation act, can be taken as part performance ; be- cause there is no fraud on the other party if the remedy other than that by execution of the contract be pursued, (c) § 569. Thirdly, the contract which the acts of part per- formance allow to be set up by parol evidence must be of such a nature as that the court would have had jurisdiction to enforce it specifically, if it had been in writing. In this respect the jurisdiction of the high court is the same as that of the court of chancery. The rule in the latter court was that where tliere was jurisdiction in the original subject matter, viz., the contract, the want of waiting would not deprive the court of it, where there was part performance. But the want of writing could not itself be made the ground (z) Cnoth V. JacksoB, 6 Ves., 12. (c) See per Lord Cranworth iu Morgan v. (a) 7 Ves., 345. MUman, 3 De (i. M. & G., 35. (6) Buckinaster v. Harrop, 7 Ves., 341; S. C, on appeal, 13 id., 456. STATUTE OF FEAUDS, ETC. 289 of jurisdiction ; for, if that were so, all parol contracts re- quired by the Statute of Frauds to be in writing, and in part performed, might liaVe been enforced in equity, which was not the case. Accordingly, a demurrer to a bill for work and labor done, alleging fraud and part performance, was allowed by Lord Cottenham.((^)' § 570. This principle is illustrated by ca-es in which tliere has been a want not of writing, but of a seal Thus, where the plaintiff stated a claim against a company for work and labor done on the estate of the company, and alleged that, as the contract was not under seal, and as the company claimed the legal estate in the land, he had no remedy ex- cept in chancery, a demurrer by the company to tlie plain- tiff's bill was allowed. (d) §571. So, again, where the engagement is of an hon- ed) Kirk V Bromley Union, 2 Ph , 640. original jurisdiction in respect of building Tlie case of Pembroke v. Tliorpe (S Sw., 437, contracts. See supra, § 76. n.), may appear at variance with ihis view, (e) Crampton v. Vania Kailway Co , L. R, but will be reconciled bv con8i Valuable improremenU made by vendee upon real property under a contract for- its purcJia^e.] It is a well-settled rule that, wliore possession has been surren- dercd under a parol contract, and the vendee has entered and made valuable improvements, which have enhanced the value of tlie property, that act consti- tutes a part performance Avhich will take the case out of the operation of the Statute of Frauds. Wills v. Stradlinii-, :^ Ves., 878; Savage v. Foster, 5 Yin. Abr., 524; Stockley v. Stocklev, 1 V. & B., 28; Sutherland v. Brijrs, 1 Hare, 26; Mundy v. Joliffe, 5 My. &"< r., 167; Toole v. Medlicott, 1 Ball & B.. 393; Surcome v. Pinniger, 3 De G. M. & G., 571; Newton v. Swazey, 8 K H., 9; Annara v. Merritt. 13 Conn., 478; Tiltcn v. Tilton, 9 N. H., 385; Dugan v. Colville, 8 Tex., 126; Blakely v. Ferguson, 3 Eng. (Ark.), 272; Grant v. Ram- sey, 7 Ohio St., 157; Casler v. Thompson, 3 Green's Ch., 59; Kidder v Barr, 35 K H., 236; Mason v. Wallace, 3 McLean, 148; Saier v. Hill, 10 Ind., 176; Minis V. Lockett, 33 Ga , 9: Cuuiminos v. Gil!, ill the U\t Ki-lly v. A aUh, 1 L. U lira.ly'n Ca^e, 15 \V li ,7.')J. Jr., 'iT.'), where Klviiijf coiineiU to H l«a.se was (;i) I'er I'luintr, M. It, In .Morphett v, hclil u> he, uiiilcr the circuiiistanced of tiie .loii' 8, 1 sw , 'f"!. S«-f,ar<-i>rilinf;lv, Kiiictier ca-e, ail aet "I' part ptTlorinanc^;. v St^pelv, 1 Vern, littJ; I'j k>- v. W llh.iino. -J (/) See l^aiuare v. Dt\«m, L. II li H. L., M.,4.V>; Karl nl Ayle»l'.>ril u Cat>e, "i Sir , Tsi; 414; Milhiril v. Harvcv, 34 Beav., 2S7. Sfwnrt v. Deiiloii, 1 Koiilil K<| , le7; .Snvage (III) Dowell V. Dew, 1 V. A C. (J. C ,.U'>; v Carroll, 1 U.ill A I!., Jim; Kliie v llaife, • li L.J. Ch , IV; : lu Jiir. ,N. ts ), llt;7; l-owell'v. l.ovo- A .1 . :;4. ' Rule irhfre poiott'ssioii has heeii enteird upon. ] Tlic doclriiR' uf jiart perforin- ance by possessiou of tlic veuclcc i.s now well cstiibli.sla'd, bolli iti ihi.s cDUutry and iii"l-^ii,iz:liincl. Mi'. Justift; Slory suy.s: "If upon ti paiol iiirreenR-nt a inuu is adniittril into jxissession, lu; is inadL' a trL's|)assi.'r, and is iialilc to answer as a trespasser if tlure be no agreement valid in law or eipiity. Now, for the pur- po.se of defending himself against a charge as a trespasser, and a .Miit to aecouut for the profits in such a case, the evidence of a parol agreement would .seem to l)e admissible for his protection, and if admissible for such a purpose there .seems no rea.son wliv it shoidd uot be admi.ssibie throughout." Story's Ya\. Jur.. § 761. See. also, Pugh v. Good, ;J Watts k, Seig.. .")U; Simmonds v. Hill. 4 Har. & ]\Ichew , 2'")1 ; .Jones v. Peterman. :; Serg A: Puiwle, ."»4:J; Hums v. Suth- trland, 7 Pa. St., Hi:}; Davis v. Townsend, Id Barb., ;;aj; Ha-^sler v. Niesly. 3 Seiii. k Rawle, 3r)2; Letcher v. Crosby, 2 A Iv. >[arsh . J (Hi; Wilber v Paine. 1 Ohio St., 'Z■^\\ Abbott v. Draper, 4 ]")enio, 31; Peifer v. I.andis. 1 Walts. ;;Si2; McFarland v. Hall. :J id., ;^.7; Miller v. Hower, 'i Howie, ri;}; Gill v. Newman, 18 Minn., 4(52; Folmer v. Dale. Pa. St.. 83; Smith v. Underdunk, 1 Saudf. Ch., oT'J; roidrii, < atlett v. Bacon, 88 Mass., 20i». The rule is very much strengthened by the fact that the iio.s.session is accompanied or prS; Byrd v. Ddem. Ala., 7."")."); Sutton v. Sutlon. 18 Vt . 7i; Wimberly v. Bryan, .V> Ga.. ll»8; Fit/simmons v. .VUen, 81) 111., 4U); Billington v Welsh. 5 Binney. 12U; Gilday V. AVatson, 2 Serir. ic Kawle, 407; Adams v. Fulham, 48 Vt , ."iOi; A.sU'r v. Lamareiux, 4 Sandf., 'rlA; Kellnms v. HichanUon. 21 Ark., 187. "The ackuowledu-ed i>os.se.ssion of a stranger of the land of another is not aj)plical>lo, except on the supposition of an agieeinent. and has, therefore, ('onslantly iHt-n received as evidence of an antecedent contract." Sir T. Plumer. J., in Mor- phett v. .Tones, 1 Swanst., ISl; Butcher v. Sheply. 1 Vern.. 80;]; Pyke v. Wii- liams, 2 id., 45">. •-' But in these cases actu.il delivery of posst'ssion, or jiwnt \o taking posses- sion must be shown. AVroni^ful possession is not sufHcienl .lervis v. Smilli, 1 Hoff. Ch. 470- Lord v. L luierdunk, 1 Sandf. Ch., 40; sec Wagt>ner v. Speck, 292 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. parol contract for a lease was made, and the terms of it were- au'reed on between tlie proposed lessor and lessee, and by tile direction of the lessor the lessee instructed a solicitor, who acted for both parties, to reduce the terms to writing ; and the solicitor took a note of the terms thus stated to him, and from it prepared a draft contract embodying these and other terms, which he submitted to the lessor, who after- wards, without objecting to it, let the lessee into possession, and directed the solicitor to prepare a lease in pursuance of the draft contract ; and a draft lease was accordingly pre- pared, to which the lessor objected, and gave the tenant notice to quit :— the court held that there was part perform- ance of the contract, and enforced the same accordingly. (o> § 578. Even where the possession has been taken with- out consent, yet if the owner afterwards allow the stranger to remain in possession, this will, it seems, operate as an act of part performance. (^) § 579. Possession is, it must be observed, part perform- ance both by and against the stranger and the owner :{q} the owner has allowed the stranger to do an act on the faith (o) Pain V Toombs, 1 De G. & J , 34 See, I-or<1 Kinesdown In Ramsden v. Dyson, L. R_ too, Miilerv. Finlay.SL T. (N.S.), .MO. 1 U. L , 170. ,^ , „ ., ,^., (v) Gregory V. Mi^bell. 18 Ves., 328; Pain (q) Wilson v West Hartlepool Railway V. Coombs. 1 De G. & J., 34 46. See, too, per Co , 3 De G. J. & S., 476, 48.5. 3 Ham., 294; Weed v. Terry, Walk. C\\., noi. It was held, in Smith, v. TJnderduuk, 1 Saudf. Ch., fiTO, that where, upon a parol contract for the sale of two parcels of land, at a gross price, the vendor at the time of completion, conveyed one parcel onlv, and agieed to convey the other presently, and the purchaser paid the whole price and entered into possession of both parcels, on recei\nna: the deed for the one, the contract was nijt merged iu the deed, and that theVii'chaser's assent to tiie delay, ;;nd the vendor's agreement to give a deed for the second parcel, did nul constitute a new agreement, or substitute for tlie first; but that the conveyance by one parcel was a part performance of the original contract In Pugh v. Goods, :3 Watts & Serg., 50, it was said that the delivery of the possession of the whole of the land sold, is sufficient, aQd entitles the parties to a .specific performance. But in Allen's Estate. 1 Wiilt.s & vSerg., 38:^, it is decided that the delivery of possession of a part of the land, to a vendee by parol, is not alone sufficient to take the case out of the Statute of Frauds. In Ellis v. Ellis, 1 Dev. Ch., 3-11. a purchaser of land was put in pos- session, and paid the purchase money, under a parol contract. Held, that the contract was not thereby taken out "of the statute. In Hatcher v. Hatcher, 1 ]McMullan's Ch., 811, it is decided that remaining in possession by the pur- chaser, if he was in possession at the time of his purchase, does not constitute such a part performance as will take the case out of the statute. See Brock v. Cook, 3 Porter, 464; Johnson v. Glancy, 4 Blackf., 04. But if the vendee takes and continues possession of the premises, under the contract, and especially if he makes valuable improvements on them, this will be sufficient to satisfy the statute. Johnston v. Glancv, 4 I51a(;kf., 91 : Tibbs V. Barker, 1 id., 58; More- land V. Lemaster, 4 id., Syg; Thornton v. Henry, 2 Scam., 218; see Keats v.. Eector, 1 Pike, 391. STATUTE or rUAUDS, KTC 293 •of tlie contract, viz., enter on tlie land: tlie stranirer lias allowed the owner to do an act on the faith of the contract, viz., withdraw from tlie land. Tliey are, therefore, both bound. § 580. Possession is, as already i)oint<^d out, part per- formance as well against a comi)any as against a natural person, (r) ^ olSl. It is not only in contiacts for a sale or a lease that possession is part performance. It may let in parol evidence of any contract explaining the possession. Thus, where A. was in possession of his own land subject to a mortgage, and he, as he alleged, contracted with B. that B. should purchase the land from the mortgage^ and hold it for the benelit of A., subject to certain terms for the repayment of the purchase money, and B. afterwards set up the purchase as being an absolute one for his own benelit, the continued possession of A. as owner of the land was held to be part performance of the contract alleged by him.(.sr) In another case A., by parol, agreed to allow B. the occupation of a leasehold house for life, on payment merely of ground rent, rates and taxes. E. was i)ut into jiossession, and that pos- session was held to preclude any objection on the ground of the statnte.(0 s^ 382. Many c:ises have also risen in respect of marriage contracts, where the part performance has excluded the •operation of the statute. Thus, in a c:ise, where there was a parol pnmiise before marriage to give certain pi-operty to the married pair by the father of the intended wife ; the marriage took place, and was followed by the delivery up of posses- sion to the son-in-law, ex})eiiditure of money by him, and the absence of all disturbance on the part of the father-in- law ; these acts were held to be in i)art performance of the •alleged ante-nuptial conti'act.(//) And so wheiv a father verbally promised, in consideration of his daugliter's mar- riages to give hor a liouse as a wedding pr.-seiit. and inim*^- diately after the marriage put the daughter anband into possession, and continued himself to pay what became due to a building society in respect of an existing mortgage ()■) S C. f«) Purcome v rinnlior. 3 De O. M. & G., (•;) liiico'ii V. Wrizht, 2S L. -F. Ch., 7ii5; S. .'>7l ^ee, also, Floya v. Itucklaml, 1 hcrra., •C.. 7 \V , ]2t,3.iO; 4 |)e (i & J , Mi -JGS. {t) Coles V. PilkirigKMl, 1.. U. Ill Ef| , 17t. 291 FKY OX SPECIFIC PEKFOKMANCE OF CONTRACTS. on the liouse, it was lield by the court of appeal (affirming the decision of Malins (V. C), that the possession took the case out of the statute, and that the bahmce due to the building society on the father's death was payable out of liis estate. (?') i$ i58Jl. The same principle applies in cases of family ar- rangements involving the giving up, partition, or exchange of land ; so that though such arrangements may be by parol, yet, if they be followed by uninterrupted exclusive enjoy- ment of the several lands in pursuance of the arrangment,. the court will specifically enforce them.(?^) § 584. In considering this effect of possession where the acquiescence has been of very long duration, the court will regard the lapse of time as a circumstance against allowing the statute to be set up.(ir)' § 585. The laying out of money, provided it be sucli as. would only be likely to take place in pursuance of such a contract as that alleged; and it be with the privity of the other party, is an act of part performance. (2/) Therefore, where a proposed lessee entered and built, the acts were held to be such :{z) and, again, the alteration of a garden fence and the plantation of a meadow with the privity of the other party, and 2)artly at his expense, by a tenant in possession, were held acts of part performance, evidencing a contract to demise the meadow for a term. (a)' So the ex- (V) Unglcj' V. Ungk-y, i Ch. I) , 73; 5 id., (x) Blackford v. Rockjiatrick, G BcaT., 232; 8^7 of. crook T « orporaliou of Sealorii, L. It. 18' (w) Stooklcy V RtockUy, 1 V. & P.., 23; Kq ,678; 6 Ch.. 5.il. Neale V Ni.iic, 1 Kf . C72; W illiamt, v. Wil- (v) NMils v. Slradlinp, 3 ''■es , 378 liiim'<,2 Ur & mil, 378; iiflirmcl I-. i:.2<,h , (s; Savage v Fobter. ft Vlii AIt, 5:24, pi. 2W4 (see (ppcciallv pages 3U4, 3 5;; Cood v. 43; lieddiu v. Jarmvii, 16 L. T.,449. Cood, 33 Beav.,314. (") buUiirlai.d v. liiUg-, 1 Ha., 26. See^ 1 Thus, where a vendee having paid iKirt of the purehase money of land under a parol agreement, had, together with hi.s heirs, been in possession for several years, this was thought sutticient to take the case out of the Statute of Frauds, and to entitle theheirs to a sijecitie performance of the agreement. Cox V. Cox, Peck, 413; see Brock v. Cook, o I ort., 404. ^ See Bomicr v Caldwell, Ilarring 's Ch., < 7: Johnston v. Glancy, 4 Black., 94; Tibbs v Barker, 1 id., .'iS; JMoreland v. Lemasters 4 id., iuSi; Thornton v Henry, 2 Scam., 218. But where a father promised his son that if he would, remain with and carry on his farm, he would leave him the farm at his death, the son having already continued with him two years after he came of age, it was held tlial the continuance of the son to cultivate and manage the farm, and his makiiig extensive improvements thereon at his own expense, it not appearing that he agreed to do so l)y the contract alleged to have been made with his "father, were not con.sidered a part performance of the contract, such as would take the case out of the statute. Carlysle v, Fleu.ing, Ilarring. 's Ch. 421. rtatutj: of frauds, etc. 295 penditure of money, in alterations and rei^airs of the prop- erty, by a sub-lessee with the knowledge of the owner has been held to be part performance of the contract by the owner to let to the sub-lessor. (//) § 580. The expenditure of mone}^ differs, it will be ob- served, from possession, in two respects ; the one, that wliilst mere possession is referable to a tenancy at will, as well as to a larger estate, the laying out of any considera- ble sums of money is rationally to be referred only to some contract to confer a substantial interest in the property ; the other, that whilst possession cannot be supposed to be continued by a stranger without the knowledge of the owner, a person in possession may well lay out money without the owner s cognizance ; and what is, therefore, necessarily inferred in the one case must be proved in the other. § 587. There are cases where it has been held that, as money spent in rej^airs easily admits of compensation, such expenditure is no part performance, and consequently does not avail to take a case out of the statute ;(c (i M .t Toole V. iMfiTlicott. 1 Uall & l{.. 393; Rluinly s<.n. 2 Cox, 27 037 (f) Soe (lei- Ivilglit Mriicc, I- •)., lu lliighfft ' (i)) Williams v. E\ans, L. R. 19 Eq , 517. v. Morris, 2 De G. M. & G., 3M. 296 fi:y ox si»]:ciric pekfokmaxce of contracts. part ptTfonnance wliich will take the parol contract out of the statute. § 5^11. Tlic oi-oinuls ol' this decision seem to be, first, that the nieiitiou ol' part payment in the ITtli section of the Statute ol" Frauds, :iud the silence in that respect of the 4th section, must be taken to show that the legislature did not int<-nd that part payment should be binding in cases ol" the sale of lands ;(/) and, secondly, that the money may be repaid, and that both parties will then be in the stuation in which they w^ere belore the contract, without either party having gained any inequitable advan- tage over the other.if/) Tiiis is a case where, for the act done, there are alternative remedies, one by the execution of the contract, and the other by repayment,— and the elec- tion to put the other party to the latter remedy is no fraud. It has been truly snid that this reasoning overlooks the pos- sibility of an insolvency intervening and preventing the repayment of the purchase money, (//) and it is difiicult to say that the leasoning is satisfactory, l)ut the courts have acted upon it. The law^ upon this subject has been somewhat vacillating. In a case before Lord Hardwicke, he held part payment to be part performance;!'//) but tliis as a general proposition was early overruled. The qut-stion ihen arose whether, although payment ol" a small installment was inoperative, payment of the whole or of a substantinl part of the price would not be an act of part performance. Lord Rosslyn maintained the affirmative of this question ;( /) but Lord Redesdale denied any such distinction ;(./) and Lord Ross- lyn's decision seems now to be overruled, upon the ground that it is impossible satisfactorily to discriminate between substantial and unsubstantial part payments. (7i)' (/) Clinan V. cooko, 1 Srli. & Lef, 22; Watt ar^utneiita In UMlls v Str.iil ing, 3 Ves., 378, V Evans, 4 V. & C. Ex , 579. :i!iil Sinimous v. Coriu'liiia, 1 Kt-p. In (Jh., 138 (a) CMnaii V. ( ooke, 1 Sch. & Ia'I'., -22. (a f.asi; bcl'oit- tht; 8 atuie). {■(/) 13 Ves , 401, iiott! bv t»ie reporter (,/') In c:iinan v C'>oke, 1 Sch. & I.ef., 23. (ft! l>ac.oii V. iMeriiii?, 3 Atk., 4. tsee, also, './.■) Watt v. Evan«. 4 Y. & C. Ex., 579. See Chii(i V. ConilxT, 3 Sw . 423 n. E\ parte Hooijor, 19 Vt-a , 479. (i) Main v. Mclbuurn, 4 Ves., 730. See the ' See Story's Eq. Jur., § 7(50. In this country the decisions upon this point are, by no UK-aus. hitrnioniou.s. In Virginia and Mi.'^si.ssippi, it lias been held that part payment of tlie purcliase money is not such a part performance of a parol contract for the sale of lands, as totake an agreement out of the Statute of Frauds. .lackson v. Cutri-jht, ■') Munf., 80^: Hood v. Bowman, 1 Fieem.'s Ch., -290; and see Hatcher v. Ilatcher, 1 McMullan's Ch., ;}11. In Michigan it STATUTE OF FllAUDS, ETC. 297 § i»0©. Payment of the auction duty has been lield not to be part performance, it being by the revenue laws essen- tial to the contract, and "that without which there would have been no contract cannot be said to be in part perform- ance of the contract." (^) § 501. The same vacillation which characterized the €Ourse of the authorities on payment of the purcliase money as part performance, has attended the cases dealing with the question whether payment of an additional rent is to be treated as part jjerformance. In the earliest case on the subject, it was laid down that such a payment, if shown or admitted to be on the foot of the contract, is a circumstance •of part performance, (w) It was subsequently determined not to be, (?i) but this decision appears to be ovei ruled by the case of Nunn v. Fabian, (o) where a landlord, having verbally agreed with his tenant to grant him a lease for twenty-one years at an increased rent, died before the execution of the lease, but after having received from the tenant one quarter" s rent at the increased rate: and it was held that this payment constituted a sufficient act of part performance to take the case out of the statute. § 592. It is not easy to think that the whole group of cases dealing with the payment or expenditure of money on the footing of a contract is satisfactory. It would seem reasonable to hold one or other of two things : that all pay- (D Per Grant, M R , in BiickmasttT v. liar- (") L. R 1 Ch.,35. Consiiier Tlowe v. nail, rop 7 Ves , 34G. I- H 4 Kq . "^^2; Archbold v. Howth, 1. R. 1 (m) Wills V. Strarlll cr, 3 Ves.. 378. O. L, ,6.8. (n) O'Herllhy v. Heflgeti, 1 sell. & Lcf., 123. was held, in McMurtrie v. Bennett, Harring.'.s Ch., 1-24, that the payment of the whole of the purchase money, clearly in pursuance of a definite and mutual parol agreement, is suthcient to take the ca.se out of the statute; l>ut the pay- ment of a tritling amount of the consideration is, in no case, of il.>*elf. suthcient. But in another case, Towusend v. Houston, llarring.'s Ch., n^-J, it was decided that payment of part of the pun-liase money is such a p^rt i)erlV)rniance of a parol agreement for the sale of land, as to take a contract out of tlu- statute and authorize a decree for a specific performance. In Connecticut, it is said in Downey v. Hotchkiss, 2 Dav, il'), that the legislature adopteil not only tlic Engli.sh Statute of Frauds, but also the construction given to it l.v tlie courts in England. The same remark is made in reference to IVniisylvania, in Tugh V. Good, :5 Watts & Serii., ")(>. And in Parker v. Wells, r, Wliart., l."):!. pay- ment of the purchase moncv by the vendee of land, und.T ti iiarol contract of :sale, does not alone take the coiitract out of the statute. North Carolina, South Carolina, Missouri, Indiana and Ohio, have followed the same rule, ami hold the payment of all the purchase money as insullicient to satisfy the .statute. Ellis V Ellis, 1 Dev.'s Ch., 341 ; Smith v. Smith. I Rich.'s Ch , l;<0; Anderson V ( hick, 1 Bailey's Ch., 118: Bean v. Valle. 2 Mis., 12G; Johnston v. Glancy, 4 Blackf., 94; Site v. Keller, Ham., 483; Pollard v. Kinner, id.. .j-JS. 298 FRY ox SPECIFIC PEKKOKMAXCE OF CONTRACTS. TTierUs of money made bj^ one contracting party with the knowledge of the other, and on the faith of the contract, shoukl be deemed acts of part performance for the purpose in question ; or that none of such acts shouhl be deemed to be part performance, and that the court should in all these cases think that the possibility of repayment deprived them of any effect on the Statute of Frauds. It does not seem reasonable to halt between the two opinions. § 50:1. Marriage alone is not a part performance of a con- tract in relation to it : for to hold this would be to overrule the Statute of Frauds, which enacts that every agreement in consideration of marriage to be bindino: must be in writ- ing. (7>>)' Accordingh\ where there was. before marriage, a contract by parol for tiie settlement of part of the wife's IDi'operty, and that the husband should lake the rest, which he did, but there was no settlement made ; and the wife subsequently hied her bill, stating these facts, for the pur- pose of obtaining a declaration of her rights in certain I)roperty coming to her, and the husband, by his answer, admitted the statements in the bill, and a deed was then prepared purporting to be a settlement on the wife in pur- suance of the contract, and was signed but not acknowl- edged by the wife ; in a suit by a plaintiff claiming under the settlement against the heir, it w;is held that there was (r')PerI,oril Hanhvickclii Taylorv IJeecli, M. U., In Wanlen v. Jones, 23 P.eav , i"-' (S. 1 Ves Sen, 297; I'cr L'M-d Thmluw in Dun- C on appehl, 2 De G. & J., 7fi). U.n^ider rtas V. l>ul*:iis 1 Vt-s. Jun , lli!». As to this Gilchrist v Herbert, 20 W. B., 318. case, bCc the observations of Lord Ramilly, ' This chuisc has not been enacted in all of the States; but, wherever it lias been, the requirements of the English statute must be eomplied -with, and its entire interpretation received. Pars, on Contr., vol. 1, pp. 5-17, oib, and pp. 553, 5")4, vol. 2, p. 310 (note z). Marriage contract ; excei)tpm.'\ "There is a dilTerence between agreements on marriage being carried into execution and other agreements; for all agree- ments besides are considered as entire, and. if either of the i)arties fail in per- formance of the agreement in part, it caiuiot be decreed in specie, but must be left to an action at hnv. In marriage agreements it is otherwise; for, though the relations of the husband or wife shoidd fail in the performance of their part, yet the children may compel a performance. If the mother's father, for instance, htth agreed to give a portion, and the husband's father hath agreed to make a settlement, though the mother's father do not give the portion, yet the children may compel a settlement, for non-performance on one part shall be no impediment to the children's receiving the full benefit of the settlement. So, if there be a failure on the part of the father's relations it is the same." Lord Hard wick, in Harvey v Ashlev, 3 Atk., Gil; see also. Llovd v. Lloyd, 2 My. ic Cr., VOI; Dennison v. Gothring, 7 Pa. St., 175; King v. Whitely, 10 Paige's Ch., 4G3; Nenes v. Scott, li How., 197; 2 Story's Eii. .Jur., ?= '^^\j. STATriK ( part perfonnajicr.] Agreeincnts, iu considonition of nmrriagc, iu order to be binding under the Statute of Frauds, must be iu writing; mar- riage alone, therefoie, will not constitute such an act of part performance, as will render valid a parol contract made in relation to it. "The subsequent niairiage is not deemed a part performance taking the case out of the statute, contrary to the rule which prevails in other cases of contract. In this resi>ect it is alvvavs treated as a peculiar case standing on its own ground." Story's Eq. Jur. ' In some of the States mutual promises to marry, are expressly ex- cepted from the operation of the statute. The.se are, Alabama, Rev. Code of 18(57, ^ 1802; California. Code, i; 1()24: Kentuckv, II. S., ch. *2'2. § I; Mmne- sota. Slal. 1873. vol. 1, p. GU2. ^ C, subd. li\ Nebraska, Stat. 1873. ch. 2.j, Ji U; New York, K. S. (0th cd.), vol. 3, p. 343; Wisconsin, Slat. 1871, ch. 107. Ji 2. Time irithia which the conlmrt in to be performed] Tiie English statute, and the statutes of several of the Slates, makes it essential to tlie validity of any verbal agreement, and to the maintenance of any action ujion it: that it is to be performed within the .space of one year from the making of ihe same. In New York, and in some of the oilier States, any such contracl, wilii the excep- tion of lea.ses for one year or less, are void. Peter v. Compl(Jii. Skmner, 353; Gilbert v. Svkes, l(i East. loO; Wells v. llorlon. 4 T.ing., 40; King v. Hunua. J» B Mon . iiU!); Peters v. luh ib. of We.stborough, 19 Pick., itdo; I/ard v. Mid- dlelou, 1 i)es,sau.'s Ch., 110; Thompson v. Gordon, 3 Slrobii., I'JO; Hhikc v. Cole, 22 Pick.. i)7; Clark v. Pendleton, 20 Conn.. 4!)5: Howard v Ikrgen. 4 Dana. 137- McLees v. Hak-. ID Wend . 42G; Ellicott v. Turii.r. 4 Md.,476; Archer v. Zeh, 5 Hill, 2U0: Tollev v. Green, 2 Saudf. Ch.. Itl : Koberls v. Uock- hottom, 7 Mete , AVr. Lvon v. KiUiX, H id . 411: Doyle v. Dickson. ItT Ma.s.s.. 209; (iuackenbiisli v. Eble, r, Barb., 4(;<.». Wiiere it is not the mlcntioii and understanding that the contract shall be performed wuhin a year, U wdl not betaken out\>f Ihe operation of the statute by the fact that it is possible to perform it within tliat time. P.oydell v. Drummond, 11 Ea.st, 142; Ilerrin v. Butters, 20 Me , IIU: contni, Ellicott v. Turner, 4 Md., 470. 300 Fi:V ox S1>ECIFI(" rKKFOllMANCK OF CONTllACTS. vj oIK*. Tliii. 5 Ex. 1) , -.'i);}, whore service as (^.,571. lion-fkeoiitT jiihI jflvini,' up hiintifl:'s (the would-be lessees) had executed the counterpart, the married woman (who had made no waitten request to the trustee) signified her inten- tion to retire from the transaction. Jt was held by Lord Romilly, M. R., that her execution of the lease was no part performance, and that there was no binding contract. t; 60S. But where the contract lietween A. and B. com- jirises acts between A. and B. and also between B. and C, and A. may be supposed to have an interest or to have stipu- lated in respect of the acts between B. and C, part perform- ance with knowledge of this part of the contract renders it binding on A. This seems to be illustrated by the case of Parker v. Smith. (^) There a lessor entered into a parol contract with a colliery company, holding a lease from him, (e) East Inilia C". v. Xuthumba man Ironworks V. Wickens, L. R. 4Ch., 101, L.J Ch.,684. reversing the decree of Malins, V. C, L. R. 5 ^Innocent misrepresentation, and asserting a fact icithout knowledge.'] '■The gist of the inquiry is, not whether the party making the statement knew it to be false, but whether the assertion uttered as true was believed by the party to whom it was made to be true, and if false, deceived him to his injurj^. The consequences of an innocent misrepresentation, if there can be such a thing, must fall on him who was the author of it, on the principle that the acts of even an innocent man shall prejudice him, rather than a stranger equally innocent." Gibson, Ch. J., in Tyson v. Passmore, 2 Pa. St., 122. Where a party makes a representation as true, and has no positive knowledge as to its truth or falsity, he is guilty of reckless negligence, and if another party is misled he is responsi- ble. "Pulsiford v. Richards, 17 Beav., 87; Eeese v. Wyman, 9 Ga,, 439; Hunt v. Moore, 2 Pa. St., 105; Smith v. Richards, 18 Pet , 20; Hough v. Richardson, 3 Story, 659: York v. Gregg, 9 Tex, 85; Turnbull v Gadsden, 2 Strobh. Eq., 14; Tayman v. Mitchell, 1 Md. Ch., 49G; Lewis v. McLemore, 10 Yerg., 206; Thompson v. Lee, 31 Ala., 292; Oswold v. ]\tcGehee, 28 Miss., 340; Bennett v. .Judson, 21 N. Y., 238; Phillips v. Hollister, 2 Coldw., 269: Beebe v. Young, 14 Mich., 136; Gunly v. Sluter, 44 ]\Id., 237; Frenzell v. Miller, 37 Ind., 1; Elder v. Allison, 45 Ga., 13. The truth may he so stated as to he a misj'epresentaiion.] The exact truth may MlSKEri'.KsSENTATION. 317 have been carelessly made, or even in perfect innocence : and yet the fact that the statement was false may render it unconscionable in the person who made the statement to enforce the contract which it produced. § 628. (1) The first point calls for little remark. It is obvious that, to constitute misrepresentation, there must be a statement, and that statement must be untrue. § 629. Mere silence is, generally speaking, neither mis- representation nor fraud ; and, as will be shown in the next chapter, it is quite open to a vendor or purchaser to main- tain such silence, though its effect may be that the other party acts under a misapprehension. § 630. The statement must be untrue : and in determin- ing this question, it will not suffice to show that the lan- guage used might admit of a meaning which would make it correct. (<^) It must, it is conceived, be held to be untrue wherever it is found that the speaker intended or expected the hearer to accept it in a sense in which it would not be true. ' (d) Clarke v. Dickson, (i C. B. (X. S.), 453. be a misrepresentation, where it is known that it is calculated to mislead a party; as, for example, where it was asserted that there was plenty of water upon the property, which was in fact true at the time, but the supply depended not upon natural supply but upon artificial works which might fail. Kerr on Fraud and Mis., 1)2; Edwards y. Wickwar, L. R. 1 Eq., 68; Colely v. Gadsden, 15 W. R., 1185; Ross v. E.states Ins. Co., L. R. 3 Eq., 135; Chester t. Spayo, 16 W. R., 576; New Brunswick R. R. Co. v. Congbeare, 9 H. of Lds., 711; Legge T. Crocker, 1 Ba. & Be., 506. ' RuU with regard io facts known to vendor.'] All the incidents to wiiich the property is subject must be laid befora the purchaser by the vendor, and it must be in language intelligible to a common understanding. The purchaser must not understand ambiguous terms at his peril. Conyers v. Ennis, 2 !Mass., 236; Sheard v. Venables, 36 L. J. Ch., 922; Drysdale v. Mace, 5 De G. M. & G., 107; Swaislaud v. Dearsley, 29 Beav., 430. The concealment must have been such as to have prevented the other party, had the true facts been known, from entering into the contract. Haywood v. Cope, 25 Beav., 140; Young v. Bumpass, Freem. (Miss.), Ch., 241; Jonzin v. Toulmln, 'J Ala., 352; Baglebole V. Walters, 3 Camp., 154; Schneider v. Heath, 3 id., 506; Pearett v. Shambhut. 5 Miss., 323; Steele v. Kinkle, 3 Ala., 352. Material facts concealed.'] The purchaser, at the time of making the bargain, was ignorant of a substantial defect with respect to the nature of the property, and in regard to which he was not put upon inquiry. Held, that where the defect was substantial, and referred to the nature, character, .situation, extent or (juality of the property, specific performance would not be decreed. Ellicott v. White, 43 Md., 145. Tfie words " more or Uss."] The.se words cannot be a cover for misrepre- sentation. King V Knapp, 59 X. Y., 402. Part of in-emises purchased fraudulently omitted from deed.] A portion of the estate purchased was fraudulently omitted from' the deed given, and the pur. chaser, being deceived, paid the price, and went into possession under the deed ^ 318 FJiY ON SPECIFIC PElIFOr.MAXCE OF COXTRACTS, § 031. (2) The statement which is relied on as a misrep- resentation must have been made by a party to the con- tract or his agent, and not by a stranger. "If," said Lord Romilly, M. R., "a third person, by representing to A. that it will be higlily for his benefit, and by false repre- sentations induces him to enter into a contract with B., but B. makes no false representation, and is neither party or privy to any such, then the contract is valid, and stands good in this court. But the person who, by false repre- sentations, induced the other to enter into that contract is liable, in an action, to make good to the person he has mis- led the damage he has sustained by acting on the misrep- resentation made to him."(e) Duranty's Case (/) and Ex parte Worth {g) brings this principle into clear relief ; for in those cases it has been held that if directors, as agents of the company, issue a false report, and third persons, in- fluenced by this report, contract with the company for shares, the contract may be avoided ; but that if the same third persons contract with individual shareholders for shares, the contract cannot be avoided. § 0:59. It is, of course, enough that the agent was ap- pointed to bring about the contract for the principal, and that he made the misrepresentation. It is not needful that he should have been appointed the agent to make the misrepresentation. (Z^)' Thus, in the cases in which con- (e) In Duranty's Case, 26 Beav., 270. L. R. 2 Ex , 259. 26 Beav., 268. (i) Sne, e. g., Reese River Silver Minins Co. ig) 4 Drew., o29 ,. ^ ^ . v Smith, I.. R. 4 H L.,64; cf. Gibson's Case, (/t) Barwick v. English Joint-Stock Bank, 2 De G. & J , 275, 283. Held, that he was not bound to know that the description in the contract and the deed, did not embrace all the land orally agreed to be sold, and that the statute of frauds was no bar to an action for the specific performance. Beards- ley V. Duntley, G9 K Y., 577; Goodenousrh v. Curtis, 18 Mich,, 298; Stewart V. Beard, 23 Iowa, 477. Rescissioriof Ike contract for fraitduUntconcealment.'] Where a party, by fraudu- lent concealment, or willful perversion of material facts, induces another to enter into a contract, the latter will be entitled to a rescission of such contract. Pollard V. Rogers, 4 Cal., 239; :\IcNiel v. Baird, 6 Munf., 316; Snelson v. Frankhn, 6 id., 210; Rawdon v. Blatchford, 1 Sandf.'s Ch., 344. ' TJahility of principle for agent" s misrepresentations.'] The acts of an author- ized agent who, by fraud and false representations, affects a sale of property, even in a case where the fraudulent acts were without the authority or even knowledge of the principle makes such principle legally accountable; it is as if he had done the act himself. New Brunswick R. R. Co. v. Conybeare, 9 H of Lds., 714, 726; Barwick v. English Joint-Stock B'k, L. R. 2 E.x , 265; Bartlett y Salmon, 6 De G. M. & G., 39; Bristow v. Whitmore, 9 H. of Lds., 418; Wheelton v. Hardisty, 8 E. & B , 270; Crump v. United States Mining Co., 7 Gratt. 3o2; Hough v. Richardson, 8 Story, 689; Fitzsimmons v. Joslin, 21 Vt., 129; Henderson v. R. R. Co., 17 Tex., 560; contra,, Cornfoot v. Fowke, 6 M. & W., 358. MISREPRESENT ATIOlSr. 31 C> tracts have been rescinded against companies, tlie repre- sentation have been made by the directors, who, of conrse, have no express anthority to make a misrepresentation. (/> § 633. (3) As to the state of mind of the person maldng the statement as to its truth or falsehood ; it is to be ob- served that though there can be no fraud without the knowl- edge of the untruth of the statement, yet there may well be misrepresentation, /. e., the representation may be erro- neous, though not known to be so. § 634. It would lead us oyer a wide field to consider how far knowledge of the error is essential in actions to rescind a contract, or in actions for deceit, or to support a defense on the ground of fraud or misrejjresentation in answer ta an action on the contract. (j»') But it is conceived to be clear that, in equity, a false statement, though believed to be true, if made with a view to a contract by a party to the contract, is a good defense to an action for specific perform- ance. In Wall V. Stubbs,(^) Plumer, V. C, observed, "that whether the misrepresentation be willful or not of a fact latent or patent, such misrepresentation may be used to re- sist a specific performance, unless the purchaser really knew how the fact was." § 635. This point was particularly considered by Lord Hatherley (when V. C.) in Higgins v. Samels,(Z) in which case the defendant resisted si3ecific performance on the ground of misrepresentation by the plaintiff, and it did not appear that the plaintiff knew the falsity of the statement which he made. His Lordship concluded that it was not necessary to prove that the representation complained of was made with a knowledge that it was false ; and, in so concluding, relied on Taylor v. Asliton(?7z.) and Evans v, Edmonds, {n) The latter case arose on a covenant in a sep- aration deed, to which fraud was pleaded, and Maule, J., said, "I conceive that if a man, having no knowledge what- ever on the subject, takes upon himself to represent a cer- tain state of facts to exist, he does so at his peril ; and, if it be done either with a view to secure some benefit to him- self, or to deceive a third person, he is in law guilty of a (j) See on this, at common law, Kennedy {I) 2 J. & H., 460, 466. V. Panama, etc.. Mail Co., L. R. 2 Q. B., 580. (m) 11 M. & W., 4ul. {k) 1 Mad., 80. (n) 13 C. B., 777. 320 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. fj'aud, for, lie takes upon himself to warrant his own belief of the truth of that which he so asserts." (o) Indeed, exe- cuted contracts have been rescinded on the ground of their having been induced by false statements which were be- lieved to be true by the persons making them.(^) § 636. Questions of considerable nicety have been raised at common law as to the effect of the misrepresentation by an agent, where the principal is innocent and neither au- thorized nor knew of the misstatement. It has been dis- cussed whether such misrepresentations render the principal liable in an action for deceit. ($') It has, in a celebrated case, been held, that where an agent, without designing to deceive, made a representation which was false, but which he did not know to be so, w^hilst the principal had the knowledge of the actual facts, but did not make the repre- sentation, there was no evidence to support a plea of fraud or covin, (r)' § 637. But as an innocent misrepresentation by a ]3arty to the contract is a bar to his seeking specific performance of it, such questions do not seem to arise in actions of this (o) 13 C. B., 786. See, also, Peek v Gurney, (r) Cornfoot v. Fowke, 6 M. & W., 358; dls- L. R. 6 H. L ,377. cussed and explained InTlie Xaiional Ex- (p) Rawlins V. Wickhara, 3 De G. & J., 304 change Co. v. I>rew, •.> N'acq., 103; and see (as i-egards the deceased partner); Hart v. Barwick v. English Joint-Stock Bank, L. R. Swaine, 7 Ch. p , 42. Distinguish Brett v. 2 Ex , 259. »ee, also, Fuller v. Wilson, 3 Q. Clowser, 5 C. P. D., 376; and cf. per Lord B.,58; and in Cam. Scac. as Wilson v. Fuller, Selborne in Brownlie v. Campbell, 5 App. C, 3 id., 68, which was an action fer deceit, ulti- 938. maiteiy decided on the grouwd that the caus« (q) Udell V. Atherton, 7 H. & X., 172; Bar- of the injury was the plaintiff's ©wn misap- wick V. English Joint-Stock Bank, L. R. 3 pi-ehenslon; and ct". per Lord Hatherley in Ex., 259. Brownlie v. Campbell, 5 App. C, 941. > Young V. Covell, 8 Jolin.'s R., 23, is a case precisely in point. It was there said by the court that an action of tliis nature ' ' cannot be maintained withotft proving actual fraud in the defendant, or an intention to deceive the plaintiff by false representation. The simple fact of misrepresentation, unconnected with fraudulent design, is not sufficient. The evidence produced by the plain- tiffs at the trial did not make out the fraud, or show enough to justify the jury in drawing the conclusion. The defendant made no representation of faots within his knowledge. He stated correctly the circumstances of the connec- tions of Davis in Rhode Island. He lived on friendly terms with the plaintiffs; he gave them prompt and reasonable notice of his subsequent opinion of the insolvency of Davis; and it did not appear that he had any connection with Davis, or that he came and voluntarily recommended him to the plaintiffs. The advice was rash and indiscreet ; but there is no ground from which to infer that it was deceitful. Deceit is the gist of the action. If the case had gone to the jury, the testimony would not have warranted a verdict for the plaintiifs, and tlie motion to set aside the nonsuit ought, therefore, to be denied." In the older case of Ward v. Center, 3 .John., 271, this point was treated as unsettled, though the court seems to have inclined to the view taken afterwards in Young V. Covell. Of course, where there exists the deceit or fraudulent design, said to be the gist of the action, the complaint is well laid. Gallagher v. Mason, 6 Cow., 346; Benton v. Pratt, 2 Wend., 385; Upton v. Vail, 6 John., 181. MISREPRESElSrTATION, 321 nature ; for it seems clear that any misrepresentation of an agent leading up to the contract, though both principal and agent were innocent, would debar the principal from specific performance/ § 638. It may probably be laid down as a general prin- ciple in equity, that a man is bound who makes a repre- sentation which is not true, though without knowledge of its untruth, and this even though the mistake be innocent ; for a man, before making a representation, ought not only not to know it to be untrue, he ought to know that it is true.(6f) So, in a case where a trustee was charged by the court in respect of a misrepresentation made to a purchaser, and the trustee alleged that he did not, at the time, recollect the fact thus misrepresented. Grant, M. R., said, "the plain- tiff cannot dive into the secret recesses of his (the trustee's) heart, so as to know whether he did or did not recollect the fact, and it is no excuse to say that he did not recollect it."(^)' In like manner, it may be added that, in the cases of agents rendering themselves personally liable, it is the (») Ainslie v. Medlycott, 9 Ves., 13, 21. G.. 339 ; and see per Lord Selborne in Brown- (t) In Burrowes v. l>ock, 10 Ves., 476; ac- lie v. Campbell, 5 App. C, 93o, 936. •ordingly Price v. Macaulay, 2 De G. M. * 1 Rule with respect to good faith.} "It is equally promotive of good morals, fair dealing and public justice and policy, that a vendor shou-ld distinctly comprehend not only that good faith should reign over all his conduct in re- lation to the sale, but that there should be the most scrupulous good faith, an exalted honesty, or, as it is often felicitously expressed, nbernma fides, in every representation made by him as an inducement to the sale. He should literally, in his representation, tell the truth, the whole truth, and nothing but the truth. If his representation is false in any one subst^antial circumstance going to the inducement or essence of the bargain, and the vendee is thereby misled the sale is voidable, and it is wholly immaterial whether the representa- tion be willfully or designedly false, or ignorantly or negligently untrue The vendor acts at his peril, and is bound by every syllable he utters or proclaims, or knowingly impresses upon the vendee, as a lure or decisive motive for the bargain." Story, J., in^Doggett v. Emerson, 3 Story, 733; Hough v. Richard- son, id., 659. Misrepresentation made in good faith. ] A party misrepresented the law to his sister-in-law and she, believing her title to property held by her not to be good, sold it to him, the sale being greatly to his advantage. Held, that such sale would be annulled, even where the misrepresentations were made in good faith, and in a mistaken idea of the law. Sims v. Farrill, 45 Ga., 585. 2 A mortf^ao-e obtained by the misrepresentations of the mortgagee is void: and it is ifnmaterial as to its legal effect upon the instrument, whether the mortga<^ee at the time he made the representation, knew it to be false. It he made a" statement of facts, knowing it to be false, it would clearly be a legal fraud- but although he did not know it to be false, yet it he undertook to state it as true without a knowledge of its truth or falsehood, and it operated as a deception on the party to whom it was made, and thereby induce the mortgage, it would avoid it. The gist of the inquiry is not whether the party making the 21 322 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. same whether they represent what they know to be false, or what they do not know to be triie.('w)' § 639. (4) The misrepresentation must have been made in relation to the contract in question, and with a view to induce the other to enter into it ; it must have been dolus clans locum contractuL {v) Hence, unless under very special circumstances, it must have been made at the time of the treaty, (lo) and not have relation to some collateral matter, or other relation or dealing between the parties, (a?)' (u) Per Alderson, B., in Smout v. Ilbery, a published prospectus can be presumed in 10 M & W 10 the absence of specific evidence to have been (V) t^ee per Lord Brougham in Attwood v. the basis of an insurance effected with tiiem, Small. 6 CI. & Fin., Ui; per Lord Wensley- see Wheelton v. Hardisty, 8 El. & BK, 2u2. dale in Smith v. Kay. 7 H. L. C. 775. (x) Harris v. Kemble. 1 Sim., Ill, 128. over- (w) Per Leach, V. C. In Harris v. Kemble, ruled, but as to the apj)lication and not as to 1 Sim., 122 As to the question whether a the principle, 5 Bli. (N. S ). 730. See. also, representation by an insurance company In Dawes v. King, 1 ^itark., 75. Statement knew it to be false, but whether the statement made as true was be- lieved and, therefore, if false, deceived the party to whom it was made. Jones V. Taylor, 6 Gill & John., 54. In Donelson v. Youngs, Meigs, 155, where a machinist sold a machine made by himself, which was wholly worthless, repre- senting it to be a good one, it was held to be a fraud, although the vendor was, throush want of skill in his business, ignorant that the machme was not a good one. "But it is said that a misrepresentation of the solidity of a mercantile house, made under a mistake of fact, without any interest or fraudulent inten- tion, will not sustain an action, although the plaintiff may have suffered damage by reason of such misrepresentation. Russell v. Clark 7 Cranch, 69. ' A person who falsely states a matter within his knowledge, is not excused by averring a want of recollection at the time of the statement. Kent, Ch., Bacon v. Bronson, 7 John.'s Ch., 164. 2 Willard's Eq. Jur., ch. 3, p. 149; Story's Eq. Jur., § 195. The case of Taylor v. Fleet, 1 Barb. Sup. Ct. R., 471, is an authority of value on this point. A person about to purchase a farm was ignorant of the actual character and capabilities of the land, and had no means of obtaining such knowledge, except by information derived from others; and the owner, with a knowledge that the purchaser's object was to obtain an early farm, and that his farm was not so early as others lying in the neighborhood, represented to such purchaser "that there was no earlier land anywhere about there," and the latter relying upon the truth of such representation, made the purchase; and after ascertaining, by- actual experiment, that the land was not what it had been represented to be, he applied to the vendor, within a reasonable time, to rescind the bargain, who refused to do so. Held, that this furnished a sufficient ground for the interfer- ence of a court of equity to rescind the contract, even though there was no intention on the part of the vendor to deceive the purchaser. In delivering the opinion of the court, Harris, J. , said that a misrepresentation of a material^ fact, constituting the basis of the sale, and relied upon by the purchaser, is sufficient to warrant the interference of the court. In Camp v. Pulver, 5 Barb., 91, the importance of the materiality of the misrepresentation is dwelt upon by the court. Harris, P. J. See Halls v. Thompson, 1 S. & M., 443. Misrepresentation without a design is not sufficient for an action, but if recom- mendation of a purchaser as of good credit, to the seller, be made in bad faith, and with knowledge, that he was not of good credit, and the seller sustain damage thereby, the person who made the representation is bound to indemnify the seller. 2 Kent's Com., 490. This rule places the liability of the defend- ant upon the true ground, exonerating him where he may act in good faith and still err in his judgment, and rendering him responsible where he knowingly MISREPRESENTATION. 323 § 640. This point was much discussed in a Scotch case in the House of Lords. There, a tottering joint-stock company had put out flourishing annual reports of its condition, and shortly after the last of these reports, and with a view to pre- vent its shares falling in the market and to counteract certain unfavorable rumors, the company, through their manager, urged the defenders to purchase additional shares in the concern, and assured them that the comijany would advance the necessary funds, and that the stock should be held until it could be sold at a profit, without the defenders being called on to pay any money : the shares became valueless, and the company sued for the money advanced, to which the defenders pleaded the fraud of the comi)any: to this plea it was, amongst other things, objected that the loan was one independent transaction, and the purchase another, and that the alleged misrepresentation in the purchase did not vitiate the loan. But it was held by their lordships that the defense was good, Lord Cranworth putting it on the ground that the transaction did not constitute a loan in the ordinary sense of the word, but a special contract by the company to purchase for the defenders, to be repaid only in a particular manner ; and Lord St. Leonards holding that the purchase and the loan were one transaction, though consisting of two parts — that if there had been no loan there would have been no purchase, and if there had been no purchase there would have been no loan.(?/) § 641. On the other hand, it has been held by the House of Lords that a purchaser of shares in the market, upon the faith of a prospectus which he has not received from its au- thors, cannot so connect himself with them as to render them liable for the misrepresentation contained in it.(r) In (y) The National Exchange Co. v. Drew, 2 too, Barry v. Croskey, 2 J. & U., 1 ; and con- Macq., 1(8. sider Barrett's Case, 3 De G. J. & S., 30. (z) Peek V. Gurney, L. R. 6 H. L. 377. See, misinforms the applicant for the purpose of deceiving him." Daniels, J., in Marsh v. Falker, 40 N. Y., 567. Statements claimed to be false, must have been acted upon.] In order that equity may interfere, the misrepresentation complained of must have induced the party to contract to his damage. The injured party must have had a right to rely upon the statements made. Graffenstein v. Epstein, 23 Kan., 443. Waiver of misrepresentations.] Where a party enters into new stipulations, he waives a former misrepresentation thereby. Thureatt v. McLeod, 56 Ala., 375. 324 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. earlier cases it liad been held, that a report published by the directors of a company as addressed to its shareholders, but intended to come and coming into the hands of any person who might wish to purchase shares, was a representation made by the directors to any person who might obtain the report and on the faith of it buy shares ;(a) and that false representations made by the directors of a company to the secretary of the stock exchange to obtain an official quo-, tation justified a person who, knowing the rules of the exchange, had bought on the faith of the quotation so ob- tained, in suing the directors in damages :{b) but in Peek V. Gurney,(c) Lord Chelmsford, while not doubting the pro- priety of the former of these two cases, expressed strong dissent from the latter. It need hardly be said that if, in any case where an action for deceit would lie, the result of the misrepresentations had been a contract between a director and one of the public, and the director had sued the purchaser in specific perform- ance, the purchaser would have had a clear defense. § 64S. Where directors as agents of the company pre- pared false reports and a circular addressed to the share- holders and customers of the bank, and intended for fhem, and one of the directors took these papers to a person who was neither a shareholder nor a customer, and thereby induced him to become a shareholder, it was held that the company were not bound, on the two grounds, (1) that the authority was given to the directors as a body and not to each ane individually, and (2) that the paper was prepared for one purpose and applied by an individual director for another, {d) § 643. (5) Another circumstance essential to misrepre- sentation as a defense to specific performance is, that it was in reliance upon the statements in question that the party to whom they were made entered into the contract. In Attwood V. Small, (e) which was a case for the rescission of the contract (and for this point the plaintiff's case for rescis- sion and the defendant's case against specific performance seem alike). Lord Brougham, after referring to the earlier (a) Scott V. Dixon, 29 L. J. Ex., 62 n. (c) L. E. 6 H. L., 397, 398. (6) Bedford v. Bagshaw, 4 H. & N., 538. (d) Nicol's Case, 3 De G. & J., 387. Con- See, also, Clarke v. Dickson, 6 C. B. (N. S.), sider Barrett's Case, 3 De G. J. & S., 30. 453 (e) 6 CI. & Fin., 447. MISREPHESEXTATIOX. 1325 cases, said, "Now, my lords, what inference do I draw from these cases ''( It is this, that general fraudulent conduct signifies nothing ; that general dishonesty of purpose signi- fies nothing ; that attempts to overreach go for nothing ; that an intention and design to deceive may go for notliing, unless all tliis dishonesty of purpose, all this fraud, all this intention and design, can be connected with the particular transaction, and not only connected with the i)articular transaction, but must be made to be the very ground upon which this transaction took place, and must have given rise to this contract." ^ 644. It is not, of course, necessary that the statements which were false should have been the sole inducements to the contract. The presence of true statements will not remove or cancel the effect of false ones. (./')' § 645. In considering whether the defendant relied on the misreiDresentation of the plaintiff, the court will dis- criminate between such representations as are in conscience a part of the bargain, whether incorporated into the legal contract or not, and mere vague commendations, as the holding out of mere hopes or expectations which ought to put the other party upon further inquiry ; and in judging of this,~ it is important to consider whether the thing stated may lie in the knowledge of the party making the represen- tation, or whether it must lie beyond his knowledge. Thus, for instance, with regard to mines, a distinction will be drawn between a specific account of what was to be seen in the mine, and a general description of its prospects and (/) Clarke v. Dickson, 6 C. B. (N. S.), 453; Nicors Case, 3 De G. A J.. 3S7. 1 Allen V Addington, 7 Wend., 9; Young v. Hall. 4 Geor., 9"). If a party makes false affirmation, although he has no interest of his own to serve, whereby another sustains damage, he is liable to an action. Beam v. Ilornek, 3 1-iiirf., 262; see Stiles v. White, 11 Mete., 35G. Mule as P> statements false in fact] "To maintain an action for fraud and deceit, based upon false representations, the representations must not only l)e false, in fact, but the party making them must believe, or have reason to be- lieve, them to be false, and' such false representations must mtluenci;^thi- other party to contract." Grover, J., in Oberlander v. Spiers. 4.. >. \ .. 1 -o; .Meyer v. Amidon id.. 169: :Marsh v. Falker. 40 id . r,(i6: Smith v. Coo, 29 id. <)00; Bennett v. Judson, 21 id.. 23S; Carman v. Pultz. id.. 547: see. iilso, luirlev v. Garrett. 9 B. & C, 92S; Freeman v. Baker. 5 B. ct AhL, <'•••: Thorn v. Big- land 8 E.xch , 726; Bartlett v. Solomon, G De G. >I. A: G , 33; Moc-us v. Hey- worth, 10 M. & W.. 147; Collins v. Evens. 5 Q. B.. 820; lUycraft v. Crea.sy. 2 East 92- O.swood v. Huth. 14 M. & W., 651: Burrows v. Lock. 10^e8.. 470- Brooks y. Hamilton, 15 Minn., 26: Stitt v. Little, 03 N. ^ ., 427. 326 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. capabilities, wliicli from the very nature of the property must be problematical and doubtful. (^) So, again, the mis- representations relied on must be statements of alleged facts and not mere expressions of opinion.' § 616. Accordingly, where an advowson was sold by auc- tion, and the particulars stated that a voidance of the pre- femient was likely to occur soon, but made no mention of the present incumbent, and the auctioneer at the sale stated in explanation that the living would be void on the death of a person aged eighty-two ; and in fact the then incumbent was only thirty-two years of age: Grant, M. R,, held the (g) Jennings v. Broughton, 17 Beav., 234; 5 De G M. & G., 126; cf. Jefferys v. Fairs, 4 Ch. D., 448. ' Where the false statements presumably produced no effect.'} " If the party to whom the representations were made, himself resorted to the proper means of verification before lie entered into the contract, it may appear that he relied upon the result of his own investigation and inquiry, and not upon the repre- sentations made to him by the other party. Or if the means of investigation and verification be at hand, and the attention of the party receiving the repre- sentations be drawn to them, the circumstances of the case may be such as to make it incumbent on a court of justice to impute to him a knowledge of the results, which, upon due inquiry, he ought to have obtained, and thus the motion of reliance on the representations made to him be excluded. Again, when we are endeavoring to ascertain what reliance was placed on representa- tions, we must consider them with reference to the subject matter and relative knowledge of the parties. If the subject is capable of being accuratelj' known, and one party is, or is supposed to be, possessed of accurate knowledge, and the other is utterly ignorant, and a contract is entered into after representations made by the party who knows, or is supposed to know, without any means of verification being resorted to by the other, it may well enough be presumed that the ignorant man relied on the statements made to him by him who was supposedto be better informed. But if the subject is in its nature uncertain, if all that is known about it is matter of inference from something else, and if the parties making and receiving representations on the subject have equal knowledge and means of acquiring information and equal skill, it is not easy to presume that representations made by one would have much, or any. influ- ence on the other." Lord Langdale, in Chapham v. Shillito, 7 Beav., 146; see, also, Pike v. Vigcrs, 2 D. i; W., 201; Vesey v. Doto, 3 Allen, 380; Clarke v. Macintosh, 4 GiS., 134; Hough v Piichardson, 3 Story, G59; Small v. Atwood, 6 CI. & Fin., 232. Their inspection, if the purchaser does not avail himself of those means and opportunities, he will not be heard to say in impeachment of the contract of sale, that he was drawn into it by the vendor's misrepresenta- tions." This is the rule as laid down by the United States Supreme Court in Slaughter's Admin, v. Gerson, 13 Wall., 383; see, also, Davis v. Sims, Hill & Denio, 234; Sun Ins. Co. v. Adam, 23 Pick., 2rj6; Mooney v. Miller, 102 iSIass., 220; Long v. Warren, 68 N Y., 420; Tallman v. Green, 3 Sandf., 437; Smith V. Countryman, 30 N. Y., C81 ; Grant v. Munt, Cooper, 173; Barnett v. Stan- ton, 2 Ala., 181: Buck v. McCaughtrey, 5 Monr., 216; Eeadiug v. Price, 3. I. J. Marsh., fil ; McKinny v. Fort, 10 Tex., 220; Barron v. Alexander, 27 Mo., 530; Cauldwell v. McCelland, 3 Sneed, loO Representations as to property at a didance.'X Where property is sold which the purchaser has never seen, and is obliged to depend upon the statements of the vendor respecting it, such vendor is bound to stand his representation. Re Reese River Silver Mining Co., L. R., 2 Ch., 614; Spalding v. Hedges, 2 Pa. St , 240; Smith v. Richards, 13 Pet., 26; Camp v. Camp, 2 Ala., 632; Babcock v. Case, 61 Pa. St., 427; Miner v. Medburv, 6 Wis., 29.j. MIS REPRESENT ATIOX. 327 representation made by the particulars so vague and indefi- nite that its only effect ought to have been to put the de- fendant upon making inquiries, and accordingly granted specific performance. (7z) And so, again, the representation that land was uncommonly rich water-meadow, whereas, in fact, it was very imperfectly watered, was held not to be a bar to performance :(/)' and the like was held as regards a statement to the effect that the land in course of time might be covered with warp and considerably improved at a mod- erate cost. (J) § 647. But, generally speaking, in statements made by the vendor as to property, he is bound to make them free from all ambiguity, and "the purchaser is not bound to take upon himself the peril of ascertaining the true mean- ing of the statement ;"(^') ^^^ ^^ ^U cases of commendation by the vendor, a specific statement as to the character of the thing sold is to be distinguished from general laudation. The statement that a lime which would be produced by stone to be got in an unopened field would be of a particular quality, was held sufficiently precise to furnish a defense. (/)' § 648. Besides the vagueness of the representation, there are other grounds upon which the court will conclude that it was not relied upon by the party to whom it was made : these were discussed by Lord Langdale, M. R., in the case (ft) Trower v. Xewcome, 3 Jler., 704. Cotter. 3 Jon & L.. 507; ^'all v. ^tubbs, 1 (0 Scott T. Hanson, 1 Sim , 13; S. C, 1 R. Ma<1.. 80 See. too. Moxey v. B5pwood. 4 De & Mv . 1-2S See, also, on this point Fenton G. F. & J., 3ol; Caballero v. Henty, L. R. 9 Browne. 14 Ves., 144; Brealey T. Collins. €h.,447. , .-, t * n aai <;«. u., 317; Brooke v. Roundlhwaite, 5 Ha., ») It was on this ground that the House of Lords ultimately decided the celebrated case of Attwood v. Small. (^) The Britisli, Iron Company had sent a deputation of their direc- tors down to Mr. Attwood' s works for the express purpose of verifying his representations, and they expressed their satisfaction with the proofs produced : by this line of con- duct they precluded themselves from being able to rely on any previous misrepresentations : for if a purchaser chooses to judge for himself, and does not avail himself of all the knowledge and means of knowledge open to him, he Avill not afterwards be allowed to say that he was deceived by the representations of the vendor. This decision was given^ in a suit for rescission, and not upon a defense to a specific performance ; but for the present point these seem to l)e alike, (r) § 651. The principle is further illustrated by the case of Jennings v. Broughton,(5) where the plaintiff, having bought shares in a mine, afterwards sought to set aside the sale on the ground of misrepresentation as to the state of tlie mine ; but he having visited the mine himself, and the alleged mis- statements being such as he was competent to detect, the court held that his purchase of shares had not been made in reliance on the representations, and the bill was dismissed both by Lord Roniilly, M. R., and the court of appeal in C.) Lysney V. Selby. 2 Lord Rayd.. HIS, l^^-^^^^^^^X:i't<:.k.f^S^ "S6Cl.&FinV23-2. , ^^.. ^ W 5 I)e G. M. & G.. I'^O; aniru.ing S. C.. 17 (n Cf. Aberamiin Iron Works v. W ickcns, Bcav., 234. 330 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. chancery. "I desire," said Knight Bruce, L, J., "to be understood as at once giving my opinion against the plain- tiff with regard to every ' object of sense ' which on either visit to the mine he may, as an educated man of ordinary intelligence, having the use of his eyes, his mind on the alert -and his interest awakened, be reasonably taken (whether much or little of a workman or a philosopher) to have ob- served. "(^) With this last mentioned case may advantage- ously be brought into comparison the case of Higgins v. Samels,(?^) where the rei)resentation was as to the character of the lime which could be made from the stone under a field, and where after this statement the defendant and two friends made a cursory inspection of the field in company with the plaintiff, and it did not appear that any of the persons were competent to judge by inspection of the quality of the stone for the purpose of lime burning. In this case Lord Hatherley (then V. C.) considered that the inspection did not preclude the defendant from relying upon the mis- representation. § 653. Where a purchaser comi)lained of a representation that the woods sold had yielded £250 per annum on an aver- age of fifteen years, on the ground that though they might in fact have done so, yet that they would not have done sq in a fair course of husbandry, his objection was held to be displaced by proof that he had been put in possession of a paper from which he might have ascertained that the woods had been unequally cut.(«) § 653. The allegation of misrepresentation may also be effectually met by proof that the party alleging it was from the beginning cognisant of all the matters comjolained of,(^o) or after full information concerning them continued to act on the footing of the contract, or to deal with the property comprised in it as if held under the contract : as, for in- stance, where a lessee of a mine, after knowledge of alleged misrepresentation, continued to work it.{xy (i) 5De G. M. & G., 131. See, al^o. Hay (w) Cf. Nene Valley Drainage Commission- wood V. Cope, 25 Beav., 140, and Jefferys v. ers v. Dunkley. 4 Ch. D., 1, where misde- Fairs. 4 Ch. D., 448. Bcription was alleged. (u) 2 J. & H., 4b0. (x) Vigers v. Pike, 8 Cl. & Fin., 562, 650; (V) Lowndes v. Lane, 2 Cox, 363. See, too, Hume v. Pocock, L. R. 1 Eq , 423; 1 Ch., 379. €larke v. Mackintosh, 4 Giff , 134; 11 W. R , «52. ' At law, subsequent performance on the part of the one defendant, with knowledge of the fraud acquired subsequently to the making of the agreement, MISREPRESENTATION. 331 § 654. Whether a misrepresentation not of fact, but of law, would afford a defense to an action for specific perfonn- ance has not, it is believed, been decided. (?/) But for the purposes of holding a defendant liable to make good a rep- resentation, or of rescinding a contract, it is certain that it must be a statement not of law, but of fact. (2) Every one is taken to know the law.' § G35. Questions of title are mixed questions of law and fact : but where the vendors knew of a fact which destroyed their title to a material part of the property sold (viz. : the fact that it was a recent encroachment from a common), and, nevertheless, represented that they were the owners in fee simple or had free power to dispose of the inheritance of the whole of the proj)erty sold, and the abstract tliey deliv- ered did not disclose the material fact, it was held by Grant, M, It., and Lord Eldon that a bill for rescission could be maintained. This was the case of Edwards v. M'Leay.(a) § 650. But it must not thence be inferred that every rep- resentation that the vendor has a good title will enable the purchaser to set aside an executed contract or successfully resist specific performance. (5) § 657. The authority of Edwards v. M'Leay was followed and relied on by Knight Bruce, Y. C, in the celebrated case of Gibson v. D'Este,(c) in which he decided that the knowl- edge in the vendor or her agent of a right of way over the property sold of which the purchaser was not aware, and which was not stated to him by the vendor or her agent, was a ground for the rescission of the contract. This decision was, however, overruled by the House of Lords, on the (y) See infra, § 765 et seq. Union, 9 W. R., 155; Hart v. Swainc, 7 Ch. (z) Beattie v. Lord Eburv, L. R. 7 Ch., 777; D . 42. 47. affirmed in D. P. L. R. 7 II. L , 102; Legg v. (6) Legge v. Crokcr, 1 Hall & B., 506; Uunie Croker, 1 Ball & B.. 506 v. I'ocock, L. R. 1 Eq ,423; 1 fli ,:379; Brown- (a) Coop., 308; 2S\v.,287; St Leon.Eawof lie v Campbell, 5 A pp. i: ,92a, 9,i7. Cf. Brett Prop., 649. See Turner v. West Bromwich v. Cloxvser. 5 C. P. D . 376. (c) 2 Y. & C. C. C, 542. and prior to its performance, precludes bim from the disaffirmauce of the con- tract ; or suit for the consideration, but does not bar him of his remedy for damages. Whitnej" v. Allaire, 4 Denio, 554. ^ T7ie repreiientation mud he of maliei' of fad, and not of a matter of law, opinion, judgment or mere intention, unless the expression of opinion consti- tutes a warranty, or that of intention or contract; or unless, in dealing with another, an unconscionable advantage is taken of his ignorance of his legal rights. Adam's Equity, 176; see, also, Leake on Con., ]8'2: Kerr on Fravid and Mis., 9U; Curry v- Keyser. ;!!) Ind., 214; Colter v. .Morgan, 12 B. Mou., 278; Townsend v. Coales, 31 Ala.. 42^. 382 FRY ON SPECIFIC l>ERFOKMANCE OF COXTMACTS. principle that, in order to set aside a purchase perfected by conveyance and payment of the purchase money, there must be proof of the direct personal knowledge? and concealment by the principal, and not merely by an agent, and that such proof was wanting in the case.(rZ) This decision has by no means given universal satisfaction, (e) but whether correct or not, it leaves intact the doctrine established in Edwards V. McLeay. § 658. Where a misrepresentation has been made by the vendor with regard to some patent defect in the thing sold, and it is proved that the purchaser had seen the thing sold, so that this defect must have been known to him, he will not be able to avail himself of the defect as a bar to specific performance.' This was decided by Grant, M. R., in the case of Dyer v. Hargrave,(/) where a farm was described as all lying within a ring-fence, whereas it did not in fact so lie ; but it was clearly proved that the defendant had lived in the neighborhood all his life, had seen the farm be- fore purchasing it, and must have known Avhether it did lie in a ring-fence or not ; and on these facts the master of the rolls decided that the defendant was clearly excluded from (d) Same note, Wilde v. Gibson, 1 H. L. C, (e) St. Leon. Law of Prop., 614. 605 See Brownlie V. Campbell, 5 App C, (/) 10 Ves., 505. See supra, § 651. 925. 937; and consider Brett v. Clowser, 5 C. P. D., 376, 388. ' Each party having an opportunity to examine, and doing so.'] "The rule that when a purchaser has exammed property containing defects which can be dis- covered by ordinary vigiUmce, he is not entitled to relief on account of such defects, does not apply when fraudulent means have been employed to conceal the defects. The obligation to communicate facts ceases when each party has an opportunity of examining for himself, and undertakes to do, without relying on the statements of the other. But it is not the mere opportunity to examine which Telieves the other party from the duty to disclose For although the opportunity exists, vet if the purchaser is led to repose confidence in the vendor, and does not examine for himself, the duty to disclose defects is equally obli- gatory, and the vendor will be held bound for all statements and all undue con- cealm'e'nts." Sharkey, J., in Hall v. Thompson, 1 Sm. & Marsh , 443. Purchaser need not give vendor information ofinhanced value.] The purchaser is not bound to advise the vendor of a fact which may increase the value of the property. There may be a mine upon the land of vendor, of which he is ignorant, an intending purchaser who is aware of the fact, is not bound to dis- close it. The rule appears to be, that the vendor must put the purchaser in possession of any fact which decreases the value of the property; but the pur- chaser is not reciprocally bound to advise the vendor of a fact which may increase its value. Fox v. Mackreth, 2 Bro. C. C, 400, 420; Walters v. Morgan, 3 De G. F. cfc .J., 923; Wilde v. Gibson, 1 H. of Lds., 60o; Laidlaw v. Organ, 2 Wheat., 178; Livingston v. Penn. Iron Co., 2 Paige's Ch., 390; Perkins v. McGanock, Cooke, 4L5; Smith v. Beaty, 2 Ired. Eq., 45G; Harris v. Tyson, 24 Pa. St., 347; Butler's App., 26 Pa. St., (53. See contra, where fraudulent mis- representations were used. Swimm v. Bush, 23 Mich., 99. MISREPRESENTATION. 333 insisting upon the misrepresentation as a defense. This principle will, of course, only apply where the thing in re- spect of which the representation is made is one perfectly visible to everybody. (<7) § 659. This case Avas supported by Grant, M. R., by the analogy of warranties at common law, in which, however general, defects apparent at the time of the bargain are not included, because they can form no subject of deceit or fraud ; so that, for example, a person avIio buys a horse knowing it to be blind in both eyes, cannot sue for this de- fect on a general warranty of soundness. (^) § 660. But for the vendor thus to countervail the effects of his own misrepresentation, the evidence of knowledge in the other party must be conclusive; he "must show very clearly that the purchaser knew that to be untrue which was represented to him as true ; for no man can be heard to say that he is to be assumed not to have spoken the truth, "(i)' § 661. Such being the proof required, it is very certain (a) Grant v. Munt, Coop., 173; infra, S 849 Macaulay, 2 De G. M. & G.,346; Wilson ▼. et seq. Short, 6 Ha., 366, 378; Dyer t. Hargrave, >• (ft) Bayly v. Merrel, Cro. Jac , 386; Marget- Ves., 505; Levlanrt v. Illlngworth, 2 De G. F. eon V. Wright, 7 Blng., 603 & J., 248; Colby v. Gadsden, 34 Beav., 410. (»■) Per Knight Bruce, L. J., In Price v. ' Chitty's Contr. (6th Am. ed.). 445, 446; Story's Contr., §§ 530, 532. Th« r»le, lioweTer, at law, is not everywhere uniform. "A general warranty," says Mr. Parsons (vol. 1, bk. 3, ch. 5, p. 400, n. [i]), "is said iiot to cover tltv fects plain and obvious to the purchaser, or of which he had coi^nizance: thus, if a horse be warranted perfect, and want a tail or an ear. 13 H., 4, 1 b, pi., 4; 11 Edw., 4, 6 b, pi., 10; Southerue v. Howe, 2 Rol. Rep., 5; Lon^ v. Hicks, 3 Hump., 305; Schuyler y. Russ, 2 Gaines, 203; .Margetsou v. Wriirht, 5 M. & P., 606; Dillard v. Moore, 2 Eng. (Ark.), 166. The same rule iipplies whetlier the warranty is express or whetlier the warranty is implied by law, from a jsound price, as is the case in some States. Richardson v. .Tohuson, 1 Louis. Ann. Rep., 389. But care should be taken not to misunderstand nor misapply this rule. A vendor may warrant against a defect which is patent and obvious as well as against any other. And a general warranty that a horse was .wm/w/, {or instance, would, perhaps, be broken, if one eye was so badly injured, or so malformed as to be entirely useless; and although this defect might have l»een noticed by the purchaser at the time of sale. He may choose to rely upon the warranty of the vendor, rather than upon his own judgment, and we see not why he should not be permitted to do so. A warranty that a horse is ^^ouud i3 broken if he cannot see with one eye. House v. Fort, 4 Blackf. ~'^'^- ^> "7 may not the vendor be equally liable if one eye was entirely gone ? In Marget- sou v. Wright 8 Bing., 454, 7 id., 603, a horse warranted sound had a splint then- this was ■msible at the time of the sale; but the animal was not then lame from it He afterwards became lame from the effects of it, and the warranty was held to be broken. In Liddard v. Kain, 2.Bing. . 183. an acti(Mi was brought to recover the value of horses sold and delivered. The detonse was that, at the time of the purchase, the plaintiiT agreed to deliver the horses at the end ol a fortnight, sound and free from blemish, and that at the end of a fortnight one had a cough and the other a swelled leg; but it also appeared that the .seller informed the buyer that one of the horses had a cold on him. and that this, as well as the swelled leg, was apparent to every observer. The jury having 334 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. tliat the mere circnmstance of other means of knowledge being open to the purchaser will not have this effect, even though, independently of any statement, the party relying on the representation would in law have been taken to have had notice of the contrary. The doctrine of notice has ho application where there has been a representation as to the fact of which notice would be implied ;(,/) the proof must go further, and clearly show the purchaser to have had commu- nicated to his mind information of the real state of facts. (^) § 662. Therefore, where a distinct representation has been made, it will not be countervailed by any general statement or any circumstances from which an inference inconsistent with the representation might be drawn, even though, in the absence of such representation, they might be sufficient to put the other party on inquiry. (Z) § 663. These principles are apijlicable not only where the deceived party resists specific perfoiTnance, but where he assumes the position of plaintiff and seeks to set aside the contract on the ground of misrepresentation. In Raw- lins V. Wickham,(77^) the plaintiff successfully repudiated a contract of partnership after he had been a partner for four years with full power of access to the books, and these books would have shown the falsity of the representation made to him. § 664. Nor will it prevent the effect of a misrepresenta- tion that the party making it recommended the other to consult his friends and professional advisors, for "no man can complain that another has too implicitly relied on the truth of what he has himself stated." (/i) ( j) Drysdale v. ]Vlace,2 Sm. & Gif., 225, 230; (l) Wilson v. Short, 6 Ha.. 366, 377. cf. per Jessel.M.R., in Jones v.lllmmer.U (m)l Giff . 355; 3 De G. & J , 304. Cli D 590 W Beynell v. Sprye, 1 De G. M. & G., 660, ik) Price' V. Macaulay. 2 De G. M. & G., 339. 7lU; Dobell v. Stevens, 3 B. & C, 623. See, also, Gibson v. D'Este, 2 Y. & C. C. C, 542, 572. found a verdict for the defendant, a rule for a new trial was moved on, on the ground that where defects are patent, a warranty against them is in- operative. The court refused the rule, on the ground that the warranty did not apply to the time of the sale, but to a subsequent period. In Stucky v. Clyburn, Cheves, 186, a slave sold had a hernia; this was known to the buyer. Yet it was held to be within an express warranty of soundness. So of a swell- ing in the abdomen, plainly visible and known to the purchaser. _ Wilson v. Ferguson, Cheves, 109. So where a slave had the scrofula at the time of sale. Thompson v. Botts, 8 Mis., 710. And where a defect is obvious, yet, if the purchaser be misled as to its character or extent, a warranty is implied. Wood V. Ashe, 3 Strobh's L., 64." Upon this view of the case, the analogy of Sir William Grant, in Bayly v. Merrel, referred to in the text, would be neither so cogent nor so apt in this country as in England. MISEEPRESENTATIOX. 335 § 660. Thus where a misrepresentation is made V)y a vendor in respect of a lease, of the covenants in which tlie purchaser would, by law, be implied to have notice, the ven- dor will be equally bound by his statement as if no such implication arose, (o) On the same principle it was decided that where a vendor represented the house to be substantially and well built, and it proved to be the contrary, the vendor was not enti- tled to specific perfomiance, though the defendant miglit,. of course, have inquired into its actual state {p) § 666. In Harris v. Kemble(5') there was a contract con- sequent uj)on certain misrepresentations as to the profits of a theatre. Leach, V. C, was of opinion that these repre- sentations, being manifestly founded on accounts which were equally open to both parties (they being joint owners of the theater), and being Justified by the accounts, did not avoid the contract ; but his decision was overruled by Lord Lyndhurst and afterwards by the House of Lords, on the ground that the representations were made with a view to- the contract, and that the accounts were so kept as to ivn- der it difficult without employing an accountant to draw any certain conclusion from them, § 667. The circumstance that the vendor sold "with all faults," though it may serve to put the purchaser on liis guard, will not enable the vendor to say that the purchaser did not rely on any representation made, or prevent the purchaser from avoiding the sale, if that representation were false, (r) § 668. The principle that, in order to render a misrep- resentation operative, there must be reliance on it by the party who uses it as a defense, applies to the case of the assignment of a contract originally att'ected by such a circumstance: thus it seems that if A. contract with B., and in so doing there are misrepresentations on the part of A. which would prevent his enforcing the contract against B., and B. assign the contract to C, on v.hom no fraud is practised and who is not afi'ected by the original misrepre- sentation, in such circumstances the contract might be (0) Van Y. Corpe, 3 My. & K., 269; Flight (?) 1 Sm . 111. particularly IM; S.C ,5 BU. l^iTV^-'^'''^^^I^^^''A\l-t ^^(Vric{,nei.lcr.v. Heath. 3 Cam.. 5^. See. Long, 6 Beav., 590. ^„ also. i^^f". § ^^' ■ Cp) Cox v. MiUdleton, 2 Drew, 209. 336 FRY ox SPECIFIC PERFORlMAlSrCE OF CONTRACTS. enforced against C, for he placed no reliance on tlie mis- representation made to B.{s) § 669. From the same principle it follows that if A. make a misrei)resentation to the agent of B., which is believed by the agent to be true but known by B. to be false, B. cannot avail himself of this as a defense to specific performance(^)' § 670. (6) It is, for obvious reasons, necessary, to consti- tute a misrepresentation which will prevent a specific per- formance, that the statement in question shall be so material to the contract built on it that, if the statement be false, the contract becomes one which it w^ould be unconscionable for the party having made the statement to enforce. In other words, the misrepresentation must be shown to have oper- ated to the prejudice of the defendant. (?/) Tlierefore, where A. induced a i^urchaser to think that he was contracting with B. through his (A.'s) agency, whereas he was, in fact, contracting with A. himself, but there was nothing to in- duce the belief that he would not have contracted on the same terms with A., or that he had sustained any loss or inconvenience from acting under the mistake, the court enforced performance of the contract. (») But it is sufficient if the misrepresentation operate to the prejudice of the de- fendant to a very small extent, (w) § 671. The effect of misrepresentation on the contract and the rights of the parties und-er it is considered in con- nection with cases of fraud in the next chapter. (s) gmith V. Clarke, 18 Ves., 477, 484. in antecedentem qui dat cau8am con-tractui, (t) Nelson V. Stocker, 4 De G. & J., 458. ita ut, eo absente, contractu* non fleret, et in (u) See Polhill V. Walter, 3 B. & Ad., 114. eoncomitantem, geu incldentem, quo etiam (v) Fellowea v.. Lord Gwydyr, 1 Sim., 63; absente adhuc contractus Iniretur. * * « S. C, 1 R. & My., 83; cf. Flint v. Woodin, 9 Si error circa solam qualltatem accidentalem Ha., 618. contigerit, qua? simul cum substantia rei non (w) Cadman v. Horner, 18 Ves., 10. Tbe ingreditur objectum substantiale conti-actus, distinction of tue casuists between trroy- ante- hie validus omnino persistet." Mariani Ex- cedens and concomitant was the same as that amen, § 279. referred to in this section. Error " divlditur ' Fraudulent representations by the agent of a corpoi'atlon.] Tlie corporation i« bound by the acts of its accredited agent, acting within the scope of liis authority, and must be held for his fraudulent acts. Burnes v. Penuell, 2 H. of Lds., 499 ; National Exch. Co. v. Drew, 2 Mcll., 125; Ranger v. Gt. Western R. R. Co., 5 H. of Lds., 86; Custer v. Titusville Water and Gas Co., 63 Pa. St., 381; see, however, Brockwell's Case, 4 Drew, 205. Where the agent has no avthority.'\ Where an agent has no authority to do the act, yet where a principal suffers a party to expend his money, believing that the representations of such agent were authorized by the principal, equity will not suffer such principle to plead that his agent had no authority. Kerr on Fraud and Mis., 117; Ramsden v. Dyson, L. R. 1 Ch., 129. FRAUD. 337 CHAPTER XIY. OF FKAUD. § 673. Fraud is, of course, a larger word tlian misrepre- sentation, and includes not only misrepresentation when fraudulent, wliicli lias already been considered, but also all other unconscionable and deceptive dealing of either party to any contract,' § 673. Fraud comes before the court in several relations ; as a defense to an action on the contract ; as the ground for an action for deceit ; as a ground for setting aside an exe- cutory or even an executed contract ; as a defense to an action for si')ecific performance ; or, lastly, as forming an exception to the Statute of Frauds, in which relation it has been considered in the chapter {a) on that statute. § 674. Fraud may arise either in the obtaining of the contract, or in the course of its performance. Fraud in the obtaining of the contract has long been held aground for the cancellation of the contract ; and a fortiori it presents a complete defense to an action for specific i)er- formance. § 675. Whether fraud in the course of its performance is in all cases a ground for the rescission of a contract is a point which cannot be considered as finally settled : it certainl}^ appears to be so in all cases in which rescission is the only adequate remedy. (/>) It is conceived that in no case could a party guilty of fraud in the performance of a contract ask (a) Part III, chap, xi, § 544 et seq. Co. v. India-rubber, Gutta-percha and Telc- (6) Panama and South Pacific Telegraph graph Works Co., L. R 10 Ch., 515. ' *'/«, order to constitute fraud at common law, it is not enough to show that fraud, in the sense of misrepresentation and undue advantage of the i>ositiou of the parties said to be imposed upon, has been committed: but tlie extent of the fraud must be brought home to the part}' to the action who is charged with it. In tlie case of frauds in the sense of a court of eijuity, a court of equity will take into account all the circumstances of the case — not only the act anii intention of the party, but the circumstances under which the act was done the position of the party who is said to be imposed upon; his being inojw con- silii; his being in a sense of bodily, and therefore mental, weakness, and so ou — non constat, these are sufficient to eoustitute lesral fraud.'" Kinderslev, V. C, in Stewart v. Greatwest. R. R. Co., 2 Dr. & Sm., 438; llJur. (N. S.), 627. " Fraud 22 338 FRY ON SrECIFIC PEKFOKMANCE OF CONTRACTS. the court to interfere for the purpose of enforcing its further performance. Thus if A. were to contract with B. for the sale of an estate at such a price as C. should fix and then were to bribe C. to fix a very high price, A. could never, it is submitted, bring an action against B. for the performance of the contract either at a price to be fixed by C. or by any third person. § 676. In the chapter on misrepresentation it has been seen, that the suggestion of what is false is a ground for re- fusing specific performance, and also in certain cases for rescinding contracts : the same results flow from the non- disclosure of a fact which is material, and which it is the duty of one party to the contract to disclose to the other, (c) (c) The question as to what facts which " non ergo generaliter sequendum illud ejus- micht Influence the mind of one party it is deni Ciceronis, celare esse, cum tu quod scias the duty of the other, If knowing of them, to id ignorare eraolumenti tui causa velis eos communicate, is one of great difliculty. It is iiuorum intersit scire : sed tum demum id discussed by Cicero in a well-known pas- locum habet, cum de ns agitur qua; rem sub- sage (De Offic. lib. ili, c. 13 et seq.); culpable jectam per se contingunt." De Jur. Belli ac concealment being in his opinion "cum quod Pacis, lib il, c 12 s. 9. See,,^l«o> Potoer, tu scias id ignorare emolumenti tui causa Tr. du Contrat de Vente, Part II, chap. 2, and veils eos quorum intersit id scire." (C. 13.) supra, § 684, note 1. Consider Blenkhorn v. The limitation put by Grotius on this princi- Penrose, 29 W. R., -237. pie would probably be adopted by our law, is infinite ; and were a court of equity to lay down rules how far they would go, and no further, in extending their relief against it, or to define strictly the species, or evidence of it, the jurisdiction would be cramped, and perpetually eluded by the new schemes which the fertility of man's invention would con- trive " Park's Hist, of Chanc, 508. Lord Hardwick says, in Lawley v. Hooper, 3 Atk., 278: "The court very wisely hath never laid down any gen- eral rule beyond which it will not go, lest other means for avoiding the equity of the court should be found out." See, also, Kennedy v. Kennedy, 3 Ala., 571- Belcher v. Belcher, 10 Yerg., 121; Gale v. Gale, 19 Barb., 249; Laidlaw V. Organ, 2 Wheat., 105; Smith v. Richards, 13 Pet., 36; Tyler v. Black, 13 How., 231. Hoioframlistobesnoim'\ "A deduction of fraud may be made not only from deceptive assertions and false representations, but from facts, incidents and circumstances which may be trivial in themselves, but may, in a given case often be decisive of a fraudulent design." 2 Kent's Com., 484. Where a party seeks relief on the ground of fraud, he who alleges the fraud has the burden of proof; it must be proved as alleged. Blair v Bromley, 5 Hare, 559; Lomax v. Ripley, 24 L. J. Ch., 254; Smith v. Kay, 7 H. of Lds., 750; Mowatt V Blake 31 L.T., 387; .Jenning v. Broughton, 17 Beav.,234; Burton v. Blake- more, 2 Jur., 1062; Brock v. McNaughtney, 5 Mon., 216; Gibson v. Randolph, 2 Munf., 310; Gerde v. Hawkins, 2 Dev.'s Eq., 398; Eyre v. Potter, 15 How., 42; Blaisdell v. Cowell, 14 Me., 370. Fraud in matters of contract.'] Lord Hardwick has divided fraud in matters of contract into four heads. " 1st. Actual fraud arising from facts and cir- cumstances of imposition. 2d. Fraud arising from the mtrinsic nature and subject of the bargain. 3d. Fraud presumed from the circumstances of the bargain. 4th. Fraud inferred from the circumstances, and affecting some third person not a party to the transaction. " Chesterfield v. Jansen, 2 Ves. Sen. , 125. Fraud very different from mistake.'] Where the cause of action is based on fraud, it is very different from one based on a mistake alone. One cannot be substituted for the other on the trial. Ross v. Mather, 51 N. Y., 108; Hadley V. ScrantOD, 57 N. Y., 424; Burnham v. Walkup, 54 id., 656. FKAUD. 339 or from the active suppression and concealment of a fact which is material, 'and which the other party would have come to know, but for such suppression and concealment. But mere silence as regards a material fact which the one party is not under an obligation to disclose to the other cannot be a ground for rescission or a defense to specific performance. It becomes then most material to consider what facts either party to a contract is bound to disclose to the other. § 677. The obligation to disclose arises in various ways.(^)' (d) See Davies v. London and Provincial Marine Insurance Co., 8 Ch. D., 469, 474. ' It was decided in White v. Flora, 2 Overton, 426, that the concealment of a truth which, if correctly known, would probably be a reason for making the terms of the contract different, is a good ground for rescinding the contract in equity. In Snelson v Franklin, 6 iMun., 210, the owner of a lease agreed for the sale of it, without showing the lease to the vendee, or informing him of a provision in it, to the effect that in the case of the destruction, by fire, of the liouse leased, the term should then cease and determine. In the agreement of sale, it was represented that the lease was to continue four years. The house being burned soon after the sale, it was held that equity would relieve the ven- dee by enjoining the vendor from collecting the purchase money, and directing his notes therefor to be given up and canceled. See, also, McNeil v. Baird, 6 Munf., 316; Pollard v. Rogers, 4 Call, 439. In Halls v. Thompson, 1 S & M., 443, the concealment by the vendor of material facts, calculated to influence the vendee, or operate to his prejudice, were held to be fraudulent. In White V. Cox, 3 Hayw., 79, it was again held that suppression of a truth is sufficient ground for setting aside a contract in equity. Rawdon v. Blatchford, 1 Sandf., 344. affords another illustration of the same rule. In that case, A. borrowed money of B., and secured it by the transfer of stocks. A. was then cashier of a bank, and so continued until its failure, when it appeared that he was a de- faulter to the bank for a large sum, and was insolvent. While this was known to the bank commissioners only, he obtained the stock from B , without con- sideration, upon a representation that he wanted it for a particular purpose, and would substitute other security for it. His purpose, which was to transfer the stock to the bank, to prevent a public disclosure, he withheld from B. On obtaining the stock, he immediately transferred it to the bank. Held, that A.'s concealment of his situation and purpose was a fraud uponB., and that the bank could not retain the stock for its demand against A. But where a vendee, in conversation with a vendor, charged him with having concealed an incum- brance upon the land sold, and the vendor neither admitted nor denied it, it was held that this was not sufficient evidence of fraudulent concealment to jus- tify a rescission of the contract- Halls v. Thompson, 1 S. & ]M., 443. At law it is well settled that a vendor may be silent, leaving the purchaser to require a warranty. He may be silent and be safe. To vitiate the sale there must be active fraud; that is, if by acts or words he leads the buyer astray, then he ex- poses himself to the consequences of an action at law. Pars. Contr., vol. 1, p. 461; but see the case of Hill v. Gray, 1 Stark., 434. There a picture was sold which the buyer beliexed had been the property of Sir Felix Agar, a cir- cumstance which might have enhanced its value in his eyes. The seller knew that the purchaser was laboring under this delusion, and did not remove it; but it did not appear that he either induced or strengthened it. In an action for the price. Lord Ellenborough nonsuited the plaintiff, saying that the picture was sold under a deception. The seller ought not to have let in a suspicion on the part of the purchaser, which he knew enhanced its value. He saw that the purchaser had fallen into a delusion, but did not remove it. From the report 340 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. (1) Where the parties to a contract stand in some pre- existing relationship to one another of a fiduciai-y character (as, for example, the relation of agent and principal), (e) they can only deal after the most full disclosure. The relations of trustee and cestui que trust,{f) solicitor and client, part- ner and partner, are all well known to be of a fiduciary kind. The cases arising out of such relationships show that when there is a non-disclosure of that which it is the plaintiff's duty to disclose, no specific performance can be granted. § 678. (2) Sometimes the obligation to disclose may even arise from an antecedent wrong done by the one party to the other. "If," said Lord Hatherley, "a man knows that he has committed a trespass of a very serious character upon his neighbor' s propertj^ and finding it convenient to screen himself from the consequences, makes a proposal for the purchase of that property, he certainly ought to communi- cate to the person with whom he is dealing the exact state of the circumstances of the case:"(p') and on that ground and under these circumstances specific performance was refused. («) See Imperial Mercantile Credit Associa- tionship imposing a similar obligation. See tion V. Coleman, I>. R. 6 H. L., 189; Dunne per James, L. J., in Dicconson v. Talbot, L. V. English, L. R. 18 Eq, 524. R. 6 Ch., 37. , „„.^ ,.,„,„ (/) Probably in the case of a tenant for life {g) Phillips v. Homfray, L. R. 6Ch., uO, ,79. purchasing from his trustees there is a rela- itself it might be seen that Lord EUeuborough here held that silence alone was a fraudulent concealment, sufficient to vitiate the sale. But this is explained in the late English case of Keates v. Cadogan, 2 Eng., 318, Jervis, C. J., say- ino- that in Hill v. Gray there was '^positive aggressive" deceit. "Not removing the delusion might be equivalent to an express misrepresentation-" The case of Brown v. Montgomery, 20 N. Y. (6 Smith), 287, seems to be in point. The Court of Appeals there decided that it is a fraudulent suppression avoiding the sale of commercial paper, for the vendor to withhold information that the makers' check upon the bank in which they kept tlieir account, had been protested, thou"-h the vendor's informant accompanied his statement with the expression of his opinion that the makers were perfectly solvent. A distinction is taken between the case under consideration and that of Nichols v. Pinner (18 N. Y., 295). "The cases are essentiallj^ different. There we decided that where a merchant, knowing himself to be insolvent, purchases goods without disclosing the fact, there being no inquiry made, he is not necessarily guilty of fraud, as he may honestly believe that he may go on and retrieve his affairs. Where so much of the trade of the country is conducted without invested capital, or on borrowed capital, it must often happen that a merchant who is ultimately successftil, has known periods of commercial disaster when his property would not pay his debts. It would be too strict to hold, that, under such circum- stances, he must, in all cases, go into liquidation, or expose himself to probable bankruptcy by disclosing his condition. But the case does not countenance the position, that a dealer who has been of known standing, but who has suddenly failed in business, can go to those who are acquainted with his former charac- ter, but who have not heard of his failure, and innocently purchase their prop- erty on credit." FKAUD. 341 § 679. (3) Sometimes the obligation to disclose arises from the character of the contract itself. For there are certain contracts which are said to be uherrlmcefidei .•" ?. e., they are contracts which, from their natnre, demand a fnll disclosure of all material facts by the one contracting party to the other : such are contracts for marine insurance, and contracts for the formation of a partnership. In these cases silence maj^ be fraud. (^) So again, in the case of the con- tract between a company and a person taking shares, the courts have held that there is an obligation to disclose material circumstances. (/) In the case of a contract for the sale of a chattel having a latent defect, there exists an obligation to disclose that defect. 0) § 6SO. (4) Sometimes the obligation to disclose arises from the course of the negotiation itself. It is evident that the making of one statement during a negotiation may create an obligation to make another : so, if in the course of a negotiation A. make a statement to B. which is false in fact and which A. subsequently discovers to be false, he is under an obligation to state that discovery; or if A. make a statement to B. which at the time is true but in the course of the negotiations becomes false, A. becomes under an obligation to state that change of fact to "When," said Lord Blackburn, addressing the House of Lords, "a statement or representation has been made in the honafide belief that it is true, and the party who has made it afterwards comes to find out that it is untrue, and dis- covers what he should have said, he can no longer honestly keep up that silence on the subject after that has come to his knoAvledge, thereby allowing the other party to go on, and still worse inducing him to go on, upon a statement which was honestly made at the time when it was made, but which he has not now retracted when he has become aware that it can be no longer honestly persevered in. That would be fraud too, I should say, as at present advised. And I go {K\ See per Lord Blackburn In Brownlle v. Arkwright vjfewbold, 29 W. R. 455, revers- Carapben; 5 A pp. C, 954. ing S. C, '28 W. B_. ?2!?; ^^,^ J-,< ^>^'^- „. (J) New Brunswick, etc.. Co.v. Muggerklge, (./ ) Horsla 1 v. Thomas, 1 Hurl. & Colt., 90. 1 Dr. & Sm.. 363; Central Railway Co. of (A) Reynell v. Sprye, 1 De G M & (^^, 660, Venezuela V. Ki6ch,L. R. 2 H. L., 99; Hend- 703; Traill v. Baring, 4 De t.. J. & S.,ol!<,329. erson v. Lacon, L. R. 5 Eq , 249. Consider 342 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. on furtlier still to say, what is, perhaps, not quite so clear, but certainly it is my opinion, where there is a duty or obli- gation to speak, and a man in breach of that dutj^ or obliga- tion holds his tongue and does not speak, and does not say the thing he was bound to say, if that was done with the intention of inducing the other party to act upon the belief that the reason why he did not sj^eak was because he had nothing to say, I should be inclined myself to hold that that was fraud also.'"(Z) § 681. Again, entire silence can hardly deceive: but an imperfect statement may be a perfect untruth. For in- stance, if the owners of a business, desiring to sell it to a company, put out a prospectus containing various state- ments, each in itself correct, but keep silence on a material fact, it would seem well worthy of consideration whether these persons who were under no antecedent obligation to make any statement have not, by sajang something, assumed an obligation to tell not only the truth but the whole truth, (m) So where a proposed creditor describes a transaction to the proposed sureties, the description may be evidenced of a representation that there is nothing in the transaction that might not naturally be expected to take place between the parties to the transaction described. (7i) § 689. (5) Further, it must, to prevent confusion, be ob- served that there are obligations to disclosure which arise from the contract itself : as, for example, the obligation on a vender of real estate honestly to disclose his title. This is a duty arising out of, and subsequent to the contract, and the non-performance of this duty cannot constitute frrlud dans locum contractu,!. With these we are not at present concerned. § 683. (6) Lastly, an obligation to disclosure may arise from statute. The 88th section of the companies act, 1867 (30 and 31. Vict., c. 131), (o) provides that "Every prospectus of a company, and every notice inviting jDersons to subscribe for shares in any joint-stock company, shall specify the dates and the names of the parties to any contract entered into by the company or the promoters, directors, or trus- (0 In Brownlie Y.Campbell, 5 App C.,950. (o) This section, iinfl the cases under it, (m) Consider Peek v. Gurney , L. R. 6 H. L., are discussed in Buckley on the Companies' 377. Acts (3i ed ), 455 et seq. (n) Lee v. Jones, 17 C. B. (N. S.), 482, 503. FRAUD. 343 tees thereof, before the issue of such prospectus or notice, whether subject to adoption by the directors or the com- pany, or otherwise ; and any prospectus or notice not speci- fying the same shall be deemed fraudulent on the part of the promoters, directors, and officers of the company know- ingly issuing the same, as regards any person taking shares in the company on the faith of such prospectus, unless he shall have had notice of such contract." § 684, But it has never (it is believed) been held by our courts that there is any general obligation to disclosure on the part of a vendor or purchaser of chattels or realty, though the person maintaining silence may know that the other party is acting under an erroneous impression. ' '■Aliud est celare^ aliud tacere : neque enim id est celare quicquid reticeas.''\'p) It has been justly observed, by Mr. W. W. Story, (5') that "it is the general policy of the law, in order to induce vig- ilance and caution and thereby to prevent those opportuni- ties of deceit which lead to litigation, to throw upon every man the responsibilities of his own contracts, and to bur- den him with the consequences of his careless mistakes." "I am not aware," said Lord Chelmsford, addressing the House of Lords in the case of Peek v. CTurney,(r) "of any case in which an action at law has been maintained against a person for an alleged deceit, charging merely his conceal- ment of a material fact which he was morally but not legally bound to disclose." The case of Keates v. The Earl of Cado- gan,(5) is an authority for the proposition that there is no obligation on a proposed lessor of a house in a ruinous and unsafe condition to inform the proposed lessee of its state. In Horsfall v. Thomas, (^) it was decided that the vendor of a chattel is under no obligation to disclose a patent defect. In Smith v. Hughes, (?/) the court of Queen's Bench deter- mined that the passive acquiescence of the seller of chattels in the self deception of the buyer does not entitle the latter to avoid the contract. Lastly, in Edwards-Wood v. Mar- {v-\ Cicero De Oflf. Lib. iii, c. 13. Cicero vdis must, it is conceived, import not only continues: "Se.1 cum, quod tuscias, id iguo- will but some act consequent thereupon, rare emolumenti tui causa vclis eos, (luorum See supra, § 6.b, 'lO'e 1. Intersil id scire" The passage has been (?) Law of Contracts (.)the(l.), 8 b44. culd by Lord Mansneld in Carter v. Boehm (r) L, R. G H L.. 39u ; and .ee page 403. (3 Bur., 191(1), and by Knight Bruce, L. J , in (»•) IOC. B-. 591. Nelthorpe v. Holgate (1 Coll., iil). If the W ^ ^ * Uolt , 00._ wholeis to express the principles of our law, {«) L. U. b y. «.. •).».. 344 FRY ON SPECIFIC PEKFORMANCE OF CONTRACTS. joribanks,(r) a contract was made for the sale of an advow- son, nothing being said or asked as to the income of the living, which was in fact snbject to a charge in favor of the Governors of Queen Anne's bounty, for repayment of a sum borrowed from them to rebuild the parsonage ; the pur- chaser filed his bill for specific performance with compensa- tion, but got a decree only for specific performance without compensation ; and from this he ineffectually appealed, first to the Lords Justices, and lastly to the House of Lords. § 685. Again, as regards the purchaser, he is not under an obligation to communicate any circumstance which may enhance the value of the thing bought by him. So that, for instance, a man knowing of the existence of a mine under an estate may validly deal with the owner who is ignorant of this fact, without any communication of it.(io) And so where a first mortgagee, with power of sale, having entered into an arrangement not amounting to a binding contract for the advantageous sale of part of the mortgaged prop- erty, afterwards bought ux) at a reduced price the interest of the second mortgagee without informing him of the ar- rangements for sale, a bill to set aside the sale by the second mortgagee, on the ground of the suppression of information by the purchaser, was dismissed by Lord Romilly, M. R., and subsequently by Lord Cranworth. {x) Nor is the pur- chaser liable to an action for deceit for misrepresenting the seller's chance of sale, or the probability of his getting a better j)rice than that offered. (2/) § 686. The case is, however, quite different when, in ad- dition to silence, something is done by the one party to con- ceal from the other some fact material to that other party. Thus, where a wall which required to be maintained against the Thames was industriously concealed, a bill for specific performance was dismissed, though without costs. (^)' So, again, where collieiy owners entered into a contract {V) 1 GIff.,384; 3 De G. & J.. 329; 7 H. L. C, (x) Dolman v. Nokee, 22 Beav , 402. 806. See, also, Haywood v. Cope, 25 Beav., (y) Vernon v. Keys, 12 East, 632 140. (») Shirley v. Stratton, 1 IJro. C. C, 440. (w) Fox V. Mackreth, 2 Bro. C. C, 400, 420; Dietinguish Cook v. Waugh, 2 Giff , 201. cf. Walters v. Morgan, 3 De G. F. & J., 723. ' Margraft v. Muir, 57 N. Y., 155; Mank v. Patcbin, 42 id., 167; Pumpelly V. Phelps, 40 id., 60; Bu.sh v. Cole, 28 id., 201; Taylor v. Merrill, 55 111., 52; Fish V. Leser, 69 id., 394. FRAUD. 345 for tlie purchase of a farm adjoining their colliery not only withont disclosing, bnt (it would seem) studiously conceal- ing the fact, of which the vendors were at the time wholly ignorant, that they (the purchasers) had wrongfully taken 2,000 tons of coal from under the farm, the court dismissed with costs the purchasers' bill for specific performance of the contract, and ordered it to be delivered uj^ to the ven- dors for cancellation. («) And where A. agreed to sell his land to B. at a half -penny per square yard, which amounted to about £500, when the real value was £'2,000, and the de- fendant asked the attorney whom he employed to calculate the amount before the contract was signed, not to tell the plaintiff how small it was, the court granted an interlocu- tory injunction against the deceiver to stay proceedings at law,(&) In Hill v. Gray,(c) the plaintiff had employed an agent to sell a picture, and the defendant bought it under the belief that it had belonged to a third x)erson. Tlie case has sometimes been thought to support the proposition that mere silence may be fraudulent. But in Keates v. Earl of Cadogan,((^) Jervis, C. J., pointed out that the case really turned on the "aggressive deceit" on the part of the agent of the seller ; and if the case cannot be sui:)ported on tliis ground it seems not to be law.(e) Even as regards a sale with all faults, the industrious and active concealment of faults would be fraudulent. (/') § 687. So, though the purchaser may keep silence as to the advantages of the estate, he must not make any false representation as to it, or go any farther than silence. "A very little," said Lord Eldon, "is sufficient to affect the application of that principle. If a word, if a single word, be dropped which tends to mislead the vendor, that i)riiici- ple will not be allowed to operate." Accordingly, in the case before his Lordship, the purchaser having made such suggestions of what was not true, the contract was set aside :(.^) and in a case where a solicitoi- bought of a jierson in difficulties who was selling without professional advice, and untruly represented the nature and title of the prop- (n) Fothergill v. Phillips, L. R. 6 Ch,,770. (/) BaRlehole v. Walters, 3 Camp., 154; (b) Deane v. Raetron, Anetr , 64. Schneider v. Heath, i Ch., 21. where the earlier cases are cited. (/>) Smith v. Clarke, 12 Vca., 477; Wood- Cm) Meadows V. Tanner, 5 Mad, 34. As to ward v. Miller,'2 C.dl., 27it; Flint v. Woodin, an intending purchaser buying off hidders, 9 Ha.tilS; Braniley v. Alt. 3 Ves, 620. see Heffer v. Martvn, 15 W. K.,390; 3(> L J. (?) Per Lord Wensleydale in Thornett v. Ch.,372, and cf. Ke Carew's Lstate, 2tj Beav., Haines, 15 M. A \V., 372; Crowder v. Austin, 187. 3 Bing., 3(JS. ' See Morehead v. Hunt, 1 Dev. Ch., 65; Hinde v. Pcudleton, AVytlif, 144. 348 FRY ON SPECIFIC 1>EKF0K.MANCE OF CONTRACTS. The distinction, however, was disapproved of, if not doubted, by Lord Cranworth in the case of Mortimer v. Bell.(r)' J; 693. Inasmuch as a contract, if originally void by the common law, ought not to be enforced by equity, the de- fendant in a suit in the court of chancery for specific per- formance might avail himself of the defense furnished by this fraud at law, and that formerly by means of a trial of the question at law.(.S') Jj 694. (3) Even in the absence of any declaration that the sale is without reserve, the employment of two or more persons as puffers has in all courts been considered fraudu- lent, inasmuch as only one person can be necessary to pro- tect the property, and the employment of more can only be to enhance the price. (/) § 695. The decision in the case of Mortimer v. Bell above mentioned led to the passing of an act of Parliament (the (r) L. R. 1 Ch., 10. See infra, §§ 695, 696. Haines, 15 M. & W., 372. See, also. Rex v. (s) Woodward v. Miller, 2 Coll . 279 Marsh, 3 Y. & J., 331; Bramley v. Alt, 3\e8., It) Per Lord Wensleydale in Thornett v. 620. ' But in Woods v. Hall, 1 Dev. Ch., 411, where a person interested in land sold at auction, employed another to bid for hira, and represented the bid made, by such person as made on his own account, the sale was held to be fraudulent and was set aside. According to the early English decisions, the employment of puffers, by an owner, to bid for him at auction, was a fraud upon the real bidders. He could not enhance the price by a person privately employed by him for that purpose; but if he were unwilling that his goods should be sold at an imder price, he might order them to be set up at his own price, and not lower, or he might previously declare, as a condition of the sale, that he re- served a bid for himself. Bexwell v. Christie, Cowp.. ;395: Howard v. Castle, G T. R., 642. And this doctrine seems to be approved in 2 Kent, 538, 539 (5th ed.), and 1 Story's Ei[. Jur., § 293. It has been adopted, also, in later English cases. Crowder v. Austin, 2 Car. & P.. 2(i8; Wheeler v. Collier, 1 Mood. ., 42, 47. (6) 3 De tJ. & J., 304. See, also, Kennedy 3;")2 y\i\ ON M'KriFic pehfokmance of contracts. it is not a imllitv. ''It is now well settled," said Lord Campbell, C. J., in The Deposit and General Life Assurance Co. Registered v. Ayscougli, (c) "that a contract tainted by fiMiid is nor void but only voidable at the election of the parry defrauded." It is valid till disaffirmed ; not void till affirmed. (any, it is now determined that the date of the allotment of the shares is the very latest date to which the reasonable time for election extends. (o) § 711, The election to abide by a contract may be by ex- press words, or may be inferred from acts done with a (i) Klngsfonl v. Alerrv, 11 Ex ,577; Load (7n) Morrison v. Universal Marine Iiisur- V. Green, 15 M. & W., 216, 219 ancc Co., I. R. S K.\ .4(1, I it7, particularly 2 >6. U) White V. Garden, 10 C. B., 919. (n) Campbell v. Flcmiiijf, 1 A. & E., 40; (k) Cakes v. Tiir(]uand, L,. R. 2 H. L. 325; CIoukIi v. London and North-Western liail- Mixer's Case, 4 De G. & J., 575. waj' Co., L R. 7 Ex., Ji;. 6ee, also, Gray v. {I) Corny n, Dig. Election, c. 2. Clough v. Fowler, L R. 8 Kx., 24'.i. London and Xorth-Western Hallway Co., L. (o) Oakes v. Tur See Clarke v. Dickson, El. B. & El , 14S. FRAUD. 355 and the circumstances that tlie phiintift' liad in ifjiiorance of the fraud taken i^art in proceedings to convert this company into an incorporated company, and that the company was in course of winding up, were held ta preclude tlie i)hiintitf from rescission. Lord Cranwortli thought that the former circumstance would of itself have been sufficient. (i') § 714. The receipt of dividends before discovery of the fraud was relied upon in the case of Clarke v. Dickson/;?^) as precluding rescission ; and there are other authorities to show that, at common law, tlie reception of any benefit under a contract will preclude its rescission for default of performance by the other party.(^) But it is submitted that no such rule prevails where the rescission is on the ground of fraud, and that where a benefit has been received and is capable of restoration eitheir in kind or by way of compensation, and the defrauded party offers such restora- tion, he has not lost his right to rescind. For to return to the illustration of the sheep : — if, before the discovery of the fraud, A. has sheared the sheep, it ap- pears reasonable to hold that such change in the condition of the sheep will not dei^rive A. of his right to rescind, if he offer to restore the sheep and account for the wool. So, in Earl Beanchanip v. Winn,(//) the House of Lords held that the construction of a warx^ing- drain and the in- closure of a common would not have prevented the rescis- sion of a contract for the sale of the land on the ground of mistake : and in The Lindsay Petroleum Co. v. Hurd {z) the privy council took the same view of the facts that possession had been taken under the contract and a trial well sunken. In that case the court below had offered an account of the profit of the well, if any, which was not accepted. § 713. In the rule as above stated, (a) the act precluding restoration is referred to the party bound to restore. Is it essential that it should be by his act, or is it enough that even by another's act the restoration is impossible i To re- turn once more to the sheep. Can the defrauded 2>nrcliaser claim to rescind tliough the sheep have died by the act of (v) Western Bank cpf Scotland v. AtUllc, L. (z) L. R. 5 P. C, ^il See, a?so, per Cromp- JR. 1 H. L. Sc, 14.5. ton, J , In Deposit anil General l.tfe .\bsur- (w) El B & K , 14S ance Co. Keglsteied v. Avscough, C El. jc Bl. (a;) Hunt V. Silk, 5 East, 449; Blackburn V. 701. ■Smith, 2 Ex., 7S:^ («) Supra. § 7lO. («/) L. E. G H. L., 223, 232. 350 FHY ox SPECIFIC PERFORMANCE OF CONTRACTS. God ? Tlie point seems to have never been decided. On the one side there are cases in which are found general state- ments of the law wliicli imply that the impossibility of restoration from whatever cause is a bar to rescission, (ft) And it may be open to question whether any real distinction can be drawn between the innocent act of the defrauded paity Avhich precludes him from restoration, and the act of God* or of a third person, leading to a similar result. On the other side is the language of Crompton, J., in Clarke v. Dickson, (r) that " the true doctrine is that a party can never repudiate a contract after, by his own act, it has become out of his power to restore the parties to their original condi- tion." § 716. As our law is far from clear on this point it may be useful to refer to the principles of French law as ex- pounded by Pothier.(fZ) According to him, an action for rescission was not precluded by the change or destruction of the thing sold If the destruction took place without the act of the plaintiff, he was not bound to do more than he could. If the horse had died, the plaintiff must give back his skin ; if the cow sold had died of a contagious dis- ease, and been buried, he need return nothing. If, on the other hand, the change or destruction was due to the act of the plaintiff, he was bound to account to the defendant for the value of the thing but did not lose his action. § 717. The right to rescind does not arise from an inno- cent misrepresentation, unless it be such as to show there is a complete difference in substance between what was supposed to be and what was taken so as to constitute a failure of consideration, (e) * § 71 8. It must not be assumed that in every case in which the right of rescission is lost, every other remedy in respect of the transaction is lost also. This is not the case. Thus, a person induced to take shares by fraud may have lost the right of rescinding the contract, but may yet sue the de- ceiver for indemnity against the loss resulting from the con- tract. (/) A principal authorizes an agent to buy shares at (6) Hunt V. Silk, 5 East, 449; Blackburn v. (0) Traite du Contrat de Vente, §§ 220-223. Smith, 2 Ex., 783. («) Kennedy v. Panama, etc., Mail Co , L. (c) El. B. & E., 1,5.5, approved in P. C. Urqu- R. 2 Q. B., 58'J; Torrance v. Bolton, L. R. 8 hart V. Macpherson, 3 App. C. P31. See, too, Ch., 118. Cf. Brett v. Clowser, 5 C. P. D.,376. Sheffleld Nickel Co. v. Unwin, 2 Q. B. D., 214, (/) Peek v. Gurney, L. R. C H. L., 377. 223. FRAUD, 357 £3 per share on the agent's representation that he ran pro- cure tliem for that price : the agent has, in fact, just bouglit them for £2 a share ; the principal having sold the shares before the discover}^ of the fraud cannot rescind the con- tract, but may sue the agent for the difference between £3 and £2 -per share. (<7) § 719. The second effect of fraud on the contract is this: it "operates," as expressed by Lord Lyndhurst, "as a per- sonal bar to the relief. (70 This is an operation independent of the rescission of the contract ; and though there can be no doubt that, where the defrauded party has elected to be bound by the contract, he has also waived the right to insist on the personal bar ; it does not follow that he has also lost the right to set up that bar where rescission has become im- possible from the interests of third persons, or from the impossibility of restitution arising either from the act of God or of third persons or from his own act before knowl- edge of the fraud. In all these cases, it is conceived that the defendant might still urge the fraud as a bar to specific performance — just as at common law he might, after having lost his right to rescind in any of the Avays last indicated, maintain an action of deceit against the defrauding party. (z) An innocent misrepresentation may, as well as a fraudu- lent one, constitute a personal bar to relief. (,/) § 720. Where it ai)pears that the execution of a contract in the manner insisted on by the plaintiff will result in a fraud upon the public, the court will not enforce the per- formance of the defendant's part of the contract. Thus, in a case where the plaintiffs sought to compel the defendant to perform an alleged contract by him to edit a guide-book with a title-page, stating it to be the work of K. (a well- known editor of such books), who, in fact, had nothing to do with it ; it was held, that the defendant was jiistilied in stay- ing his hand and breaking off the delivery of '-copy "' of his manuscript, on the ground that such a title-page was en leu- la ted to deceive the public. (A*)' (g) Kiniber v. Rarbcr, L. K. 8 Cb., fC (./> flermont v. Taslnrgh. 1 J. X- W., 11-2. ' (A) Jn Mania v. Keinbl.', 5 Bli (N. S ). 75'. ik> Po-t v Marsh, l(i Cli. I) , 39o. Ct. Old- (i) Clarke v. Dickt-on, El. B. & E., l^S. ham v. James, 15 Ir Cli U , SI. ' Parol proof to inraJulnie written contract in case offrnvd.] The operation of a deed or other written contract, complete and intelligible in itself, will be cou- 358 FRY ox SrECIFIC PPZKFOKMAIS^CE OF CONTRACTS. trdlli'd by parol evidence, -ohere fraud is allecrcd and proved. Where a party applii'S to a court of equity for the cnforcemeut of a written contract, the ad- verse partv is entitled to show that the instrument never contained the true contract between the parties. Nelson v. "Wood, 02 Ala.. IT-l; Rearich v. fiwine- beart. 11 Pa St., 233; Atlantic Delaine Co. v. James, i Otto, 207. Friinduleni uae of a wriUcn inxtrumenf ] "It is enough tliat, though the parties acted in mutual good faith at the inception of the transaction, an at- tempt is made to invest the instrument to a different purpose not contemplated, or to use it in violation of the accompanying agreement. It is as much a fraud to obtain a paper for one purpose, and "to use it for a different and unfair pur- pose, as to practice falsehood or deceit in its procurement. The primary hon- esty of purjiose but adds to the moral terpitude of the subsequent efforts to escape from it; or, when moral guilt cannot be imputed, a legal delinquency attaches upon an attempted abuse of the writing, sufficient to subject it to the influence of the oral evidence." Bell, J. in Rearich v. Swineheart, 11 Pa. St.. '233; see, also. Parks v. Chadwick, 8 Watts &, Serg., 9G; Archer v. McCray, 59 Ga., 54'». "All the cases show that, to pave the way for the reception of oral declarations, it is not necessary to prove that a part}' was actuated by a fraudulent intention at the time of the execution of the writing. His original object may have been j^erfectly honest and upright: but if. to procure an unfair advantage to himself, he subsequently deny a parol qualification of the written contract^ it is such a fraud as will, under the rules, operate to let in evidence of the real intent and tinal conclusion of the contractors." Per curiam, in Ren- sham v. Gauz, 7 Pa. St., 117; Murrv v. Duke. 40 Cal., 044; see, also. Neal v. Speigle. 33 Ark.. 03; Young v. Peadiey, 2 xltk., 2')(); Campbell v. McClana- chan. Serg. to the extent he pays be- fore notice." Fraud maybe waived, and how?'} Where a part}' has been defrauded in a contract, he may waive the fraud and adopt the contract. He may do .so by positive act, or his conduct mav show that he acquiesces. VernolV. Vernol, 63 N. Y.. 45; Atwood v. SmaU, (i CI. vfc Fin., 4Hi; MacBrvde v. Weeks, 23 Beav., 533; Doughertv v Douahertv. 3 Halst.'s Ch., 627; .Moffatt v. Winslow, 7 Paige's Ch., 12'4; Cfawiey v.^Timberlake, 2 Ired.'s Eq., 460. Voluntary CO II ceya nee in fraud of creditors.'] Where a conveyance of prop- erty is made in trust for the use of the party making the transfer, it is void as against creditors. Where the transfer is of all the property belonging to the debtor, the grant is conclusive evidence of fraud as to indebtedness then exi.st- ing. A grantee in a voluntary conveyance does not occupy the position of a bona fide purchaser for value, that he is innocent of fraudulent intent, will not protect his title. Young -v. Hermans, 66 X. Y., 3^2; see cases cited. Equity will reliere against a judgment on the ground of fraud] A gross exag- eration of value, knowingly and willfully made in the absence of the' adverse party, would be sufficient evidence of fraud to invalidate the assessment of damages. Jordan v. Volkening. 72 X. Y., 30ii; Hunt v. Hunt. 72 id., 217: St ,1e of Michigan v Ph(enix Bank, 33 id., 9. Kent, Ch . said in Foster v. Wood, 6 John.'s Ch., 87, "that chancerv would not relieve ayainst a judgment at law on the ground of its being contrary to equity, imless the defendant in the judg- ment was ignorant of the fact in question pending the suit, or it wo\ild have been received as a defense, or unless he was prevented from availing himself of the defense by fraud or accident unmixed with negligence or f;,ult on his part.' Fraud of a paity irho assumes to act for a third per--on.] Equity will deprive a party of the benefit he may have derived from his own fraud, iuiposiiion or undue influence, by jireventing acts intended to be done for the lienetit of a third person Story's Eq. Jur., ^ 25'''; Shadda v. Sawyer, 4 McLean, 181; Bellamy V Sabine. 2 Phil.. 425; Hunter v. Griffin, 19 111., 251; Johnson v. Coun, 22 Wis., 329. "In cases rf fraud, equiy will sometimes imply a trust, and treat the perpetrator of the fraud as a trustee t.v maUficio for the purpo.se of administering a remedy against the fraud, and in such a case the fraud gives the jurisdiction" Earl. J., in Wheeler v. Keynolds, 66 N. Y., 227: see. also. Anthony v. Leltwick, 3 l{and., 238; Jackson v. Gray. 9 Geo., 77; Ambuchou v. Bender. 44 .Mo., -Mu; Menden- hall v Treadwav, 44 Ind., 131; Aldridge v. Dana, 7 Blackf , 249; Dugan v. Vattier, 3 id., 245. ■Mn KKV ox ji'i;iU''U' i'i;i:i-oi:mance of contuacts. CHAPTER XV. OF MISTAKI5. ^ 7*JI. There being" two parties to every contract, it fol- lows that mistake may be : 1st, the mistake of the defendant ak)ne ; or 2ndly, the common mistake of both plaintiff and defendant ; or 8rdly. the mistake of the plaintiff alone. Tlie first and second species will reqnire discussion, as grounds of defense to an action for specific performance ; the second and third will both raise the question how far • the iilaintiff may enfor«e performance with a correction of the error. It will be necessary to consider mistake not only as a defense to a specific performance, but, also, to some extent as giving a phiintiff a right to a rescission or rectifica- tion of the contract ' 1 Misttike IS ihiix defined hj/ Mr. Kerr} "Some unintentional act, omission, or (>rror, arisiui; from unconsciousness, ignorance, forgetfullness, imposition or mis])laccd confidence." Kerr on Fraud and Mis., 396. Equity relieves against a mistake, as well as against fraud, In a deed or contract In writing; and parol evidence is admissil)le to prove tlie mistake, though It Is denied in the answer; and this, either Avhere the plamtilfs seeks relief aflhmatively, on the ground of the mistake, or where the defendant sets it up as a defense to rehut an equity. And, it seems, that a party may show a mistake in an agreement of which he seeks the specitic performance. Gillis])ie v. Moon. 2 John's Ch., i5«o; see, also, llutton v. Edgerton, (5 S. C , 4^"); Hayne's Outlines of P^q., 182; Mason V. Armitage. 13 Yes., 20; .Jeremy's Eq. Jur., book 3. 9t. 2, p. 3r)8. "The English courts have repeatedly expres.scd a strong inclination not to decide in favor of plaintitT's .'seeking; not to .set aside the agreement, but to enforce it, when it is reformed by parol evidence. They aflirm that the difference of right and condition as" to the plaintiff and defendant, relating to evidence offered for tlie jjurjiose of olitaining a decree or resisting It, exists in the code of every civilized nation. The ground of the distinction is this: when a party has entered into a written agreement, and seeks, as plaintiff", a specitic perform- ance of it, he must rely on the agreement as it stands. He can neither add to, vary, or exi)luin any of its terms by parol proof. If he cannot enforce the true contract, he still retains all he was ever in po.s.session of. lie may suffer di.sappointment, which, as the consequence of his want of caution and explicit- ness, he must bear. But not so with the defendant. He might encounter not di.sappointment Dniy. Imt sustain ruinous loss, if compelled .specifically to exe- cute an agreement different from that which he contemplated." Lumpkin, J., in Rogers v. Atkin.son, 1 Kelly, 12; .see. also, Peterson v. Grover, 10 Me., 363; Bellows v. Stone. U N. H.. 17o. Lord Eidon .said in Marquis of Townshend v. Stangroom, 6 Yes , 32s : " It cannot be said that Ixcause the legal import of a ■written agreement cannot be varied by parol evidence intended to give it an- other sense, therefore, in equity, when once the Courtis in possession of the legal sense, there is nothing more for it to iiKpiire into. All the doctrine of the OF MISTAKE. 361 § 722. Mistake may be of sncli a character as, in the view of a jjiirely common law court, to avoid tlie contract on the ground of want of consent or of total failure of considera- tion, (r/) But equity does not confine the defense of mistake to these cases. The principle upon which it proceeds is this : — that there must he a contract legally binding, but that this is not enougli — ^that to entitle the plaintilf to more than his common law remedy, the contract n)us-t be more than merely legal. It must not be hard or unconscionable : it must be free from fraud, from surpi'ise. and from mistake : for where there is mistake, there is not that consent v/hich is essential to a contract in equity : non mdentur qui errant consent i re. {hy § 723. In some cases, mistake furnishes an absolute bar to specific performance : in other cases it affords no such gi-ound, if the plaintiff be willing to nuike a reasonable com- pensation to the dt-feudant for the mistake made : whether a given case falls within one or other of these categories de- pends on all its circumstances. (c) § 724. Again, the Statute of Frauds has not affected the situation of a defendant against whom specific performance is sought, (fZ) and it, therefore, leaves it open to him to pro- duce any evidence for his purpose, which is not to establish a contract, but to rebut an equity which the i^laintift' insists has arisen out of a contract. (a) Raffl-s V. n-ichelhaus, 2 H. & C , 9<6; v. Winter Cr. & Ph , 57, 62; McKeiizie v. KenneMv v. Panama, etc., .Mall Co., L. U. 2 Uesketh, 7 Ch. D.. 67.5 Q B., 580. (rf) Per Grant, M. IC, In Clarke v Grant, (b) DU Lib. 50. tit 17, t. 116. U Ves., 519 (c) Loudon and Birmingham Railway Co. courts as to cases of uuconscioua1)le agreements, hard agreements, agreements entered into by mistake or .surprise, wliicli the court will not execute, must be struck out. if it is true tliat because parol evidence .should not be admitted at law. therefore it shall not he admitted in ecjuity upon the question whether, ad- mitting the agreeuient to be such as at law it is .said to be. the party shall have a specific execution, or be left to that court in which it is admitted parol evi- dence cannot be introduced." Lord Kedesdale in Cliuan v. Cooke. 1 Sch. & Lef., ;^0, says: "No person shall be charged with the execution of an agree- ment who has not, either by himself or his agent, signed a written agreement; but the statute does not say that if a written agreement is signed, the .same ex- ception shall not hold to it that did before the statute.'" ' It is a matter, of course, for courts of equity to grant relief on the ground of mistake. Chamberlain v. Thompson, 10 Conn., 2-l;3; Elmore v. Austin, 2 Root, 41)9. But in Massachusetts the court has no jurisdiction in equity, in cases found" d only in mistake. Gould v. Gould, 5 Mete, 'i'A. And in >laine this head of jurisdiction has been expressly conferred ou the court. Robinson V. Sampson, S6 Me., u^H. 3G2 FRY ox SPECIFIC PEKFORMAKCE OF CONTRACTS. ^ 7*^.5. The cases of mistake have, it is true, seemed to present rather iDeculiar difiiculties to the admission of parol evidence, because it has been argued that to do so is to over- rule the Statute of Frauds and to contradict the writing by parol. Its admission is, liowever, the settled doctrine of tlie court, and that not merely for purposes of defense to a specitic performance, but, as we shall hereafter see, for the purpose of correcting the mistake.' The question of its ad- mission by way of defense was much debated in the case of the Marquis Townshend v. StangToom,(e) where Lord Eldon said, "It cannot be said, that because the legal import of a written agreement cannot be varied by parol evidence, in- tended to give it another sense, therefore, in equity, when once the court is in possession of the legal sense, there is nothing more to inquire into. Fraud is a distinct case, and perhaps more examinable at law : but all the doctrine of the court as to cases of unconscionable agreements, hard agree- («) 6 Ves., 3-28. ' It is a well established rule iu this countiy that parol evidence is always ad- missible, to vary or explain written agreements founded in mistake: and this notwithstanding it is excluded by the general laws of evidence; it is an excep- tion to the prevailing rule. Peterson v. Grover, 30 Me.. ;5(i3; Blanchard v. Moore, 4 .J. J. MarshT, 471; Huston v. Stable, id., loO: Anderson v. Bacon, 1 A. K. ^lansh., 48; Perry v. Pearson, 1 Humph., 481 : Chamness v. Crutchfield, 2 Ired. Ch., 148; Harrison v. Ploward, 1 id.. 4u7; Van Ness v. City of Wash- ington, 4 Pet., 3:32; Gibson v. Watts, 1 IMcC. Ch., 490; Goodell v. Field, 15 Verm., 448. Though there are cases of a different purport. Harris v. Dinkius, 4 Dessau , 60; Wesley v. Thomas, (5 Har & ,J., 34; Watkins v. Stockett, 6 id., 435; Sutherland v. Crane, Walk. Ch., 533. But parol testimony of what took place immediately before the execution of a written instrument, is inadmissible for the purpose of proving mistake in drawing the instrument, but not even in a clear case of departure from instructions in drawing the instrument, against a bona fide purchaser for a valuable consideration, claiming under the instrument and without notice of the mistake. Scott v. Burton, 2 Ash., 313. Parol evi- dence is inadmissible to show a mistake in law as a ground for reforming a written instrument founded on such mistake. Wheaton v. Wheaton, 9 Conn., 00. Therefore, where it was stated in a l)ill in chancery, brought by A. against B., liis father, tiial it was agreed between the parties tliat A. should purchase of B. a farm of the value of .$4,000, for which A. should give B. two promissory notes, one for !{;3,()0(l, payable on demand, with six per cent interest, the other for the .same amount, with five per cent interest, payable at the decea.se of B., and then to be delivered up unpaid to A. as his portion of B.'s estate: and the parties thereupon app'ied to a justice of the peace to draw the writing neces- sary to carry such agreement into etfect, but by accident and through their own want of knowledge, they failed to give him the information requisite for this purpose, and he drew the last mentioned note payable in three \ ears, and omitted the stipulation that it should be delivered up at the death of B. unpaid, which note was signed by A., he being ignorant of the operation of law thereon; that B. had brought an action on such note, and was endeavoring to enforce the coliection of it, praying for an injunction and other relief, it was held: 1. That the alleged mistake was not a mistake in any matter of fact, but a mere matter of law 2. That parol evidence was inadmissible to prove the agreement set forth, aud consequently that the bill must be dismissed. Id. MISTAKE. 363 meiits, agreements entered into by mistake or surprise, which, therefore, the court will not execute, must be struck out, if it is true, that because parol evidence should not be admitted at law, therefore it shall not be admitted in equity upon the question, whetlier, admitting the agreement to be such as at law it is said to be, the party shall liave a specific execution, or be left to that court, in which, it is admitted, parol evidence cannot be introduced "(/") ''No person," said Lord Redesdale, "shall be charged with the execution of an agreement, who has not, either by himself or his agent, signed a written agreement ; but the statute does not say that if a written agreement is signed, the same excej)tion shall not hold to it that did before the statute. "(.7) § 726. It follows, from what has been stated, that where the defendant has been led into any mistake or error, the plaintiff cannot enforce the contract with the mistake. Therefore, where, in a sale by auction, the plaintiff had in- duced the defendant, who was the vendor, to think that he should not bid, and so put him off his guard, and the estate was, by a misa|3prehension on the part of the person em- ploj^ed to make the reserved bidding, allowed to be knocked down to the plaintiff, the court, on the ground of mistake, though there was no fraud, declined to enforce the sale. (7^) In another case, the estate was sold in lots : the particular stated that the timber on lots four and five was to be taken at a valuation : in addition to this, one of the conditions of (/) B Ves., 333. Accordingly Mauser v. Ui) Mason v. Arniit.ag'e,13 Ves.,25; Pvm v. Back, 6 Ha , 443. • Blackburn, 3 id , 34; Day v. Wells. 30 Beav., (g) lu Cliuan v. Cooke, 1 Sch. & Lef , 39. 2-2U. ' The utmost good faith i.s required by equity iu these cases; and therefore in sales of property, for instance, the seller is bound to act strictly in fairness, and if he mislead the purchaser by a false or niistakeu statement as to any one essen- tial circumstance, the sale is voidalile. Dosiiret v. Emerson. '6 Story. IDO. Even a mistake of the legal etfect of an instrument will be relieved against when it can be shown to have been brought about by the misre]>resentations or false assurance's of the plaintiff, i'.roadwell v. Broadwell, I Gilm., "iStO; see, also. Drew V. Clarke, Cooke, 874; Callendar v. Colegrove. 17 Conn., 1, is a forcible authority on this point, where a ]>laintij[f' sought, relief on these grounds. On a bill charging a combination between the defendant and otliers to defraud the plaintiff, in Uie sale of a mercantile concern, a committee was appomted, which, without finding any fraudulent intent, stated in their report a train of circum- stances brought ai)out l)y the management of tlie delendant, by wliieh the plaintiff wasdeceiveci and injured; and the court adjudged thereon that the con- tract of sale was fraudulent and void; but on a motion in error made by the de- fendant, it was held, as it api)eared from the finding of the committee, the plaintitT entered into the contract from a mistake as to the real nature of the concern, in consequence of which the substantial object of the contract was defeated, this W'as sufficient ground for settinix it aside. 364 FUV ON SPECIFIC PERFOKMAXCE OF C(JXTRACTS. sale specified tliat the purchaser was to take the timber (speaking generally without reference to any particular lot) at a valuation : Grant, M. R., said, that the express decla- ration as to lots four and five was so likely to mislead a pur- chaser as to the meaning of the conditions, that supposing that the right construction of the condition was that it ap- l)lied to all the lots, it would be inequita])Ie to enforce specific performance of the contract. (/)' Again, where (,/) on a sale by auction, the plan annexed to the particulars of the property (a house and giounds) showed a shrulibery on the western boundary, and the defendant, going to in- spect the property before the sale, with the 2)lan in his hand, found on tlie western side a belt of shrubs with an iron fence outside it inclosing three ornamental trees, and he then bought the property, believing that the fence was the boundary, but the real boundary was a line of shrubs within the shrubbery and did not inclose the trees, the court of appeal held that the mistake was increased by at least craasa ner/lir/entia on the part of the vendors, and ac- cordingly dismissed, with costs, their bill for specific per- formance. § 797. In the preceding cases, it will be observed that the plaintiff contributed to the mistake of the defendant : and there is no doubt that the circumstance that the i)laintiff has by his words or his silence, or in any way, contributed to the error of the defendant, even though he may have done so unintentionally, greatly strengthens the defendant's case.(/i) § 7"28. Even where the mistake is purely due to the de- fendant himself or his agent, the court wij], in some cases, refuse specific performance: (7) indeed, it will sometimes furnish active assistance on the ground of the mistake of the party himself as well as of another, as is strongly shown by a case in which a professional man was held entitled as plaintiff to the rectification of an error in a deed of his own drawing. (?7^) The cases, too, on intoxication furnish an analogy to this doctrine : for that circumstance is a ground (i> Hlgiiliison V. Clowes, 15 Ves . 51G. Sec. cf. ( ahalle.o v. Heutv. L. R 9 Ch ,447; Bray too, pcr.ItiBsel, M. K.,ii,Joiii-8 V. Kimmcr, 14 v. ISrijjas, 2ip W K , 'JOi Ch i» r.'.fi; Moxey y. Hljjwoo.l, 4 l» • <.. V. & i/i S.-e pur ,Ji-s-el, M. R., in Jones v. Rim J ,351; and el. l'lieli)s V. W hite, o L K. Ir, nicr, ]4 Cii. D., f,M. ^•■, ,. „ , T ,. „ . (w> IJall V. Stoiie, 1 S & S., 210; cf. Coxv. (J) Dentiy v. Ilancook, L. R 6 Cli., 1 Sniilh, 19 L. T. (N. t> ). 517 (k) Baskcomb V. Beckwitli, L R 8Eq., 10); MISTAKE. ' 365 of defense, though it may have been in nowise brought about by the plaintiff. (;/)' § 729. On this principle, where a person, who was em- ployed to bid for one of two distinct estates offered for sale at the same time and place, came into the auction-room, and after hearing the description of a lot which was perfectly different from that for which he was engaged to bid, kept bidding in a hasty and inconsiderate manner for, and ulti- mately purchased, this lot, which, l)y his own gross mistake, he thought to be the lot for which he was to bid, the court refused specifically to carry out the sale (o) And where a vendor by mistake offered to sell an estate for £1,100, Avhich figure he had by a wiong addition reached instead of £2,100, the court refused the purchaser specific performance and dismissed his bill, without costs. (p) § 730. So where a vendor had revoked the authority of the auctioneer as to part of the property, and the auctioneer inadvertently sold the whole, the court refused specific per- formance, though the purchaser was justified in believing that he purchased all he claimed by his bill.((^) Again, where a description of parcels was prepared by the vendor's solicitor from a previous description, which had been pre- pared by another solicitor on the report of a surveyor, and the descri^jtion turned out to be erroneous as to quantity, (n) See supra, § 384. mistake will not be a ground for opening bld- (0) Malins v. Freeman, 2 Ke., 25. tiings, which can now only be opened for (/)) Webster V. Cecil, 30 Beav , 62. As to fraud. Griffiths v. Jones, L. K. 15 Eq , 279. the costs in this case, see per James, L. J , In (q) Manser v. Back, 6 Ha , Wi. Tamplin v. james, 15 Ch. D.. 221. Such a 1 The "Western R. R. Corp. v. Babcock, 6 Mete, 346, is an analogous case. It was there held that a defendant may sliow, that without gross laches of liis own, he was led into a mistake by some uncertainty or obscurity of the descrip- tive part of the agreement, so that it applied toad liferent subject from that which he understood at the time, although he was not misled by any misrej^re- sentation of the other party; or he may show that the bargain will operate in a different way from that which was contemplated by the parties when they exe- cuted it. But Mortimer v. Pritchard, 1 Bailey's Ch.. 505, expresses, seemingly, a different view. It is said in that case that a mistake, suL;h as would entitle a party to relief, must have been made under the intluence of false appearances, and not merely from the sugiiestions of the party's own mind. The grounds of the decisions in Post v. Leet, 8 Paige, 'S'Sl, made by Walworth, Ch., do not atppear unapplicable to the point in question. There (he terms of a sale, by a master, were that the lands wore sold free from iiiciunbrances, and that all taxes and assessments thereon should lie paid out of the purchase money. Held, that the purchaser could not be compelled to take the laud subject to an assess- ment, for a street, laid out and used by the public prior to the aile, though the assessment had not been formally confirmed until aflericards, it appearing that the purchaser supposed such assessment included in the terms of the sale, and a resale was ordered. 366 FRY ox SPECIFIC PEUFORMANCE OF CONTRACTS. the court would not enforce the sale on tlie vendor, unless the case were one for compensation, and the purchaser would submit to it.(;) And where a vendor sold a manor, being at the time ignorant of its exact extent, and both jiarties at the time of the contract believed that what it included was something different from what it really did, and the manor proved to comprise valuable property that the vendor did not know to be within it, the purchaser s bill for specific per- formance was dismissed. (5) § 731. Where a defendant was tenant for life of an estate, under a settlement which contained a proviso, that, if he purchased and settled an estate in fee simple in possession in some convenient place or places of a value equal to or greater than the estate comprised in the settlement, then this estate should become the x^roperty of the tenant for life ; and he, imagining that he had, with the concurrence of his wife, an absolute power of disposition over the set- tled estate, entered into a contract for sale : Plumer, Y. C, refused to carry it into effect by an exercise of the proviso in the settlement, considering that such a performance of the contract would be attended with great difficulty, and that the defendant had not contracted for that purj)ose or with that intention. (Z^) § Tim. In a case where a corporation was contracting by an agent, and he swore. to his sense and understanding of the contract he entered into being to a certain effect which the contract did not justifj'^, and a bill was tiled against the corporation, one ground upou which Knight Bruce, L. J., dismissed an appeal against the corporation was this mis- take of the agent. (2^.) It would open a wide field of defense if every misappre- hension of the legal effect of a contract furnished a valid one. But i^erhaps the court considers with more favor as a defense the allegation of mistake in an agent than in a prin- cipal, (r) § 7JJa. Where there has been no misrepresentation, and (r) Lesliev. Tompson,9Ha., 268. See, also, Richinls v. Xoith London Railway Co., 20 per LordCottenhamin Alvanlev v. Kinnaird,' W. R., 194. 2 Mac & G. 7; Helahain v. Langlev, 1 Y. & (/, Howell v. George, 1 Mad., 1 Of. Hood C. C. C, 175; Neap v. Abbott, C. P. Coop. v. Oglander, 34 Beav., 518, 519. Rep. (1837, 1^38), 333. And cl. McKenzie v. («) Wycombe Railway Co. v. Donnington Hesketh, 7 Cli. L)., 675. Hospital. L R. 1 Uh , ecS (s) Baxendale v. t?eale, 19 Beav, 601. See, (v) Per Turner, L. .)., in Morrison v. Bar- tOo,Earl of Durham v. Legard, 34 Beav. ,611; row, 1 De G. F. & J., 638. MISTAKE. 367 there is no ambiguity in the terms of the contract, the de- fendant cannot be alloAved to evade the performance of it "by the simple statement that he has made a mistake. (-w) In a case beford Lord Romilly, M. R., where the defendant alleged that he misunderstood the ijarticulars of sale, his Lordship observed that "if there appear on the particulars no ground for the mistake, if no man with liis senses about him could have misapprehended the character of the par- cels, then I do not think it is sufficient for the purchaser to swear that he made a mistake or that he did not under- stand wliat he was about. "(^) And so where, according to the true construction, the contract made the intended lease determinable at the option of eitlier paity, but the lessee insisted that he signed it in the belief that it gave the option to him only, the court overruled the defense based on the alleged mistake. (?/) § 73-J:. So, again, where the proi^erty sold (an inn and shoj)) was described in the particulars as consisting of Xos. 454 and 455 on the tithe map, containing by admeasure- ment twenty perches more or less, and in the occupation of Mrs. K, and Mr. S., — all which statements were correct — and correct j^lans of the property were exhibited at the auction ; and the purchaser deposed that he did not see the plans, but had known the property from his boyhood, and bought it in the belief that it included two idiots of garden ground which had for many years been occupied with the gardens behind the inn and shop respectively ; it was held by Baggallay, L. J. (sitting for Malins, Y. C), and by the court of appeal that ihe purchaser was not entitled to be released from his bargain. (2') "If," said James, L. J., "a man will not take reasonable care to ascertain what he is buying, he must take the consequences. ^' * '■ It is not enough for a purchaser to swear ' I thought the farm sold contained twelve fields which I knew, and I find it does not include tliem all,' or, 'I thought it contained 100 acres and it only contains 80.' It would open the door to fraud if such a defense was to be allowed. Perhaps some of the cases on this subject go too far, but for the most part the (ic) Per Baggallay, L. J., In Tamplin v. proved by Bacrgallay, L J., in Tamplin v. James, 15 Cli. D, 217; Morley v. Claverlng, James, 15 Ch 1>.,'2|8. 29 Beav., 84. (j/' Powell v. smith, I.. R 14 Eq., S5. («) Swaisland v. Dearsley, 29 Beav., 430. (z) Taaipliu v. James, 15 Cli. 1)., 2i5. Tliis statement of tiie law was cited and ap- 368 I'itY ox SPECIFIC PERFORMANCE OF CONTRACTS. cases where a defendant has escaped on the ground of a mistake not contributed to by the plaintiff, have been cases wliere a hardsliip amounting to injustice would have been inflicted uj^on liim by holding him to his bargain, and it was unreasonable to hold him to it."(a) § 75J»>. A mistake ^Durely attributable to one partj^ may furnish a defense to specific performance. It does not thence follow that it enables the party so falling into error unconditionally to rescind for such error. So, where the defendants sold to the plaintiffs 100 chests of tea ex Star of the East, and the sale was made by a sample j)roduced by the defendants as from that ship when, in fact, it had nothing to do with that cargo, and the defendants gave notice that they Avould, on that account, treat tlie contract as void, the Court of Queen's Bench detennined that there was no ecpiity in the defendants simply to rescind the con- tract. (/>)' Jj 7J{0. AVe may now^ proceed to consider the effect of a parol variation set up by the defendant as a ground for re- fusing the specific performance of a written contract alleged by the plaintiff. It de^Dends on the particular circumstances of each case wiiether the variation "is to defeat the plain- tiff's title to have a specific performance, or whether the court will perform the contract, taking care that the subject matter of this parol agreement or understanding is also carried into effect, so that all parties may have the benefit of what they contracted for.(c) § 737. (1) Where the parol variation set up by the defend- (fi) 15 Ch D,2-21. Birmingham Railway Co. v. Winter, Or. & (b) Scott V. Littit'iiale. S El. & Bl., 815. Ph., 62; Smith v. Wheatcroft, 9 Ch. D., 223, (c) Per Liord Cottenhani in London and Cf. Morgan v. Griffith, L. R. 6 Ex., 73. ^ Party defrauded may rexcirul.'] The party who would rescind a fraudulent contract, must return whatever he has received upon it, in order to recover what he has paid upon it; but if the other party has intangled himself hy his own fraud, .so that he cannot he restored to his original condition, he must bare the loss. Masson v. Bovert, 1 Den.. 09; Arnold v. Nichols, 6-4 N. Y., 117; Eastman v. Plumer, 46 N. H,, 464; Hammond v. Pennock, 6 N. Y., 145. Where a party has been defrauded in the purchase or sale of real property, he may rescind the contract, so as to restore the parties to the same situation they were in when the contract was made; or he may afiirm the contract, so far as it lias been executed, and claim a compensation for the fraud. Bradley v. Bosley, 1 Barb. Ch., 125. Some cases hold that the rescission must be made after the party has had a reasonable opportunity to discover the fraud, and that vigilance and care must be exercised. Ross v. Filterton, 6 Ohio. 287; Lepton V. Firltlock, 13 Alb. Law J., 27. But these cases must be considered in con- nection with the facts then presented, and do not establish any general rule applicable to all cases. Miller, J., in Baker v. Lener, 67 N. Y., 304. MISTAKE. 369 ant shows that after the parties to the contract mutually agreed with one another, an error occurred in the reduction of the contract into writing, and it appears that the written contract varied according to the defendant' s contention rep- resents the true contract between the parties, the court will, it seems, enforce specific jDerformance of the contract so varied.' § 738. Thus, where a bill was brought for the specific performance of a contract to grant a lease at a rent of £9 per annum, and the defendant insisted that it ought to have been a term of the contract that the plaintiff should pay all taxes : Lord Hardwicke granted specific performance, and directed that the terms of the verbal contract should be carried into effect by the covenants to be inserted in the lease. ( Where there is doubt whether the parties understood the contract alike, specific performance will be denied. Therefore, where a block of land, which had been subdivided into several distinct lots, was put up and sold at auction, and was struck off to the purchaser at a specific sum, and the vendor, upon a bill filed for a specific performance, insisted and proved that the premises were put up and sold bj- the lot, and the purchaser, in his answer, insisted that the premises were put up as one entire parcel, and he bid for the premises at a price which was for the entire block ; and the evidence was such as to render it doubtful whether the defendant understood that the premises were put up and sold by the lot, the court decided that the complaint was not entitled to a specific per- formance of the contract. Coles v. Bowne, 10 Paige, 536. See James v. The State Bank, 17 Ala., 69; Story's Eq. Jur., ^ 134; Lyman v. United States In- surance Company, 17 John., iiS'6, is an authority of the same nature. There, the appellants applied to the respondents for insurance on a brig, as a Portugese vessel; but the policy was made out for an American vessel. It was apparent that there was no fraud in the case, but that the parties had contracted in mutual misunderstanding and error. Piatt, J., was, therefore, of the opinion that clearly no relief could be granted. MISTAKE. 371 mitted, the bill was dismissed, but without prejudice to another bill. § 741. (3) Where, as is often the case, the court does not decide that the parol variation falls clearly under either of the previous cases, but merely that the defendant contracted under mistake, it puts the plaintiff to his election either to have his action dismissed, or to have the contract executed with the parol variation. (y) § 742. Thus, in Higginson v. Clowes, (^) where the con- ditions of sale were likely to have misled the defendant, and the defendant contended for a different construction from that of the plaintiff, Grant, M. K., offered the plaintiff either to have his bill dismissed, or to have the contract executed on the defendant's construction. The counsel for the defendant contended that it was not competent to the plaintiff to' have his bill dismissed, but that the defendant, without filing a cross-bill, might have a specific perform- ance of the contract. Grant, M. R., however, held that that right existed where the defendant's construction was adopted by the court ; but that where, as in the case before him, the court did not decide that the defendant's construc- tion was right, but only that he had contracted under a mistake created by the plaintiff, the bill was merely dis- missed. In a subsequent suit on the same contract, where the parties were inverted, Plumer, V. C, holding that there had been a mistake on both sides, refused specific perform- ance on the construction of the defendant in the first suit. § 743. In Ramsbottom v. Gosden,(w) where the written contract confined a reference of expenses to those of con- veyance, but the defendant proved by the parol evidence of the attorney that it was the intention of both parties that the plaintiff, who was the purchaser, should also pay the expenses of making out the defendant's title. Grant, M. R., put the plaintiff to his election, either to have the contract performed in the way contained for by the defendant, or to have his bill dismissed. And in a subsequent case, where the defendant proved a parol variation, the same judge U) See, in addition to the cases cited infra, cific performance enforced on the defend- Browne v. Marquis of Sligo, 10 Ir. Ch. R., 1. ant's contention, as the error appears to have (k) 15 Ves., 516. been merely in the reduction of the contract {I) 1 V. & B., 524. into writing? (n») 1 v. & B , 165. Query, why was not spe- 372 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. njinin left tlie plaintiff either to have a specific performance with this variation, or to have his bill dismissed. (?i) § 744. In a case where parol evidence was admitted on behalf of the defendants to show that a contract by several persons to enter into bonds in £1,500 ought to have been for one Joint bond in that amount by all ; Plumer, V. C, left it to the plaintiff to have his bill dismissed, or to take a decree for the joint bond, or to take an issue on which the witnesses could be examined, (o) § 745. In Clarke v. Moore, (j9) where a landlord sought specific iDerformance of a contract for a lease, and the de- fendant set up a parol contract to abate the rent, to which the plaintiff at the bar submitted, the lease was directed with the abatement and each party was left to bear his own costs : and in another case, where it appeared that, in ad- dition to the written contract, there had been an understand- ing between the agent of the plaintiff and the defendant as to payment for timber and certain expenses, the plaintiff consenting to adopt the terms as part of his contract, specific performance was granted, {q) § 746. Where there is a stipulation which one of the contracting parties may reasonably have understood to be implied in the contract, and did so understand — as, for instance, the insertion of a usual clause in a lease — specific performance wiU not be enforced against such party except with such condition included, (r) And where a plaintiff sought relief on the ground of a covenant for renewal, which had for one hundred and fifty years been acted on in a manner different from its terms — namely, by continually in- creasing the fine, and not the rent : the court held that the covenant could not be carried into execution according to its original terms, but might be on the plaintiff' s submitting to a conscientious modification of it, to meet the circum- stances of the case. (5)' In this instance acquiescence, and not mistake, was the ground of the variation. (n) Clarke v. Grant, 14 Ves., 519. As to 26 Beav.,253; Donald v. Scott, 10 Ir. Ch. R.^ this case see Dear v. Verity, 17 W. R., 569. 4%. Distinguish Snelling v. Thomas, L. R. (0) Lord Gordon v. Marquis of Hertford, 2 17 Eq , 303. Mad., 106. (r) Ricketts v. Bell, 1 De G. & Sm., 335. (p) 1 Jon. & D., 723. Consider Chappell v. Gregory, 34 Beav., 250. (q) London and Birmingham Railway Co. (s) Davis v. Hone, 2 Sch. «& Lef., 341. V. Winter, Cr. &Ph.,57; cf. Barnard v. Cave, 1 And a court of equity is competent to correct or reform any material mis- take, in agreements or deeds, occasioned by tlie omission or insertion of material MISTAKE. 373 § 747. The parol variation may be alleged by the plaintiff for the purpose of offering the defendant his election ;(^) or it may be set up by the defendant by way of defense. If, in the absence of its being thus alleged, it comes out on the evidence, the court will inquire into it before disposing of the case.('Z^.) The court will do the same where the variation is alleged by the defendant, and so far proved as to raise a suspicion of its existence, and yet not to satisfy the court. («) § 748. From the great danger which would otherwise arise, the court will not allow a person to escape from a written contract on slight parol evidence of mistake on his own part. So in one case Lord Hatherley (thenV. C.) said (t) Robinson v. Page, SRuss., 114. & Ph., 57; cf. Helsham v. Langley, 1 Y. & C. (u) Parken v. Whitby, T. & R., 366; London C. C, 175. and Birmingham Railway Co. v. Winter, Or. (v) Van v. Corpe, 3 My. & K., 269. stipulations, wliether it be simply upon parol testimony or more cogent proof. Tilton V. Tilton, 9 N. H., 385. Wemple v. Stuart, 22 Barb., 154, is an im- portant case in illustration. The action was commenced to recover damages for the non-performance of a contract made by the defendants, with Gardinier and Vandenburgh, of whom the plaintiff, Wemple, was the assignee, in which the defendant sold and agreed to deliver to Gardinier and Vandenburgh certain merchantable plank to the amount of 30,000. The defendant further agreed to deliver to G. and V., in addition to this quantity, all the merchantable plank of the description agreed between them, that they, the defendants, might saw at their mill the ensuing winter, at certain prices. The complaint alleged a neglect and refusal by the defendants to ]ierform the contract. It also alleged an assign- ment by G. and V. to the plaintiffs The defendants, in their answer, alleged that it was the intention of the parties to the contract to sell and purchase the plank which the defendants then had at their mill, to the number of 30,000, if they had so many, and if not, then it was the intention of the defendants to sell, and of G. tlnd V. to purchase the plank they then had sawed at the mill and no more. And the defendants insisted that such contract should be so construed, and should be reformed in accordance with such intention. This allegation was not denied in the repi}' of the plaintiffs. Paige, J. , in deciding the case, said: " The statements in the answer show no right to demand a reformation of the contract, by conforming to the alleged intention of the parties. A writ- ten contract, in the absence of fraud, can only be reformed where it is shown, by satisfactory proof, that there is a plain mistake in the contract, by the acci- dental omission or insertion of a material stipulation, contrarj' to the intention of both parties, by expressing something different in substance from the truth of that intent, and under a mutual mistake. 1 Story's Eq. Jur. , §§ 152, 155, 156, 157; 2 John.'s Ch., 595. The answer, in setting up the mistake in the written contract, should have stated that the parties agreed to sell and purchase only the plank which the defendants then had at their mill; and then should have alleged that in reducing the contract to writing, this limitation of the quantity sold and purchased was accidentally omitted, contrary to the intention. of the parties: merely alleging that the parties intended to sell and purchase the plank then at the mill of "the defendants, is not sufficient to entitle the defend- ants to a reformation of the contract in accordance with that intention. To show that a written contract does not conform to the actual agreement made and intended to have been reduced to writing, the actual agreem«it should be stated, and the mistake in reducing it to writing alleged." Perhaps this case, in requiring the omission or insertion of the stipulation to be contrary to the intention of both parties, may be somewhat more restricted than the rale adopted in the text. 374 FRY ox SPECIFIC PERFORMANCE OF CONTRACTS. tliat the oath of the defendant that he had inserted in his letter a term winch he in fact omitted, and the oath of his agent that he had received instructions to the like effect, in letting the house, would not have sufficed ; but the defend- ant having in his letter referred to the offer as having been previously made to another party, and that party swearing that in the offer as made to him the term omitted in the sub- sequent offer was contained, the court held that sufficient evidence of mistake on the defendant's part had been given, and allowed the defense. (?c) § 740. The common error, or mistake of both parties, as to the subject matter of the contract is, on the j^rincipies already stated, a clear ground for resisting specific perform- ance : so where the plaintiff being entitled to estates during the life of A. entered into a contract with regard to the timber on the estates with the remainderman ; and it subse- quently appeared that A. was at the time dead, though this circumstance was unknown to both parties ; Lord Romilly, M. R., and afterwards the lords justices refused specific performance and dismissed the bill with costs, {x) § 750. Further, wiiere both parties to a contract are, at the time of the contract, in mistake or error as to the mat- ters in respect of which they are contracting, this w^ill not only furnish a ground for resisting specific performance, but enable the court to rescind the contract. (2/) § 75 1 . Thus, in Calverley v. Williams, {z) Calverley brought his bill against Williams for a conveyance of seven acres of copyhold land, part of an estate sold by auction and pur- chased by the plaintiff as being comprehended in the adver- tisement of the sale, and described as in the possession of Groombridge. The defendant resisted this claim, on the ground that he did not intend to include those seven acres, or know that they were in the possession of Groombridge. Lord Thurlow, in givina: judgment, said, "No doubt, if one party thought he had purchased bona fide, and the other party thought he had not sold, that is a ground to set aside (w) Wooci V. Scxrth,2 K. & J., 33. completed contract, give relief against a com- ix) Cochrane v. Willis. 34 Beav., 359; T> R. mon mistake in the same wav as it would lCh.,58. Cf. perTurner.L. J.,ln Murrellv. against traud. 01. Lcuty v. llillas, 2 Ue G. Goodvear, 1 De G. F. & J.. 449. & .1 , 110. (y) See Torrance v Bolton, L. R. 14 Eq , (z) 1 Ves Jun., 210; per Lord Ersklne In 124; 8Ch.,ll?. In Jones v, Clifford (3 Ch. Stapylton v. Scott, 13 Ves., 4i7. See, too» D., 792), Hall, V. C., intimated the opinion Davis v. Shepherd, L. R. 1 Ch.,410; Price v. that the court would, even in the case of a Ley, 4 Glff., 235, affirmed 11 W. K , 475. MISTAKE. 375 the contract, that neither party may be damaged ; because it is impossible to say, one shall be forced to give that price for part only which he intended to give for the whole, or that the other shall be obliged to sell the whole for what he intended to be the price of part only.'" § 752. Again, where both vendor and purchaser of an alleged estate in fee in remainder on an estate tail, were ignorant that at the time the tenant in tail had suffered a recovery, so that, in fact, no estate in remainder existed, the court rescinded the contract, (a) And w^here A. proposed certain terms of assurance to the agent in London of a Scotch insurance office, and by mistake wrote down other terms in his proposal, to which proposal the Scotch office assented, the court at the instance of A. (refusing to reform the contract) rescinded it, and directed the repayment of the premiums paid. (5) § 733! In a case brought before the House of Lords on appeal from Ireland, the appellant believing himself to be (a) Hitchcock v. Giddlngs, 4 Pri., 135. (b) Fowler v Scottish Equitable Liie Insur- ance Society, 28 L. J. Ch., '225; 7 W. R., 5. 1 So where the consideration of a covenant to pay an annuity, was the con- veyance to the covenantor of a tract of land on the right bank of the Ohio river, stated to embrace a coal mine, and the sole inducement to the purchase was the supposed existence of the coal mine, and it was finally ascertained that no coal mine was embraced within the bounds, equity enjoined perpetually a prosecution at law, to recover the annuity. Dale v. Roosevelt, 5 John.'s Ch., 164: S. C, 2 Cow., 129. In Marvin v. Bennett, 8 Paige, 312, although relief was denied in that particular case, because neither party professing to know the exact quantity of land to be conveyed, the words 7nore or less were inserted in the deed for the express purpose of covenng any deficiency that there might be, it was distinctly said by the chancellor that courts of equity give relief in cases of mutual mistake, unaccompanied by fraud, when the property which one party intended to sell, and the other intended to buy, did not in fact exist; or where the subject matter of the sale is so materially variant from what the parties supposed it to be, that the substantial object of the sale and purchase entirely fails. The rule is otherwise where the parties cannot be put in statu quo. Thus, where land was sold by an agent of the owner, who, by mistake, included in the conveyance an adjoining lot, which he «nd the purchaser siip- posed to be the property of his principal, but which was not his, and the prin- cipal executed the deed without detecting the error, and, afterward, upon discovering the mistake, filed a bill for correction, it was held that, because the parties could not be placed in statu quo, the sale could not be rescinded ; and consequently that the bill could not be supported. Rankin v. Atherton, 3 Paio-e, 143. In Keyton v. Brawford, 5 Leigh, 39, by the mistake of both par- ties? the description of boundaries of land, in a deed of conveyance, included land of a conterminous proprietor, and the grantee took possession and occu- pied such land as the grantor had before occupied. It was held that the mis- take in the descriptionln the deed should be corrected, but that the vendee was not entitled to any relief on account of the land so by mistake included in the conveyance. See, also, Long v. Israel, 9 Leigh, 556, and Irick v. Fulton, 8 Gratt., 193. 376 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. a stranger to a fishery, agreed to take a lease of it ; the respondents believing themselves to be entitled to the property agreed to grant the lease ; it turned out that the appellant was entitled to the property and not the re- s])ondents, and the house declared that tlie contract was entered into by the parties to it under mistake and in ignor- ance of the actually existing rights and interests of the par- ties in the fishery, and that the contract was not binding in equity upon the appellant and respondents, but ought to be set aside subject to certain terms which the special circum- stances of the case and the principles of good conscience were held to impose, (c) § 754. But where neither party to the contract is in error as to the matters in resx)ect of which they are contracting, and there is an actually concluded contract, but there is an error common to both the loarties in the reduction of the contract into writing, there the court interferes for the pur- pose of refonning the contract, and not of rescinding it.(<:Z) For by so doing neither party will be damaged ; whereas, by enforcing it as it stood, one party w^ould be necessarily injured ; and by rescinding it, both would be deprived of the benefit of the contract.' (c) Cooper v. Phlbbs, 17 Ir. Ch. R., 73; L. Wichelhaus, 2 H. & C, 906; Earl Beauchamp R 2 H. L., 149; Infra, § 770. See, also, Bing- v. Winn, L. R. 6 H. L., 223. ham V. Bingham, 1 Ves. Sen., 126; Raffles v. (d) Murray v. Parker, 19 Beay., 305. ' The interposition of a court of chancery to correct mistakes, by ordering a proper deed to be executed, according to the true intent of the parties, is a very ancient doctrine. If, on inquiry, it appears that tlie instrument does not con- tain what tlie parties intended it should, and understood that it did, it may be reformed by aliunde proof, so as to make it the evidence of what was the true bargain between the parties. It is wholly immaterial from what cause the de- fective execution of the intent of the parties arose. And mistakes of scrive- ners in drawing deeds or agreements, will be corrected, even against bona fide creditors of the grantor. Wj^che v. Greene, 16 Geo., 49; Alexander v. New- ton, 2 Gratt., 266; Parham v. Parham, 6 Hump., 287; Perkins v. Dickinson, 3 Gratt , '635; Rogers v. Atkinson, 1 Kelly, 12; Collier v. Lanier. 1 id., 238; Wooden v. Haviland, 18 Conn., 101; Clopton v. Martin, 11 Ala., 187; Webster V. Harris, 16 Ohio, 490; Best v. Stow, 2 Sand.'s Ch., 298; Mosby v. Wall, 23 Miss., 81; Pugh v. Chesseldine, 11 Ohio, 109; Willis v. Henderson. 4 Scam., 13; Hunt v. Rousmanier, 1 Pet., 1 ; Chamberlain v. Thompsons, 10 Conn., 243; eobb V. Preston, 2 Root, 78; Chapman v. Allen, Kirby, 399. In Ohio this remedy is at law. Carr v. Williams, 10 Ohio, 223. Of course, as equity has no jurisdiction in ca.ses of mistake in Massachusetts, error in the reduction of an agreement to writing is necessarily excluded ; and the court will also refuse 80 to amend agreements as incidental to its jurisdiction in regard to disputes beiweeu parties. Leach v. Leach. 18 Pick., 68. Mistakes in instruments will be corrected against sureties as well as others. Butler v. Durham, 3 Ircd.'s Ch., 589; Newcomer v. Kline, 11 Gill. & J., 457. But it seems that a mistake will not be corrected to the prejudice of innocent parties, who had no notice of the mistake. United States v. Munroe, 5 Ma.son, 572. MISTAKE. 377 § 755. Accordingly, in a case already stated, where the question was whether a certain seven acres were or were not included in the contract, Lord Thurlow, after stating that if the parties to the contract had mistaken each other in this respect, it must be rescinded, said : "Upon the other hand, if both understood the whole was to be conveyed, it must be conveyed. But again, if neither understood so — if the })uyer did not imagine he was buying, any more than the seller imagined he was selling, this part, then this i:)retence to have the whole conveyed is as contrary to good faith upon his side, as the refusal to sell would be in the other case."(^) § 756. The jurisdiction of the court in this respect was clearly asserted by Lord Hardwicke in the case of Henkle v. Royal Exchange Assurance Co.,(/') which was a bill seek- ing, after the loss, so to rectif;^ a iDolicy, on the ground of common mistake, as to turn the loss on the insurer, which but for such variation must have been borne by the insured. "IS'o doubt," said his lordship, "but this court has juris- diction to relieve in respect of a plain mistake in contracts in "v^Titing, as well as against frauds in contracts : so that if reduced into writing contrary to intent of the parties, on proper proof that would be rectified :" but for want of such proper proof the bill was dismissed. § 757. In another case, before the same judge, the captain of an East India ship, by articles of agreement, bargained and sold all his china-ware and merchandize brought home in his last voyage to the defendant : the articles of agree- ment were drawn u^j, from minutes made by the parties, by an attorney, who, misunderstanding the transaction, drew up the articles in an erroneous and absurd manner : the captain, who was the party aggrieved by the error, brought his bill for an account of what was due on the contract, and insisted on its rectification : he was allowed to give parol evidence of the error and of the usage of trade, to show the nature of the real transaction and the consequent mistake in the articles, (r/) § 758. It follows, from the nature of the jurisdiction, that there can be no rectification where there is not a prior actual contract by which to rectify the written document : so that, (e) Ca'verley v. Williams, 1 V( s. Jun., 210. (g) Baker v. Paine, 1 Ves. Sen., 4.';6; 6 Ves., (/; 1 Ves. Sen., 317. 336 n. 378 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. for instance, a policy cannot be rectified {h) by the slip, be- cause the slip constituted no contract, and there was no contract till the policy was signed and the premium paid.(/) § 759. It equally follows, that the mistake of one party to a contract can never be a ground for compulsory rectifi- cation. It may be a reason for setting the whole thing aside, but never for imposing on one party the erroneous conception of the other. (/) § 760. However, in two cases decided by Lord Romilly, M. R., in each of which the mistake was, according to the defendant, on the side of the plaintiff only, and the deed of conveyance had been executed, his lordship held that, though the plaintiff was not entitled to compel rectification, the defendant must elect between having the transaction an- nulled altogether and submitting to the rectification of the deed in accordance with the plaintiff's intention. (A*) § 761. Parol evidence is admitted to show the common mistake of both parties in reducing the contract into writ- ing, and as the ground for rectifying it.' "I think it im- (h) See Morocco Land, etc., Trading Co. (k) Garrard v. Frankel. 30Beav.,445; Har- (Llmited) v. Fry, 13 W. R., 310. ris v. Pepperell, L. R. 5 Eq., 1. In his judg, (I) Mackenzie v. Coulaon, L. R 8 Eq., 368 ment in the latter case Lord Romllly, M. R.- (j) Sells V. .>ell8, 1 Dr. & Sm., 42; Rooke v. points out the distinction between the decls- Lord Kensington, 2 K. & J., 753; Thompson ions in Garrard v. Frankel and Earl of Brad- V. Whitmore, IJ. &H.,268; Earl «f Bradford ford v. Earl of Romney (30 Beav., 431). V. Earl of Romney, 30 Beav , 431. ' Season for reforming written instrument by parol ] " The principle on whicli courts of equity rectify an instrument so as to enlarge its operation, or to con- vey or enforce rights not found in the writing itself, and make it conform to the agreement as proved by parol evidence, on the ground of an omission by mutual mistake in the reduction of the agreement to writing, is, as we under- stand it, that in equity the previous agreement is held to subsist as a binding contract, notwithstanding the attempt to put it in writing." Wells, J., in Glass V. Hulbert, 102 Mass., 24. Parolproof to refonmcriting must be very strong. ~\ "Where it is sought tore- form a written instrument on the ground of mistake, by parol, the evidence must be very clear and positive. It must, as some of the" cases say, "leave no doubt of the mistake." Lord Eldon said, in Marquis of Townshend v. Stand- groom, 6 Ves., 333, that the evidence must be the strongest possible." Kent, Ch., in Gillespie v. Moon, 2 John.'s Ch., 585, said, after a careful review of all the then law on this subject: " The ca.ses concur in the strictness and diflSculty of the proof." Lord Thurlow said, in Shelburne v. Inchiquin, 1 Bro. C. C., 338, "that the evidence must be strong and irrefragable." See under this head, Hinkle v. Royal Ex. Ass. Co., 1 Ves., 317; Vonillon v. States, 25 L. J. Ch., 875; Anderson v. Bacon, 1 J. J. Marsh., 48; Planque v. Guesnon, 15 La. An., 312; Guernsey v. Am. Ins. Co., 17 Minn., 104; Brady v. Parker, 4 Ired.'s Eq, 430; McDonald v. Starkev, 42 111., 442; Sawer v. Hovey, 3 Allen. 331; Goodell V. Field, 15 Vt., 448; Harrison v. Howard, 1 Ired.'s Eq., 407; Huston v. Xoble, 4 J. J. Marsh., 130; Watkins v. Stocket, 6 Har. & John., 435; Lau- derdale v. Hallock, 7 Sm. & Marsh, 622; Ross v. Wilson, id., 753; Wurzburger MISTAKE. 379 possible," said Lord Thurlow, "to refuse, as incompetent, parol evidence wliich goes to prove that the words taken down in writing were contrary to the concurrent intention of all parties. (Z) § 762. But in order thus to procure the rectification of a contract, the proof must be clear, irrefragable, and the " strongest possible, "(m) As the point to be proved is that the concurrent intention of all the parties to the contract was different from that expressed by the written contract, the court will attentively regard the admission or denial of the defendant as one of those parties. (;i) It need scarcely be added that the court will only act on parol evidence when satisfied that there is no existing writing which contains the original instructions or contract, (o) § 763. Where there is a writing by which an executed deed is to be rectified, and in that writing, there is a term in respect of which there is a latent ambiguity, parol evi- dence may be admitted to explain it, and thus assist in the rectification of the deed.{p) § 764. Mistakes are usually divided into mistakes of fact{q) and of law. The former kind have always been held to give occasion to the jurisdiction of equity in mis- take. § 765. As regard mistakes of law, the maxim usually re- ferred to was Ignorantia legis non excusat ; and the older authorities seem to show that courts of equity would neither set aside contracts for mistake in law,(r) nor allow such mis- take to be set up as ground for resisting specific per- (l) In Lady Shelbourne v. Lord Inchlquln, Beav.,445; Harris v. Pepperell, L. R. 5 Eq., 1. 1 Bro. C. C, 341. (0) Lackersteen v. Lackersteen, 30 L. J. (m) Henkle V Royal Exchange Assurance Ch ,5; 6 Jur. (N. S), 1111. Co.,1 Ves. t^en ,317; per Lord Eldon in Mar- (p) Murray v. Parker, 19 Beav., 305 quis Townshend v. Stangroom, 6 Ves , 333; (q) It may be observed thai mistake of fact Vouillon V. States, 25 L. J. Ch., 875; 27 L. T., is not the les* a ground for relief because the 268; Fallon v. Robins, 16 Ir. Ch. R., 422. person who has made the mistake had the (n^ 6 Ves , 334; Mortimer v. Shorhall, 2 Dr. means of knowledge. Wlllmoit v. Barker, 15 & War., 363, 374. In Pitcairn v. Ogboume, 2 Ch. D , 97, 106. Ves. Sen., 375, 379, the evidence was consid- (r) Marshall v. CoUett, 1 Y. & C. Ex., 232, ered su£&cient to overcome the defendant's 238; Cockerell v. Cholmley.l R. & My., 418. denial. See, too, Garrard v. Frankel, 30 V. Meric, 20 La. An., 415; Bradford v. Union Bank of Tenn., 13 How., 57; Hunter v. Bilyon, 30 111., 228; Selby v. Geine, 12 id., 69; Stine r. Sherk, 1 Watts & Sersr., 195; Kurkenbeister v. Becket 41 111., 172; Clarey v. Babcock, 41 id.. 371; Mills v. Lockwood, 42 id.. Ill; McCloskey v. McCormick, 44 id., 836; Terson v. Atlantic Mutual Ins. Co., 40 Mo., 33; Sbrivcly v. Welcb, 2 Oregon, 288; Lyman v. United Ins. Co., 17 John., 373; McMahon v Spangler, 4 Rand, 51. 380 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. formance of contracts in other respects free from objec- tion, (.v)' § 760. This view of the law was thus stated by Lord Chehnsford in addressing the House of Lords in 1858. (^) "Mistake is undoubtedly one of the grounds for equitable interference and relief ; but then it must be mistake not in matters of law, but a mistake of facts. The construction of a contract is clearly matter of law ; and if a party acts upon a mistaken view of his rights under a contract, he is no more entitled to relief in equity than he would be at law.('?^) § 767. With the authorities referred to in the two last preceding sections may be comjjared those others, which show that a misrepresentation of law, at least if innocently made, does not bind and create any civil liability. (^)^ (s) PuUen V. Ready, 3 Atk., 587; per Lord (t) Midland Great Western Railway of Ire- Alvanley, M. R., in Gibbons v. Count, 4 Ves., land v. Johnson, 6 H. L. C, SIO, 811. 849; Stockley v. Stocbley, 1 V. & B., 23, 30; (u) See Powell v. Smith, L. R. 14 Eq., 85. Mildmay v. Hungerford, 2 Vern., 243. See, (ri Rashdall v. Ford, L. R. 2 Eq.,V50; Beat- also, Bilbie v. Luniley, 2 East. 469; Croome tie v. Lord Ebury, L. R. 7 Ch , 777. V. Ledlard, 2 My. & K.,:iol ; Price v. Dyer, 17 Ve9.,356. ' Mistake as to the operation of law.'\ Where a contract lias been fairly entered into with full knowledge of all the facts, a mistake of the law will not in gen- eral be ground for resisting the specific performance of such contract. Marshall V. Collett, 1 Y. & C. Ex., 232, 238; Mildmay v. Hungerford, 2 Vern., 243; Leed V. Johnson, 25 L J. Exch., 110; Cockerell v. Cholmeley, 1 R. & My., 418; Pul- len V. Ready, 2 Atk., 587; Stockley v. Stockley, 1 V. & B., 23, 30;' Gibbons v. Ganut, 4 Ves., 489; Melius v. Duke of Dovenshire, 16 Beav., 257; Midland Gt. West Co. V. Johnson, 6 H. of Lds., 798; Wooden v. Havelaud, 18 Conn., lUl; Bank of U. S. v. Daniel, 12 Pet., 32; Lyon v. Richmond, 2 Johu.'s Ch., 60; Trigg V. Read, 5 Humph., 529; Genter v. Thorns, 1 Ired 's Eq., 195; Shafer v. Davis, 13 111., 395; Peters v. Florence, 38 Pa. St., 194; McMurry v. St, Louis Co., 33 Mo., 377; Heilbron v. Bissell, 1 Bailey's Ch., 430; Storrs v. Barker, 6 John.'s Ch., 166; Dow v. Rer, Spear's Ch., 413; Wentermute v. Snj'der, 2 Green's Ch., 489; Bell v. Steele, 2 Humph., 148; Shotwell v. Murray, 1 John.'s Ch., 513: Brown V. Armistead, 6 Rand., 594; State v. Reigert. 1 Gill., 1; Dill V. Shahau. 35 Ala., 694; Gwynu v. Hamilton, 29 id., 233; Smith v. McDougall, 2 Cal., 586. ' A distinction has been taken between ignorance of the law and mistake of the law, which has caused no little diversity of opinion, and created considera- ble perplexity. In the first case, it has been said, relief will be granted; in the latter it will not. "We take it to be the settled rule, at present, that no such distinction exists; and that ignorance of the law and mistake of the law are equally considered in courts of equity to form no groundwork for relief. A leading case in this country, upon this question, is Champlin v. Laytin, 18 W'end., 409, where the authorities upon the point in view were considered by Bronson, J. Landsdown v. Land.sdown, Mosely, 364, is the oldest case which has sought to establi.sh this distinction. The case was this : Tlie second of four brothers died, and the eldest and youngest both claimed the estate. They referred the question to a school master, who decided that the youngest was entitled to the property, because lands could not ascend. Upon this, the par- ties agreed to divide the estate between them, and the eldest brother executed a release. The chancellor decreed that the deed should be delivered up, "be MISTAKE. 381 § 768. Recent decisions, however, have lessened, if not destroyed the importance of the distinction between mis- ing obtained by rilistake and misrepresentation. The facts are so briefly- stated, that it is impossible to say, with certainty, on what ground the decision proceeded. If there was any intentional misrepresentation in the case, either about its facts or law, that would be a proper ground for affording relief; and it is stated in a report of the case, 2 Jac. & Walk. , 205, that the complainant alleged in his bill that he had been surprised and imposed upon by his brother and the school master. And Justice Bronson continues further: "In there- port by Mosely, Lord Chancellor King is made to say that the maxim of law, ignorantia juris non crcusat, was in regard to the public: that ignorance cannot be pleaded in excuse of crime, but did not hold in civil cases. Mosely is not a book of very high authority 5 Burr., 2639; 3 Anstr., 861; and I think it much more probable that the case turned on the ground of surprise and imposition, than that the chancellor made use of the language imputed to him." Chief Justice Marshall cited this case in Hunt v. Rousmanier, when first before the court, 8 Wheat., 214, with the qualifying remark, 'if it be law,' and he added, that there were certainly strong objections to the decision. Mr. Justice Story, in commenting on the language imputed to Lord Chancellor King, says it is utterly irreconcilable with the well-established doctrine, both of courts of law and courts of equity." It may then be submitted that the distinction before us receives no support whatever "from the case, which has been relied upon in its defense. Willard's Eq. Jur., p. 60; Lawrence v. Beaubien, 2 Bailey's S. C. R., 623, is a decision directly to the effect that such a distinction should be main- tained, and relief granted in the one case and refused in the other. Bronson, J., is, however, of the opinion that the decision in that case " rests upon no solid foundation." And in Haven v. Foster, 9 Pick., 112, the point was elaborately discussed by counsel; and the court, though deciding the case upon other grounds, clearly held that the principle ignorantia juris non excusat was appli- cable alike to civil and criminal proceeding; that every man is presumed to know the law of the land. In Shotwell v. Murray, 1 John.'s Ch., 512, Kent, Ch. , holds ignorance of the law to be a very dangerous plea, whether applied to rules of civil conduct or to duties of natural and moral obligation. The case of Hunt v. Rousmanier, 8 Wheat., 174, it is thought cannot be quoted as an authority to uphold the existence of any distinction between ignorance of the law and mistake of the law. Willard's Eq. Jur. , p. 62. There are, how- ever, other cases; and these are considered by Paige, senator, in Champlin v. Laytin, to a different effect from the opinion of Justice Bronson. "I am pre- pared," says the learned senator, " to assent to the proposition of the vice-chan- cellor, that a contract entered into under an actual mistake of the law on the part of both the contracting parties, by which the object and end of their con- tract, according to its intent and meaning, cannot be accomplished, is as liable to be set aside as a contract founded in mistake of matters of fact. The proper distinction, in my judgment, is taken in tlie case of Lawrence v. Beaubien, 2 Bailev's (S. C. R.), 623; Lowndes v. Chisholm, 2 McCord's (S. C. R.), 455 (1827), and Executors of Hopkins v. Maryck, 1 Hill.'s Ch. Cas. (S. C. R.), 250 (1833), between a mistake of the law and mere ignorance of the law. This question, it seems to me, was in those cases correctly decided." * * * Johnson, J., in Lawrence v. Beaubien, 2 Bailey, 623, says: "All the difficulty and confusion which have grown out of the application of the maxim ignorantia juris^ neminem excusat, appears to me to have originated in confounding the terms ignorance and mistake. The former is passive and does not presume to reason, but the latter presumes to know, when it does not, and supplies palpable evidence of its existence." He further says, in Executors of Hopkins v. Maryck, "that a mere ignorance of the law is not susceptible of proof, and therefore cannot be relieved ; but that a mistake of law may be proved, and, when proved, re- lief may be afforded." Sparks v. White, 7 Humph., 86, seems, at least, in some degree, to present the true doctrine of equity upon this point. Mere ignor- ance of the law, it is there said, will not authorize a comt of chancery to set aside a contract ; but if that ignorance be superinduced by the other party ,_ or if there be a misplaced confidence, or if advantage be taken of weakness of Intel- 382 FRY ox SPECIFIC PERFORMANCE OF CONTRACTS. takes of fact and of law. In Stone v. Godfrey, (-W)) Turner, L. J., said that lie felt no doubt that the court had power to relieve against mistakes in law as well as ijiistake in fact. (w) 5 De G. M. & G., 76. lect, these, with other influences, united with ignorance of the law, will be suflQcient to justify the court in so doing. See Sims v. Lyle, 4 W. C. C. R., 320. iVIistake of the law, as a rule, whatever may be the distinction between it and ignorance of the law, if any there may be, is not a ground of equitable relief. Boebe v. Swartwout, 3 Gilm., 162; Shotwell v. Murray, 1 John.'s Ch., 512; Wintermute v. Snyder, 2 Green's Ch., 489; Good v. Herr, 7 Watts & Serg , 253; Trigg v. Reade, 5 Humph., 529; Broadwell v. Broadwell, 1 Gilm., 599; Champlin v. Laytin, 18 Wend., 412; AVillard's Eq. Jur., pp. 59, 60; Story's Eq. Jur., § 140. It is not to be denied, however, that there are cases to the contrary. In Crosier v. Acer, 7 Paige, 143, Walworth. Ch.. ex- pressed no decided opinion. His words were — "if this court can relieve against a mistake in law in any case where the defendant has been guilty of no fraud or unfair practice, which is at least very doubtful, it must be in a case in which the defendant has, in reality, lost nothing whatever by the mistake, and where the parties can be restored to the same situation, substantially, in which they were at the time the mistake happened." See, also, Hall v. Reed, 2 Barb.'s Ch.. 500. But Lowndes v. Chisholm, 2 McCord's Ch., 455; Hunt v. Rousmauier, 8 Wheat., 174; Evantsv. Strode. 11 Ohio, 480; Beardsley v. Knight, 10 Verm., 185; Goodell v. Field, 15 id., 448; McNaughten v. Partridge, 11 Ohio, 223; Alexander v. Newton, 2 Gratt., 266; Parham v. Parham, 6 Humph., 287, are sufficiently clear. Many of these cases may, however, have well been de- cided upon other grounds; as, for instance, the error of the draughtsman in reducing the contract to writing. And, indeed, it has been said that whatever exceptions there may be to the general rule, that equity will not relieve upon the ground of mistake of law, they will be found to have something peculiar in •their character. Bank of United States v. Daniel, 12 Pet., 32; Hunt v. Rous- mainier, 1 id., 115. But Paige, Senator, 18 Wend., 423, contends strenuously for relief in these cases. "I cannot see any good sense," said he, " in the dis- tinction of granting relief against mistakes of fact, and refusing it in cases of acknowledged mistakes at law. Both, in my judgment, ought to be placed upon the s'ame footing. If the principles of justice require relief in one case, they equally do in the other." The vice-chancellor. Sir John Leach, in Naylor v. Wench, 1 Sim. & Stu., 555, says: " ;f a party, acting in ignorance of a plain and settled principle of law, is induced to give up a portion of his indisputable property to another, under the name of compromise a court of equity will relieve him from the effect of his mistake." Although the case of Hunt v. Rousmauier, ultimately turned on another question, 1 Peters' U. S. R., 13, yet the opinion of Chief -Justice Marshall in that case, as reported in 8 Wheat., 205, clearly shows which way was the inclination of his mind. He says, speaking of the case of Landsdown v. Landsdown, Mosely, 364, "that, as a case in which relief has been granted on a mistake in law, cannot be entirely disregarded. And he further says : ' 'Although we do not find the naked principle that relief may be granted on account of ignorance of law, asserted in the books, we find no case in which it has been decided that a plain and alleged mistake in law is beyond the reach of equity. We are unwilling, where the effect of the instrument is acknowledged to have been entirely misunderstood by both parties, to say a court of equity is incapable of affording relief." And Washington, J., in the same case, 1 Peters, 15, in the conclusion of his opinion, says: "It is not the intention of the court to lay it down that there may not be cases in which a court of equity will relieve against a plain mistake arising from ignorance of law." It seems, however, that the learned senator proposed the adoption of certain qualifications. "If relief," it is said in his opinion, "was to be granted upon every allegation of a mere ignorance of the law, great embarrassments would arise in discriminating between the cases of actual ignorance and those of feigned ignorance. So where the ignorance or mistake of the law is only in one of the contracting parties, and the other party has not taken any advantage MISTAKE. 383 § 769. Acting on tliis view, Lord Hatheiiey (wlien Yice- Cliancellor) remitted to Ms original rights against Company A., a creditor of that company who had given up that right in consideration of the substituted security of Company B., which purchased the business of the first Company A., when that purchase was held void as ultra mres.ix) § 770. The point has twice come before the House of (a;> Re Saxon Life Assurance Co., Anchor Case, 2 J. & H , 408. of the circumstances in making the contract, it would not be proper to grant reUef against such ignorance or mistake ; but where a contract is entered into imder an actual and reciprocal mistake of law in both the contracting parties, hy which the manifest intention of the parties cannot be accomplished, and which ex (s,que et bono ought not to be binding, and where such mistake is either acknowledged, or undoubted evidence of it is produced, I cannot see any good reason why relief should not be granted in equity to the same extent as is done in cases of mistake in matter of fact. The principles of natural justice require that the like relief should be granted in both cases. I would qualify the rule, however, as was done by Johnson, J., in Lawrence v. Beaubien, and deny relief if it appeared that the contract was the compromise of a doubtful right, or was entered into as a speculating bargain. By adopting the rule with these qualifi- cations, in my judgment, no mischievous consequences would follow, but on the contrary, the interests of justice would be advanced." It may not be amiss to observe that in the very case of Naylor v. Winch, cited in this opinion, and which so broadly lays down the law in reference to compromises, relief was denied, because the claim was doubtful, and the compromise was after due de- liberation. Story's Eq. Jur., § 121 (note 1). And it is also to be remembered that the positions of Chief -Justice Marshall were greatly shaken by Washington, J., when the case came before him, on appeal to the supreme court. WiUard s Eq. Jur., 63. The words of Washington, J., cited also in the course of the opinion, do not necessarily imply that a court of equity will grant relief in usual cases of a mistake of law. They may have been used in order to include such cases as Mortimer v. Pritchard, 1 Bailey's Ch., 505, where a person lent money at a usurious rate of interest in mistake of the law, and the court granted him relief because usury consists in the corrupt intent to take illegal interest : and this could not exist without a knowledge of the law. The dangers of breaking through the rule as it now stands, together with its general practical utihty and equity, are best considered by Bronson, J. 18 Wend., 412. Nevertheless, in South Carohna, Kentucky and Maryland, men are not chargeable for want ot knowledge of the law, and equity will relieve parties from their own acts and deeds, fairly done, on a full knowledge of facts, though under a mistake of law. Lowndes v. Chisholm, 2 McCord's Ch., 255; Hopkins Ex'rs v. Maryck, 1 Hill, s Ch., 257; Drew v. Clarke, Cooke, 374; Fitzgerald v. Peck, 4 Litt., 12o; Laraat V. Rowley 6 Har. & John., 500; and see cases collected in C. & H. Notes. 1483, 1484- Gilbert v. Gilbert, 9 Barb , 534; Arthur v. Arthur, 10 id., 9; Mathews v. Terwilliger 3 id., 50; Dupre v. Thompson, 4 id., 279. There are cases ot ap- parent mistake of law, in respect of titles, where relief has been grant^ed, but they are cases of a mixed nature; partly mistake of fact. Story, J5§ i^\l%^' 122. Money paid, with a full knowledge of facts, cannot be recovered back, on the ground that the party was ignorant of the law. Bilbie v. Lumley - ±-ast, 469; Lowrey v. Bordieu, Doug., 467, per Buller, J. ; Stevens v. Lynch 12 Last, 38- Busbane v. Dacres, 5 Taunton, 144; Clark v. Dutcher, 9 Cowen, 674; Jones V Watkins, 1 Stewart, 81. Where a party has committed a tort, in consequence of a mistake of law, and the other party is free from fault, equity will not re- lieve the former from the legal consequences of his act. Pettcs v. Bank ot Whitehall, 17 Verm., 435. Though a party may not be reheved f roni a mistake of law, yet, if no new equities have intervened, the reverse will be the case in reference to a rule of court. Gardiner v. Schermerhorn, 1 Clarke, 101 ; Gaul v. Miller, 3 Paige, 192; Pratt v. Adams, J id., 61o. 384 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. Lords in late years. In Cooper v. Phibbs,(?/) where the appellant believing himseK to be a stranger to his own land agreed to take a lease of it, and was relieved from his mis- take, his belief was founded on an erroneous impression of the effect of certain documents of title ; and Lord Westbury said: "It is said Ignorantia juris liaud excusat, but in that maxim the word jus is used in the sense of denoting general law, the ordinary law of the country. But when the word,;i^5 is used in the sense of denoting a private right, that maxim has no application. Private right of ownership is matter of fact ; it may be the result also of matter of law ; but if parties contract under a mutual mistake and misap- prehension as to their relative and respective rights, the re- sult is, that that agreement is liable to be set aside as having proceeded upon a common mistake." (£:) § 771. In Earl Beauchamp v. Winn, Lord Chelmsford, in addressing the house, said, "that the ignorance imputable to the party was of a matter of law arising upon the doubt- ful construction of a grant. This is very different from the ignorance of a well-known rule of law ; and there are many cases to be found in which equity, upon a mere mistake of the law, without the admixture of other circumstances, has given relief to a party who has deait with his property under the influence of such mistake, (a) § 773. It seems to follow that, at least as a defense to specific performance, common error of law of both parties or even .the sole error of the defendant, when resulting in mistake important to both parties to the contract as to some of the matters dealt with by the contract, would be suffi- cient. But it is submitted that neither the common error of both parties nor the sole error of the defendant as to the operation and effect of the contract can be a ground for re- sisting specific performance, ih) § 773. Again, as in cases of hardshii^, the turning out of events in a way different from what the iDarties anticipated will not furnish a ground of defense ; so in regard to mis- take, if persons choose to speculate upon facts, and the view on which they acted proves to be a mistaken one, that {]/) 17 Ir. Oh. K., 73; L. R. 2 H. L. 149; («) L. R. 6 H. L., 234. Cf. Heald v. Walls Bupra, § 753. ISW. R.,398. (s) L.. R. 2 H. L., 170. (6) See supra, § 733 et seq. MISTAKE. 385 circumstance will furnisli no defense on wliicli the court will act.(c) § 774. Where there is a mistake of both parties, but not about the very subject of the contract, it will not be a ground for rectifying the contract. Therefore, where both i^arties were under a mistake as to the duration of a leasehold in- terest, so that the i^rice was considerably less than if the actual extent of the interest had been known, and the ven- dors filed a bill asking for a reassignment of the extra term which the purchasers took under the assignment, Knight Bruce, Y. C, held that the lease was the substance sold and not a term of the supjDosed duration, and that the ven- dors ought to have known what was the condition of the property they proposed to sell, and accordingly dismissed the bill.(^)' § 775, In like manner the Roman jurists held that mis- take as to the substance of the thing avoided the contract ; but if there be only a difference in some quality or acci- dent, though the misapprehension may have been the actu- ating motive, yet the contract remains binding, (e) § 776. The court, on a clear j)rinciple, will not interfere for the rectification of a written contract where it was, by the intention of the iDarties to it, that the writing did not comprise all the terms of the actual contract ; for what is done on purpose, is evidently not done by mistake. There- (c) See, at common law, Harris v. Loyd, 5 («) Kennedy v. Panama, etc., Mail Co., L. M. & W , 432. R. 2 Q. B., 580, and authorities there cited. (d) Okill V. Whittaker, 1 De G. & Sm., 83, afarmed2Ph.,338. ' The fact upon which the party claims relief, must be material to the act or contract — that is, it must be essential to its character, and an efficient cause of its inception. For if there be an accidental ignorance or mistake of a fact, yet, if the act or contract is not materially affected by it, the party claiming rehef will be denied it. Therefore, where A. buys an estate of B., to which the latter is supposed to have an vmquestionable title, and it turns out upon investigation of the facts, unknown at the time to both parties, that B. has no title, in such a case equity would relieve the purchaser and rescind the contract. But if A. were to sell an estate to B., whose location was well known to each, and they mutually believed it to contain twenty acres, and in' point of fact it contained onty nineteen acres and three-quarters, and the difference would not have varied the purchase in the view of either party, then the mistake would not furnish grounds for a rescission of the contract. And further, to entitle a party to relief, the fact must be such that he could not, with due diligence, have ob- tained accurate knowledge of it. And hence, if a person has lost his remedy at law, through negligence, equity will not assist him. Story's Eq. Jur., § 141 ; Willard's Eq. Jur., 70, 71; Trigg v. Reade, 5 Humph., 529; Perry v. Martin, 4 Johm'sCh., 566. 25 386 FRY ON SPECIFIC TERFOIiMANCE OF CONTRACTS. fore, where there was a contract for an annuity, and the parties to it designedly omitted a proviso for redemption, thinking it would render the transaction usurious, the court refused to rectify the deed.(/) The parties "desired the court,"' said Lord Eldon,(^) " not to do what they intended, for the insertion of that proviso was directly contrary to their intention, but they desired to be put in the same situa- tion as if they had been better informed, and consequently had a contrary intention. "(^^/ § 777. Where the parol variation which the plaintiff or defendant seeks to set up is a subsequent contract in parol between the parties to a written contract, the case in nowise comes within the doctrine of mistake, and the parol varia- tion is inadmissible under the Statute of Frauds, except in cases where the refusal to perform it might amount to fraud. C/y § 778. Therefore where A., by writing, agreed with B. to grant him a lease, to commence on the 21st of April, B. being merely the agent of C. ; and subsequently A. and C. agreed (/) Lord Irnham v. Child, 1 Bro. C. C, 92; (h) See, also, PItcairn v. Ogboume, 2 Ves. Lord Portmore v. Morris, 2 id., 219; Hare v. Sen , 375; cf. Cripps v. Jee, 4 Bro. C. C, 472, Shearwood, 3 id., 168; S. C, 1 Ves. Jun.,241. (i) See per Grant, M. R., in Price v. Dyer. iff) In Marquis Townshend v. Stangroom, 6 17 Ves., 364. Ves., 332. 1 The court will not, interfere -where the instrument itself is such as the par- ties intended it to be. If the parties voluntarily choose to express themselves in the language of the deed, thej' must be bound by it. Story's Eq. Jur., § 113; Willard's Eq. Jur., p. 69. * Therefore, where A. contracted in writing to give B. a deed of land on the payment of B.'s notes for the purchase money, and afterwards agreed verbally to deliver a deed on demand, on the payment of B.'s notes before they were due, and at the time of this verbal agreement B. paid the notes then due, and afterwards tendered payment of the notes not then due, and A. refused to de- liver the deed, it was held that performance of the contract, as modfied by this agreement, could not be enforced. Brooks v. Wheelock, 11 Pick., 489. But in such cases it is said that the variation may be available as a defense, if accom- panied by such part performance as would enable the court to enforce it if it were an original, independent agreement, subject, nevertheless, to the doctrine of equity, which allows parties by their acts to vary the original agreement in respect of matters relating to the title and the time of completion. Will.'s Eq. Jur. , p. 289. Subsequent parol agreement to vary loritten contract.'] "The written executed contract must be regarded as declaring the whole contract then made, and such promises, if receivable at all, are admitted merely as evidence tending to show the equity dehors the conveyance, arising from the misapprehension of the par- ties. It is exceedingly clear that such evidence is to be regarded with extreme caution. For otherwise the courts would, violate, in effect, the rule which they profess to hold sacred, that the operation of a deed or other written instrument shall not be abridged, enlarged or altered by parol testimony." Gaston, J., in Chamness v. Crutchfield, 2 Ired.'s Eq., 148; Price v. Dver, 17 Ves., 356; Blanchard v. Moore, 4 J. J. Marsh., 471; Coger v. McGee, 2 Bibb., 321. MISTAKE. 387 by parol that the lease should commence from the 24th of June instead of the 21st of Ai^ril, and be made to C. instead of to B., and C. and B. sought a specific performance of the written contract as varied by the subsequent parol one, a plea of the Statute of Frauds was necessarily allowed. (,;) And where there was a contract in writing, and the defend- ant set uj) a subsequent parol contract, by which the par- ties mutually abandoned the terms of the written contract and then agreed upen new terms, Grant, M. E,., held that these new terms were merely meant to modify or add to the terms of the original contract ; that therefore the parol con- tract could not be set up as a waiver of the first, and that the subsequent terms not having been in any way acted on, the second contract formed no defense to the first, the execu- tion of which he accordingly directed. (^) Again, where the written contract was silent as to restrictive covenants, but there was some evidence of a subsequent contract to take the lease subject to a certain restrictive covenant as to trade, the Statute of Frauds was held to be a bar to the perform- ance which the plaintiff sought of this subsequent parol contract. (Z) § 779. The question how far a plaintiff can enforce spe- cific performance of a contract with a parol variation, or, in other words, with a rectification of a mistake, is on the au- thorities not perfectly clear ; but the weight of authority appears distinctly to prevail in favor of the proposition that, under the practice of the court of chancery, a plain- tiff could not sue for the specific performance of a contract with a parol variation. Before i^roceeding to consider the cases on this point, we may briefly advert to princiioles. § 780. With regard to a mistake of the plaintiff" alone, it is at once obvious that to allow him to correct this mis- take, and enforce the contract so corrected on the other party to it, would be a great injustice. § 781. With regard, however, to a mistake of both par- ties to a contract in the reduction of the contract into writing, there can be no objection in point of justice to the plaintiff's asking to have that mistake corrected, and to ( i) Jordan v. Sawkins. 3 Bro. C. C, 383 ; S. (fc) Price v Dyer, 17 Ves., 35G. C. 1 Ves. Jun., 402. (ij Snelling v. Thomas, L. K. 17Eq., 303. 388 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. have the real contract carried into execution. This would be the result, if the plaintiff sued for specific performance of the written contract, and then submitted to a parol varia- tion set up and proved by the defendant. Again, there be- ins; an undoubted jurisdiction for the reform of contracts, and also a jurisdiction for the execution of them, there seems no reason why, when both these grounds of action are necessary to give the plaintiff his full rights, they may not be proceeded on in one and the same action. § 783. It may be said that a plaintiff seeking to correct and enforce a contract which is within the Statute of Frauds is suing in contravention of that act. But the objection seems untenable. For every action to correct by parol evi- dence a written contract, whether executed or executory, is in some sense a suing on the contract ; yet the jurisdiction of equity in cases of mistake in written contracts is clear. Mistake, like fraud, (m) must be deemed an exception to the statute in equity. § 783. Whether this reasoning be incorrect or not, there is a series of cases which seem to establish the proposition, that in the court of chancery a plaintiff could not be allowed to sue for the specific performance of a contract with a parol variation : these may now be considered. § 784. In Rich v. Jackson, (7i) the plaintiff sought the exe- cution of a contract for a lease with a variation by the intro duction of the words "clear of all taxes," and the witnesses I)roved the meaning of the iDarfcies to have been as the plain- tiff alleged; but Lord Rosslj^n said, "I cannot find that this court has ever taken ui)on itself, in executing a written agreement by a specific performance, to add to it by any circumstanse that parol evidence could introduce ;"(o) and accordingly the parol evidence was rejected, and the court refused to execute the contract, except upon the terms of the written agreement, which the plaintiff declined, and ac- cording had his bill dismissed. § 785. In Woollam v. Hearn,(^) the point was fully con- sidered by Grant, M. R. The plaintiff alleged a contract with the defendant, by which the defendant was to grant to (m) See supra, § 538. 484 (4th ed.), and cases there collected; Hlg- (») 4Bro. C. C.,514; 6Ves.,334n. ginson v. Clowes, 15 Ves.,516, 523; Winch v. (0) 6Ves.,335n. Winchester, 1 V. & B., 375, 378; Nurse v. (P) 7 Ves., 211; S. C, W. & T.Lead. Case., Lord Seymour, 13 Beav., 254. MISTAKE. 389 tlie plaintiff a lease of a certain lioiise at £60 per annum : of this contract a memorandum was drawn up and signed, but by mistake, or with some unfair view, £73 10*. was in- serted as the rent, instead of £60 : by her bill the plaintiff sought specific i^erformance of the contract rectified as to the amount of rent. The evidence of the plaintiff appeared to the judge to establish her position, but he rejected it and dismissed the bill, holding that though it would have been admissible for the plaintiff if she had been defendant, yet that it could not be used to j^rocure a decree. § 786. The same doctrine was entertained by Lord Redes- dale, (g) and has on more than one occasion been stated by Lord Cottenham, and also by Wigram, Y. C.(r) "It is," said Lord Cottenham in one case, " a familiar doctrine in this court, that although, to resist a specific performance, a defendant may show by parol that the written document does not represent the contract between the parties, yet a X^laintiff cannot have a decree for a specific performance of a written contract with a variation uiDon parol evidence. "(5) § 787. In the case of the Attorney-General v. Sitwell,(^) Alderson, B., expressed a strong opinion, in accordance with the doctrine in question, that the court would not reform and then enforce an executory contract, except, x^erhaps, where the mistake was admitted by the answer, which might seem to take it out of the Statute of Frauds. § 788. This line of cases may be closed by the authoritj^ of Lord St. Leonards. In a case which came before his lordsbi^D when chancellor of Ireland, there was a written contract for a lease, and then a lease executed in conse- quence of it, and a bill was brought for the reform of the lease, not by the contract, but by introducing a term into it bj^ -piirol.{ti) His lordship stopped the argument for the plaintiff, considering that it was really against first princi- ples to discuss the point, and said that the deed could not be reformed by that which would have been inadmissible if the contract were resting infiei% and the bill had sought a specific performance of it. "It is said," observed his lord- ship, (?)) "that if a mistake was proved, and that there was (g) Clinan v. Cooke, 1 Sch. & Lef., 22, 3S. Winter, Cr & Ph , 57. 61. See, also, Emmett (r) In Manser v. Back, 6 Ha., 447. v. Dewhurst, 3 Mac. & G., 587. (s) In Squire v. Campbell, 1 My. & Or., 480; (t.) 1 Y. & C. Ex., 559. JLondon and Birmingham Railway Co. v. (u) Davies v. Fitton, 2 Dr. & War., 225. (V) 2 Di. & War., 233. 390 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. no written agreement, the parol evidence would be admissi- ble. Perhaps it might, because there is no settled rule of law in the way, and, as there is no written contract, the court must endeavor to ascertain, by the best evidence it can get, w^hat was the contract of the parties, and whether there was any mistake." § 789. It is, perhaps, not perfectly obvious why, if parol evidence would be admissible to correct a deed executed without any previous written contract, it should yet be in- admissible to correct a written contract itself ; for the only principle applicable seems to be that writing excludes parol, and it might be thought that this would apply with more force to a solemn deed than to a mere preliminary contract. § 790. It may, perhaps, also be inquired wiiy, if the court presumes a previous contract resting in parol in the case of a deed, no such presumption is made in the case of a written contract ; why the written contract may not, equally with the deed, be corrected by reference to such a previous parol contract ; and why the court does not, as much in the one case as in the other, ascertain what that contract was by the best evidence it can get. § 791. The current of authorities, however strong, can yet scarcely be considered uniform in favor of the position that the plaintiff can never avail himself of a parol varia- tion. There are dicta of Lord Hardwicke' s which, notwith- standing the remarks upon them of Lord Iledesdale('io) and of Grant, M. 'R.,{x) imply, it is submitted, a somewhat dif- ferent view of the question from that already stated. § 793. In Walker v. Walker, (2/) John Walker, a brother of both the plaintiff and defendant, contracted with the plaintiff, by parol, that if the plaintiff would surrender his. copyhold estate for the benefit of the defendant, he, John Walker, w^ould secure an annuity for the plaintiff' s life, and another for that of his wife : upon this, John Walker sur- rendered his copyhold estate to the defendant, charged with these annuities; but the plaintiff did not, in accordance with his contract with John AValker, surrender his copy- hold estate to the defendant, whereupon the defendant re- fused to pay the annuities. The plaintiff brought his bill (w) In Clinan v. Cooke, 1 Sch. & Lef., 38. (y) 2 Atk., 98; S. C, 6 Ves., 335 n. (a;) In VVoollam v. Hearn, 7 Ves., 219. MISTAKE. 391 for their payment, and the defendant relied on tlie phiin- tiff's breach of tlie parol contract witli John Walker. Lord Hardwicke held that the plaintiff's equity was rebutted by the defendant's equity, and added, (z) '' I am not at all clear whether, if the defendant had brought his cross-bill to have this agreement established, the court would not have done it, upon considering this in the light of those cases, where one part of the agreement being jierformed by one side, it is but common justice it be carried into execution on the other, and the defendant would have had the benefit of it as an agreement." And in Joynes v. Statham,(a) Lord Hard- wicke expressed his oi^inion that evidence of the omission, in a contract for a lease, of the exi:)ression " clear of taxes," might have been given by the defendant, if he had been plaintiff seeking a specific performance, but his lordship considered it in the light of an explanation of an executory contract, and not of a variation. § 793. There was a case before Lord Thurlow which, though it rests rather on the ground of fraud than mistake, comes very near to admitting i^arol evidence on the part of the plaintiff to supply a term in a written contract. It Avas a bill brought by the original lessees of a tenn against the purchaser from them, for the specific performance of a con- tract to indemnify the plaintiffs against all rents and cove- nants in the lease, and to execute a bond for securing such indemnity. The property had been sold by auction, and the conditions of sale did not stipulate for such an indem- nity ; but the contract was proved by parol. Lord Thurlow held the evidence to be admissible, and laid it down that where an objection is taken before the i^arty executes the contract, and the other side promise to rectify it, it is to be considered a fraud on the party, if such promise is not kept ; and his lordship, after an issue to satisfy himself of the facts, granted specific performance. (Z>) § 794. Lord Eldou seems to have been of opinion that parol evidence was admissible for the plaintiff'. In the Mar- quis Townshend v. Stangrooni,(c) the plaintifl" in the origi- nal bill sought sjoecific performance with a parol variation, (?) 2 Atk., ion. (h) Peniber v. Mathers, 1 Bro C. C, 52; per (a) 3 Atk., .388 See this and the iireceOing Graut, M H , in flarke v. Grant, 14 Ve- , 5i4; case observed on by I^ord Redesdale in CU- See. also, Harrison v. Gardner, 2 Mad., 193. nan v. Cooke, 1 Sch. & Lef, 38, 39. (c) 6 Ves., 31S. 392 FRY ON SPECIFIC PEKFOKMANCE OF CONTRACTS. and the defendant by a cross bill songht the performance of the written contract as it stood. " I will not say," said his lordship, "that upon the evidence without the answer I should not have had so much doubt, whether I ought not to rectify the agreement upon which Stangroom relies, as to take more time to consider, whether the bill should be dis- missed, («^) language which seems to imply that, had the evidence been satisfactory, the contract might have been rectified and performed. § 795. In a case before Knight Bruce, V. C, there was an assignment by deed of a farming lease and stock for a valuable consideration stated in the deed, and it was proved by parol that, over and above this consideration, there was a contract to pay the plaintiff £40 a year for his life, and to find him during the same i^eriod a house worth £10 a year ; the assignment having been carried into effect, the court granted siDecific loerformance of the parol contract at the suit of the annuitant :(e) the case was put on the ground of an additional consideration, which may be proved by parol when not inconsistent with the instrument, (/) It may be observed that, where such a consideration is executory and is alleged by the plaintiff, and a specific performance of it obtained, the case seems to afford one instance in which a plaintiff may obtain specific iDerf ormance of a contract with a parol variation. § 796. In the case of Martin v. FjcToft,(g) the plaintiff alleged a written contract for a lease, and in addition a iDarol term — namely, that he was to pay the defendant £200 for it — and prayed siDecific performance: Parker, Y. C, refused it on the ground that the plaintiff himself showed that a material term in the contract had been omitted, and that the specific performance of such a contract was inconsistent with the Statute of Frauds. This decision was overruled by the lords justices, who held a written contract to be, in the absence of fraud or mistake, binding at law and in equity according to its terms, although verbally a term was id) eVes., 339. Robinson v. Page, 3 Rusa., 114, the parol {p Clifford V Turrell, 1 Y. & C. C. C, 138; variatious to which the plaintiff by hia bill c Kcuban V. Haiialey, 12 W. R , 932 (where offered to submit were considered by the a contract to grant an annuity in considera- court not to affect the plaintiff's ris^lus: the tlon of diacomiuuance of cohabitation was defendant was allowed to eiect whether they enforced). should be carried into effect or not. liy reason (/) Rex V. Scammonden, 3 T R., 474. of the plaintiff's offer, and not of any original {) Per Wijtram, V. C, in Warinj? v. Man- & J , 62, aflirmed 2 De G & J., 249. Chester, Sheffield and Lincolnshire Railway Co., 7 Ha , 493. 400 V\l\ ox SPECIFIC PERFOKMAXCE OF CONTRACTS. So wliere tlie clefeiidant ngreed to grant a lease of a coal mine to tlie plaintiff, and the plaintiff agreed to employ the defendant as manager, specific performance of the part rela- tive to the lease was refused. (^) § 816, Where the contract stipulates for future acts, but is silent as to any deed to be executed to secure their per- formance, the court, as we have seen, will not consider the execution of such a deed any performance of the stipula- tion. Other cases have arisen, where the contract contemp- lates some deed or obligation. Where there was a contract to execute works of such a nature that the court could not superintend their performance, and in the contract was a stipulation that the contractors should give a bond to secure the performance of the contract : the court, refusing to de- cree performance of the works, refused also to decree the execution of the bond, as that would have been a piecemeal performance of the contract, and the stipulations as to the works were the substance of the contract, and that as to the bond only incident to them. (a) § 817. But where the contract is to do a thing, and to execute a deed for that purpose, and this deed covers, so to say, the whole of the contract, or the whole of so much of the contract as is incapable of immediate performance, the court will, it seems, enforce the contract by the execution of the deed, though the acts to be done be future and to be done from time to time. (6) The real contract here which the court enforces is a contract to execute the deed. § 818. In Wilson v. The West Hartlepool Harbor and Railway Co.,(c) the company agreed to sell to the plaintiff a plot of land near their line, and the contract contained terms as to the company laying down a branch railway, and as to the plaintiff using preferentially the defendants' line of railway. Lord Romilly, M. R., granted specific per- formance, and his decree was affirmed by the judgment of Turner, L. J. , who held that the parties must have intended that the user of railway which was necessarily prospective should be secured by covenant. Knight Bruce, L. J., dis- sented. The view of Turner, L. J., appears consonant to the ordinary course of business and in furtherance of justice. (z) Ogden v. Foasick, 4 De G. F. & J., 4-26 (6) Granville v. Bells, 18 L J. Ch., 32. (o) South Wales Railway Co. v Wythes, 1 (c) 34 Beav., 187; 2 De G. J. & S., 475. K. & J., 186; S. < ., 5 De G. M. & G.. 880. INCAPACITY TO PERFOKM CONTRACT. 407 § 819. The cases on marriage contracts strongly illustrate tliH principle that the entire contract must be carried into effect. With regard to these, it has been urged that as the court interfere in behalf of those who are purchasers, or considered as such by the court, but declines to aid volun- teers, so when the court specifically executes a settlement, its interference should be confined to limitations in favor of purchasers, and not extended to volunteers. The court, however, has applied the princij^le, that the whole or no part of the contract shall be executed, to marriage contracts as well as to other contracts. "There is no instance," said Lord Hardwicke,((^?) "of decreeing a partial performance of articles — the court must decree all or none ; and where some parts have appeared very unreasonable, the courts have said we will not do that, and, therefore, as we must decree all or none, the bill has been dismissed." In a case where a hus- band sued the heir of his wife, who was the settlor, on a a covenant to settle land, the specific jjerformance was not "restricted to his estate, but carried to a limitation to a niece of the wife, who was, of course, a collateral, (e) § 820. The cases of excei)tion, or, rather, of api^arent ex- ception, to the principle in question may now be considered. § 821. (1) It is hardly needful to repeat that the princi- ple will not apply to contracts which, though the}'' may be entire and single in themselves, contemplate a separate and piecemeal performance of separate parts. There, in the absence of other objection, the court will carry into effect the intention of the parties {/) § 822. (2) The principle in question is strictly applica- ble to executory contracts. (^7) It does not apph', in terms, to executed contracts. In Rigby v. Great Western Rail- way Co.,(^) the company had demised the Swindon refresh- ment rooms to the plaintiffs for ninety-nine years ; the lease contained various covenants, one of which the plaintiffs sought to enforce by injunction ; an objection was made that the lease contained other covenants which the court could not enforce ; and Wigram, V. C, made these observa- tion :{i) "I cannot go the length of the defendant's propo- (d) In Goring v. Nash, 3 Atk * 190. (.a) See supra, § 21. («) Davenport v. Bishopp, 2 Y. & C. C. C, (h) 15 L. J. Ch.,'2t«5; S. C.,on appeal, 2 Ph. 451; S. C.,lPh.,693. 44. (/) Wilkinson v. Clements, L. R. 8 Ch., 96. Ci) 15 L. J. Ch., iTl. 408 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. sition, that tlie plaintiffs are not to be protected by injunc- tion, only because there are other covenants to be performed by them which may be possibly broken hereafter. It would be more correct to say that where the mutual rights of the parties rest in covenant, each party is prima facie entitled to enforce his right in equity or at law, according to the nature of the covenant which may be broken. I cannot doubt but that this court would, at the suit of a landlord, restrain a tenant for years, under a husbandry lease, from ploughing up ancient pasture, where he had bound himself by covenant not to do so ; and it would be no answer to such a bill for the tenant to say, that the landlord was under covenant to find him rough timber for repairs, which cove- nant might possibly be broken by the landlord before the expiration of the lease. That is a very different case from that of Gervais v. Edwards. (./) On the other hand, I am. not prepared to go the length of the plaintiff's argument. It would not be difficult to suppose a case in which great injustice might be done by compelling a party specifically to perform a particular covenant. ' ' § 823. A similar view was enunciated and acted upon by Lord Selborne in the case of Wolverhampton and AValsall Railway Co. v. London and North Western Railway Co.,(/t) where the plaintiffs sought an injunction on the ground of the stipulations contained in a contract between the com- panies sanctioned by act of Parliament. It was argued that the contract contained terms, such as those providing for the proper development of local traffic, which the court could not perform : but the argument was repelled by the lord chancellor, on the ground of the distinction between injunction as a right flowing from an executed contract and the specific performance of executory contracts. § 824. A familiar illustration of this difference between executory and executed contracts occurs in the case of x^art- nership articles. The court will not, generally speaking, enforce a contract to enter into a partnership whilst it re- mains executory :(^ but, nevertheless, when the partnership has been constituted, the court will by injunction enforce the performance of particular terms, though it may be in- (j) 2 Dr. & War., 80. (jL) Scott v. Rayment, L. B. 7 Eq., 112. See (t) L. R. 16 Eq., 433. infra, § 1512. INCAPACITY TO PEEFOEM CONTEACT. 409' competent to enforce all the terms :(m) this is the common course of practice in the court. § 825. Another familiar illustration arises on ' leases. The court will restrain the breach of a covenant in a lease, though it may contain other covenants which the court could not j^ossibly perform. § 826. (2) The principle in question is not to be extended to all cases of legal or even equitable relief on contracts, though the contracts may be executory. The fact that future acts may have to be done under a contract is no bar to relief grounded on a right perfect in itself, and resulting from past transactions also under the contract. § 827. Thus, where in a contract for the execution of railway works the contractors, previously to their comple- tion, tiled a bill against the railway company, alleging fraud in the engineer in withholding certificates of work done, and asking, amongst other things, for an account of work done : it was held on demurrer, that though the works were not complete, and though the court might not be able speciti- cally to perform such a contract, the plaintiffs had a right, perfect in itself, of wliich they had been deprived by the alleged acts of the defendants, and that they were, there- fore, entitled to some relief in equity. (7^.) And so, it seems, that if by a partnership contract it were stipulated that ac- counts should be made up half-yearly, and that one partner should have a salary proportionate to the prolits to be so ascertained, he miglit, from time to time, institute actions to have the accounts so taken according to the contract, though its other terms might not be the subject of an action for specific performance, (o) § 828. To this principle we may probably refer the case of Lytton v. The Great Northern Railway Co.{p) where, there being a contract by the company to make and main- tain a siding so long as it should be of convenience, the clause as to maintaining it was held no objection to a bill for the specific performance of the contract to make it, the question of repairs being a matter for inquiry when a breach of that part of the contract should occur. (m) Kemble V. Kean, 6 Slni.,333. (o) Per Wijtram, V. C, In the last-cited (n) Waring v. Manchester, Sheffield and case, 7 Ha, 496. Lincolnshire Railway Co., 7 Ha., 482. (p) 2 K. & J., 394. 410 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 820. (4) In the next place, it must be observed that where the contract can be completely performed at the .^ime, though there may be future acts dependent on it, the court will l)e able to grant si^ecific performance; as, e. //., a contract for the immediate sale of timber to be cut down at a future time, or at intervals, and the purchase money for it to be paid by instalments. (*7) The cases already stated, where the court will direct the execution of a cove- nant to do future acts, illustrate the same principle, (r) § 830. (5) It seems very questionable whether the prin- ciple that the court will not perform part of a contract if it cannot perform all, ever applied to cases where the impossi- bility of carrying a part into execution was due to the de- fault of the defendant who set up this defense.' To permit it to jDrevail, would be counter to the maxim that no man shall take advantage of his own wrong. In the case of the defendant only possessing a part of the interest which he has stipulated to sell, the defect as to the other part is, as we have seen, no bar to specific performance at the suit of the purchaser. (5) In one case, there was a contract between three railway companies having reference to a purchase and an amalgamation : for the purchase no further parliamen- tary powers were needed, but for the amalgamation they were, and, as regards one of the companies, they could not (q) Per Lord St. Leonards in Gervais v. (>•) See supra. §§ 816, 817. Edwards, 2 Dr. & War. , 83. (s) Supra, § 453 , and see infra, § 1222 et aeq. ■ In an action to compel specific performance for tlie convej^ance of land, the defendant showed that performance was impossible, for the reason that title had never been in him. The case was referred against the defendant's ob- jection. Held, that the matter should have been disposed of at the circuit ; that defendant had a right to have his damages determined by a jury, and could not be deprived of it. Stevenson v. Baxter, 37 Barb., 18. Where a pur- chaser of land has been evicted for want of title, there l)eing no fraud in the transaction, he has no remedy in equity; he is left to the covenants in his deed. ]\Iiddlekauff v. Barrick, 4 Gill, 290. The holder of a second mortgage agreed that if he bought in his own name, or otherwise, at the sale under the fore- closure of his mortgage, he would reduce the principal sum secured by the first mortgage by paying on account of the same $3,000, and also the arrears of interest: the holder of the latter agreed to waive his right to foreclose for the whole principal and interest. Held, that under such an agreement, the plain- tiff could not recover at law anything beyond nominal damages without show- ing that his mortgage had been foreclosed for the whole principal, and that the mortgaged premises did not bring suflBcient to pay the mortgage. Livingston v. Painter, 19 Abb. Pr., 28; S. C, 28 How., 517; S. C, 43 Barb.. 270. In Greene v. Westche.shire R. R. Co., L. R., 13 Eq., 44, it was held that specific performanfce may be decreed of an agreement, notwithstanding the plaintiff -has a covenant remedy in damages, o"r has entered into a negotiation for a money consideration which has failed. INCAPACITY TO PERFORM CONTRACT. 411 be obtained, because a majority of its shareholders were adverse to the scheme : in a suit relating to the purchase the last-mentioned compa'ny set up as a defense the imi)os- sibility of carrying into effect the contract as to the amal- gamation ; but Lord Cottenham overruled the demurrer, and doubted whether the defendant company could say to the plaintiffs that they should not have the benefit of such part of the contract as the defendants could perform, be- cause tliey could not, without an act of Parliament, perform the whole, and they declined applying to Parliament to give them the necessary X30wers.(^) § 831. But whatever difficulties may have previously ex- isted on this point, seem now to be removed by Lord Cairns' act (21 and 22 Yict., c. 27), and it may, it is conceived, be laid down, that wherever the thing which the court cannot enforce is a condition inserted for the plaintiff's benefit in respect of which the defendant is in default, and where the court Avould, before the XJ^ssiug of the act, have had juris- diction to enforce the contract on the jjlaintiff's waiver of tlie condition for his benefit, there the court can now grant specific performance of the contract so far as it is enforcea- ble specifically, and direct the defendant to pay damages for his non-performance of the condition which the court cannot, specifically enforce. Thus, in Soames v. Edge,(?/.) the plaintiff had agreed to grant a lease to the defendant so soon as he should have built a new house on the land ; and the defendant agreed to accept the lease when required and to build the new house : the i)laintiff filed his bill praying specific performance of the contract to build and take the lease, also for damages, either in addition to or substitution for such relief : on demurrer the defendant urged that the court could not execute the contract to build ; that the lease was dependent on the house being built ; that the plaintiff had not waived the condition, and, consequently, that Lord Cairns' act did not apply : this argument -was repelled by Lord Hatherley (then a vice-chancellor), who overruled the demnrrer, and held that, on the lolain tiff's waiver of the con- dition, he should have had jurisdiction before the act, and (t) Great Western Railway Co. v. Birming- Ph., 597, 605. See, also, Norris v. Jackson, 1 ham and Oxford Junction Railway Co., 2 J. & H, 319, particularly 328. (M) Johns., 669. "^ 412 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. that, therefore, since the act he could give relief as to part by way of specific performance, and as to the rest by way of damages. § 833. The limits of this principle are well illustrated by a case of Norris v. Jackson, (?)) which shortly followed the case just referred to. In that case Cook, through whom the defendant claimed, in 1850 agreed with the jilaintiff to grant him a lease of a certain house and farm, and on or before the 11th of October, 1852, to put the house into sufficient repair and to erect suitable coach-houses, etc., as Norris and Cook should jointly agree upon, to the intent that the house and premises should be made fit for the occupation of Norris and his family : and Norris agreed that upon due performance by Cook of the foregoing stipulations he would accept the lease. These repairs were never done : but there was no allegation in the bill that Cook had evaded giving his consent to any arrangements : and the plaintiff did not waive but insisted on his right to have such repairs done, as the court should think proper to fit the house for the occupation of himself and his family. The court held that this was beyond its powers : that there was no contract which could be performed with respect to repairs, nor any contract binding the plaintiff to take a lease till the repairs- had been done. The bill was consequently dismissed on demurrer. § 833. (6) It was formerly laid down that where the positive part of an executory contract could not be per- formed by the court, it would not enforce the negative by injunction : so that, for example, where an actor had agreed to act at a certain theatre, that being a contract which the court could not enforce, it refused to restrain him by injunc- tion from acting elsewhere :(?«) and where there was a con- tract for hiring and exclusive service during seven years, and for partnership at the end of that time on such terms as- should be mutually agreed on ; the contract being one which the court could not perform as a whole, it refused to enforce by injunction the covenant for exclusive service. (re) Again, where the defendants had agreed to furnisli the plaintiffs with the drawings for maps which the plaintiffs were exclu- (t) IJ & 11., 319. See, too. 3 Giff., 396. («) Kimberley t. Jennings, 6 Sim., 340. (w) Kemble v. Kean, 6 Sim., 333. IISrCAPACITY TO PEEFORM CONTRACT. 413 sively to sell ; the court being unable to compel the defend- ants to furnish these drawings, refused an injunction to restrain the defendants from themselves selling the maps.(?/) § 834. This question was very much discussed in the case of Lumley v. Wagner, (2:) where, there being an execu- tory contract in part positive and in part negative, and the positive part being such as the court was unable to enforce specifically, it yet interfered in respect of the negative part by means of injunction. In that case, the defendant entered into a contract with the jDlaintiff to sing at his theatre, and not to sing at any other ; and Lord St. Leonards granted an injunction restraining the defendant from singing at any other theatre than the plaintiff's, thougli the specific per- formance of the positive part would have been certainly beyond the court's power. The pirinciple was acted on in some earlier cases ;((z) but in the case just cited all the authorities on the subject were quoted.' § 835. It has been thought to follow from the language of some parts of the judgment in Lumley v. Wagner(&) that the pirinciple of that case is not confined to cases where the negative stipulation is express, but applies also to others where the negation is implied. Accordingly, in one case iy) Baldwin V. Society for Difl'using Useful (a) Dietrichaen v. Cabl)urn,2 Pli ,5-2; Great Knowledge, 9 Sim., 393; Clarke v. Price, 2 J. Norrhern Railwa}' Co. v. Manchester, Shef- \Vil8., 157. field and Lincolnshire llailwav Co., ^ De (j. (2) 1 De G. M. & G., 604. See, too, Catt v. & Sm , 138 See, also. Hills v. Croll, 1 De G. Tourle, L. R. 4 Ch.,654 u^'here the court con- M. & G., 627 n.; S. C, 2 Ph., 60; Daggett v. sidered that the covenant in question, though Rynian, 16 W. K., 302. intermspositive, was in substance negative). (b) 1 De G. M. & G , 604. ' It does not appear, however, that the doctrine of Lumley v. Wagner has been received in this country. Cases of this nature relate to personal acts, and, although there may be cases in which damages are an inadequate relief, and a specific performance will alone answer the complete ends of justice, yet equity will only interfere where the question has reference to property of some kind. There are "numerous cases arising between landlord and tenant, and in cases of partnership, where personal covenants will be decreed to be enforced. They generalh'' rest upon the reasons already stated, the inadequacy of the remedy at law, and the difficulty of ascertaing the damages. Thus, a covenant to give a lease, or to renew a lease, has been required to be executed, and to contain also a covenant for further renewal. So an agreement to form a partnership and execute articles accordingly, may be specifically enforced." Willard's Eq. Jur. , 277. It was upon the ground of pdrtnership that the doctrine of Morris V. Coleman, 1 8 Ves. , 487, was received into this country. But it is expressly decided, that ' ' where there is no partnership between the parties, and the de- fendant has violated his engagement to one theatre and formed a conflicting . engagement with another, a court of equity will not interfere either actively or negatively to prevent the performance of the other." Willard's Eq. Jur., 277. And it is continued by the same author, "that the court possessing no means to enforce the contract, the parties will be left to their remedy at law." See De Rivafinola v. Kean, 4 Paige, 264, and ante, note (2), chap 4, pt. 'd. 414 FliY ON SPKCIFIC PERFORMANCE OF CONTRACTS. where an actor liad entered into a contract to perform on certain niglits at Sadler's Wells Theatre, but without any stii)iil:ition tliat he would not perform elsewhere, Lord Hatherl«-y (then Wood, V, C.) restrained him from acting at any other i)hice than the plaintiff's theatre on the nights on whicli he had agreed to act there, (c) In Fechter v, Mont- gomery, (<^7) Lord Romilly, M. R,, though refusing an in- junction on other grounds, does not seem to have doubted the jurisdiction in a like case : and in Montague v. Flock- ton, (c^) Malins, V. C, granted an injunction on a similar contract by an actor after a full discussion and considera- tion of the authorities. § 830. Another class of cases in whicli the courts have imjDlied a negative are suits on charter-iDarties De Mattos V. (Tibson(/') was the first case where this question arose. There the defendant Curry being about to purchase a ship contracted by charter-party with the plaintiff to carry for him a cargo of coals from Newcastle to Suez. Curry then bought the ship and mortgaged it to Gribson with notice of the charter-party. The bill was filed to restrain Gibson from interfering with the voyage contracted for : Curry was afterwards added as a defendant, and the plaintiff moved for an injunction before Lord Hatherley (then Wood, V. C), who refused the motion on the ground that the case was not within the i)rincix)le of Lumley v. Wagner, (17) and that the whole matter sounded in damages. The lord justices on appeal granted an injunction. Knight Bruce, L. J., hold- ing it to be the duty and witliin the power of the court to prevent the commission or continuance of the breach of such a contract, when, its subject being valuable, as, for instance, a trading sliix) or some costh^ machine, the origi- nal owner and possessor, or a person claiming under him with notice, having the physical - control of the chattel, is diverting it from the agreed object, that object being of im- portance to the others. Turner, L. J., put his judgment upon the fitness of retaining matters as they were until at the hearing the important questions in the suit should be TKACT. 415 decided. The cause then came before Lord Hatheiiey (then Wood, V. C), at the hearing, who, after a full argument, dismissed the bill : and his decision was brought by appeal before Lord Chelmsford, who held that a vessel under char- ter "ought to be regarded as a chattel of peculiar value to the charterer, and that although a court of equity cannot comj)el a specific performance of the contract which it con- tains, yet that it will restrain the employment of the vessel in a different manner, whether sucli employment is ex- pressly or impliedly forbidden, according to the X)i"iii<^'ipl© so fully expressed in the case of Lumley v. Wagner." But he affirmed the dismissal of the bill on the ground that neither of the defendjwits had done anything to liinder the voyage. § 837. The case of Sevin v. Deslandes,(7^) before Lord Romilly, M. R., followed De Mattos v. Gibson, (/) and there an injunction was granted, both on interlocutory motion and at the hearing, to restrain the defendant from doing any act inconsistent with the charter-party, which did not contain any express negative clauses. § 838. It is not easy to see the limits to which the doc- trine of an implied negative might be carried : for as A. and not A. include the whole world, it follows that a contract to sell to A. or to sing at A. must imi:)ly a negation of a sale to not-A. or a singing at not-A: and if injunction is to be granted where specific pei'formance niiglit be impossible, the logical conclusion of the doctrine would be a great and rather formidable enlargement of the jurisdiction of equity. Such an enlargement of the doctrine would be contrary to a dictum of Lord Cottenham, couched in the form of a question, in Heathcote v. The North Staffordshire Railway Co.,(^") where he asked: "If A. contract with B. to deliver goods at a certain time and place, will equity interfere to prevent A. from doing anything which may or can prevent him from so delivering the goods V § 839. In De Mattos v. Gibson, Lord Ilatherley (then V. C), thought the implication of a negative stiijulation was to be confined to cases in which " the breach of a posi- tive agreement involves specific damage beyond that of the (h) SOL. J.Ch.,457; 9 W. R.,218.JSee,too, (0 4 De G. & J., 276. Le Blanch v. Granger, 35 Beav., 187. U) 2 Mac. & G., 112. 416 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. mere non-perforniance of the agreement itself "—tlie special damage (in Miss Wagner's case) resulting from her singing elsewhere at a rival theatre, ultra the non-performance of her contract to sing at the plaintiff's theatre : and in another case, the same learned judge observed that the instances in which the court had found it possible to infer the negation were very few and special, (A*) § 840. In Fothergill v. Rowdand,(^) Jessel, M. R., had before him a bill, based on a contract for the sale of all the coal from a particular colliery for a certain period, which prayed for an injunction against selling the colliery, except subject to the contract, and against disposing of the coal except for the purpose of the performance of the contract. His lordship observed that he could not find or seize any distinct line dividing the two classes of cases, that is, the class in v/hich the court not being able to grant specific per- formance grants an injunction, and the class in which it does not grant the injunction : and he, therefore, following the dictum of Lord Cottenham, allowed a demurrer. § 841. The doctrine in Lumley v. Wagner(??i,) has been criticised by Lord Selborne : and after his observations it is doubtful whether the mere presence of a negative stipula- tion can be relied on, if the contract is not such in its nature as to be the proper subject of equitable jurisdiction. "It was sought in that case, ' ' said his lordship, iii) ' ' to enlarge the jurisdiction on a highly artificial and technical ground, and to extend it to an ordinary case of hiring and service, wiiich is not projoerly a case of specific i^erformance : the techni- cal distinction being made,' that if you find the word ' not ' in an agreement — 'I will not do a thing' — as well as the w^ords 'I will,' even although the negative term might have been implied from the positive, yet the court, refusing to act on an imj)lication of the negative, will act on the ex- pression of it. I can only say, that I should think it was the safer and the better rule, if it should eventually be adopted by this court, to look in all such cases to the sub- stance and not to the form. If the substance of the agree- ment is such that it would be violated by doing the thing (fc) Peto V. Rrighton, Uckfleld and Tan- (m) 1 De G. M. & G., 604. bridge >v'cll3 Kuilway Co , 1 tl. & M., 468,486. \>i) In ^Volverharapton and Walsall Rall- (?) L. U. 17 K(j., 132. Distinguish Jones v. way Co. v. Loudon and North Western Rail- Korth, L. K. 19 Eq., 426. way Co., L. R. 16 Eq., 440. INCAPACITY TO PERFORM CONTRACT. 417 sought to be prevented, then the question will arise, whether this is the court to come to for a remedy. If it is, I cannot think that ought to depend on the use of a negative rather than an affirmative form of expression. If, on the other hand, the substance of the thing is such that the remedy- ought to be sought elsewhere, then I do not think that the forum ought to be changed by the use of a negative rather than an affirmative." § 842. The view thus plainly expressed by Lord Selborne had been indicated in an earlier case before Lord Hatherley, when vice-chancellor. The object of the bill, in that case, was to enforce the si:>ecific performance of a contract to em- ploy the plaintiff as a broker, which contained a stipula- tion that the i^laintiff's name should appear in all advertise- ments of the company. To it the defendant's demurred, and the only point on which the judge entertained any serious question was whether -the stipulation as to adver- tisements did not bring the case within the principle of Lumley v. Wagner ;(o) but he determined that it did not, and that as the defendants did not employ the plaintiff as broker, the court could not restrain their issue of advertise- ments omitting his name.(^) § 843. The position of that branch of the law on which Lumley v. Wagner is the leading authority can hardly be said to be very satisfactory. It may, it is conceived, be con- cluded that the principle of this case will not be extended ; that negative stipulations will not be implied except in the cases where the courts have already done so ; and that even the presence of an express negative stipulation will not be found a sufficient ground for jurisdiction unless the con- tract is of a kind of which specific performance can be granted. In other words, it is probable that the court will hereafter, except so far as it may be bound by existing au- thorities, consider whether the contract in respect of which the injunction is sought is or is not of a kind fit for specific performance ; that, if it be, the court will tend to restrain acts inconsistent with it, whether there be negative words or not ; that if it be not of a kind fit for specific perform- (0) IDeG M & G..604 (P) Brett v. East India and London Shlp- ping Co., Limited, 3 H. & M., 404. 27 418 YllY ON SrECIFIC PERFORMANCE OF CONTRACTS. ance, no injunction will be granted, even though negative words may be present. § 844. In cases where the contract on which an injunc- tion is sought contains stipulations, soiye of which the court can, and others which it cannot enforce, and the latter are wholly on the plaintiff's part, no difficulty arises ; because, though the court may be unable to enforce them directly, it does so indiiiectly, inasmuch as the moment the plaintiff fails in performing his part of the contract, the injunction would be dissolved. (§') § 845. (7) Where an arrangement come to between two persons is intended to be of a complex character, partly legal and partly honorary, the court will, if there be no other impediment, specifically perform the legal contract, leaving the honorary part of the arrangement to rest, as was intended, on the honor of the parties. So that, wdiere this latter part is malum pro7iiMtu7n and not malum in se, it will not obstruct the court in its execution of the other part of the arrangement which amounted to contract. (7*) § 84tt. (7) Where the contract is in any manner alterna- tive) so that the parts of it are mutually exclusive one of the other, and the plaintiff has a right to ask for the per- formance of one part, the court may treat this as inde- pendent of the other : thus, in a contract to grant a lease with an oiDtion to the lessee to purchase this option was held so far independent of the contract for a lease, that a default on the part of the plaintiff in insuring, which would have prevented his suing for a lease, did not prevent his suing on the option to purchase. (5) § 847. (9) In one case Lord Romilly, M. R., appears to have expressed the opinion, that where a part of the con- tract which the court could not perform has been actually performed before suit, the incapacity of the court as to this part would furnish no defense as to the other part. But the doctrine appears to have been rejected by the court of appeal. (^)* (n) Stocker v. Wedderburn, 3 K. & J., 393, (s) Green v. Low, 22 Beav., 625. 405 (t, Hope V. Hope, 22 Beav., 351; S. C.,8De (r) Cardan v. Brabazon, 2 Jon. & L., 200, G. M. & G., 731, 746. See, also, Walrond v. 213. Walrond, John., 18. 1 27ie court must he able to enforce the contract as to all the parties to it.'] "There is no instance of decreeing a partial performance of articles. The court must INCAPACITY TO PERFOKM CONTRACT. 41(J decree all or none. And where some parts have appeared verj- unheasonable the courts have said, we will not do that; and, therefore, as we must decree all or none, the bill has been dismissed." Lord Ilardwick in Goring v Nash 3 Atk., 190; Davenport r. Bishop, 2 Y. & C. C. C, 451: S. C, 1 Phi]., fl'js. ' yatiire of the contract, lohether divisible ornot.^ This is to be determined from the nature and subject of agreement. Moore v. Bonnet, 40 Cal., 251; Hacv v. Grinnel, 50 111., 179 ; Southwell v. Beezley, 5 Oregon, 458. An agreement to' sell real estate in one lot is not divisible. Ralley v. Shatcross, 2Bro. C. C . 1 18(n )• S. C. , 4 Mad. , 227 ; Price v. Griffith, 1 De G M. & G. , 80. A contract to grade a railroad for a specilic sum, to be paid as the work progresses, is entire Cox v. ■West. Pac. R. It. Co., 44 Cal., 18; see, also, C<>l)urn v. City of Hartford, 38 Coim.' 290. A lot of coal was contracted for at a given price per ton on board vessels! Held, that none of the coal should be paid for until the delivery was complete! Shrim v. Bodine, 60 Pa. St., 182. Different prices may be paid for different articles, and yet the contract be entire. Parker v. Bergen, 4 Heisk., 590. Lord Alvanley, Ch. J., said in Johnson v. Johnson, 8 Bos. ct Pull., 102: "If the question were how far the particular part of which the title has failed formed an essential ingredient of the bargain, the grossest injustice would ensue if a party were suffered in a court of hiw to say that he would retain all of which the title was good, and recover a proportionable part of the purchase money for the rest. Possibly the part which he retains might not have been sold unless the other part had been taken at the same time, and ought not to be valued in proportion to its extent, but according to the various circumstances connected with it. But a court of equity may inquire into all the circum- stances, and may ascertain how far one part of the bargain formed a material ground for the rest, and may award a compensation according to the real state of the transaction. In this case, however, no such question arises; for it ap- pears to me that, although both pieces of ground were bargained for at the same time, we must consider the bargain as consisting of two distinct contracts, and that one part was sold for £300 and the other for £700. " It has not beea suggested that they were necessary to the occupation of each other." Example of dicisihle contracts.'^ Shaw, C. J., said in Robinson v. Green 3 Mete, 159: "The plaintiff does not claim on an entire contract. The sale of each lot is a distinct contract. The plaintiff's claim for a compensation arises upon each several sale, and is complete on such sale. If there were an express promise to pay him a fixed sum as a compensation for the entire sale, it would have presented a different question. Wliere an entire promise is made on one entire consideration, and part of that consideration is illegal, it may avoid the entire contract. But here is no evidence of a promise of one entire sum for the whole service. It is the ordinary case of an auctioneer's commission which accrues upon each entire and complete sale. We do not see how the question can be answered which was put in the argument, namely; suppose the plaintiff had stopped, after selling the two lots lying in South Reading, which it was lawful for him to sell, would he not have been entitled to his commission ? If he would, we do not perceive how his claim can be avoided by showini; that he did something else on the same day which was not malum, in 'se, but an act pro- hibited by law on considerations of public policy. The court are of opinion that the plaintiff's claim for a quantum meruit may be apportioned, and that he is entitled to recover for his services in the sale of the two lots." The matter is very fully discu.ssed in McDauiel's v. "Whitney, 38 Iowa, (50. On the follow- ing questions the court were equally divided: " Proposition made by me to Mr. McDauiels — I lierebj' agree to give up the banking business in Atlantic to 3Ir. McDauiels, and the best lot he can pick out in our town, provided he will now build upon the same, and become a permanent resident in our count}', and take $16.50 per acre for the farm of 375 acres in sections 33, 34 and 38 of township 77 — 36 as marked blue on his plat — and give up to said 3Icl)aniels ni}- chance of purchasing the tw'O 40-acre lots of which Judge Temple is acting as a"-ent. This propo.silion is not a standing one, but to be decided witiiin two'davs from date." Beck, C. J., and Day, J,, held that there were two distinct contracts, and that one of them might be specifically enforced without the other. Miller, J. and Cole J., held that there was one entire contract. Cole, J., said: "The proposition, while single in itself, yet contains an agreement on the part of 420 FRY ON SPECIFIC PEUFORMAXCE OF CONTRACTS. Whituey to do four thiiiirs, each of which is separated from the preceding only by a comma, and is coniie(;ted with tlie i^receding- by the. copulative conjunc- tion and. Mr. Wliitney. hv his proposition, says: I hereby agree to give^up the hanking business in" Atlanta to ]\Ir McDaniels. and the best lot he can pick out in our Town, and take $1(5.50 per acre for the farm of 375 acres, and give up to said McDaniels my chance of purchasing the two 40-acre lots. There is no division of this proposition into sentences, nor any specification of the con- sideration the proposer is to receive for each of the four things he proposes to do. The price per acre for the land is specified. But whether such price is above or below its real or market value does not appear, either in tlie proposi- tion itself, or in the evidence in the case. It may have been much above its value, and, in the contemplation of the parties, ecjualized by the chance of getting the two 40-acre tracts. Or, it may have been much below its value, and, in the estimation of the parties, compensated for by taking the banking business with its burdens of doubtful securities. At all events, there is nothing in the proposition itself, which specifies the consideration to be paid to the pro- poser for each of the four things he agrees to do, nor for any one of them. The proposition further shows that it was not binding at once, and, in any event, upon the proposer Whitney. But it was to be, and would become, bind- ing upon him only when it should be accepted by McDaniels. What was :McDaniels to do in order to accept it, and make it binding upon Whitney ? lie was to pick the best lot, and to build upon it. and take the banking busi- ness, and become a permanent resident of the county, and pay $16.50 per acre for the farm, and take the chance of purchasing the two 40-acre lots. He was to do all of these things before Whituey would become bound to him to do what he had proposed. McDaniels could not elect to take the banking busi- ness alone, and require Whitney to give it up. This is too clear to require demonstration, and, if he coul^ not do this, it is just as clear that he could not require Whitney to do any other one of the several things pi'oposed, without bimself doing all that he was required to do by the proposition, and from this it must appear that the contract is no more divisible into two parts than into four." DKFECT IN SUBJECT MATTER OF CONTKACT. 421 CHAPTER XVII. OF DEFLECT IX THE SUBJECT MATTER OF THE CONTRACT. § 848. Another ground on which the specific performance of a contract may be resisted is the existence of some essen- tial defect in fhe subject matter of it, or some variation from the descrij)tion contained in the contract. This is, of course, not a question of title ; the acceptance of the title will not prevent the defendant from setting n]^ the defense that the title rehites to a different subject matter from that which he contracted for. (a) The cases in which this varia- tion arises between the thing and some representation made in respect of it are considered under the head of misrepre- sentation. (5) The cases in which no such representation has been made it is now proposed briefly to consider. ' (a) Bentley v. Craven, 17 Beav., 204. (b) Snpra, § 624 et eeq. ' Substantinl defect in (lie contract is a good defense in equity. '[ The vendor of land received a bond for title, and gave a note therefor, which sho-wed upon its face that it had been so given. Held, that an assignee holder of the note, in case of a deficiency, cannot recover on such note, notwithstanding he received it previous to its becoming due. Howard v. Kimball, G5 N. C, 175. Variance beticeeii the amount of land sold and the real quantity. '\ Grant, J., said in Deem v. Corp., etc., 9 Ves., 368: " There was no instance of compelling a man w^ho had contracted for a freehold, to take a leasehold estate; that where a party gets substantial!}' that for what he contracts, any small difference may be remedied by compensation; but not where it extends to the whole estate. See, also, Holmes v. Thorp, 1 Halst 's Ch.. 41 o; Wiune v. Reynolds, G Paige's Ch. 407; Howard v Kimble. Go N. C, 175; Weems v. Bremer, 2 Har. ct Gill.. 390; Shaw v. Vincent, 64 X. C, 690. In Wilcoxon v. Calloway, 67 N. C, 463, it was held that, where the quantity of land sold was deficient one-third, the purchaser might rescind the agreement, or demand a ratable abatement of the price. See, also, Leigh v. Crump, 1 Ired.'s Kq., 299; Gentley v. Hamilton, 3 id., 376; Jacob v. Locke, 2 id., bG; Calcraft v. Roebuck, 1 Ves., Jr , 221. Gray, J., said in Noble v. Googins, 99 ]\Iass.. 231: "The American courts have sliown more willingness than the English to encourage litiiration about the amount of the price, by reason of a variation in the quantity ot hmd agreed to be conveyed, without clear evidence that the (juantity was made an es.sential element of the bargain." See, also, Mann v. Pierson, 2 Johns., 37. "It is unnecessary for a man who has contracted to purchase one thing, to explain why be refuses to accept another." Aylcs v. Cox, 16 Beav., 23; Botran v. Daugh- drill, 51 Ala., 312; Morse v. Elniendorf, 11 Paige's Ch., 288; "White v. Dobson, 17 Gratt., 262; Napier v. Darlington, 70 Pa. "St , 64; Lehiffer v. Pniden, 64 N. Y., 47. Encroachmeiit.'] Where real estate is .sold free of incumbrance, and the same is encroached upon by an adjoining owner, the sale may be rescinded. King V. Knapp, 59 N. Y., 462; liing v. Bardean, 6 John's Ch., 38. 422 FRY ox SPECIFIC PEKFOKMANCE OF CONTRACTS. § 8 19. The miiterial distinction to be considered is be- tween delects which are jDiitent and visible to eveiy one and those which are latent ; for just as at common law a war- ranty, however general, is not taken to include defects ap- parent at the time of the bargain, as no one could have been deceived by them ; so, whilst latent defects are a ground for refusing specific performance, patent defects are not.(c) § 850. Accordingly wliere a man bought a meadow with a road round it and a way across it which wjere not noticed in the description, Lord Rosslyn nevertheless enforced spe- cific pierformance with costs \{d) and the circumstances that an estate described as inclosed in a ring-fence was not so, was held by Grant, M, E,., no defense to a suit for perform- ance, (e) § 851. But where the objection taken by the purchaser, who was defendant, was the existence of certain water ease- ments, and it was jDroved that the defendant had long lived in the neighborhood, was well acquainted with the property, had in passing the road constantly seen some of the wells on the lower land supplied from the upper land, which was the subject of the contract, and had on the morning of the sale been upon the land; Knight Bruce, V. C, expressed his opinion, but without giving the reasons, that no such degree of knowledge or notice had been proved as to pre- clude the purchaser from taking, the objection. (/') In this case, it may be observed, the objection to the upjDer lands was the existence of certain rights granted with the lower lands to enter the upper lands, fetch water from a spring, and to cut and cleanse gutters for the conveyance of the water to the lower lands and similar easements. Now, the Avells, gutters and all the other objects of sense, might probably have existed without necessarily involving these easements ; and, if so, it follows that the defect was, in its nature, latent and not really patent. § 859. With regard to the latency of defects, it is to be observed that the court will not demand a minute examina- (c) Dyer v. Hargrave, 10 Ves., 505; supra, Pope v. Garland, 4 Y. & C. Ex., 404; Cook v. § 658; cf. Pothier, Tr. flu Contrat de Vente, Waugh, 2 Giflf.. 201. Part II, chap. 1, sect 3, § 1. (e) Dyer v. Hargrave, 10 Ves., 505. (d) Oldlleld V. Round, 5 Ves., 508, and see (/) .^liacklelon v. Sutcllffe, 1 De G. & Sm., 609. DEFECT IN SUBJECT MATTER OF CONTRACT. 423 tion on the part of the purchaser, even where the vendor does not make any representation ;(r7) to render a defect patent it must, it seems, be an ob^^ous and unmistakable object of sense. § ^5S. The defect need not be in the actual physical sub- ject-matter of the contract, it may consist in the existence of some liability of which the other party is ignorant ; so a vendor of a lease described as subject to the usual covenants cannot, of course, enforce specific performance where the lease is subject to unusual ones :(7iY and so where the ven- dor of leasehold property had, before the sale, received from his landlord a notice of re-entry in default of the premises being repaired, and did not communicate the ex- istence of this notice to the purchaser, who. however, knew of tlie state of the premises, the contract was held void at the suit of the purchaser who had been ejected :(/) and at common law the undisclosed fact that the property in ques- tion is liable to be taken under the powers of an act of Par- liament, has been held a valid ground for rescinding the contract. (,/)' ((7) Cf. per James, L. J., in Deiiny v. Han- (j) Ballard v. Way, 1 M. & W. 5-20. Dls- cock L R 6 Ch V2 tlnguish from the cases cited in this section, (?j)' Hampshire" V. Wickens. 7 Ch. D., 555 Edwards Wood v. Marjoribanks a Giff., 381; (whore the subject of what are usual cove- 3 De G. & J., 3-29; 7 H. L. C. Sm, where the nants is fullv considered, as regards lease- purchaser of au advowson was held not en- holds)- cf Ti'ldeslev v Clarkson, 30 Beav., titled to any compensation in respect oi a 4J9 charge on the living under a grant from (i) Stevens v. A damson, 3 Stark., 422. Queen Anne's Bounty. » In Willis V. Astor, it was held that where there was a coveuaut to renew a lease at a o-iven rent, aud nothinir more, that this does not carry with it the covenants'of the old lease. A lease contained a covenant for renewal Held, that the renewed lease need not contain a covenant for further renewal, unless the original instrument contained an express covenant for perpetual renewal. Rut-ei^ V. Hunter, 6 Johns., 215; Phyfe v. Wardell, 5 Paige's Ch. 2G8. Where a lease has been assigned, the assignee is entitled to specifac perform- ance of a covenant to renew. Robinson v. Perdy, 21 Ga., 183. Where the lessor covenants to extend a lease, without naming the amount of rent : held, that equity would not enforce the covenant. Robiuson v. Kettletas, 4 Ldm. s Ch., 63. « Seaman v. Hicks, 8 Paisre, 655, is a case precisely in point. It was there said that where the purchaser of lands contracts for a perfect title, he was relieved from a performance of the contract \ipon its appearing that the cor- poration of the citv. in which the laud was situated, were empowered to take a portion of the laud, without compensation for the buildings thereon, though the probability that such power would be exercised as very remote. Durrett v. Simpsou S M'our. 517, affords an illustration of the sjime doctrine, that a pur- chaser shall be compelled to take only that for which he contracts. Iii that case A sold to B. a lot of land, with a hotel on it, which was supplied with water bv pipes leadim: from a spring owned by A., and situated some three hundred yards from the hotel. A. stipulated in his coutract '• that the priyi- le^e of the water works, as thev now are, shall remain to B. forever, aud the 424 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 854, The existence of a defect, unknown at the time of the contract both to the vendor and the purchaser, will not, it seems, be a bar to the enforcement of the contract, (/l) unless, probably, where the defect is such as lies properly in the knowledge of the vendor. § S5«5. Where the variation between the thing and the description of it seems rather in the nature of an excess than of a defect, and so in favor of the purchaser, the ven- dor is nevertheless disabled from enforcing the contract on an unwilling purchaser. Thus, freehold land cannot be forced on a purchaser who bought it as copy-hold. " It is unnecessary," said Lord Romilly, M. E,., "for a man who has contracted to purchase one thing to exj^lain why he re- fuses to accept another. (Z) § 856. Where an uncertainty exis^;s as to the subject- matter of the contract, but the description by which it was sold is eqully uncertain, there is, of course, no variation or defect. Therefore where property was sold by a general description as being part freehold and part leasehold, and the exact boundary between the freehold and leasehold parts of the estate could not be ascertained, this circum- stance furnished no defense to a suit for specific perform- ance, {m) § 857. A purchaser may, of course, contract for the pur- {k) Per Wigram, V. C, in Lucas v. James, holds: Hick v. Pliillips, Prec. in Ch. 575; cf. 8 Ha., 418. See, also, Parkinson v. Lee, 2 Twining v. :Morrice, 2 Bro. C. C, 331. East, 314 (771) Monro v. Taylor, i Mac. & G, 713. As (0 Ayles V. Cox, 16 Beav., 23. See the to conditions respecting such a minglina: of observations fif Lord St. Leonards on this tenures, see, also, Cronse v. Laurence, 9 Ha., case. Vend., 251 ; cf also .Stanton v. Tatter- 463; Crosse v Keene.id., 409; cf. .Jeffervs v. 8all,l Sm. & G., 529. Copyholds cannot, of Fairs, 4 Ch. D., 448. Davis v. .•"hepherd (L. course, be forced on a purchaser of free- R. 1 Ch., 410) is, of cx)urse, clearly distin- guishable. privilege of the conveyance of the water "as it now is." After this contract, B. sold the spring and the intervening lands, reserving, in .all the deeds but one, the right of entering and repairing the pipes, and in that one it was stipulated that the pipes should remain undisturbed." B. having paid all the purchase money before the day when the property was to have been delivered, refused to accept a conveyance, and tiled his bill for a rescission of tlie contract, and recoverj' of the money paid by him. Held, that tlie contract should be re- scinded, and that A. .should refund the price paid by B., the rents, during the time B. occupied the premises, to be set off against the interest. Durrett v. Simpson, 3 Monr., 517. Though equity does not demand a minute examina- tion by the purchaser, it nevertheless requires that he should, at least, exercise due diligence. So, where land was sold by a trustee under a deed of trust, and the purchaser could, by the exercise of proper diligence, have ascertained •whether the land was subject to any rights of dower, equity refused to relieve the vendee from his contract, because a right of dower in the iand did exist, and he was left to his legal remedy, in case he should at any time be disturbed in his possession. Greenleaf v. Queen, 1 Pet., 138. DEFECT IN SUBJECT MATTER OF CONTRACT. 425 chase of a thing with all faults, and lie then take on himself the knowledge of the title and of the qualities of the sub- ject. The cases on the effect of this clause in a contract seem to show, first, that such a contract is binding, liow- ever many may be the defects in the subject, and whether they be latent or patent, and whetlier discoverable by the purchaser or not ;{n) secondly, that it will not protect the vendor where he takes positive means to conceal the de- fects, (o) as where a vessel was moved off her ways wliere she lay dry into the water in order to conceal her worm- eaten bottom and broken keel ;{2y) and thirdly, that it will not protect the vendor when he make a misrepresenta- tion, and that misrepresentation is embodied in the con- tract, ($') or is both false and fraudulent. (^7-) The court re- fuses to direct any inquiry as to title where the sale is Avith all faults, and the vendor only sells such interest as he has. (5)' § 858. The effect on the specific performance of the con- tract of a defect in the thing sokl, or a variation from the description, is two-fold, according to its magnitude. If, in the view of the court, it be unessential, the contract may yet be performed, but with compensation ; if it be essen- tial, it confers on the party injured the right of rescinding the contract and defeating its performance, (z!)" The distinc- (n) Baglehole v. Walters. 3 Camp., 154; (q) "Schneider v. Heath, 3 Cam o.. 506. Pickering v Dowson, 4 Taunt., 779, overrul- (7-) Early v. Garrett, !) B. & C./JiS; Spring- ing Lord Keynon.M. K 'srlecislon in Mtllish well v Allen, 2 Eas^t. 448 n. T. Motteux, Peake, 115, that the stipulation (s) see intra, § li^' ^ee, nl^o, Hume v. in question only apiilies to laults which the Pocock, L. K. 1 Kq., 423 ; 1 Cii., 37!). purchaser can discover or the vendor is (0 ^lanton v Taitersall, 1 Sui .C G., 529; ignorant of Turquand v. Rhodes, IG '^ . K., 1074; el". Mc- (o) Baglehole v. Walters, 3 Camp., 154. Kenzie v. Hesketh, 7 Lh D., ti82. ip) Schneider v. Heath, 3 Camp , 50(4. ' So, where the vendee of land agreed to risk the title as to a small part of the land which the vendor represented might be covered by an adverse claim, and said claim was afterwards succcssfuliy asserted, it was held that the sale should not be rescinded on that account, nor the value of it discounted from a note for the purchase money held by an assignee of the vendor, but that the vendee's remedy was on the warranty. Gates v. Raleigh, 1 Monr., 1G4; .see, also, Winne v. Reynolds, 6 Paige, 407. ^ A specific performance will be decreed where the vendor is able to perform his contract in substance, although there is a trifling variation in the descrip- tion of the premises, -or a trilling incumbrance on tlie title which cannot be removed, and which is a proper subject of compensation to the purchaser. Winne v. Reynolds, G Paige, 407. And on a bill by a vendee for the specific performance of an agreement for the sale of lands, a slight variation or default, on the part of the vendee, in the performance of work to be done by him be- fore the deed was to be delivered, will not prevent a decree for specific jterform- ance, if the difference is a proper subject for compensation in money. Humes 426 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. tion between these two classes of cases will be considered in the chapter on compensation, (z^)' (m) Part V, chap. 3, § 1174 et seq. V. Thorpe, 1 Halst.'s Ch. (N. J.), 415. King v. Bardeau, 6 John.'s Cli., 38, is 9. Where the vendor of land sues the purchaser for a specitic performance of the contract, the defendant is entithxl to have the action dismissed, if it appear that the plaintiff cannot make out to the land a title free from rea- sonable doubt.' The defendant may have the action thus dismissed at the trial, x^i^ovided the defect in title has been l^rominently put forward in the pleadings, and the court can then decide the question, («) or even where the objection appears on the evidence at the trial, and is a different objec- tion from that on which the defendant had relied. (/>) But the question more usually arises after the reference to title has been made." («) Lucas V. James, 7 Ha., 418. 425. (/>) Baskcomb v. Phillips, 29 L. J. Ch., 380; 6 Sur. N. S., 363. ' Watts V. Waddle, 1 McLean. 200; Bates v. Delavau, 5 Pai.L,'e, 20t); Cans v. Rensliaw, -3 Barr., )]\: Fitzpatrick v. Fcathcrstoue, ;5 Ala.. 40; Beckwitli v. Kouns, B. Monr., 422; Owiiiys v. Baldwin, 8 Gill., 3o7. And it i.s not neces- sary that the vendee should stipulate in the contract that a covenant of war- ranty shall be inserted in his deed. This will be prcsunif^d, unless the vendee expressly takes the risk oT title. Bates v. Delavan. 5 Paige, 279. An agree- ment to give good and sufficient deeds to lands, must be construed to mean deeds in fee simple. New Barl)adoes Toll Bridge v. Vreeland, 3 Green's Cl>., 157. It is sufficient if the vendor is able to make a good title at any time I>e- fore the decree is pronounced, although he liad not a good title when the con- tract was made. Hepburn v. Auld, 5 Cranch, 2t)2. 275; Finley v. Lynch, 3 Bibb., ;;6(5; Seymour v. Delancev, 3 Cowen. 445; Pierce v. Nichols, 1 Paige, 244; Cotun v. 'Ward, 3 Monr., 304; Baldwin v. Salter. 8 Paige, 473; Dutch Church v. Mott. 7 id., 78; Poole v. Shergold, 2 Bro. C. C, 110. An exception to this rule is where a contract is made in bad faith bv one who knows thai he has neither title nor the legal or equitable means of acquiring one. Mo.ss v. Hanson, 17 Peun. (5 Harris),' 379. ^ Excess or deficiency of real estate xold.^ Where there is no designated (iu;in- tity, and the estate is sold in gross, a party can have no relief in eciuily i-ither for an excess or deficiency. The case must, of course, be devoid of fraud. Kent v. Carcand, 17 Md., 291; Gilman v. Hincle, 8 W. Va.. 2<;2; Foley v. McKeown. 4 Leigh, 678. Where the land was sold by the acre, the number sold must be found. Wilson v. Randall, 67 N. Y., 338.' Where the estate sold is described by boundaries, or equivalent words to more or less are used, sudi a statement will control a statement as to boundary or (luantity, and a surplu.«i or deficiency will not be a sulficient reason for relief at eipiity, unle.^s there is such great variation as to give rise to the presumiilion of gross fraud or mis- take. Stebbins v. Eddy, 4 Mason, 414; Marvin v. Bennett, 8 Paige's Ch., 312; 428 FIIY ox SPKCiriC PKItFOUMANCE OF CONTRACTS. i; 860. The old practice of the court of chancery, in all cases of dispute as to the title of the estate sold, was to decide either for or against the validity of the title, and either to compel the purchaser to take it as good, or to dis- Winch V. Wincliestcr, 1 Ves. & B., 375: Stull v. Hurst, 9 Gill.. 446; Morris Canal Co v. Einmett, 9 Paige's Ch., 168; Kotchum v. Stout, 20 Oliio, 453; Faurc v. Martin, 3 SeUl., 210; Noble v. Gog,-!:ins, 99 Mass , 231. In Hudson v. Hud-son, 64 Ga., 513, it was lield, that although the contract described the estate as containing one hundred acres more or less, yet the vendee was entitled to no abatement, notwithstanding a deficiency was discovered of thirty-six acres. Where real 'property is sold, the vendor must give a good title.'\ Equity will not decree specific performance of a contract for the purchase of real property, wliere the vendor, for any reason, cannot give a perfect title. He must be the owner, and he must have the legal or equitable right to convey. Lay v. Huber, 3 Watts. 367; Garuett v. Macon, 2 Brock., 185; Fitxpatrick v. Featherstone, 3 Ala., 40; Pipkin v. James, 1 Humph., 325; Hurley v. Brown, 98 Mass., 545; Morgan v. Morgan, 2 Wheat , 290; Tomlin v. McChord, 5 J. J. Marsh., 135; Owings v. Baldwin, 8 Gill., 337; Stevenson v. Buckstone, 15 Abb. Pr , 352; Nicol v. Carr, 35 Pa. St., 381. It makes no difference that the land has been sold under a decree of the court, if the title is imperfect. Coster v. (lark, 3 Edm.'s Ch., 428. An injunction against collecting the purchase price was granted until the title should be made perfect, in a case where the vendor frauduentlv represented that he had an absolute title. Hinkle v. ]Margerum, 50 Ind., 240; "Davis v. Perkins, 40 Iowa, 82. Where a party holding the legal title, sold for a valuable consideration, it was held, that his vendee, without notice of outstatidiug equities, took the property divested of su(-h equities. Farmers' Nat. Bank v. Fletcher, 44 Iowa, 252. In order that the vendor shall maintain a decree for specific performance, he must show, to a moral certainty, that the vendee will receive such a. title as he contracted for. Hinckley v. Smith, 51 N. Y., 21; Welsh v. Barton, 24 Ohio St., 28. Real property was sold at auction, warranted free from incumbrance, and a vendee paid full value for the property. Held, that where he afterwards discovered tliat there were mortgages upon it, he was not bound to retain the property. Mayer v. Adrian,. 77 N. C, 83. Specific jierformavce icill not be decreed where the title is doubtful.'] The court said in Dobbs v. Norcross, 24 N. J. Eq., 327. " Every purchaser of land has a right to demand a title, which shall protect him from anxiety, lest annr^ying, if not successful, suits be brought against him, and probably take from him, or his representatives, land upon which money was invested. He should have a title which should enable him not onlj^ to hold his land, but to hold it in peace, and, if he wishes to sell it, to be rea.sonablj' sure that no fiaw or doubt will come up to disturb its niMrketable value " See, also, Pyrke v. Waddington, 10 Hare, 1 ; Sturtevant v. Jacques, 14 Allen, 525; Griffin v. Cunningham, 19 Gratt , 571; Richmond v. Gray, 3 Allen, 25; Voorhies v. De Myer 3 Sandf.'s Ch., 614;. Swayne v. Lyon, 67 Pa. St., 436; Smith v. Turner, 50 Ind., 367; Jeffreys v. Jeffreys, 117 Mass., 184. Lord Eldon, Chancelor, said in Stapylton v. Scott, 16 Ves., 272, that the doubt, in order to prevent specific performance, must be "considerable and rational, such as would and ought to induce a prudent man to pause and hesitate; not based on captious, frivolous and astute niceties, but such as produce real bona fide hesitation in the mind of the chancellor." See Kostenbader v. Spotts, 80 Pa. St., 430. Long continued naked possession, specific perform ance.] Specific performance will not be decreed, and a purchaser compelled to accept the title, which rests merely in naked possesion; even twenty years uninterrupted pos.session is not sufficient to raise the presumption of a conveyance. Cunningham v. Sharp, 11 Humph., 116; Lewis v. Herndon, 3 Litt., 358; Smith v. Hollenbeck. 57 111., 223; see, however, Stroher v. Button, 6 Fhila., 185; Chapman v. Lee, 55 Ala.,. 616. WANT OF A GOOD TITLE, 429 miss the bill on tlie score of its being bacl.(c) But the case of Maiiow V. Smith, (<^) before Jekyll, M. R., followed by Shai^land v. Smith,(e) before Lord Thurlow, established the practice of allowing a class of titles which, without affirm- ing them to be bad, the court considered so doubtful as that it would not comj^el a purchaser to take them.(/) § SOI. Lord Eldon, though feeling himself bound to ad- here to this as an established rule, on more than one occa- sion expressed his dissent from it on principle, and bewailed the great mischiefs wdiich had resulted from it. (17) But such expressions of opinion did not shake the rule : and it has been recognized by the House of Lords as one of the estab- lished rules of a court of equity. (7^) § 862. Against the rule it has been urged that it is logi- cally absurd, as well as practically injurious ; for every title is good or bad, and if so, the court ought to know nothing of a doubtful title. For the rule it has been urged in effect that, having regard to the nature of an action for specific performance, the rule in question is necessary in point of practical justice, and correct in reasoning. It must be re- membered that the judgment of the court in such an action is in personam and not in rem ; that it binds only those who are parties to the action, and those claiming through them, and in no way decides the question in issue as against the rest of the w^orld ;(/) and that doubts on the title on an estate are often questions liable to be discussed between the owner of the estate and some third j)erson not before the court, and, therefore, not bound by its decision. (7) If, therefore, there be any reasonable chance that some third person may raise a question against the owner of the estate after the completion of the contract, the court may consider this to be a circumstance wdiich renders the bargain a hard one for the purchaser, and one which in the exercise of its discretion it will not compel him to execute. Though every title must in itself be either good or bad, there must be (c) Seel Bro. C. C.,76, n. . Mulgrave, 2 id , 526; Roake v. Kt) Accordingly, the court of appeal in chancery in one case dismissed an appeal, though thinking the title good, on the ground of the opinion of the judge below -.{q) though the same measure of deference was not extended to the opinion of a conveyanc- ing counsel of the court. (r) § 866. But these cases cannot now be relied on ; for, since the case of Pyrke v. AVaddingham, there have been something like a reaction against that case, and a tendency to lessen the area of doubt as regards titles. The very same title which Turner, Y. C, refused to force on a purchaser in Pyrke v. Waddingham, was forced on another purchaser by Lord Romilly, M. R., not on the ground that the principles laid down in that case were erro- neous, but that they did not justify the decision. (5) § 867. And so as regards the decision of an inferior court; the judges of the court of appeal have held that they are in no wise bound by such (Jecision, and that where they con- sider that there is no reasonable doubt, the adverse decision of the inferior court will not be a suflicient reason to i-pfiise the plaintiff relief, {t) § 868. "With resi)ect to the common cases of doubtful title," said Lord St. Leonards, "I cannot agree with the proposition, that an unfavorable decision in the court of inferior jurisdiction renders the title doubtful. The judge («) Price V. strange, 6 Mad., 159, 1G4. pendens), ami Wripley v. Sykos, 21 Itcav., (0) 10 Ila., 1; of. Rogers v. Waterhouse, 4 337. See, also, Highpate .vrchway Co. v. Drew ,329. ■ Jeakes, L. II. 12 Eq, U; Hell v. Holtbv, Id., (») liobe V. Callaiid, 5 Ves.. 186. 193; Au.stin v Tawncy, L. K. 2 Ch., H3; Os- Xq) Collier v. Mclican, L. U. 1 Ch., SI ; and borne to Itowlctt. 13 Ch. D., 774, "81 ; Wise v. see Haiiulton v. liuckmastcr, L. li. 3 Eq., 323. Pipt-r, id., 848, ^5.5. (r) H;'rj!Uon v. Buckmaster, L. R. 3 Eq., (t) lleloley v Carter, L K 4( h.iH; Alex- 323. ander v. MilLs, id G ih., 124 ; Hadlord v. Wil- (s) Ml Fi ? ". Trinder, L. R. 10 Eq., 449. lis. il. 7 Ch., 7, reversing b. C, L. K. 12 Eq., See, altt), .. iv Ilutchens, 32 Beav.,615(lls 105. 432 FHY ox spKcrFir perfokmance of contracts. of the .superior court would still be bound to exercise his own discretion and decide according to his own judg- ment." (i^) This language has been cited with approval by the court of appeal in chancery in England, (w) § S09. The donbt which may prevent the court from compelling the purchaser to accept a title may be a doubt either of law or of fact ; and, as to law, it may be connected with the general law of the realm, (-zfj) or with the construc- tion of particular instruments ',{x) and, as to fact, it may be in reference to facts appearing on the title, or to facts extrinsic to it.(?/) Again, it may be about a matter of fact which admits of proof, but has not been satisfactorily proved, (^) or about such a matter as from its nature admits of no satisfactory proof, as the negative proposition that there was no creditor of the vendor capable of taking ad- vantage of an act of bankruptcy, (a) § 870. It is not easy to give any perfect classification of the doubts which would and of those which would not pre- vail with the court, but the following attempt may not be useless. The court Avould, it is conceived, consider the title doubtful in the following cases :' (M) Sheppard v. Doolan, 3 Dr. & War , 8. v. Lord Clanmorrls, 3 Bll , 62; but as to this See, too, per Jessel, M. R., in Osborne to see §§ 770, 771. Roniett, 13 Ch. D., 781 Consider Cook v. (x) Lincoln v. Arcedecline, 1 Coll., 38; Dawaon, 3 De ii. F. & J., 130. Bristow v. Wool, id., 480; per Turner, V. C, (v) In Beioley v. Carter, L. R. 4 Ch., 236, in Pyrke v. Weddingham, 10 Ha,, 9. 240. iy) Id. (w) .Sloper V. Fish, 2 V. & B., 145; Blosse («) Smith v. Death, .i Mad., 371. (a) Lowes V. Lush, 14 Ves., 547. ' Right of (Jotcer as an incumbrance.'\ The vendor agreed to convej', free of all iucumbrances. Held, that the vendor was not obliged to accept the prop- erty, incumbered with an outstanding inchoate right of dower. Shearer v. Ranger, 22 Pick., 447; Smith v. Connell, 32 Me., 126; Heimburgh v. Ismay, 35 N. Y. Sup. Ct., 35; Prescott v. Truman, 4 Mass., 629; Henderson v. Hen- derson, 13 Mo., 152; Holmes v. Holmes, 12 Barb., 137; contra, see Obermyce V. Oberty, 17 Ohio, 71; ]\Ianson v. Brimfield Manuf'g Co., 3 Mason, 855; Blair V. Rankin, 11 Miss., 440. Rawle on Covenants, says, pages 138, 139: ''It is one of the best settled principles of the law of vendor and purchaser, that, as a general rule, the right of the latter to a title, clear of all claims whatever, present and future, fixed or contingent, is one of which he cannot be deprived but by his own acts. It is a right, as has been often observed by the greatest equity judges, given by the law, and not springing from the contract of the parties." Doubtful tith need not he accepted ] If a reasonable objection is found to exist against the title to real propsrtj", specific performance will not be decreed against the vendee. If there is a cloud on the title, rendering it doubtful, he need not take the property. Vauconner v. Bliss, 11 Ves., 458; Howarth v. Smith, 6 Sim. 161; Dutch Church v. Mott, 7 Paige's Ch., 77; Bartlett v. Blanton, 4 J. J. Marsh., 426; Starncs v. Allison, 2 Head (Tenn.), 221; Shapland v. Smith, 1 Bro. C. C, 75; Mullins v. Triudcr, L. R., 10 Eq., 449; Sloper v. Fish, 2 Ves. «& Bea., 145; Collier v. McBlau, L. R, 1 Ch., 81; Sohier v. Williams, 1 Curtis WANT OF A GOOD TITLE. 433 (1) Where tlie probability of litigation ensuing against the purchaser in respect of the matter in doubt is considera- ble, or, as it was put by Alderson, B.,(^) where there is "'a reasonable decent i)robability of litigation." The court, to use a favorite expression, will not compel the purchaser to buy a lawsuit. (c) (2) Where there has been a decision by a court of co- ordinate jurisdiction adverse to the title or to the principle on which the title rests, though the court thinks that de- cision wrong. (fZ) (3) Where there has been a decision in favor of the title wliicli the court thinks wrong. (^) (4) Where the title depends on the construction and legal operation of some ill-expressed and inartificial instrument, and the court holds the conclusion it arrives at to be open to reasonable doubt in some other court. (/') (6) In Cjttell V. Corrall, 4 Y. & C, Ex., 237 (d) Per Lord Romilly, M. R., in Mullings (c) PriCi* V strange 6 Ma<1., 159,165; Sharp v. Trlniter, L. R 10 Eq , 454. V. Adcock. 4 Rii88.. 374; Heseltlne v. Sim- (e) Id. mons.G W.R ,'268; Pepler v. White, 33 Beav , ( /") Per James, L. J., in Alexander v. Mills, 403. consider Potter v Parry, 7 W. R , 182; L.R. 6 Ch., 132. Burnell v. Firth, 15 W. R., 546. C. C, 470; Seymour v. Delancy, Hopk.'s Ch., 436; S. C, 5 Cow., 714; Jarraan V. Daviss, 4 T. B. Mon.. 115; Hightower v. Smith, 5 J. J. Marsh.. 542; Beck- with V Korms, 6 B. IMon., •222; iSturtevaut v. Jaques, 14 Allen, 523; Swayne V. Lyon, 67 Pa. St., 486; Young v. Rothlare, 1 C. E. Green, 2-24; Powell v. Connant, 33 Mich., 396; Griffin v. Cunningham, 19 Gratt., 571; Lowrey v. Muldron. 8 Rich.'s Eq., 241; Butler v. O'Hear, 1 Des.'s Eq , 382; Collins v. Smith, 1 Head (Tenn.), 251; Littlefield v. Linsley, 26 Tex., 353; Snyder V. Spalding, 57 111., 480. For a most instructive case, setting out the defects which will induce a court of equity to refuse the vendor aid in a case where there is doubt in relation to title. See Dalzell v. Crawford, 1 Pars. Sel. Cas., 37. Baron Park said, in Cadwallader v. Pierce, 11 Jur., 132: "This is not the only case in which courts of law are called on to determine questions appertain- ing to courts of equity. Where a man sells an estate, we are called on to say whether the title he offers is a good one both at law and in equity, and the point before us in such cases is, can such good title be made?" Malins, V. C, said, in Bell v. Holtly, L. R., 15 Eq., 178: "Where doubtful cases of con- struction arise, whether on an act of Parliament or the words of an instrument or a will, it is the duty of this court to remove that doubt by deciding it; and instead of feeling a doubt whether other judges, at other times, may think in the same way with them. I consider it the duty of the court to assume that that which a competent tribunal has at one time decided, will be followed at future times, and that that which judges at the present time think right, is to be assumed judges of eqttal competency in the future will think right also." Lord Eldon said in Vancouver v. Bliss, 11 Ves., 465," he recollected the period when it was the office of the court to decide whether the title was good or not. and it was thought better that the dry rule should prevail that, if the title was good, the purchaser should take it, than that the court should speculate upon the point whether there was more or less difficulty in the title, and say in one case he should take it, in another he should not. The old course was, that if the parties were afraid of the decision, they appealed ; and had not a title abso- lutely indefeasible, but as good a warranty as could be procured. The depart- 28 434 m;v on >i'i:('iric rKiMoiiMANc e of conikacts. (.')) W licit' tlie title rests on ;i i)resunipti(>n of fact of such a kind that if the question of fact were before a jury, it ■\voukl he tl»e duty of the judge not to give a clear direction in favor of the fact, but to leave the jury to draw their own conclusion from the evidence. To this ])iin('ii)le we may probably refer many of those cases where a doubt as to a fact has prevailed ; as where the title dei)ended upon proof that there was no creditor who could take advantage of an act of bankruptcy committed by the vendor:(/7) or where the title dei)ended upon the ab- sence of notice of an incumbrance, of which absence the vendor produced some evidence, (7^) or upon the i)resump- tion arising from mere possession. (/) And it may be noticed that the court will not allow a vol- untary settlor to force on an iinwilling(y) x>urchaser a title depending on the invalidity of the settlement. (A") "One difficult}^ in the way of assisting him," said Lord Eldon, "is, that he has no equity to defeat the act which he has done himself; but another consideration which has weighed in such cases is, that if you compel a purchaser to take an estate at the instance of such a man, you cannot be quite sure that there may not have been some intermediate acts, (g) T.owps V. l.ush, 14 Ves., 547. (k) Smith v. Garlani, 3 Mer., 12.3; Burke v. (ft) Freer v Hesse, 4 [)e G. M. & G., 495. Dawson, St Leon. Vend., ^92; Clarke v. \Vi - (i) Kj Ion V. Dieken, 4 Pri . 3i 3. lott, L. K. 7 Ex., 3 3. U) Peter v. Mcolls, L. R. 11 Eq., 391. ure from that course has been attended with great mischief. Whenever a contract is made for tlie purchase of land, though no doubt has ever l:)een entertained upon the title, no one thinking of disputing it, if the purchaser has a good bargain, he overlooks all these objections; but if he finds he cannot sell the estate as we.ll as he wi-sbed, or cannot enjoy it to his satisfaction, the first thing is that the al)8tract goes to some one for the express purpose of finding out objections, and opinions are given on both sides. I feel great concern for the owners of this sort of property. The consequence is, not only the misery arising from the uncertainty whether that which they have been enjoying with happiness, and upon which their families are to subsist, is their property; but it is an invitation to all who may fancy, that they have an interest in it, to make an attack. There cannot be much doubt, therefore, which is the best rule." See, also, Jervoise v. Duke Northumberland, 1 J. & W., 568. Battin on Specific Performances, page 117, says: "This anomaly in the practice of courts of equity, which refuse to decide whether the title is good or bad, and only decide tfiat there is doubt about it, and which refuse to force the pur- chaser to take the title if there is a cloud upon it, incidentally arose from their considering that there was a remedy at law, and that the jurisdiction was, there- fore, discretionary. But the doctrine seems now to be too well-estabhshed to allow us to confine its application to those cases where relief can be obtained at law. It is said that the court, knowing that its decision on the title could not bind anybody, would not force the purchaser to take a title which it could not waiTant to him. But this obviously supposed an uncertainty as to tlie law, which ought, in a perfect system of jurisprudence, never to be presumed." WANT OF A GOOD TITLE. 435 Avliicli, by matter ex iDost facto, may have made the settle- ment good which in its origin was not good.''(0 (6) Where the circnmstances amount to j)resumptive {though not necessarily conclusive) evidence of a fact fatal to the title; as, e. g., that the exercise of a power nnder which the vendor claimed was a fraud upon the power.(w.) § 871. On the contiary it is conceived that the court would consider the title not to be doubtful in any of the following cases, viz.: (1) Where the probability of litigation ensuing against the purchaser in jespect of the doubt is not great, the court, to use Lord Haidwicke's language in one case, ''must a'ov- •ern itself by a moral certainty, for it is impossible, in the nature of things, there should be a mathematical certainty of a good title. "(vO Accordingly, in the case before Lord Hardwicke, his lordship enforced specific j^erformance, although there was a reservation of mines, because the court was satisfied that there was not- subject matter for the reservation to act upon, or that all legal right to exercise it had ceased. (o) And in another case. Lord Romilly, M. R., forced on an unwilling purchaser a title depending on the validity of a i^urchase by a solicitor from his client, on proof of the validity of the transaction, though given in the ab- sence of the client, who. it was urged, might possess other evidence and ultimately set aside the sale.(^;) (2) Where there has been a decision adverse to the title by an inferior court, which decision the suj)erior court holds to be clearly wrong, (g) (3) AVhere the question depends on the general law of the land. "As a general and almost universal rule, the court is bound as much between vendor and purchaser, as in every other case, to ascertain and so determine, as it best may, what the law is, and to take that to be the law which it has so ascertained and determined. "(r) (4) Where the question, though one of construction, turns (0 In Johnson v. Legard. T. & R., 294. Seaman v. Vawdrey, 16 Ves., 393; Martin v. See, too, Clarke v. Willott, L R. 7 Ex., 313. Cotter, 3 Jon. & L., 496. For an instance of a decree for specific per- (,p) spencer v. Topham, 22 Beav , 573 See, formance, notwithstanding a previous vol- too, Falkner v. Equitable Reversionary So- iintary grant, at the suit of a purchaser, see ciety, 4 Drew.. 3.i2. Rosher v. Williams, L. R. 20 Eq., 210. (g) Supra, § S67. \m) Warde v. Dixon, 28 L. J. Ch.,315; S. (r) Per James, L. J., In Alexander v. Mills, C, s. n., Warde v. Dickson, 7 W. R., 148. L. R. 6 Ch., 131, 132; Forster v. Abraham, L. (re) In Lyddall v. Weston, 2 Atk. R. 17 Eq., 351; Osborne to Rowlett, 13 Ch. EKFt)HMANCE OF CONTRACTS. on a general rule of construe rion, unaffected by any special context in the instrument, and the court is in favor of the title, (.s) (5) AVhere the title depends on a presumption, provided it be such, that if the question were before a jury, it would be tht- duty of the judge to give a clear direction in favor of the fact, and not to leave the evidence generally«to the consideration of the jury.(0 So where the recital of deeds raised the presumption that they contained nothing adverse to the title, the mere loss of the deed, where the title was fortified by sixty years' undisputed possession, was held not to create a reasonable doubt ;{u) and so again, where the validity of a title depended on no execution having been taken out under certain judgments, between the 27th Sep- tember, 17^^*9, and the 23d May, 1770, and nothing was shown to have been done which could be referred to sucli an exe- cution, the court considered the title good.(«) To this head may perhaps be referred the fact that the court will (except at the suit of the settlor[?o]) compel specific performance of a title depending on the invalidity of a voluntary convey- ance as against a purchaser for valuable consideration with- out notice, (ic) the court, as it seems, acting on the presump- tion of the conveyance not having been rendered valid by subsequent dealings.' (s) Radford v. Willis, T,. R. 7 Ch., 7. (r) Cauhton v Macklew, 2 Sim., ■242. (t) Emery v. Grococb, 6 Mad., 54; Barnwell (w) Supra, §§ 387, 448, 870. V Harris, 1 Taunt , 430. (x) ButterfleUl v. Heath, 15 Beav., 408 ; (M) Prosser v. Waits, 6 Mad., 59; Magennis Buckle v. Mitchell, 18 Ves., 100. V. Fallon, 2 Moll., 561. ^ Mdrketabh title, specific performance.'\ A court of equity will not decree specific performance, unless a marketable title can be given. It is not enough that a court might consider the title good Swayne v. Lyon, 67 Pa. St., 436; Littlefield V. Fiusby, 26 Texas, 353; Liulcons v. Coo'per, 2 W. Ya., 67; Speakman V. Forepaugh, 44 Pa. St , 363; Freetley v. Barnhart, 51 Pa. St., 279; Butler v. O'Hare, 1 Dessau. 's Eq., 382 ; Thompson v. Dalles, 5 Rich. Eq.. 370; Powell v. Conanti 33 Mich., 396. The rule is slightly qualified in Vreeland v. Blauvelt, 23 N. J. Eq., 483. Construction of tlie words '■'good deed,'' or its equii'aleni.~\ A covenant to exe- cute and deliver a good and sufficient deed, means an operative conveyance, or one that transfers a good and sufficient title to the land. Where the contract is to o-ive a "good deed," or where equivalent words are used, it is not enough that a deed with proper warranty is executed in legal form. In order to sat- isfy the language, the deed must be good and sufficient to convey a title to the land, both in form and substance, Clute v. Robinson, 2 Johns., 413; Everston V. Kirkland 4 Paige's Ch., 638; Burwell v, Jackson 9 N. Y.. 535; Mead v. Fox, 6 Cush., 202; Mitchell v. Hagen, 4 Conn., 495; Taft v. Kes.sel, 16 Wis., 273; Morgan v. Smith, 11 111., 199; Tindell v. Conover, 1 Zab., 654; Jones v. Gard- ner, 10 Johns.. 266; Judson v. Wass, 11 Johns., 528; Traver v. Holstead, 23 WANT OF A GOOD TITLE. 437 (6) Where tlie doubt raised rests not on proof or pre- sumption, but on a suspicion of mala fides. This point has .given rise to some diversity of opinion. In Hartley v. Smith, (?/) the title depended on a deed of grant of chattels, containing a stipulation for the grantor s continuing condi- tionally in possession ; and Leach, V. C, withont deciding whether such a deed was in itself fraudulent and an act of bankruptcy, declined to force the title on the purchaser, on the ground that its validity depended on its being made upon good consideration and bona fide, and that these were ■circumstances, the existence of which the purchaser had no adequate means of ascertaining. "My opinion, therefore, is," said the vice-chancellor, " that a court of eqnity onght not to compt-1 this purchaser to accept this title ; because assuming the deed not to be fraudulent ex facie, it still may be avoided by cii'cnmstances extrinsic, Avhicli it is neither in the power of the purchasers or of this court to reach. "(2) (2/) Buck, Bankr. C , 36S (s) P. 380. See, also, Boswell v. Mendham, 6 Mad., 373. lud , 6'!; Carpenter v. Bailey, 17 Ind., 244; Pomerov v. Drury, 14 Barb., 424; Fletcher V. Button, 4N Y., 400; Story v. Conger, H6 N. Y., (iT3; Swan v. Drury. 22 Pick., 48S; Gilchrist v. Bine, 1 Den. ct Bart. Eq , 84(i: Little v. Paddleford, 13 N. Y.. 1G7; Watts v. Waddle, 1 M'I.ean, 'iOH; Lawrence v. Dole, 11 Vt., 541); Greenwood v. Ligon, 10 Sni. & Marsh., ()I5; Dodd v. Sey- mour, 21 Conn., 480; Pugh v. Chesscldine. 11 Ohio. 109; Hunter v. O'Neil, 12 Ala., 37; Freemaster v. May, 13 Sm. & Marsh., 275; Cunningham v. Sharp, 11 Humph, 120; Dearth v. Williamson, 2 Searg. & Rawle, 41)8; Cowell v. Hamil- ton, 10 Watts, 415; ( hristiau v. Cabell. 22 Gratt., 82; Tarwater v. Davis, 2 Eng. Ark., 153; Toll Bridge Co. v. Yreeland, 3 Green Ch., 132 Contm. Par- ker V. Parmlee, 20 John., 132, where it was held, that a covenant to convey " by a good warranty deed of conveyance" refers to the instrument, and not to the title, and is satisfied by the execution of a warranty deed, "^ee, also, ■Gazeley v Price, Ui John., 2l>"7; Barrow v. Bispham, (i HaKsh., 119; Brown v. Covilland. 6 Cal , 566; Tinney v. Ashley, 15 Pick , 552; Hill v. Robert, 16 Me., lf)4. In Delavan v. Dimcan, 49 N. Y , 487, the court says that Gazeley v. Price, and Parker v. Parmlee, were both overruled by the Court of Appeals .(the highest court in New ^ ork) in Burwell v. Jackson, supra. "In this 'Case it was distinctly held that a covenant to give a good and sufficient con- veyance of land would be performed only by givii g a deed that would vest in the grantee an unincumbered title to the premises." Brown v. Gannon, 14 John, 276 is an instructive case as explaining the words " the title to be a good and sufficient deed." In Vermont it has been held that where the grantor cove- nanted '-to give a good and warranty deed," that this language did not refer to the title, but did refer to the instrument, and that the contract was not broken by the inability of the vendee to convey free of incubrance. Joslyn v. Tay- lor, 33 Vt., 470; Preston v. Whitcomb, 11 Vt.. 47. " The title on inventigntion to be satinfar.tory "] Where thi.s languat-e was used in a written contract for the sale of land^ and the vendee gave notice that he was not satisfied with rhe title Held, t^'at an agreement on the part of the vendee to perfect the title did not make the case one for specific performance. "Taylor V. Williams, 45 Mo., 80; see, however, Lord v. Stephens, 1 Y. & C. Ex.. 222. 488 FItY ox SPKCIFIC PKHFOPvMAXrf: OF COXTUACTS. vj ST'I. This dictum seems to allow no room to the pre- sumption of ho)i(i Jules, and to make the jjossibilit}^ of fraud in extrinsic facts a sufficient objection to the title: accord- iniily. it has not Ix'en accepted in all its generality. It "must not," said Alderson J-5. of this dictum, ''be pushed to the farthest extent which the words will i)ossibly bear ;'"(«) and, accordingly, that judge lield good a title under a deed which extrinsic evidence might hav^^- shown to be invalid, as comprising all the property of the grantor, or as made to give a fraudulent preference to some creditors over others, or as nuide in contemi)lati(m of bankruptcy, because there was no ground apparent for nudving any of these objections to it.(//) § 873. In Green v. Pulsford(c) the vendor claimed under an appointment made by a husband and wife to their eldest daughter, under a settlement gave them successive life estates, with remainder to their childi-en as they slioidd. appoint, and in default of appointment between such chil- dren ; and the parents had incumbered their life interests, and, shortly after the appointment, they and their daughter executed a mortgage : these were circumstances which might create in everyone's mind a suspicion that the appointment was a fratid on the settlem-nt, and that was strt^ngthened by a notice from a younger son to the purchaser not to com- plete, and that the appointment was such a fraud ; but inasmuch as the notice alleged no facts, and gave no infor- mation not apparent on tlie abstract, and was not followed up by any proceedings, the court considered that the title was not open to any sufficient doubt, and forced it on the purchaser. In an earlier case, where there were somewhat similar grounds for suspecting the bona fides of an appoint- ment. Lord Eldon pursued the same course, and enforced specific j)erformance.(r^) § 874. In another case, the purchaser showed that the title was made under a sale by newly appointed trustees to a person who had previously bought the interest of the ten- ant for life, and who, eighteen months afterwards, made a (a) 4 Y. & C. Ex . 236. also. Grove v Bastard, 2 Ph.. 619; S. C, 1 De (h) (;att»-,ll V. (jorrall, 4 X. & C. Ex., 228. »J. M & ti , G9; and Re Huish'a Charity, L.. (r) 2 Hf-av.. 71. H. 10 Kq. 5. (d) M Queen v. Farquhar, U Ves., 407. See, WANT (»!•• A (;o«)D Till.?:. 4:^0 profit on liis i»iirchase : but the court lu-ld ili.-r- rinuui- stnncHS i in ma terial . (/') 55 ^7Si. A^ain, a puirliasrr is not ••fiiillfd in t lie absence of circmustances of suspicion to refuse a till*' nuele under a will, because tlie will has not l)een jirovt-d aixaijist the ht'ii- or lit' dot's not join :(_/') so that wlifrc, ilurinu' a lili^T'i- tion of thirteen ycar^. no (juestion had bfcn iai^<'d iin- ])«'achin,u" .the validity of the will, and a |tei-son who hail claimed uiidfi' anotlifi- will haelled the purchaser to take a title un. Where the court comes to the conclusion that a irood title can be made it litMu-rally onlers t!ic jturchascr to l)ay tlie costs of the litigation, so as to assure his title ;ind show that the court entertains no doubt ujton it.i//) s5 H77. llecent legislation affords machineiy under whi(di, in some cases at least, the i)ers<)n making an adverse claim may be brought into the liiigatioii. an Vict., c. 87), s. 9:^, it is enacted that " wliei-e a suit is instituted for the specilic perforinance of a contract i-elating to registered land or a legisteied <-haige, the court having coi:ni/.ance of such suit may by summons, or by such other moile as it de^ms expedient, cause all oi' any p;iriies who have regis- tered estates or rights in such land (»r charge, or have entered up notice^, cautions, oi' inhibitions against the same, to ap}ie;ii' in such suit and show cause why such c(»n- (6) Al«x;in.l r V. MilN. I,. Ii. C Ch . 1>4. let', KJeh. r>.. T'.ts; «-r. Ml.»i..li« v. < •.rlM-t«,»4 (/•iColtoii V WiNon, :{ r 'ViiiH. I!K»; p-r U.-iv, :{si. .<.«.'; U »• I v I. T I H irrlnj{t >n, T.onl K '[on in M..rii-(..t, v. Aniol.l. Ill Va , I.. K. (J K.)., J.'4; Ao.U v. tlyl- . 10 »V U.. 67i). \Vi!.| l;ill V. \i\Mi IT H.-iv., It;(i :n I In IC.pII -nl v *Vi||ii.|, K T Cti.. 7. Ill (.7) M'CuliiH-n V (irt'Kory. :{ K Ji..1.,\i. iii<' inin-hHifr was " CM;u»o How- oml: ' See to this effect, tlie ruse of Huller v O'llenr, 1 Dessiiii., 3S2. . - Hut a title miiy he (loulitfiii, l)cc)iii>;e it (Icpciidt on ii v the decree;, aiul therefore will ii<»t lie forectl (ipmi a pnrrli.is. r. S«ihier v. Williams. 1 Curtis' V. C. Hep. -171). Where will pn-siMits diniciilt tpH'stions df (•(»iistru'np»l ^pciilli- p.Tf.irm mev nf a coiitrael for sale of l.in.l. Kelso v. Loullar.l. s.') .N". V . ITT. 440 FKY ox .SPKCIFIC rKKFOU:^! AN( E OF CONTRACTS. tract slioiild not be specifically performed, and tlie court may diivct that any order made in such suit shall be bind- ing on such parties or any of them."(0 ^ H7ft. Aiiain. by the rules of the Supreme Court, wliere it appears to the court or a judge that a question in the action should be determined, not only as between the plain- tiff and defendant, but as between the i)laintiff, defendant, and any other person, or betwHen any or eithei- of them, the court or a judge may, on notice being given to such last- mentioned person, make such order as may be proper for having the question so determined. (,/) § 880. In a case wliere parties stated facts in the form of a special case, and required the opinion of the court whether on these facts a good title was shown, the court declined to consider the question of the title being doubtful : it con- fined itself to the question asked, whether or no a good title was shown. (A:)' (i) See infra. § HIO. ''ase under Sir Geo Turnnr's Art (13 and 14 (j) Old. XVI, r. 17. ser, too, Rules 17,21, Vift , c. 3.)), ss. 2, 18 the procedure under of the pani." Order, 8uprrt.*i 1()8 whi.-h has heen Fup. rseded l>y V'Hl under {k) Gt.vrnors for R.-liet of Poor Widows Ord. XXXIV (see et'peiially ru e 1). of ClerKjmen, etc., v. Sutton, 27 lieav., G.il, a ^ III a caKe where the title is suspicious, extrinsic circumstances.'] Equity will not dt'cree spccitic judgment against a purchaser in a case where although tliere is no proof of fraud, yet tliere are instances connected with the title which would give a prudent man cause for suspicion, and the good or bad i'aith of the transaction depends upon extrinsic circumstances. In Hartley v. Smith. Buck's Banks Gas., 86>^, the vice-chancellor, said. "My opinion, therefore, is, that a court of equity ought not to compel the purchaser to accept this title; because assuming the deed not to be fraudulent ex-fncie, it still may be avoided by cir- cumstances extrinsic, which it is neither in the power of the purchaser or of this court to reacli." Aft^r possession has been, occvpied by the renilee.'] Both courts of law and equity where the transaction is free from fraud, apply the maxim caveat emptor to contracts of purchase of real as well as of personal property, a purchaser may in general, rely on old deeds, as to location and boundery. Welsh v. Hall, 66 iN C., -2'd'^. Where the contract is executory, if the vendor has no title the vendee may have a rescission: but if the agreement has been extended, in order that a court of equity may grant relief to the purchaser, or restrain the col- lection of the purchHse money, eviction or fraud must be averred and proved. Patton V. Taylor. 7 How., 13H; Campbell v. Medbury, .5 Bissell. 3:^). The ven- dee of land in possession, soiigbt to resist the payment of the purchase money, on the ground that his vendor could not make a good title; the paramount title being in a third party. Held, that he must show affirmiitively the existence of such paramount title, and that the evidence must be clenr and satisfactory. Cantrel v. Mobb. 63 Ga., 19]; Sawyer v. Sledge, 55 Ga , l.')2. Iifumbran/^es existing against real proj)ertg sold ] Where real property has been sold free from incumbrances, a purchaser need not receive his deed, and pay his money while incumbrances ext^t against the property. A court of equity will not compel him to rely on the personal responsibility of the vendor, but will .suspend the payments of the purchase money until the incumi-rances are removed, if this is not done after a reasonable time the contcact will be re- WANT OF A GOOD TITLE. 441 scinded. Bisliop v Newton, 20 111., 175; Rindley v. Gray, G Ired.'s Eq., 445; Shaw V. Viiiceiil. 6tN. i\, 690; Wallace v. McLaughlin, 57 111., 53. In David- son V. Perrine, 22 N. J. Eq , 87, where the vendor filed a bill for specific per- formance, that the vendee should elect either to accept such a title as the vendor was able to convey, or abandon the contract, and restore the pos.session lYme within, icliicli the vendor muj^t be prepared to make a good title ] In order that a vendor may be in a position to envoke the aid of equity in enforcing spe- cific performance of a contract of sale of real projjerty, he must show that in good faith, and without unnecessary delay he has performed all the obligations which devolved upon him; or that he is ready and in a position to do so. King V. Hamdton, 4 Pet., 311; Seymour v. Delauc y. G Johns., Ch., 222; Grundy v. Ford, Litt Sel. Gas., 129; Barnett v. Higgins, 4 Dana, 565. A reasonable dil- ligence must be exercised by the vendee in ascertaining the state of the title. Havens v. Bliss, 26 N. J. Eq., 363 The vendor will ^ot be deprived of his right to enfo'-ce the contract specifically, by mere delay, unless it be shown that such delay has been unreasonable and without excuse; and it is out of the power of the court to place the respective parties in the same position they would have occupied had the contract been carried out before. McKay v. (Harrington, 1 McLean, 5i); Cooper v. Brown, 2 McLean, 495; Snyder v. Spaul- ding, 57 111., 480. It appears to be the well settled rule that the vendor of real estate has a right to a decree of specific performance, in cases where time is not of the essence of the original contract, without showing that the title is actually in him at the time of the conveyance. If lie is able to give a good title at the time of the decree, it is usually sufficient. In Layford v Pitt, 2 P. Wms , 629, it was said pi;r curiam, " It is sufficient if the party entering into articles to sell has a good title at the time of the decree; the direction of the court being in all these cases to inquire whether the seller can, not whether he could, make a title at the time of executing the agreement In the case of Lord Stowttm v. Sir Thomas Meers, the Lord Stowton, at the time of the articles for a sale, or even wiien the decree was pronounced, could not make a title, the reversion in fee being in the crown. And yet the court indulged him with time moie than once for the getting in of this title from the crown, which could not be effected without an act of Parliament to be obtained in the foUovvipg session. How- ever, it was at length procured and Sir Thomas Meers decreed to be the pur- chaser. Indeed it woiild be attended with great inconveniences, were decrees to direct an inquiry whether the contractor to sell had, at the time of entering into such contract, a title; for this all encumbrances, and defects must be raked into. Wherefore, it has been thought sufficient to answer the end, if, at the time of the decree or report the seller can make a good title " See, also, Hep- burn v. Auld, 5 (ranch, 262; Wilson v. Tappan, G Ohio, 172; Mays v. Swope, 8 Gratt., 74; Allerton v. .Tohn.son, 3 Sandf. Ch.. 72; Dubose v. James, McMul- lan Eq., 55; Hepburn v. Dunlop, 1 Wheat., 179; Seymour v. Delaney, 3 Conn., 445; Cotton v. Ward, 3 Monr.. 305; Westall v. Austin, 5 Ired.'s Eq., 1; Brown v. Haff, 5 Paige's Ch , 235; Luckett v. Williamson, 37 Mo., 388; Moss v. Han- son, 17 Pa. St., 370; Mus.selman'3 App., 65 Pa St., 480; Wmne v. Reynolds, 6 Paige's' h., 407; Jenkins v. Fahey. 73 N. Y , 855. In Rutland v Brister. 53 Miss., G83, it was held, that a party could contract to convey land, he having at the time no title either legal or equitable in it; and that his obligation was fulfilled if when the time for performance arrived, lie induced the real holder of the title to convey to the vendee. Inabiliti/ to nh'ain tit/f, go id defence ] An action was brought for specific performance of a contract to convey land. The vendor was unable to convey by reasim of want of title Held, a good defense, after reasonable efforts to obtain title, ^wepsou v Johnson, 81 N. C, 449. 442 ritV ox SPEC IFIC I'KUFoKMANCE OF CONTKACTS. CHAPTER XIX. OF FAILFKE OF THE COXSIDERA'IloX, § 881. It will be necessary to inquire under what circum- stances events wliicli either detennine the existence of die subject-matter of the contract, or essentially affect it. will furnish a defense in specific performance. Events affecting the subject matter, but not essentially, may give rise to a claim for compensation, but will not prevent performance of the contract.' ' Vi-ndor xlio'ild inspect property.^ A piirchuser had an opportunity, and was urged to inspect the property, i)ut neglected to do so; there was no fraud in the transaction. Held, that lie slundir not be relieved from his purchase by reason of the partial failure of consideration Vincent v. Berry, 46 Iowa. 571. P.THoii'il property, fdilnre of conxidenitioii.] The rule is. not only that there is sucii property. Init that it is really in the form, and is of the deseription stated in the agreement. .Morrill v. Aden, I'.J Vt , oO.l; Dutman v. Porter, loO Ma.ss., m:. Property sold by. order of Vie court.'] In such a case, the question frccpiently to be determined is whether the agreement is conchiiled by the sale, subject to defeat if the same is opened, in which case the agreement will relate back to the day of sale: or whether the contract is not concluded until it becomes ob.so- lute by having been confirmed by the court The rule appears to be, that the first review is sustained bv the weight of authority. Ve.sey v. Elvvood. '6 Dr. & W.. 74; Anson v. Tovvgood. 1 .1. & W., (i:j7; Robertson v. Spelton. 12 Beav., 260; See, also, Busey v. Hardin. 2 B Mon , 4i)7; Owen v. Owen, 5 Humph., 852; Kobb V. ]Mann, I Pa St, ;>00. is an in.struciive case in this connection. See, as well, Stoner v. Rice, 3 Whart., 2."); iiashaw v. Whisler, ;j Watts. 41)4; Morri.son v. Wurtz. 7 Watts, 4:57; Bjllas v. McCarthy, 10 Watts, 22; Andrews V. Scottau, 2 Bland Ch. (Md.), 62!). IiKibiUtii to f'lltillattime (uireed upon.] Where an a^rreemcnt to purchase is to be completed at a definite period, and the title is tinaily made out, the par- ties to the same continuing in treaty and the party purchasing not by any acts relca.sed from his agreement, it is the rule that ilie estate belongs to the pur- chaser, from the date of the contract, and the money to the party who sells. The completion of title must not i)e unreasonal)ly delayed by the vend.tr. Brewer v. Herbert, 30 Md.. :50!; Griffin v. Cunningham, 10 Gratt., 571. Where the house was consumed by fire before titles was perfected, held, that specific performance would not be tlecreed. Christian v. Cabell, 2i Graft... 82. Un£.vcitml delay in paymeM.] Where this is the fact, and a material change of circumstances have transpired, which makes the contract more onerous, equity will not decree its specific performance. Andrews v. Bell, 56 Pa. St , 343; iiouton v. Sheifer, 21 Gratt., 474; Menet v. Brown, 10 N. J. Eq. (4 Green), 286. (Jondilional contract. Rule] The condition must be performed, before the contract becomes absolute, 'i'he propeity is at the risk of the vendor, until thit is the fact. Penfield v. Penfield, 4rConn.. 474; .laycox v. Clark, Walk, (ilich.) I h., 50'^: Davis v. Bowker, 1 Nevada, 487; Counter v. Macpherson, 5 Moo. P. C. C, 83. FAILUllE OF THE CONSIDERATION. 443" 1. Eoenia prior to the contract. % 88*2. Events may happen before the conclusion of a contract, which may either (1) determine the existence of its subject matter, or (2) mateiially affect such subject mat- ter. The former chiss of events do not, properly speaking, avoid the contract, but prevent its ever arising, on the ground of the common mistake ; the hitter class of events give the parry injuriously affected a right to avoid the contract.(rt)' § 883. In one case, tlie contiact was for the sale of an estate in fee in remainder cm an estate tail : a conveyance had been executed and a bond given for payment of tlie purchase moiiey, when it was discovered, for the first time^ that at the time of the sale no such remainde'r existed, the tenant in tail having previoush' suffered a recovery ; the court rescinded tlie contract, and ordered the bond to be delivered up and repayment to be made of all interest which liJid been paid on \l.\hf § '^'^^. In another case, where, in order to preserve the timber on an entailed estate fiom being cut down by the assignee in the insolvency of a tenant for life, the owner of the next life estate and the tenant in tail contracted with the assignee that he should be deemed to be entitled to the- timber, as if it had been cut down and carried away by him (nr.) Consi \cx Pri<'.haril v. Mercliant-*'. etc , (i) Hitchcock v. Giddi gs, 4 Pri., T35. Lite Assurance Sock-ty, 3 U. U , N. >-5., 6-2i. ' It is well settled tluita contract muy be avoided for failure of consideration; but it must l)e a total one, or at least total as to distinct parts of the contract; the oI)ject of the agreement must he defeated or rendered unattainable by the. default. Morrill v. Aden, li) Vt. (4 Washb.), 50'): Baker v. Thompson, 1& Ohio, 504 -clhy v. Hutchinson, 4 Gilm., aiU; .Jacox v. Clark, Walk. Cli., 508, is a case analogous in principle with Hitchcock v. Giddings, cited in the text. The defendant, there, received the grant of the right to use certain Avater power, and dig a race on complainaut's land, in consideration of erecting a mill at a certain place where their lands joined. But the defendant, having diver- ted the water from the complainant's land, built his mill at another place. It was held that the consideration had failed, and the complainant was entitled to a reconveyance; and further that the defendant should be enjoined from set- ting up his deed in defense in any action for a previous diversion of the water. At law, a failure of consideration in cases of contract, is constantly treated as a sufficient ground for consitlering the contract as rescinded and maintaining an action for money had and received. Cloherty v. Creek, 3 Har. ct J., ;)28; Eames v. Savage, 14 Mass., 435; Lyon v. Annable, 4 Conn., 850; Gillet v. Maynard 5 .John., h5; Ravmond v. Bearnard, VI id., 274; Wheeler v. Board. Id , 868; Davis v. :Marston. 5 Mass., lyO; Danfortli v. Dewey. 8 N. H. 79; Spring V. Cotlln, 10 Mass., 81; Lacoste v. Flotard, 1 Rep. Con. Ct., 467; Whar- ton V. O'Hara, 2 N. & M., 65; Duncan v. Bell, Id., 158; Pettiboue v. Roberts, 2 Root, 258; Boyd v. Anderson, 1 Overt'., 488; Putnam v. Westcott, 19 John., 73. 444 fi:y on si»i:cii'ic pkkfoji.maxce of coxtracts. on a specified day prior to the contract, but should not actually cut it before another specified day ; and at the time when tliis contract was made, the insolvent was dead, but no ])arty to the conti'act was aware of that fact ; the court of appeal declined on the grounds of mistake and absence of consideration, to enforce the contract.(c) § S8.>. Again, where a contract for the sale and purchase of shares in a company was entered into at a time when, in fact, though neither vendors nor purchaser knew it, a peti- tion for winding up the company had been presented, the court of appeal refused to enforce the con tract. (<;Z) § 886. A contract relating to a chattel implies, at com- mon law, the existence of the chattel and its existence in the form or of the description specified in the contract, and consequently an event destroying the chattel before the con- tract is concluded puts an end to it. Therefore, where a contract for the sale of a life annuity was concluded in England on the 28tli of February, and the annuitant died in New South AVales on the 6th of the same month, there was held to be no contract ;(c) and where a floating cargo was sold, and it snbsequentl}^ appeared that, at the time of the sale, the captain had sold the cargo abroad, in conse- quence of the damage it had sustained at sea, the exchequer chamber and the House of Lords held the contract to be incapable of being enforced. (/")' But no warranty being implied at common law as to condition, the sale of a ship at sea, which at the time happened to have been stranded, was held binding, for the subject of the contract still con- tinued a ship.(//) The impossibility of performing a con- tract of which the subject matter is extinct would, of course, prevent the interference of a court of equity in these cases, if, on other grounds, it could give relief. (/c) (c) Cochrane v Willis, L. li. 1 Ch, 58. (/) Coutiirierv. Ha8tle,8 Kx ,40; reversed id) Kmmersoti's CBfe, L. K. 1 ) Under this enactment it seems . clear that the purchase is -complete when the sale at or above the reserve price, if any, has taken place. (^) 2. E-cents to the contract. § 890. Events subsequent to the contract will, in some 'Cases, furnish a defense to an action for si)ecific perform- ance ; in other cases they will not, § 891. Where, from the nature of the contract, it ap- pears that the contracting parties contemplated its fulfill- ment only in the event of the continued existence of some subject matter or thing, the contract is held to be subject to an implied condition that it shall cease with the subject matter or thing : and if, before performance, the thing cease to exist, the contract goes with it.{q). § 893. In the case of contracts for the sale of land, it has been laid down with regard to events happening after their being signed, that the question on whom the advan- tage or loss resulting from them would fall, and whether, therefore, the court would enforce specific x^^i'^oi'^^^^J^ce without reference to them — or whether, on the other hand, they might determine the contract — is to be decided by w^hether or not the title had then been actually accepted, (r) But the more correct doctrine appears to be that the equita- ble estate passes on the signature of the contract if there be a good title, though, that may not be shown till after- (0) 30 & 31 Vict. c. 48, 8. 7. (»-)Wyvlll v. Bishop of Exeter, 1 Pri., 292, {p) Cf. Re Bartlett, 16 Ch. D., 561. 295 n.; and see Paine v. Meller, 6 Vea., 349. iq) Taylor v. Caldwell, 3 Best & S., 826; Howell V. Coupland, 1 Q. B. D., 258. FAILUItK OF TlIK COXSlDKIiATlOX. 447 wards. '-It is," said Plumer, V. C, " tlie established doc- trine of eqtiity, that if a contract to purchase is to be com- pleted at a given period, and the title injuiallf/ made out, the parties continuing in treaty, and the purchaser not ])y any acts released from his bai-gain, the estate is considered as belonging to the purchaser from the date of the con- tract, and the money from that tiiiie as belonging to the vendor. "(5)' § 893. Where the contract is in its inception expressly conditional, the transfer of the equita])le estate from the vendor to the purchaser takes place not on the ccjnclusion of the contract, but on its becoming absolute by the per- formance of the condition, and until that event the property sold remains at the risk of the vendoi-. This is well illus- trated by a case which was decided by the judicial com- mittee of the privy council, on appeal from the court of chancery in Canada. A contract was entered into for a lease for live years, from the 1st of April, 1840, the land- lord undertaking to erect by that time a new warehouse on part of the ground to be demised, and to put the old ware- house in repair, the amount of rent to be determined with reference to the amount expended on the buildings. The new" building was not completed, nor the old warehouse repaired, on the 1st of April, but no objection was made by the intended lessees, wdio then continued to occupy part of the premises under a former contract. Shortly afterwards, the whole premises w^ere destroyed by tire. The landlord brought a bill for specific performance of the contract, and for the defendants to rebuild the premises and accept a lease. It was held, in the first place, that if time w^ere of the («) In Harford v. Purrier, 1 Mad , 538. See too infra, § 13G.j et seq. > If a defendant is able to make a perfect title at the time of the decree, the plaintiff's rights under his contract of purchase are as thoroughly jirotocted, and his objects as successfully aUaiucd, in the views of a court of equity, as though title had been given on the day of the contract. The right of a pur- chaser, in these cases, is clearly a fixed and determinate one. So nuich so tliat ■where there is a contract for the purchase of land, and the person contracting to sell declines executing the contract, upon the ground that he is unable to give a good title, and the purchaser files his bill to compel the defendant to complete his contract, or rescind it, if the defendant is able to give a good title at the time of the decree, the complainant will be compelled to accept it. Pierce v. Nichols, 1 Paige, 244; Baldwin v. Salter, 8 id., 473; 7 id., 78; Sey- mour V. Delancey, 3 Cowen, 446. In the cases of chattels the rule is different. Seymour v. Delancey, 3 Cowen, 535. 448 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. essence, it luid been waived by the defendants, but that this did not waive the obligation on the leesor as to bnilding, and that the defendants were not bound to accept a lease till that was performed ; and, in the second place, that, treat- ing the contract to take a lease as a contract to purchase, the warehouse was never purchased by the lessees until it was completed by the lessor ; and, consequently, that until that was done it was not the property of the lessees, nor at their risk. (^)' § 804. In the case of a contract legal at the time it was entered into, but subsequently and before judgment ren- dered illegal by statute, it seems to be clear on principle that no specific performance could be granted except where the court could still execute the contract cy jx'Q^ •'(^) a con- tract thus rendered illegal would in the contemplation of the court have become impossible. (y)"" § 895. But when the contract has been completely made, the thing sold is at the risk of the purchaser, who must bear (0 Counter v. Macpherson, 5 Moo. P. C. Barber v. Hodgson, 3 M. & S., 267; Eaposito C.,S3. V. Bowden, 4 El. & Bl., 963. See also vv'ln- (?<) See infra, § 979 et seq. nington v. Briscoe, 8 Mod., 51, and nupra, § {V) Alkinbou V. Kuchie, 10 East, 530, 534; 456 ' Personal property is, equally with real estate, the subject of conditinal sale ; and possession is to be construed only as prima facie evidence of ownership. Mount V. Harns, 1 S. & M., 185. Where a slave was delivered under an agreement that the person taking her should return her or pay a certain price for her in a given time, it was held to be a conditional sale, and that the slave was not subject to the vendee's debts, while the condition was not performed. Id. Where a slave is delivered under an agreement of sale, at a fixed price, to be paid at a day certain, but, until paid, the legal title to remain in the vendor, the title of the buyer does not become absolute until the paj'ment of the pur- chase money, nor does it become liable for his debts until then. Gambling v. Reed, Meigs, 281. But in such a case, the seller holds the legal title only as security for the purchase money, and if the buyer conveys the slave to a trus- tee to secure a debt, equity will not order the slave to be given up absolutely at the suit of the seller, but a short time will be given to the defendants to pay the purchase money and keep the slave. Id. In the conditional sale of a slave, the property is at the risk of the vendee. Prether v. Norfleet, 1 A. K. Marsh., 178. A condition may, however, be waived by subsequent acts. So, where goods are sold and delivered on condition that the purchaser gives his own notes on time therefor, endorsed by a third person, which he fails to per- form, and the seller then takes the purchaser's own notes, for the price, on demand, with warrant of attorney to confess judgment thereon, this is a waiver of the condition, and an affirmance of the sale. Saunders v. Turbeville, 3 Humph., 272. * Contract separable, part illegal.] A contract is void, where a part only of the same is illegal. The rule is otherwise, in a case where the consideration is legal, and some of the stipulations which can be separated, are illegal. Featherstone v. Hutchinson, Cro. Eliz., 199; Schackell v. Cosier, 3 Scott., 59; Crawford v. Monell, 8 Johns., 253; Donnalen v. Lenox, 6 Dana, 91; Woodruff V. Henniman, 11 Vt., 592; Leavitt v. Palmer, 3 N. Y., 19. FAILURE OF THE CONSIDEEATION. 449 all subsequent losses, and is entitled to all subsequent gains :(?o) subsequent events, therefore can neither deter- mine the contract nor give either party a right to resist its performance. § 896. Formerly this principle does not appear to have been as clearly recognized as it is now : thus, where a great subsequent advantage accrued to one party, Lord Hard- > wicke seems to have doubted how far the court would de- cree performance on the original terms of the contract. (?/) And where A. contracted to sell his estate for an annuity during his life, the time appointed for conveyance was the 31st of October, but the annuity was to commence from the 5th of April previous, and to be paid half-yearly : the half- year' s payment, due on the 5th of October, was not paid or tendered, and on the 12th of November A. died from an accident : Lord Bathurst and the House of Lords dismissed a bill for specific performance. (2) Lord St. Leonards(a) at- tributes this decision to the neglect to make or tender the payment ; but it does not seem clear that the case was not considered by the judges who decided it as one of inade- quate consideration, and treated as a case of hardship. § 897. The principle as now established is illustrated by numerous cases. Thus, where money was left to be laid out in land to be settled to the use of A. in tail, remainder to B. in fee, and A. and B. agreed to divide the money, and iDefore the contract had been carried into execution A. died without issue, the contract was nevertheless specifically per- formed. (5) So a. contract to sell for an annuity will not be avoided by the death of the annuitant, even before any pay- ment, (c) So where, subsequently to the contract for the sale of a house, the house is burnt down, the loss falls on the purchaser :{d) and in such an event the purchaser will not, in the absence of part of any provision in the contract, be entitled to the benefit of an existing insurance against fire effected by the vendor, (e) And again, where a trader ^«rt Infitu 1 iii tit "4 sec 3; Porthier, Tr. (f^) Paine v. Moller, 6 Vr.;., MO. In Cass v. du^ontrat de Vente ParflV. Buddie. 2 Veru., 2ow the ea^t quake which '^^.TplrlordTanie'^s'ln Revel v. Hussey, destroyed the houses appearB "j^h.^e taken 9 Knii Xr Ti "ST place after the contract had been carriea (jT) ctvy V Barber 2 Atk , 489. See also into eflVct. See Raithby's note on case, and Stent V. Baills 2 R Wms 217 1 fro C c.^ 156 n ^ ^ ^ S) \ZV-i! ' ' FrttoTuCi^. D. 297, affirmed in C A. 25 (h^' CarCV Carter Forrest 271 Sol. Jo. 448; cf. Edwards v. West. 7 Ch. D. SMon'imer';'%peTlBro.'-C.C,.l^ 858, and distinguish Reynard v. Arnold. Jackson v. Lever, 3 Bro. C. C, 605. L. R- 10 Ch. 38b. 29 450 FRY ON SPECIFIC PEKFORMANCE OF CONTRACTS. agreed to take two persons into partnership for a period of efghteen years, in consideration of a sum to be paid by in- stalments, and before they were all paid he became a bank- rupt, the assignees were held entitled to the remaining instalments. (/) § 898. xVnother class of cases which have illustrated the same principle has arisen from the failure or winding-up of a company after a contract has been entered into for the purchase of shares into it, but before the contract has been completed. Such an event furnishes no defence to an action for specific performance of the contract to buy the shares. (^) § 899. Where a contract, capable of being specifically executed at the time of the issuing of the writ, has by lapse of time between that and the trial become incapable of execution in the ordinary way, so as to confer future benefits, the question arises, what course ought to be pur- sued. This question came before Plumer, M.R., in Nesbitt V. Meyer, (70 where a bill was filed before the term expired for a specific performance of a contract to accept a lease, but, without fault on either side, the term expired before the hearing. The case w^as decided upon another point, but the judge evidently inclined to the opinion, that the court would not decree the execution of a formal lease after the expiration of the term. In accordance Avith this view, Lord Cranworth expressed the opinion that it would require very special circumstancjes indeed to induce the court to decree specific performance of a lease after the expiiation of the term, {i) ' ' What the court, ' ' said his Lordship, (,/) ' ' really would be decreeing in such case would not be the specific performance for an agreement for a lease, but merely that the lessee should make himself a specialty debtor in respect of past benefits received." It is, how^ever, to be remarked, that the circumstances of the case before Plumer, M. E,., and before his Lordship were different, inasmuch as in the former the delay seems to have been entirely due to the (n Akhurst V.Jackson, ISw. 85. See also (A) 1 Sw. 223. r. , t... ■ ^ k Lord Eldon in Coles v. Trecothick, 9 Ves. (i) Walters v. Northern Coal Mining Co., 5 oig De G. M. & G., 629. (n) Paine v. HutchiP?on, L. R. 3 Eq. 257; (j) 5 De G. M. & G. at p. 639 Sec, also, S Ch 3S8- Cole V. Bristowe, L. R. 6 Eq. 149, Hoy)e v. Llvesey, 1 Mer., 3«1, and De Brassae l-iO freversed on a diflferent ^rouna, L R 4 v. Martyn (11 W. K., lOaO). where the court Ch 3)- Hawkins V. Mallby, L. R. 4 Eq. 572; Intimated that the plaintiffs proper course 3c'h 188- 6 Eq. 505; 4 Ch. 201); Chapman v. would have been to apply to have the case Shepherd L R 2C. P. 228; Taylor v. Stray, advanced so as to La beard belore the ex- 2 C B. n! S. 175; Stray v. Russell, 1 El. & piration of the teim. El. 888. FAILUKE OF THE CONSIDERATION. 451 court ; whereas in tlie latter no steps were taken until just before the expiration of the term, so that it \^■as impossible for the plaintiff to obtain a decree until the term was at an end. (A*) § UOO. On the other hand, the opinion of Alderson B. was somewhat at variance with the doctrine above stated. " The moment the bill is filed," said his Lordship, (Z) "the rights of the parties remain fixed, or ought so to do. I can- not accede to the doctrine in Xesbitt v. 'Meyer. {?7i) How can the constitution of the court alter the rights of the parties f The decision in the case in the Exchequer seems, however, reconcilable with those before stated ; for the prayer of the bill was for the specific performance of a con- tract for a lease, and for an account of arrears of rent on the footing of the contract, and it was held that although by the expiration of the term before the hearing the specific performance could not be granted, yet that the plaintiff was entitled to a decree for an account. g 901. And similarly, in a previous case, Leach V. C. held that a bill might be maintained hy a purchaser for the specific performance of a contract for a life annuity, although the annuitant had died not only before the hear- ing, but before the bill was filed, where there were arrears of the annuity between the time of the purchase and the death of the annuitant, to which the purchaser had an equitable title under the contract : but his Honor said that it might be a question whether such a bill could be main- tained if the death of the annuitant were to happen so that the purchaser took no benefit under his contract, as might happen where his title was to commence at a future time.(;i) § 902. These cases perhaps left the exact state of the law on this point somewhat difiicult to state. But now that both legal and equitable remedies may be obtained in one proceeding, and every prudent plaintiff will ask for both, the point appears of little practical importance." (/;) Cf. Anon V.White, 3 Sw., 108 n., where, (/) Wilkinson v. Torkington, 2 Y. & C. belore the lease contracted for was executed, Ex . 72G. 728. events rendered the intended subject-matter (m) 1 Sw., 223. „ „ ^ of the lease useless to the intended lessee; («) Ivenney v. \\ exham, 6 Mad., .•?,k5. See and the court directed only a quantum Strickland v. Turner, < Ex., 208. damniticavit. 1 Sale of real projjerti/ bij an. adminidrator.'] Wlieu uu administrator .sells the land of his intestate, thi.s is a judicial sale, and a proceeding in rem, the doct- 452 FRY ON specific; PEIIFOKMANCE OF CONTRACTS. rine of caveat emptor applies. The vendee takes at his peril, and he must pay the agreed price even though he gets no title, where there is no proof of fraud, mistake, or concealment of material facts. Burns v. Hamilton, 33 Ala., 210; Garrett v. Lynch, 45 Ala., 204. Real property conveyed witJwvt warranty.'] In such a case, where there has been no concealment of material facts, and no fraud, no part of the purchase money can be recovered back either at law or in equity, in a case where the title proves defective. Botsford v. Williams, 75 111., 132. The vendee of real property was fully informed of the nature of the title which he purchased. In an action to recover the purchase money, it was held, that he could not wait the determination of an action of eviction against him. Boisblanc v. Markey, 21 La. An., 21. DEFAULT ON PAirr OF THE PLAINTIFF. 453 CHAPTER XX. OF DEFAULT ON PART OF TIIE_^ PLAINTIFF. § 903. With regard to the matters to be done by the plaintiff according to the terms of the contract, it is, from obvious principles of justice, incumbent on him, when he seeks the performance of the contract, to show, first that he has performed, or been ready and willing to perform, the terms of the contract on his part to be then performed \{a) and secondly, that he is ready and willing to do all matters and things on his part thereafter to be done ; and a default on his part in either of these respects furnishes a ground upon which the action may be resisted. (Z>)' We will first consider cases of default in respect of terms of the contract which ought to have been already performed.' (a) 2 Fq. Gas. Abr., 33. See. also, the Ian- (b) See infra, § 915; Walker v. Jeflreys, 1 guage of Lord Haiiiwicke and Gilbert C. B., Ha., 341. cited infra, §§ 925-927 ; and of Ghillis v. Mc- Gliee, 13 Ir Ch. R.,48. 'McNeil V. Magee, 5 Mason, 244; Longworlh v. Taylor, 1 McLean, 395; CoLson V. Thompson, 2 Wheat., ;^36; WaUs v. Waddle, G Pet., 389; Vail v. Nelson 4 Rand., 478; Bates v. Wheeler, 1 Scam., 54; Stewart v. Kaymoud Rail Road Co., 7 S. & M., 568; Wood v. Perry, 1 Barb. Sup. Ct. K., 114; Se- crest V. McKenna, 1 Strobh's Eq., 356; Richardson v. Linney, 7 B. ]\Ionr.,571; Taylor v. McCardle, 9 S. & M., 230. A party seeking a specific performance cannot be excused from proper diligence, on the part of the defendant. Long- worth V. Taylor, 1 McLean, 395; Doyle v. Teas, 4 Scam., 202. And a subse- quent offer to fulfill his part of the agreement, by a party who has failed to perform at the time stipulated, will not justify the granting of a decree of spe- cific performance. Unless performance can be shown, or the benefit of ]ier- formance secured to the defendant, specific performance will not be decreed in favor of a vendee, even if possession has been given and improvements made by him. Simmons v. Hill, 4 Har. & M'Hen., 252. This principle, that a plaintiff must perform the essential parts of his contract, is tully carried out, at law, in cases concerning deeds. Fuller v. Hubbard, 6 Cowen, 13; Fuller v. Williams. 7 id., 63; Ncwcomb v. Bracket, 16 Mass., 161, Eames v. Savage, 14 id., 425; Eveleth v. Scribner, 3 Fairf., 24. 2 He must do equity, lolio asks equity.'] " There are few Vases in which a court of equity will insist on the maxim that he who asks equity must do equity, with more vigor, than m those for specific performance." Eastman v. Plumer, 46 N. H. 464 See also Tripp v. Cook, 26 Wend., 143, 160; Bruen v. Hone, 3 Barb. 536- Linden v. Hepburn, 3 Sandf., 668; Williams v. Fitzhugh, 33 N. Y. 444, 452- Wheeler v. Tanner, 39 N. Y., 481, 502. 505; Abernathey v. Church of the Puritans, 3 Daly, 1. The rule is well settled tliat whore a party asks the specific performance of a contract, he must first .■^how, either that he has performed, or has offered and is willing to perform all that his contract can at any time call for; it will be a defence to his action to show that he has made 454 FRY ox SPECIFIC PEllFOKMANCE OF COXTHACTS. 1. Tlie iic.rformance of past acts. § 904. Of what terms must the plaintiff show the per- formance ? The answer is that he mast show i3erformance of (1) the express and essential terms of the contract, (2) Its implied and essential terms, and (3) All representations made at the time of the contract on the faith of which it was entered into : but that he need not show performance of (4) Non-essential terms, (5) The terms of a collateral contract, or (6) Terms of which the defendant has prevented or waived the performance. default in a matter of serious importance. More v. Skidmore, 6 Litt., 453; Greenup v. Strong, 1 Bibb., 590; Stewart v. Raymond, 15 Miss., 568; Hoen v. Simmons, 1 Col., 119; McKinney v. Watts, 3 A. K. Marsh, 268; West v. Case, 3 Ind., 301; Stevenson v. Dunlap, 7 T. B. Monr., 134; Hepburn v. Aukl, 5 Cranch, 262; Stone v. Buckner, 12 Sm. & Marsh, 73; Snodgrass v. Wolf, 11 W. Va., 158; Clay v. Turner, 3 Biljb., 53; Boone v. Missouri Iron Co., 17 How., 340; Vennum v. Babcock, 13 Iowa, 194; Ganatson v. Vanboon, 3 Iowa, 128; Bearden v. Wood, 1 A. K. Marsh, 450; Logan v. McChord, 2 A. K. Marsh, 224; Rogers v. Sanders, 16 Me., 92; Tvler v. McCardle, 17 Miss., 230; Earl V. Halsey, 14 N. J. Eq., 332; Thorp v. Pettit, 16 N. J. Eq., 488; Colson v. Thompson, 2 Wheat., 336; Slaughter v. Hains, 1 Ind., 138; Satterfield v. Keller, 14 La. An., 606; Wilson v. Brumfield, 8 Blackf.. 146; Watts v. Waddle, 6 Pet., 384; Bryan v. Read, 1 Den. & Batt. Eq.. 78; Reed v. Nor, 6 Greg. 283; Hooner v. Calhoun, 16 Gratt., 109; Jordan v. Deaton, 23 Ark., 304; Scott v. Shepherd, 3 Gilman, 83; King v. Kuapp, 59 N. Y., 762; Jones v. Roberts, 6 Call, 187; Cox v. Boyd, 38 111., 42; Hauney v. Banks, 1 Rand, 408; Frakfort Turnpike Co. v. Churchill, 6 Monr., 427; Kitchen v. Coffyn, 4 Ind., 504; Board of Supervisors v. Hennelemiy, 41 111 , 179; Huldeman v. Chambers, 19 Texas, 1; Purbush v. White, 25 Me., 219: Jones v. Alle.y, 4 Greene, Iowa, 181; O'Brien V. Pertz, 48 Md., 562; Marburgh v. Cole, 49 Md., 402. Executory contract to sell land, relation of t?ie parties.] In substance the same relation exi.sts between the vendor and vendee in an executory contract for the sale and purchase of real estate, as exists between mortgagee and mortgagor. The same general rules govern both cases. The legal title to the estate in both cases, is held as a security for the debt ; the owner of the equitable title receives it, when the debt is paid. Ellis v. Hussej^ 66 N. C, 501; Jones v. Boyd,' 80 id., 258. Two acts to be done at the same time ] Where this is the case, neither party can maintain an action against the other, unless he alleges performance, or an offer to perform. Brasswell v. Pope, 80 N. C, 57. Equity does not alioays require an exact performance.] Equity will seek to do exact justice between the parties, and a party may sometimes be excused from a literal fullillment of his contract, where the failure does not relate to matters of substance. Davis v. Hone, 2 Sch. & Lef., 347; Counter v. McPherson, 5 Moo. P. C. C, 83, 108; Oram v. Merrill, 27 Iowa, 476. Omission by mutual consent of a part of the contract^ Where a particular stipulation in the contract, which does not materially affect the riglits or interests of the parties, has been omitted by mutual consent; this will not deprive a party of liis right to a decree for specitic performance, when he has otherwise fully performed. Portland R. R. Co. v. Grand Trunk R. R. Co., 63 Me., 90. DEFAULT ON PAKT OF THE PLAINTIFF. 455 Lastly it will be necessary to consider (7) Terms, the performance of which has become impos- sible without the plaintiff's fault or default. § 905. (1) As to the express terms nothing more need now be said. The only important point will be consid- ered when we come to the difference between essential and non-essential terms. § 906. (2) The performance must extend to such of the implied terms as are essential. Thus where an intended lessor agreed to finish a house for an intended lessee, who was to do the repairs during the intended term, the court held that in such a contract was implied an undertaking to deliver it in complete tenantable repair i^roper for houses of the character demised : and this undertaking not luiving been, in the judgment of the court, performed, the intended lessor's bill for specific performance was dismissed with costs. (c) The case might probably have been determined as one rather of construction than of the implication of terms, i. (P., that to finish a house means to finish so that the house shall be in proper repair. § 907. (3) Performance must be shown of representa- tions of future acts made at the time of the contract on the faith of which the contract was entered into. These repre- sentations(rZ) need not amount to a guarantee, nor in case of non-performance give a right to an action either for dam- ages or for cancellation of the contract : but yet, if made and not i^erformed, they are a defense to an action for specific performance, (e) § 908. Thus where a vendor at a sale represented that he would make improvements in the access to the property sold, and failed to do so, the court refused specifically to perform his contract ;(/) and the same was the decision of the court in a case where the vendor by his agent repre- sented that a church should be erected in the immediate neighborhood of the building ground whicli was the subject of the contract, and that he would complete certain streets, and the purchase was made on the faith of these represen- (c) Tildesey v. Clarkson, 30 Beav., 419; cf. ty be considered as part of the contract, see Oxford V. Provand, L, R.2 P. C, 156. Dlstin- supra § 624 et seq. guish Chappell v. Gregory, 34 Beav., 250. (e) Lamare v. Dixon, L. R. 6 H. I.., 422. {d) As to what representations wiil in equi- (/) Beaumont v. Dukes, Jac, 414. 456 FKY ox SPECIFIC PERFOKMANCE OF CONTRACTS. tations, ^vliicli tlie pliiintifif, however, never carried into effect, (r/) ij 909. We may h'ere briefly inquire into how far maps or phms of the property, exhibited by the vendor at the time of entering into contract, form representations of the- kind w^e are now considering. (/<'-) § 910. Where tlie parties have matured their agreement into a contract, and that contract is silent on the subject of such map or plan, the court will not from such exhibition infer a contract. (/) This applies alike to private contracts and to special Acts of Parliament, so that notices given, and plans and sections deposited, are not to be used in constru- ing an act afterwards, except so far as they are referred to and thus incorporated in the act of Parliament itself, (y) But where they are so referred to and incorporated, effect must be given to them according to the terms of the act.(^:) § 911. Where the map thus exhibited delineates the in- tended division of the property by new roads, the vendor may not afterw^ards divide the land in a manner so different as to attract a population entirely different from that which would have been produced by the execution of the plan proposed by the map.(Z) § 913. But though the exhibition of a map may bind to this extent, it will not oblige to an exact performance of the scheme it embodies. Thus where a plan w^as referred to in the contract, and used as a description of the part of the property in question, and on this plan the measurement and width of the street w^ere marked, but there was nothing in the contract wdiich distinctly pointed out that part of the plan as binding the parties, Lord Langdale, M. R., held that it did not form part of the contract, so as to entitle one party to relief against an encroachment on the width of the street, (m) § 913. In another case the particulars referred generally f<7) Myers V Watson, 1 Sim. N. S , 523. CI. & Fin., 722; Beardmer v. London and (A) Cf cilave V. iJarding, 27 L. J. Ex., 286, North-Western Kailway Co., 1 Mac. &i^., as to the effect of plans on (alleged) implied 112. ,^ , ^ i tw i „..„ erants of easements ^k) Att-Gen. v. Tewkshury and Malvern (i) Feoffees of Heriot's Hospital v. Gibson, Railway Co., 1 De G J. & S. 423; Little v. 2 Dow 301- Squire v. Campbell. 1 My. & Cr., Newport, Abergavenney, and Hereford Rail- 459. Cf. and distinguish Nene Valley Drain- way Co., 12 C. B 752. o-k qo age Commissioners v. Dunkley, 4 Ch. 1)., 1. d) Peacock v. Penson, 11 Beav., 3.-)5, 361. wliere the plan was held to be Incorporated (m) Nurse v Lord .Seymour, 13 Beay., 2^4. with (though not referred to in) the contract. Distinguish Roberts v. Karr, 1 Paunt., 495; (j) North British Railway Co. v. Tod, 12 Espley v. Wilkes. L. R. 7 Ex , 298. DEFAULT OX TAKT OF TJIE PLAINTIFF. 457 to an accompanying jjlan, and on tlie plan several roads were marked out so as to provide frontages for all the lots, and the lines of roads were marked out on the land itself in accordance with the x^hm : Knight Bruce, V. C, held, that in the absence of any clause in the particulars or conditions of sale i^roviding for any rights of way beyond a road lead- ing into the nearest highway, such road was all that the purchaser was entitled to. {n) § 914. Where the sale X)lan, instead of, as in the previous cases, representing an intended and future state of the prop- erty, accurately represents it in its actual and present state, it has been held that it will not carry the case higher than a view of the prox3erty. Therefore, where a plan rej^re- sented a well on lot 4 communicating with a reservoir on lot 2, and that communicating with the inn which was on lot 1, wiiich the plaintiff purchased, and the vendor con- veyed lots 2 and 4 without any reservation to the plaintiff of a right to a flow of water from the well, the plaintiff's demand for compensation for the loss of the water was refused, (o) St. Leonards, however, considei-ed this case open to observation.(j9) § 915. (4) In the averment of perfonnaiice by the ] Jain- tiff, equity, as already stated, discriminates between the essential and the non-essential terms of a contract : and to furnish the defendant with aground foi' resisting the action, the non-performance of the plaintiff must be a term impor- tant and considerable. ('z) The Court of Chancery fre- quently interfered at the instance of a party avIio might have been debarred fiom relief at Common Law, because unable to allege performance in the veiy terms of the con- tract, which is by the Common Law^ essential. (/) Thus, for example, where A, contracted to sell property to E., and by the same contract it was also stipulated that A. should continue tenant from year to year of the land, and it hap- pened from embarrased circumstances he was unable to fill the tenancj', this was, from the determinable nature of the holding, held to be a matter of consideration, and so not a (n) RaiKiall v. Hall, 4 De G. & Sm., .S43 Reeves v. The Greenwich Tanning Co. Limi- (0) Fewster v Turner, 11 L. J. Oh., 161. ted. 2 U & M.. hi. (p) St. I, eon. Vend., 20 (/•) S<>e per Lord Rcdesdale In Davis t. (q) Modlen V. Snowball, 31 L. J. Oh 44; Hone, 2 soli & Lef 347; supra, § 29. 10 \V. U. 24. affirming S. C. 29; Ueav., 641; 458 FRY ox SPECIFIC PERFORMANCE OF CONTRACTS. bar to specific perforiiiance of the contract for sale. (.9) And all the cases in Avhich the court grants a vendor asking for specific performance indulgence in the making out of his title, (0 f^v allows him to enforce the contract with com- pensation/?/) are, of course, illustrative of the principle now before us. § 016. In a case before the Privy Council, the judgment may at first sight appear to go so far as to assert that no default of performance on the part of the plaintiff short of that Avhich goes to the whole consideration for the promise sued on, is available as a defense against specific perform- ance. (?>) But probably such reading is incorrect and the intention of their lordships was to draw the distinction between essential and non-essential terms. § !>I 7. (5) Where that, on the non-performance of which by the plaintiff the defendant relies, is in its nature a col- lateral and separate contract, or is. part of or referable to such a contract, though between the same parties and entered into at the same time, and having relation to the same subject-matter as the contract which the plaintiff seeks to enforce, the court will not consider the default by the plaintiff in resi^ect of the one contract as any bar to the specific performance of the other, though such default may give the defendant a cross right of action on legal or equit- able grounds, {wf (s) Lord V. Stcpbens. 1 Y. &. C. Ex., 222. (_v) Oxford v Provand, L. R., 2 P. C, 135; {t) See infra. § lS3fl et scq. cf T.amare v. Oixon. L R., 6 H. L., 414. (ti) See inira, § 1178 et. seq. (lo) Phlpps v. Cliild, 3 Drew, 709. ' Conrlitwn precedent or subsequent.'] In a conditional contract one party may fail to perform the condition. The contract becomes aJjsolute as soon as the condition has been performed, but imtil it is performed it cannot be specifically enforced. Where it is a condition precedent the estate is avoided by not permitting it to rest until tlje condition is literally performed. _ Where it is a condition subsequent, its non-performance defeats the estate bj^ divesting the party of his title. It is very material to notice this distinction for the reason that a court of equity "can, upon principle, interfere with and control the effect of one species of condition and not of the other. A man enters into a contract, or makes a deed, or settlement, or a will, and he agrees to grant or devise an estate upon a condition which he declares nuist be performed before the person to be benefited can take it. No court of law or equity can have a right to say that the condition which is lawful in itself, and one the party had a right to impose. ,lot of land, to erect a villa on it, and to keep it insured in the joint names of A. and B. in the county tire office, and B. agreed as soon as the house should l)e completed, to grant a lease of the plot to A., and that if A. should not per- form his part, the contract for the lease should l>e void ; and the contract also sti])ulated that ,A. should have the option of jiurchasing the fee within two years ; A erected the villa, but insured in the wrong office, and in his own name alone, and then brought his bill for a sale under the option to purchase ; and it was held by Lord Roniilly, M. R., that tliis option was independent of the right to a lease, and that notwithstanding the plaintiff's default in respect of the latter right, the former subsisted, and lie accordingly decreed a specific perf orma-nce. (.t)' (x) Green v. Low, 2-2 Beav., 625. lenient principle l)y wLicli equitj' relieves against penalties; and the court will onl_v give relief where compensation could be made in damages There may even be cases of conditions subsequent unperformed, in wliich the court will not relieve from forfeiture on account of the difficulty of ascertaining with any degree of certaintv tlie amount or adequatelv of compensation to be allowed." McCoun, Y. C, ill Wells v. Smith, 2 Edw. Ch., 78. ' The cases at law, concerning dependent and independent covenants, pro- ceed upon tlie same principle and are in close analogy with those of equity. Manning V. Brown, 1 Fairf., 49, is an authority oC tliis kind. A., there, cove- nanted to convey to B. a certain lot of land, if certain notes of hand, given at the Sime time, pa^yable at a future day, should be paid at maturity by B. ; and it was further agreed that, in failure of payment of said notes by B., the agree- ment was to be void, B. to be liable to pay all damages that should have occurred to A., and to forfeit all that should previously have been paid. In a suit on one of the notes, it was held that the promise on the notes, and the covenant to convi-y were independent, and that a suit on the former might well be maintained, without showing a conveyance or an offer to convey. Left- wich V. Coleman, 8 How. Miss., 107; and Hector v. Price, 6 Ala., 301, are decisions to the effect, that an action will lie upon a note, given for the pur- chase money of land, ]:)ayal)le on a day certain, where there is an agreement to to convej' b}^ deed upon the pajnnent of the note, the agreement being inde- pendent. And where, on an agreement for the sale of land, the vendee gave his note for the purchase mouej', payable at the end of twelve mouths, and took the vendor's penal bond to make him a " lawful title, or cause it to be made," within tlu; same period, it was held, that the note and the bond being wholly separate and disconnected with eacli other, the performance on the one side was not a condition precedent to the performance on the other, and unless there had been some stipulation to the effect, the agreements were entirely independent. Martin v. Bobo, 1 Speers, 26. Nor yet are mutual contracts mutual conditions, when each goes only to a part of the consideration of the other, and a l)reach of eitlier may be compensated in damages. And, there- fore, where the defendants hired of the plaintiff two slaves at certain monthly wages, and tlie plaintiff agreed to permit the defendants to transport his cotton to market, at a c;ertain stipulated ral(i per bale, in payment of the wages of the slaves, it was held that the stipulations of each party were independent, and that the plaintiff might recover the wages of the slaves, without averring that Jie had tendered his cotton to be transported to market by the defendants. Bice V. Sims, 3 Bailey, 82. 460 FRY ox SPECIFIC PERFORMANCE OF CONTRACTS. i$ 019. 80, where in a deed I'or the dissolution of partner- ship, one partner assigned to another certain foreign shares, and covennnted for further assurance ; and the other partner covenanted with the former for indemnity against certain liabilities : a further assurance of the shares became necessary, and on a bill filed to enforce specific perform- ance of tlie covenant to that effect, it was held by Knight Bruce nnd Turner, L. J. J., overruling Lord Roniilly, M. R., that a breach of the covenant to indemnify which the plaintiff had entered into with the defendant w^as no defense to the suit. The tw^o covenants were independent, so that the joerformance of the one w^as not to be resisted by reason of the non-performance of the other. {y) § 920. (6) A defendant who has waived the performance by the plaintiff of that was on his j)art to be performed can- not, of course, nse the nonperformance as a defense ; but the burthen of proving this waiver of course rests on the plaintiff. (^) § 921. Still more clearly, if possible, is non-performance by the plaintiff excused when that has resulted from the neglect of default of the defendant. («)' So where the pur- chaser prevents the vendor from comjileting his title, he will Nbe comjDelled to forego an objection he may raise on the score of that incompleteness. (^) 5< 922. With regard to infancy, an infant heir cannot avail himself of his disability to excuse the non-assertion of his right under an executory contract made with his ancestor, when the immediate performance of his part of the contract is essential to the interest, of the other j)arty ; as, for examx)le, of a contract to lay out money m building within three years, (c) § 923. (7) We shall now consider how far the impossi- bility of performing the iDlaintiff 's part arising without any fault or default on his part furnishes an excuse for non-i:)er- formance. In those cases in which all that was to have been performed by the plaintiff has become entirely inca- (y) Gibson v Golflsmid, 5 De G. M. & G., (b) Murrcll v. Goodyear, 1 De G. F. & J.,. 757; reversing S. C, 18 Beav., 584. 432 (S. C before Stuart. V. C. 2 Giff. 51j. (z) Lamare v. I'ixon, L. K , 6 II. L , 414. (c) Griffiu v. Grillin, 1 Sch. & Lef., 35-2. (a) llotham v. East India Co., 1 T. R., 638 ' See Stewart v. Raymond Rail Road Co., 7 S. &M., 568; Tyler v. McCardle, 9 id., 2^0; Kirby v. Harrison, 2 Ohio (N. S.), 326. DEFAULT 0:X PART OF THE PLAIISTTIFF. 461 pable of being executed, the plaintiflP cannot demand the performance by the other party, because his non-perform- ance is a total failure of the consideration which was to have moved from him. But where the impossibility refers not to the substantial, but only to the exact and literal performance of tlie con- tract, the court will struggle with matfers of form in order to do complete justice between the parties ; but it will care- fully avoid going so far as to make a new contract between theni.(r/) Hence arise the cases on compensation.(e) § 934. As to the cases in which the plaintiff has per- formed a substantial part of his contract, and then the remaining part has become impossible by reason of circum- stances not dependent upon him and without his fault, a distinction has been drawn between those cases in which the plaintiff has not, by performing that part of the contract which he has performed, altered his position, and those cases in which he has so altered his position by his part per- formance of the contract by the other party in the former casp, and enforcing it in the latter. § 9S5. This distinction rests almost entirely on the author- ity of Gilbert, C.B., in a passage in his " Lex Pr)rris v. Jackson, 3 Uiflf., 396. 4&2 IKY 0\ SPECIFIC PEMFOIIMAXCK OF CONTRACTS. per anmiiu on the Lord Feversbam for life, remainder to the wife for life, and so to the issue of the marriage. Lord Feversham cleared the manor of Holmly, settled it accord- inuly, and settled the separate maintenance, but did not sell the pensions, nor settle the further provisions : the wife died without issue, and the Lord Feversham preferred his bill to have the ,£'8,(X)(i. per annum settled on him for life : but decreed because Lord Feversham was m statu quo as to all that part of the agreement which he had loerformed, and having not j^erformed the whole, and the other parts being now impossible, and no compensation being possible to be adjusted for it, he had no title in equity to have perform- ance of Sir George's part of the agreement, since such performance could not be mutual. But the issue of Lord Feversham might have been relieved, because in no default." Lord Feversham v. Watson. Rep. t. Finch, 445, 2 Freem. 25, Skin., 287. To make the foregoing statement perfectly clear, it should be added that, in the settlement made by the plaintiff, the reversion expectant on the default of issue by his late wife w'A's, reserved to him in fee, S(^ that the settlement had in the event ojjerated nothing. {It) §9"26. "But if," continues the Lord Chief Baron, "a man has performed so much of his part of the agreement as he is not in statu quo^ and is in no default for not perform- ing the residue, then he shall have a specific execution from the other party of the agreement : as if a man has con- tracted for a portion with his wife, and has agreed to settle upon the wife and her issue, lands of such a value free from incumbrances, and he sells part of his land to disincumber,, and is going on to disincumber and settle the rest : then if the" wife dies without issue before the settlement be actually made, yet he shall have a jjortion, because he cannot be in statu quo^ having sold part of his lands, and there is no default in him, since he Avas going on to disincumber and settle the rest ; therefore the accident of the death of his wife doth not alter his riglit to his wife's portion." Mere- dith V. Wynne, Eq. Abr. 70, p. 15 ; Gilb. Eq. Rep., 70 ; Free. Ch., 312 ; 2 Yerne., 448.' (i) Powell on Contracts, 22. ' The dcctrine seems to be well stated in Breckenridge v. Clinkinbeard, 3- DEFAULT ON PART OF THE PLAINTIFF. 463 § 937. To prevent error, it may be well to observe that, as regards marriage contracts, the rule under consideration, as well as many other rules relating to the specific perform- ance of purely executory contracts, does not apph^. ' ' There is," said Lord Hardwicke, "a difference between agree- ments on marriage being carried into execution and other agreements ; for all agreements besides are considered as entire, and if either of the parties fail in performance of the agreement in part, it cannot be decreed in specie, but must be left to an action at law : in marriage agreements it is otherwise, for though either the relations of the husband or wife should fail in the performance of their part, yet the children may compel a performance : if the mother's father, for instance, hath agreed to give a portion, and the husband's father hath agreed to make a settlement, though the moth- er's father do not give the portion, yet the children may compel a settlement, for non-performance on one part shall be no impediment to the children's receiving the full bene- fit of the settlement ; so if there be a failure on the part of the father's relations, it is the same."(/) The distinctions in this respect as regards marriage con- tracts are numerous, but they are not properly within the scope of this volume, they need not here be further noticed* 2. T7te performance of future acts. § 928 We may now consider the obligation which lies on the plaintiff, in an action for specific performance, of being ready and willing to perform all acts that on his p^rt yet r.^main to be i^erformed. § 9*39. On the ground of this obligation, trustees in bankruptcy are not liable as plaintiffs to enforce a contract entered into by the bankrupt, which would have involved covenants on his part, unless they will personally enter into the covenants into which the bankrupt would have entered :(j'*) whereas where specific performance is sought (i) In Harvey v. Ashley, 3 Atk., 611; Of. ham v. Joyce, 3 Ves., 168; Powell v. Lloyd, 3 Lee V. Lee, 4 Ch. D., 175; Jeston v. Key, 19 Y. & J. 372; per Grant M. K. in Weatherall v. W. R. 342, 804. Geering, 12 Ves , 513. U) Ex parte Sutton, 2 Rose, 86; Willing. Litt., 127. It is there said that where a party claims specific performance of a contract and although he has not wholly performed his part, is in no default as to the residue, but cannot be placed in italic quo, he is entitled to a specific per- formance, but is not so entitled when in default, and, when by receiving com pensation for what he has done, he may be placed in statu quo. See, also' Hays V. Hall, 4 Porter, 374; McCorck/e v. Brown, 9 S. & M., 167. 464 FRY ON SPECIFIC PERFOinfANCE OF CONTRACTS. not by, but against, persons having a tiduciary interest only, they kre bound to covenant only so as to bind the property and not themselves personally. (A*) § 930. And so of bankruptcy ; if the plaintiff be the vendor, the commission of an act of bankruptcy, though without proof of the existence of any debt to support a petition, is a bar to an action for specific performance, because the plaintiff may be incapable of conveying the estate, which may belong not to him, but to his trustee. (Z) If on the other hand the plaintiff be the purchaser, he can- not enforce the contract, because he is incapable of so pay- ing the money to the vendor, as that the vendor shall be certain of being able to retain it against the trustees, (m) §931. Bankruptcy does not of itself discharge a con- tract, either for the sale of an estate of inheritance or for a lease ; for, with regard to the latter, the trustee may cove- nant in the same manner as the bankrupt woidd have been bound to.{n) By the 146th section of the statute 12 & 13 Vict., c. 106, the vendors of lands might compel the assignees to elect whether they would abide by or decline an agreement for sale :(o) and now by the 23d section of the bankrupt act, 1869, where any property of the bankrupt acquired by the trustee consists of unprofitable contracts, the trustee, notwithstanding he has endeavored to seU, or has taken possession of such property, or exercised any act of ownership in relation thereto, may by writing under his hs^d disclaim such property, and thereupon the contract shall be deemed to be determined from the date of the order of adjudication. It has already been noticed that specific performance can- not be enforced against a trustee in bankruptcy or liquida- tion without his consent. (^) § 93*2. So the insolvency of the plaintiff is a ground of defense -.{q) and, to constitute this defense in the case of a continuing contract as a lease, it is not necessary that the {k (Page V. Broora. 3 Beav., 83G; Phillips (m) Franklin v. Lord Brownlow. 14 Ves., V. Everarcl, 5 Sim., 102; Stephens V. Hotham, 550. . „ ^. IK & J , 571 ; a irravc, 18 Beav., ? -•^■'i. ^ ^. „, w •, « s, ir a-h . 4(H; Harev. Burge3,4 K. & J.,45. {qi Crosbie v. Tooke, 1 My. & K., 431, (0 Lowes V. Lush, 14 Ves., 547; Of. McNal- Price v. Assheton, 1 Y. & C. Lx., 441. ly V. Gradwell, 16 Ir. Ch. R., 512. 518. DEFAULT ON PART OF THE PLAINTIFF. 465 plaintiff should be proved to have given up all his property for the benefit of his creditors, but there must be proof of general insolvency, so as to show that the plaintiff is not in a situation to perform the covenants on his part.(r)' Thus Lord Eldon, remarking on the insolvency of an intended lessee as being an objection of more or less weight depend- ing on the circumstances, in the case then before him dis- solved an injunction against an ejectment by the land- lord. (5) § 9S3. How far insolvency would be an objection, if the j)laintiff had subsequently become affluent, does not ai3pear to have been decided. (^) § 934. Where the interest under a contract has been assigned, the insolvency of the original contractor, who is the assignor, is no defense, though that of the assignee would be.(w) § 935. On like grounds, the felony of a i)laintiff would be a bar to specific performance. (^) § 936. And the same principle is illustrated by a case where the deeds were destroyed. It was a suit by a vendor on an ordinary contract for sale of lands: in such a contract is implied, as an essential term on the part of the vendor, the proof of the due execution of the deeds which constitute his title, and the delivery up of them to the purchaser : the deeds having been subsequently destroyed by fire, the performance of this term by the plaintiff was rendered (r) Nealev. Mackenzie. 1 Ke, 474; Willing- cf. Neale v. Mackenzie,! Ke., 474; McNally ham V. Joyce, 3 Ves , 168; McNally v. Grad- v. Gradwell, 16 Ir. Ch. R., 512, 519. .. well, 16 Ir. Ch. R., 512, 519. (M) Crosbie v. Tooke, 1 My. & K., 431. (s) Buckland v. Hall, 8 Ves., 92. (v) Willingham v. Joyce, 3 Ves., 168. (0 Price v. Assheton, 1 Y. & C. Ex., 82, 91; ^ Insolvency of a party to an action for specific performance.'} In England the law appears to be that " upon the sale of a bankrupt's estate he is usually made to convey and covenant for title. His covenants, however, are obviously of little value, and it would seem that he cannot be compelled to execute a con- veyance. But the court of bankruptcy is empowered, upon the application of the assignees or of the purchaser, if the bankrupt shall not try the validity of the adjudication, or if there shall have been a verdict at law establishing its validity, to order the bankrupt to join in the conveyance, and if he do not exe- cute it within the time directed by the order, then he, and all persons claiming under him, will be estopped from objecting to such conveyance, and all estate, right or title which he had in the property will be as effectually bound as if such conveyance had been actually executed by him." Dart on Ven. and Pur., 250, 251; Lower v. Lush, 14 Ves., 547. Insolvency of party, dsmand.} In an action for specific performance, where no demand has been made, it is not sufficient to aver and prove that the de- fendant is insolvent. BeU v. Thompson, 34 Ala. 633; Carter v. Thompson, 41 id., 375. 30 466 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS, impossible, and the contract could not be specifically per- formed. (?o)' (to) Bryant v. Rusk. 4 Russ , 1 ; cf. Moulton secondary evidence of the execution of the T. Edmonds, 1 De (i F. & J., 216, where the missing deeds was held sufficient. ' When the deed must be delivered.] In Birdsall v. Waklron. 2 Ed.'s Ch., 315, the vice cbaucellor said, "the court will not order purchase money to be paid before a title is given, unless under special circumstances, such as taking pos- session contrary to the intention or against the will of the vendor; or where the purchaser makes frivolous objections to the title, or throws unreasonable obsti- cles in the way of completing the purchase, or is exercising improper acts of ownership by which the property is lessened in value." See, also, Van Campen V. Knight, 63 Barb., 205. Implied offer of performance.'] The offer of the party making the demand to perform his part of the agreement is implied, and where the other party refuses to comply this dispenses with the necessity of anj' other offer. Ramson v. Johnson, 1 East, 208; Finney v. Ashley, 15 Pick., 546. See, however, Eng- lander v. Rogers, 41 Cal , 420. ACTS IN COKTRAYENTION OF THE CONTRACT. 467 CHAPTER XXI. OF ACTS IN CONTRAVENTION OF THE CONTRACT. § 937. In the last chapter we considered cases in which "the plaintiff had disentitled himself by defanlt on his part : we shall now consider the closely allied cases where he has disentitled himself, not by default merely, but by acts in fraud or contravention of the contract, or at variance with it, or tending to its rescission and the subversion of the relation established by it. For where the party to a con- tract who asks the intervention of the court for its specific execution has been guilty of such conduct, that circum- stance may be put forward as a defense to the action. Sometimes the facts may be evidence of a mutual agreement between the parties to rescind the contract : but even where not amounting to tliis, they may be sufficient to disentitle the plaintiff to ask for the intervention of the court in specific performance. § 938. Still more plain is the case, if the acts be such as would have worked a forfeiture of all benefit of the contract if it had been executed ; it would be idle for the court to compel a grant of that which, if granted, would have been forfeited, (a) — to create a legal relation which, if created, would be immediately dissoluble. (&)' § 939. The cases by which this principle is most exten- sively illustrated are on contracts for leases. With regard to these, it is well established that where a p)erson, holding under an agreement, commits waste, treats the land in an unhusbandlike m.anner, or acts in breach of covenants which would be contained in the lease, and for which acts a right of re-entry would accrue to the landlord, such i^erson can- (a) See per Lord Romilly, M. R., iu Lewis (b) Per Turner, V.C, In Gregory v. Wilson V. Bond, IS Beav ,85 9 Ha., 687. ' Foi'feiture of estate.'] Equitj^ will not enforce, a forfeiture Warner v. Ben- nett, 31 Conn., 461; Leffoyr v. West, 2 Ind., 514; Smith v. Jewett, 40 N. H 530; White v. Port Huron R. R. Co., 13 Mich., 356; Fitzhugh v. Maxwell, 34 id., 138; Orr v. Zimmerman, 63 Mo., 73; Palmer v. Ford, 70lll., 369; Beecher V. Beecher, 43 Conn., 556. 468 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. not enforce a specific performance of the contract, (c) The same has been held in respect of covenants to repair. (cZ)' ^ 940. It seems that even where the lease, when executed, would^ contain no provision for re-entry, yet such acts, when amounting to a forfeiture, as for example, a gross case of waste, whicii is in all cases a forfeiture of the place wasted, would prevent a specific performance of the con- tract {e) §941. In order that acts may thus be a bar to the plaintiff's relief, they must, it has been said, be gross and willful. (/) That expression seems to have been originally applied to cases in which the breaches would not work a forfeiture of the legal interest. (^) If applicable at all to cases where there would be a proviso for re-entry for breach, it seems to mean that the acts must be (1) Such as would work a forfeiture at common law, and (2) Such as would not justify or permit relief against the forfeiture in a court of equity. S 943. Where the court of chancery found such a conflict fr\ VPr T.ord Eldon In Hill v. Barclay, 18 (e) See per Lord EUlon in Duke of Somer- \7-p« fiV Lewis V. Bond, 18 Beav., 85; set v Gourlay, 1 V. & B., 73. IrezoS'v WiTson, 9 Ha . 683. (/) Parker v. Taswell. 2 De G. & J., 559, fd) Nunn V. Truscott, 3 De G. & Sm., 304. 573. - ^ r> .o. i-"^ nu"" »• (^) Hare v. Burges, o W. R , 585. 1 JoD V Banister, 39 Eng. Law and Eq., 599, is an analogous case, though not concemin"- specific performance. The case was this: In a lease of copy- hold house property for twenty-one years, the lessee covenanted, amongst other thino-s to pay the rent, keep in repair, and insure, etc., and the landlord cove- TiRnt'ed that he would, at the expiration of the term of twenty-one years (pro- vided all arrears of rent should then have been paid, and all the covenants should then have been well and truly performed and kept), at the request in writin^^ of the lessee, grant a new lease of the premises for a further term of twentv-one years, at the same yearly rent, and subject to the proviso and agree- ments in the same indenture contained (including the covenant for renewal), and so from time to time upon the expiration of every subsequent term of twentv-one years, provided such request in writing should be given as afore- liid The lessee expended large sums of money in building houses on the T)remises and at the expiration of the first twenty-one years a new lease was ^ranted in the same terms for twenty-one years. In both leases there were the usual covenants for re-entry on breach of any of the covenants. Some months before the expiration of the second term of twenty-one years the lessee gave notice in writing that he would require a renewal. At that time one of the houses was much out of repair, and the lessee allowed it to renaain out of re- nair on the ground that from communications with the lessor it was doubtful whether a new lease would be granted, in consequence of an alleged forfeiture, bv reason of having failed to keep the fire insurance up for a few days. Held, first that the condition precedent for the present renewal was twofold— request in w'ritin"- and compliance with the covenants; and that the double condition was not confined to the first renewal, but applied loties quoties. Secondly, that the court could not grant an injunction to the lessee, to restrain the lessor from recovering in ejectment, because of the lessee's breaches of contract in not re- pairing the premises within a reasonable time. ACTS IN CONTEAVENTIOlSr OF THE CONTRACT. 469 of evidence as left it in doubt whether there had been such a breach of covenant as to render it proper and expedient to refuse specific performance on that ground, it took the ■course of directing the lease to bear the date of the con- tract, and leaving the parties to settle their legal rights at law. (7^) § 943. It follows from what has been said that three •classes of cases fall to be considered, as arising out of con- tracts for leases. (1) Where the acts complained of have led to the refusal of relief : (2) Where they have not led to this refusal : and (3) Where the relief has been granted and the question of breach left for decision at common law. 1. Where tlie acts comjylained of have led to refusal of spe- cific j)erformance. § 944. In Thompson v. Guyon(/) a lease had been granted with a proviso for re-entry on breach of any of the cove- nants, and a covenant to grant a further term at the end of the original term, if it should not have been sooner deter- mined by the lessee's acts or defaults: the lessee paid all his rent, and continued in possession to the end of the term, but had in fact committed breaches of covenant during the term, of which the lessor was not cognizant till after its •determination : a bill for specific performance of the cove- nant to renew was dismissed, and an injunction against an •ejectment was refused, on the ground that the lessor ought not to be placed in a worse condition at the expiration of the term than he would have been if he had known of the breach, and availed himself of it during the term. § 945. In Gregory v. Wilson(y) possession had been taken under a contract for a lease : breaches were alleged of the covenants which should have been inserted in the lease to insure and also to repair : it was contended as to the first that the receipt of rent after knowledge was a waiver of all the breaches, but the court held such waiver to have no longer operation at law than on the breaches antecedent to the receipt, and not to preclude the effect of the sub- {h) Rankin v. Lay, 2 De G. F. & J., 65. See (j) 5 Sim., &5. Infra, § 954 et seq. (^ ) 9 Ha., 683. 470 FRY ox SPECIFIC PEUFOU.M ANCE OF CONTRACTS. sequent breaches of the continuing covenant : as to the breaches of the covenant to repair, it was urged that they were neither wilful nor obstinate, and that accordingly they might be relieved against in equity : but the court held that as they were not attributable to mistake or accident, and were persisted in, they were, in the contemplation of the court, willful and obstinate. The bill was accordingly dis- missed. § 94<». In another case the defendant was lessee under a restrictive covenant against carrying on a beer shop. The plaintiff got a contract from the defendant for a sub-lease with knov/ledge of defendant's title and of the covenant. The plaintiff entered under the contract, and persisted in carrying on a beer shop. His bill for specific performance was dismissed with costs. (A*) 2. Cases loJiere relief lias not been refused. % O-iT. Tiiere may be cases of breach of covenant for which merely nominal dama,ges could be obtained, or there may be cases where a breach having been committed, may have been waived : and in favor of such cases an exception may be made to the genei-alrule that the plainrifi must prove performance of the contract on his i3art.(Z) On this prin- ciple, Jessel, M.^E,., in a recent cise held that trilling breaches by a husband of the covenants on his part in a separation deed did not debar hini from enforcing the deed.(?/0 § 948. But as regards breaches of covenant under con- tracts for leases, it seems that the breach which the court would neglect must be either such a breach as would not work a forfeiture at common law, or such that the legal for- feiture would not be relieved against in a court of equity : for the court will not relieve more readily whilst the whole thing rests in contract than it will after the legal relation has been actually ci'eated.(?i.)' (A) T>e.wis V. F.)n) § 961. Still it is not every breach of good faith which will prove a bar. Where the plaintiff has been guilty of small breaches of good faith, for which the defendant had a remedy in his own hands, and where, if the interference of the court were refused, the plaintiff would be without any (x) The fraudulent making of a deeil with (z) Blackett v. Bates, L. R. 1 Ch., 117; re- a talse date is, or may b»', forgery. Keg. v. versing 8. C. 2 H. & M., 270. Ritson, L. R., 1 C. C. R., 200 (1) Bovou v. Paul, 28 L. J. Ch., 555. (y) Knatchbull v. Grueber, 1 Mad., 153; S. ib) Bedford and Cambridge Railway Co. v. C. Mer. 124. Stanley, 2 J. & H. 746. 474 FRY ON SPECIFIC PERFORMANCP: OF CONTRACTS. adequate remedy, such breaches of good faith liave been hekl not to be a bar to relief, though they affect the costs. ((?)' (C) Hoimea v Eastern Counties Railway Co., 3 Jur. M.S., 737; cf Besant v. Wood, 12 Ch. D., 6.i5. ' Tender, in casen itliere specific performance is demanded ] In order that an action may be sustained by the" vendor he must show that he has made a tender of a "-ood title and an offer to fulfill the conditions on his part. Hodges, e.c parte', 2i Ark.. I'.iT: Mix v. Beach, 4(5 111., 113; McIIugh v. Wells, 89 Mich., 17o: ISowle v. lloldridge, 03 Ind., 21-! Before a conveyance can legally be required, the vendee must make a good tender of the purchase money. Ilutf V. Jennings, Morris (Iowa), 454; Heuer v. Rotkowski, 18 Mo., 216; Beebe v. Dowd, 2i Barb , -Z'y); Goodale v. West, .5 Col., 8311; Bearden v. Wood. 1 A. K. Marsh", 4.i0- Greenup v. Strong. I Bibb., rm; McComas v. Earley, 21 Gratt., 29; Iwin v. Blakeslev, 07 Pa. 8t., 24; Bislinger v. Kitts, Barb., 273; Tanner V. Peck, 1 Barb's Ch., 549; Lansing v. Thompkins, 45 Barb., 308; Chase v. Hogan 3 Abb. Pr. (N. S ), 59. A tender of the purchase money mu.st not only be uiade, but it must be kept good, in order to stt)p the running of interest. The vendee nuist not use the money for other purpo.ses. Bissell v. Heyward, 6 Otto., 58). When the purchase money was tendered, the estate was worth more than the price agreed upon, and the vendor refu.sed to convey. After waiting until the value had considerably depreciated he sought the aid of eciuity^to compel specific performance. Held, that he could not obtain it. Tobey v. Foreman 79 111., 489. The i)laintitf, in an action for specific per- formance, showed no offer of compli:ince with his part of the agreement, and no excuse therefor, for a period of twenty-one or twenty-two months. Held, that he was not entitled to a decree. Green v. Covilland, 10 Cal., 317. Examples of sufficient Under J, As to U. S Treasury notes, see Davis v. Parker, 14 Allen, 94. Where money is payable in installments, see Rogers v. Taylor,' 40 Iowa, 193; Blackner v. Phillips^ 07 N. C , 340. There was an all - gation that a lender oi payment had repeatedly been made, and that the plain- tiff had at all -times been and stdl was ready and willing to pay. Held, that ihe tender shcjuld have Ijeen stated with greater particularity. Duflf v. Fisher, 15 Cal., 375: Hart v. McClellan, 41 Ala., 251. In Eiiglander v Rogers. 41 Cal., 4 JO, the allegation of tender by the plaintiff was as follows: that he "has been ready and willing during all the time aforesaid, and has oUered to accept and take said conveyance, pursuant to said agreement, anil to pay the balance of said purchase money." This was held not sufficient. "To constitute a valid tender in such a case, the party must have the money at hand, inuuedi- ately under his control, and must then and there not only be ready and willing, but produce and offer to pay it to the other party on the performance by him of the requisite conditions." Crockett, J >ee, also. Strong v. Blake, 40 Barb., 227. Where there has been a tender of the purcha.se money, and a rt-fu.sal to convey, it need not be shown that the tender was kepi good. Allen v. Atkin- son, 2l Mich.. 351; King v. Ruckman, 21 N. J. E(i , 599; McDonald v. Kun- brell, 3 Iowa, 335. NON-PEKFOEMANCE OF CONDITIONS. 475 CHAPTER XXII. OF NON-PEHFORMANCE OF CONDITIONS. § 962. A contract may be originally conditional, and con- tingent upon the performance of some act or the happening of some event. Where that has occurred, the contract be- comes absolute, and rests on the same footing for all pur- poses as if it had been originally made positively and without reference to any contingency. («) Bat until it has thus be- come absolute, no person can l)e entitled to call for its per- formance. (?>) Where, therefore, the contract is in its origin conditional, it may alford a ground of defense that the con- dition has not been performed.' (a) Pt Lorii Bjmillv, M. R.. in Regent's Giff , 21fi; 3 De G. & J., 334; Cf. Abbott v. Canal Co. V. Ware, '23 Heav., 5Si) I'.Uir, S vV K,61i; DoiuMms v. i*Mmouth (6) .Scutt V. (Jorporiiion of Liverpool, I R liiwav an'l Harbor Co., 14 W. R. 361. ■ Where A. signs an agreement to do certain acts, on tlie performance of cer- tain conditions precedent by B., and B. perfoims tiio.se conditions, equity will compel a specific performance of the agreement l)y A. Launing v. Oole, :•» Green's Ch., 229. Hut a party .so .seeking to (jhtaiu the benefit of a conditional agreement must show not only that he accepted the otfer made, but also that h(^ faithfully performed the condition, liilly v. Barnard, S Gill- 6c .1., 170. And, therefore, at law, where one party covenants to give a deed on a certain day, and the other c 'venants to pay money on the same day, neither can main- tain an action against the other, •until he has performed or tendered perform ance on his part Green v. Reynolds, 2 John., 207; .Jones v. Gardiner, 10 id., 20(5; Hardin V KreiLsinger, IT id , 29-J; Robb v. 3Iontgomery, 20 id., lo; Gazely V Price, lb' id.. 2ij7; Rubert.son v. Robertson, :! Rantl , GS; .Northrup v. Nor- thrup, (5 Cow., 296; Meriwether v. Carr, I Blackf., 41 o; Bailey v. Clay, 4 Rand., ii4(); see Gibbs v. Champion, ;j Ham., i5:i5. And in equity, where one contracts for a lease, upon certain stipulations to be performed by him, and enters upon the lands, but fails to perform such stipulations, he cannot compel the other party to the contract, or his assignee, to make a lease to him. Jones V. Roberts, G Call, 187; Harvie v. Banks, 1 Rand., 4<)8. Chancer}' never re- lieves against the breach of conditions precedent, althoiigh it may against con- ditions subsequent. The reason of this is obvious. In cases of conditions precedent no estate can vest until the condition be performed ; and, therefore, any claim for relief must be without foundation Bat in cases of conditions subsequent, the estate, or interest, vests in tlie first instance, subject to be divested on non-performance or breach of the condition. Wells v. Smith, 2 Edw.'s Ch., 7^; Chipman v. Thompson. Walk 's Ch., 405; Preston's Leg., 103, ch. 5. Therefore, a corporation will not be permitted to enforce payment of stock, for which its agents obtained suliscriptions, on conditions with which it refuses to comply. Turnpike Co. v. Churchill, ti Monr., 427. But where there has been a breach of a condition sul)se(iuent, and compensation can be made, a court of equity will grant relief. Walker v. Wheeler, 2 Conn., 299; De Forrest V. Bates, 1 E Barnes v. Wood, L. R.8 Eq, 424; Castle Mad., 1; Buck v. Whellev, in D. P. 1 Mad., v Wilkinson, L. K. 5 Cn., 534; inira, § 12-2S, 7 n.; Martin v. Mitcliell, 2 J. & W., 413, 425; 1232. (y) See Part V., chap, ii., § 1222, et seq. tract founded upou a proper consideration, bound themselves to execute a mort- gage upon the separate estate of the wife. Held, that a court of equity -will enforce such contract, and that the estate is liable for the debt intended' to be served. Hall v. Hume, 37 Md., 500. A married woman purchased real estate and gave her notes, secured by mortgage. Held, that the vendor could hold it in equity for the purchase money. This was in a case where no personal judg- ment could be given upon the notes. Pemberton v. Johnson, 40 Mo., 342; Warmick, 40 Pa. St., 140; see, also, Beame v. McGee, 46 Ala., 170; Phillips v. Gr3,ves, 20 Ohio St., 371. In Massachusetts the written assent of the husband , is required to make a wife's contract binding; it may then be specifically 'enforced. Boker v. Hathaway, 5 Allen, 103; TownsloyV. Chapiu, 12 id., 479. "Where a married woman conveyed her real property for a valuable considera- tion and the vendee made permanent improvements thereon. Held, that although her contract, entered into during coverture, was incapable of specific enforcement, still the value of the improvements, less the rent of the premises, must be a charge upon the land until paid. Frarey v. "Wheeler, 4 Oregon, 190. 484 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. to sell an estate and one of them died before completion, the issue in tail of the one dying would not be bound by the contract ; but it seems that the purchaser might, if he chose, sue the survivor for a conveyance of his moiety on jDayment of a half of the purcliase money. (^) §981. So in Carey v. Stafford, (r^ in the Exchequer in 1725, where a man executed a deed affecting to convey land^ therein described of the yearly value of £22 to his servant, and no such lands existed, the court compelled him to con- vey lands of equal value. § 98*3. And so if a copyholder were to contract to grant a lease for a longer term than the custom allowed, he would, it seems, be compelled to effectuate his contract in substance, by from time to time executing leases for such terms as he could, till he had made up the term contracted for. (6) §983. Errington's case,(c) though not on a specific per- formance, is another illustration of this principle. He had contracted for £9,000 to build a bridge over the Tyne, and to maintain it for seven years, and had entered into a bond in that sum conditioned for performance of the contract. The bridge was built, but thrown down by a flood ; and it was found that no bridge on that site could stand. There- npon he hied his bill for relief from the bond ; and upon his building a bridge upon a neighboring site where it could stand, and submitting to an issue of quantum damnlficatus by the change of site, he w^as relieved from the penalty of the bond. § 984. Where a contract is in its original form obnoxious to difficulties on the score of illegality, but can, neverthe- less be lawfully j)erformed in substance, the court will so- model it as to effectuate this purpose. ^ Thus it having been made by statute illegal to contract for the tenant to pay the rent-charge, a contract for a lease, stipulating that the tenant should pay a certain sum for rent and also the rent- charge, may be carried into effect by the court by means of a lease reserving as rent the two sums in the contract treated respectively as rent and rent-charge. (^) § 985. But such modelling can only apply to matters of (z) Per Lord Hardwicke in Att-Gen. v. (c) Per Lord Redesdale in Davis v. Hone^ Day, 1 Ves. Sen ,2-24. 2 Sch. & Lef. 351; Errlngton v. Aynesly, % (a) 3 Sw.,427n. Bro. C. C, 341. (6) Paxton v. Newton, 2 Sm. & Gif., 437. (rf) Carolan v. Brabazon, 3 Jon. & L., 20O. INCAPACITY OF THE DEFEXDAXT. 485 form. So where an incumbent was under a statute able to grant a lease with rent payable half-yearly, the court declined to compel the lessee to take a lease with a leserva- tion of rent payable quarterly : the mode of reservation of rent was held to be an essential pai-t of the contract. (d) § 986. The court will probably be anxious to execute a contract cy pres, where ])y subsequent legislation a contract originally valid may have become invalid in part. Thus where a dean and chapter, prior to the disabling statute of 13 Eliz., covenanted for the renewal of a lease for ninety- nine years, and the plaintiff brought his bill asking for a renewal for such term as the corporation could grant under tlie statute, it was ultimately decided by the House of Lords, in accordance with the opinion of Jekyll, M. R., but overruling the judgments of Lord King, Lord Raymond, C. J., and Price, J., that the plaintiff was entitled to this cy pres relief. (/') § 987. It seems that in some cases in which the contract would be incapable of being specifically enforced in its very terms for other reasons than illegality, it may be executed by the court cy pres if such a plan is feasible. In one case there was a contract entered into by the defendants within two years to procure the heir-at-law of A. B. to con- vey certain estates to the plaintiffs, or Avithin the same p)eriod to petition the House of Lords for, and to use their utmost endeavors to procure, an act of Parliament for substituting a trustee in place of the heir, in case such heir could not be found, or there was no heir : on a bill tiled for the performance of this conti'act, the court decreed the defendants to allow their names to be used in an application to ParliaYnent for the act.(<7) A contract by a person to use his utmost endeavors seems to be one which the court could not specifically execute. § 988. In some railway cases, the court has shown a great inclination to regard what it considers as a substance of the contract. In one case, company A. contracted with the plaintiff for the purchase of the lands required for their proposed line, and for the withdi-awal of his oj^position in consideration of £20,000 to be paid to him, in case the bill (e) Je.Dklna v. Green (No 2), 27 Beav., 440. Paul's, Sel. C. In Ch., 66 (Nov. 1720); supra, ( f) Beteowtirlii v. Dean ana Chapter of jst. § 39 {g) Frederick v. Coxwell, 3 Y. & J., 514. 4bG FUY ON SPKCIFIC PEUFOiniANCK OF CONTKACT?^. sliould pass into law : there was a rival company B., which would require different lands of the plaintiff : by agreement, made between the two companies during the proceedings before the committee of the commons, it was agreed that a reference should be made as to which of the two lines should be carried into effect, and that the successful company should take to all the engagements of the other. The line of company B. was ai:»proved, and company A."s bill was accordingly withdrawn : company B. refused to pay the plaintiff the £'2(),0()(), alleging, amongst other things, that it was conditional on the bill of company A. passing, and that the lands required were not those contracted for : but on a bill filed by the plaintiff against them, their demurrer Avas overruled by Shad well, V. C, and Lord Cottenham.(/?) In a subsequent case, however, the same vice chancellor con- sidered the passing of a bill of an amalgamated company sufficiently distinct from the passing of the bill of one of the comj^anies to relieve the amalgamated company from a con- tract binding in case of the bill of the one company pass- ing. (/) The decree was affirmed by Lord Cottenham, but on a different ground. (j) § 989. Where a contract is in the alternative, so as to give an election to the party to perform it, and one of the alternatives is at the time of the contract, or subsequently becomes, impossible, the question arises how far the con- tracting party is bound to the performance of the alternative that remains possible. The cases seem to divide them- selves into (1) those where one alternative is impossible at the time of the contract, (2) where it becomes so subse- quently to the contract, but before election, by the act of God, or (3) by the act of the other party to the contract, or (4) by the act of a stranger, and (5) those cases where the impossibility arises after election. The different cases are briefiy considered. § 990. (1) Where at the time of the contract one alterna- tive is impossible or void, the party to execute the contract is bound to the performance of the other alternative, (/t) So (ft) Stanley v.CbPstcran'l Birkenhead Rail- Great Northern Railway Co., 10 FTa , (64; way Co , 9 Sim , '264 , S C 3 My. & Tr. , 773. King v. Arcumiilhtive Asturai.ce Co , 3 C. (i) Greenhaigh v. Manchester ami Biiiuiug- B. N. >., 151; Kearns v. Lea), 1 H. & M., 681. ham Railway Co ,'.» Sim.. 41G (i-) Com. Dig. Comlit. IC, 2, Wigley v. (i) 3 My. & Cr , 784. bee lurllier, as to the Blackwal, Cro. Eliz., 780. rcbulis ofanialgauiaiioD, Earl ol Liridsey v. INCAPACITY OK 'HIE DKFKX DA XT. 487 where the condition oi' u bond was to pay a certain .sum, or render in execution a person wiio had been previously dis- chai'ged, and the court held the latter alternative illegal and void, it was decided that the obligor was bound to perform the other, and that not having done so, the bond Avas for- feited. (Z) And where an award dii-ected that a sum of money should be paid or be secured to be j^aid, and did not define the security to be given, and the question was whether the award was Qot void for uncertainty : it was held not to be so, on the ground that if an award direct one of two things to be done in the alternative, and one is void for uncertainty or is imjiossible, it is yet incumbent on the party to perform the other of them.(?/0 § 001. (2) The leading authorit}^ on the second class of cases is Laughter's case,(;i) where it was laid down, •' that where a condition of a bond consists of two parts in the dis- junctive, and both are possible at the time of tlie bond made, and afterwards one of them becomes impossible by the act of God, the obligor is not bound to perform the other part." On this case it may be remarkfd in the first place, that the case itself did not require the enunciation of the principle. (o) as both alternatives in the bond there i)ut in suit wei-e rendered impossible ',{p) and in the second place, it is to be observed, that subsequent decisions show that the principle was stated too broadly, and that even at common law the intention of the parties has been gathered from the jnirticu- lar language of each instrument. In the case of Studliolmes V. Mandell,(7) the court said that the rule and reason of Laughter's case ought not to be taken so largely as Coke has reported it, but according to the nature of the case ; and Treby, C. J., quoted a case in which a bond was conditioned either to make a lease for the life of the obligee before such a day or to pay £100, and the obligee having died before the day, it was held in the common pleas that the obligor should pay the £100. And in Diummond v, Duke of Bolton, (r) in an action on a bond conditioned to pay or secure to the plaintiff or her children by William Ashe, her l^ Da Costa v. Davis, 1 B. & P , iii. (o) Bsrkworth v Young. 4 Drew, i, j*. {in) siinmoii(l-i v. Swalne, 1 Taunt.. .549. {p) See ilif case In rro. Eiiz , 3Jt8 (/») 5 Rep., -21, b.; !S. S , s n. KatonV ca^e, iqt 1 Lonl Rayiu, it'.'; aihui, 1 >alk , 170. ^loore, 3.i7; a n. Katim v. Laughter, Lr-. (/•) -as, 'i4o .>ie, also, |i. r W alineslBj , J., Eliz , 39S; acconllugly Warner v. vV hite, T. in More v. Alorecouib, Cro. bl;z., e64. Jon., 95. 488 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. then intended husband, £3.000 within six months after the defendant slionld become Duke of Bolton, the defendant pleaded that AVilliam Ashe died without having any children before the defendant became Duke : but the plea was over- ruled, on the ground that the intention of the parties must be regarded, and that it could never have been their inten- tion that the money should not be paid to the plaintiff in case she should not have a child by William Ashe at the time of the plaintiff becoming Duke, though if she then had a child, the defendant might have had his election to whom to pay the money. § 992. And this view of the law was fully supported in a case before Kindersle}', V. C, on a promise by A., on the marriage of his daughter with B., that he would at his death leave to his daughter an equal portion with his other chil- dren. The daughter died in the lifetime of her father, leaving children, and this circumstance was argued to be a discharge from the contract by an act of God. But the vice chancellor held the contract might have been performed in either of two ways, — namelv, by A.'s making a provision for his daughter by will or by his dj'ing intestate : and that though the death of the daughter iDrecluded him from per- forming it in the first way, he was not thereby exonerated from performing it in the second, and that the bill, by which the husband prayed for an equal share in the testa- tor' s residuary estate, w-as not on that ground demurrable, (.s) His honor, after referring to some of the previous cases, expressed his oi:)inion that it is impossible to lay down any universal proposition either way, and that each case must depend upon the intention of the parties : but that where this intention is clear that one of the parties shall do a certain thing, but he is allowed his oj)tion to do it in one or other of two modes, and one of these modes becomes imjiossi- ble by the act of God, he is bound to j^erform it in the other mode : and that, in the case before the court, it was mani- festly the intention of the parties that, in one way or other, the daughter should have an equal share of the testator's property ; and that if the father was prevented by the act of God from performing his obligation in one way, he (s) Barkworth v. Young, 4 Drew , 1. INCAPACITY OF THE DEFENDANT. 489 was bound to perform it in the otlier way, which was possible. (^) § 9»:i. In Jones v. Howe(%) a father on the marriage of his daiigliter covenanted by some act inter vivos or by will to leave his daughter a certain provision : no act inter T'rnos was done by the covenantor, nor did his will contain any provision for her : the daughter died in the lifetime of the father : the court of common pleas, on a case stated for its opinion by direction of Wigram, Y. C, held that the cove- nantee had no cause of action, on the ground, it appears, of the i^rovision by will having failed by the death of his daughter, and a consequent exemption from liability to i^er- form the other alternative. The vice chancellor, though expressing an opinion that by this view the intention of the parties was disapi)ointed, as the provision was intended to be absolute, and the mode of making it only intended to be left to the discretion of the covenantor, yet confirmed the certificate, and dismissed the bill with costs. § 994. (8) Where one of the alternatives becomes impos- sible by the act»or default of the party for whose benefit the contract is to be executed, the other alternative is dis- charged and need not be performed. (») Therefore in debt on an obligation conditioned for the delivery up by tlie defendant to the plaintiff of three obligations in which the plaintiff is bound to the defendant, or for the execution to the plaintiff such release of them as should be devised by the plaintiff' scounsil before Michaelmas, a plea that neither the plaintiff' nor his counsel devised any release before Michaelmas was held good by a majority of the Judges in the Queen's bench, on the ground that, where the obligee disables the obligor to perform the one part, the law dis- charges him from the other, {w) This authority Avas followed by another case in tlie same court, in which, in debt on a bond by the defendant conditioned to grant an annuity within six months after the death of A., and if he refused, on request then to pay £800, a plea that no grant had been tendered within six months was held good.(ir) (<) Page-25 The rule ofthe civil law seems (u) 7Ha.,2t57; S. C. '.» C. B., 1. to agree with tlilH. ".si quia illuil vul illuil (r) (oni.Uig Condlt. K , 'i. Btipulutus sit, t"t oldifjail'ines sunt (juot (wj Oreniiinghani v. Ewer, Cro. Eliz., 396, corpora: qiiarc. ti alt" ra res ex (|uaciiiique .WJ causa d irl iion potest, altera iiihilomiiius (X) Basket v. Basket, 1 Mod., 265; 2 id., 200. dabitur."— Warnkoiilg, Instit. Jur. Horn. Prlv lib. 111. c. 2, t. 1, § 79i. 490 FRY OX SPECIFIC PEUFOKMANCE OF CONTRACTS. § 995. The principle of these rases is obvious. The con- tract gives the party to perform an election, and creates an obligation to perforin only the elected thing, but the other party has destroyed tlie election and so lias released the per- forming x>arty from liis obligation to do anything. § 996. (4 ) Where one alternative is prevented by the act of a stranger rendering its performance impossible, the other alternative must be performed. This was held in a case in the 4th of Henry VII., which decided that if one be obliged to enfeoff me to certain lands, or to marry A. S. before such a day, and a stranger marry A. S. before the day, the obligor must make a feoffment of the lands : but otherwise if the obligee married A. S. before the day, for then the other alternative is discharged. (?/) § 997. (5) If, after the party to ]3erform had elected to perform one alternative, that alternative becomes impos- sible, the effect of the impossibility is precisely the same as in the case of a single contract, for by election the contract has become single. The performing party therefore is ordi- narily liable in damages. (£)' % (y) Quoted in Grenningham v. Ewer, Cro. (s) Rrown v. Royal Insurance Co., ] El. & Eliz.,397. E1.,8.'J3 ' Contract entire ; no equitable middle y von nd ; vendee must pay the whole jvir- cJtMse money. '\ The contract for the sale of an estate was entire, for a .sum in gro.ss, and there was a faihxre of title to considerable portion, both parties being ignorant of the defect at the time of the sale. There was no equitable middle ground between an entire performance and an entire rescission. Held, that if the vendee declined to rescind, he must pay the entire purchase monej'. Glas- sell V Thomas. 8 Leigh, 118; Bailey v. James, 11 Grait., 40S; Gillman v. Hinckle, 8 W. Va., 202; Etheridge v.'Vernoy, 70 N. C, 713- Statement of tlie quantity of acres mere matter of description.'] " The number or quantity of acres, after a certain description by metes and liounds, or by other known specifications, is but matter of description, and does not amount to any covenant though the quantity of acres should fall short of a given amount. Whenever it appears by the defining bouudaries, or by words of qualification as ' more or Jess,' or as ' containing by estimation,' or the like, that the statement of the quantity of acres in the deed is mere matter of description, and not of the essence of the contract, the buyer takes the risk of the quantity, if there be no admixture of fraud in the case." 4 Kent's Com., 460. Tract c^mtaining much le-'^s than agreed ; map slmicn.'] The vendee made a purchase under the belief, which he had good reason to entertain, that the farm sold contained a given number of acres, the representations as to the amount was made by the vendor, who exhibited a map of the property. Held, that where the farm contained very many less acres that equity would not compel the vendee to accept the property. Kent v. Carcand, 1 T Md., 291 ; Winston v. Browning, 61 Ala., 80: Foley v. McKown, 4 Leigh, 678; Miller v. t'hetwood, 1 Green's (N. J.) Ch., 199; .see, also, Brooks v. Hiding, 46 lud., 15. Example of no abatement in price, tchere tract contained much less than de- scribed.] A lot was sold, the contract providing that the vendee should pay a definite sum "for wharf lot on Border street;" the lot was further described IXCAPACITY OK TIIK DLFKNDANT. 491 as bounded on two sides b}' ship-yurds of named parties, and as "measuring about two hundred and twenty ieet on Border street, more or less." The lot in fact measured only one Imndred and seventy feet on Border street, and the value of the lot was shown to be in propoi tion to the uuml)er of feet on the line of that street Long before the contract tlie title deeds of the lot were matter of public record and showed the actual Ijounduries and extent of the lot. Neither the plaiutilf's agent, or tlie defendant, had actual knowledge of those deeds. Held, Gray, J., delivering the oiiinion, which was unanimously con- curred in, that no abatement of tlie price could be had. Noble v. Godking, 99 Mass., 231; see, also, Stebhins v. Eddy. 4 .Mason, 414; ^larvin v. Bennett, 8 Paige's C:h., :^12; Morris Canal Co. v. Emmett, 9 id., 16.S; Fame v. Martin, 7 N. Y., 219: Ketchum v Stout, 20 Ohio. 4W; Stull v. Hunt, 9 Gill.. 44G; Weart V. Rose, 16 N. J. Ecj , 290; Stevens v. Hudson, 4.5 Ga., old. W^here the irordx •'more or lexK" are nsed.'^ In Stebbins v. Eddy. 4 Mason, 414, Story, J., said: "It seems to me that there is much good sense in holding that the words 'more or less.' or other e(4uivalent words, used in contracts or conveyances of this .sort, should be construed to qualify the representation of quantity in such a manner that, if made in good faith, neitlier party should be entitled to any relief on account of any deticiency or surplus. Nor am I prepared to admit that the fact that the sale is not in gross, but for a specifjc sum by the acre, ought necessarily to create a dilference in the application of the principle. I do not .say that cases may not occur of such extreme deticiency as to call for relief ; but they mu.st be such as would naturally raise the pre- sumption of fraud, impcjsilion or mistake in the very es.sence of the contract. Where the sale is fair and the parties are eciually innocent, and the (juantity is sold by estimation and not by measurement, then is little, if any, hardship, and much "convenience, in holding to the rule anrat emptor." See, also, Pedens v. Owens, Rice.'s Eq , 5.j; Brown v. Parish. 2 Dana, 9; Hill v. Buckley, 17 Ves., 394; Smith v. Evans, 6 Bin., 102; Howes v. Barker, 3 .lohns., 50G; Twyfard V. Wareup, Finch, 310; Marvin v. Bennett, 8 Paige's Ch., 312. 492 FRY ON SPECIFIC PERFORMAXCE OF CONTRACTS. CHAPTER XXIV. OF THE RESCISSION OF THE CONTRACT. § 998. The rescission of a contract necessarily consti- tutes a bar to its performance by either of the parties to it. The rescission may result from : (1) A simple agreement between the parties to rescind the contract. (2) An agreement between the parties to new terms which put an end to the terms of the old contract. (3) An agreement between the original parties and a third person, by which the third person takes the place of one of the original contractors. (4) An exercise of a power' to rescind reserved by the con- tract to one or both of the contractors. (5) An exercise of the right to rescind which results to the injured party from fraud or mistake in relation to the contract. (6) An exercise of the right to rescind wiiich results to one party from the other party's absolute refusal to per- form the contract or unreasonable delay in its performance. (7) An exercise of the right to rescind which results to one party from the other party's having made performance impossible. 1. A simple agreement to rescind.'' § 999. Generally speaking, the parties to a contract, sup- posing them both to continue sui juris and capable of con- ' When an asreement is thus rescinded by novation, the contract, or contracts, in existence prior to the novation, lose their individuality and become merged in the new contract. Pierce v. Dorr, S Pick., 2;jy, is a case, at lawr, of this nature. The bill, in that case, charged that, on March 21, 181 1, A. lent B. $;^,000. re- ceiving as security B 's deed of certain lands, but giving no instrument of de- feasance; that B. repaid the sum lent, taking notes, whereby A. promised to pay the sums repaid, with interest, when the lands conveyed to him should be sold, if they produced the sums expressed as their consideration, with interest, and if not, the deficit was to be regarded as part payment of A.'s notes; that A. connected this with a former and separate transaction, by which A. had on ]\Iarch 7. 181 1, received au absolute conveyance of certam other land as security for another debt; that the value of the laud exceeded the amount of B.'s debt, and that it was understood that A. should sell the land, and after deducting the THE RESCISSION OF THE CONTRACT, 493 traoting, have a right to determine it bj^ an agreement to rescind it, or to use other words, a waiver and abandonment by mutual consent of the parties : and tliis they may do even when the contract between them affects the interests of some third person ; except, it seems, where there has been a part performance of it affecting the third person. So that where A. by deed contracted with B. that A.'s son should reside with and be brought up by B., who covenanted to leave him certain property, and there was no appreciable part performance as regards the child, so that his condi- tion in life had not been altered, and no exception on his part was defeated, it was held that A. and B. might by agree- ment rescind the deed, though it would, it seems, have been different if there had been any part performance affecting the child. («) § 1000. An agreement to rescind a contract which is in writing(Z>) or under seal(c) may clearh* in equity be by parol. (a) Hill V. Gomnie, 1 Beav , 540; S. C. 5 Lanesborough v. Ockshott, 1 Bro. P. C, 151. My. & Or , 250; supra, § 182. See, lor the doctrine at tjommon Law, Goss lb) Uavis V. iSyraouds, 1 Cox, 402, 406. v. Lord Niieent, 5 B & A. D. 58; Harvey v. (c) Hill V. Gomme, 1 Beav., 540; Lady Grabham, 5 A & E., 61 amount of said debt, pay the surplus to B It was also charged that in May, 1813, A. and B. signed an agreement stating that A. had bought the above named lands of B., and that B. desired to repurchase them, and binding A. on the payment of $8,296.40 in two years, with interest, to quit-claim said laud to B., and also binding A. to convej' said lands, whenever before two years a fair price could be obtained, and to apply the proceeds to the payment of the afore- said sum, and the surplus, if any, to be paid to B. A.'s notes were then given up to him. Held, that this agreement was a merger of all the previous ones, and that a bill to enforce a Irust arising therefrom could not be maintained. See, also, Reed v. McGrew, 5 Ham., 380. Agreements may, of course, at all times be entered into by parties for the rescission of prior executory contracts, provided that they continue interested in the original agreement until the agree- ment to rescind is made. Johnson v. Reed, 9 Mass., 78; Blood v. Enos, 13 Verm., 625; England v. Jackson, 3 Humph., 58 i. But an offer to rescind an agreement will not be binding before it is accepted by the other party, bj' doing what is proper to be done by him toward the rescission, although the agreement has been delivered up for cancellation Fripp v. Fripp, Rice's Ch., 84. When the administrators of parties to an unexecuted contract for the sale of lands make an arrangement to rescind it, advantageous to the purchaser, a court of equity will not permit an heir to set it up again. Howard v. Babcock, 7 Ham. (2d pt.), 73. Tliere are agreements, however, which subsequent contracts will not, in all cases, annul. Thus, for example, where there is an agreement, upon an adequate consideration, to pay a certain sum, it cannot be avoided by an agreement to receive a less sum. Geisner v. Kerslmer, 4 Gill ».t Johns., 305; Seymour v. Minturn, 17 id., 169; also, Inman v. Griswold, 1 Cow., 199; Make- peace V. Harvard College, 10 Pick., 298. Yet, if a creditor agree with an in- solvent and embarrassed debtor, that he will procure security for a part of the debt, he will release the residue, and the debtor performs the agreement, it con- stitutes a valid contract ; and if the creditor afterwards enforce pajmient of the whole, the debtor may recover damages for a violation of the contract. Col- born V. Gould, 1 M. H.. 279. 494 FRY ON SPECIFIC PEUFOUMAXCE OF CONTRACTS. § lOOl. Against tliis conclusion various arguments have at various times been raised : it lias been urged that the rule of law does not allow the variation of a contract that has been reduced to writing to be evidenced by parol ; but to this it has been replied that rescission is not variation, that the law allows parol evidence of matters collateral to a con- tract, (f^) and that rescission or waiver being in its nature subsequent and collateral to the contract may therefore be proved by parol testimony, (e) § 100^. Again, it has been urged that the statute of fraud precludes parol evidence of rescission of contracts relating to land : for a contract to waive a purchase of land as much relates to land as the original contract, (e) But it is replied that the rescinding contract is not the contract on which the action is brought, and that whilst the statute provides that no action shall be brought on any contract of the descriptions there specified, except it be in writing, it does not provide that every such written contract shall sup- port an action. In the result it is perfectly well ascertained that a contract in writing, and by law required to be in writ- ing, may in equity be rescinded by parol ;(/) and- waiver by mutual parol agreement therefore furnishes a sufficient defense to an action for specific performance. (//) § 1003. Any circumstances or course of conduct from whence can be clearly deducted an agreement to put an end to the original contract will amount to a rescission of it. Thus, to give one or two examples : where, on default in payment of the purchase-money, one party said to the other that there must be an end of the negotiation, and the other assented, the contract was held to have been rescinded. (^) And where the vendor was allowed for a long period to remain in possession, and the purchaser's representatives seventeen years afterwards treated themselves, in a deed between the parties, as entitled to interest on the debt which had been the consideration for the sale and not to the (d) Pym V. Campbell, 6 El. & Bl., 370. v. L!ppingwell,2 Dick., 469; S. C. 5 Vin. Abr. (e) Davis v Symonds, 1 Cox, 4ij2, 4:6. This 616, pi. l^; per Grant, M. R. in ex parte Lord seems denied, as to waiver at Common Law, Ilchester, 7 Ves.. 377. See also Buckhouse v. by Lord Hardwicke in Bell v. Howard, 9 Mohun, 3 Sw., 434 n.; Buckhouse v. Crosby, Mod., 305. 2Eq. Cas. Abr.,32, pi.. 44 («) Per Lord Hardwicke in Buckhouse v. iff) Davis v. Symonds, 1 Cox, 402; Bobin- Crosby. 2 Eq. Cas. Abr., 33. son v. Page, 3 Russ., 114. (/) Goman v. Salisbury, 1 Vern., 240; Inge (h) Carter v. Dean of Ely, 7 Sim., 211. THE RESCISSION OF THE CONTRACT. 495 rents and profits of the land, the contract was held to have been waived. (/) § 1004. But the court must be satisfied of this total abandonment by both parties to the contract. "The court," said Lord St. Leonards, "requires as clear evidence of the waiver as of the existence of the contract itself, and will not act upon less."(,y) And in another case his Lordship said that, unless a party has by his conduct forfeited his right, "abandonment of a contract, according to the law of this court, is a contract in itself ;'' and accordingly he refused to hold a loose conversation which was alleged as a waiver of a contract for a lease to amount to such a new contract. (^*) § 1005. To these cases may be likened those where an absolute refusal of one party gives rise to a right to rescind in the other: the refusal must be clear, total, and unquali- fied. (Z) § 1006. An agreement to rescind an existing contract must amount to a total abandonment of the whole contract, and not to a partial waiver of some of its terms : for to allow of such a proceeding in the case of a written contract would .be to have a contract proved partly by writing, and partly by parol :(m) it would be a parol novation of a written contract, which is inadmissible where the law requires the contract to be evidenced by writing: (71) and therefore the agreement, or the circumstances from which it is inferred, must show an absolute dissolution and abandonment of the contract, (o)' (i) Earl of Ross v. Sterling, 4 Dow, 442. Avery v. Bowilen, 5 El. & Bl , 714; 6 id , 953; See also Hill v. Gomme, 1 Beav., 54U. intra, § 1035. 0') Carolan v. Brabazon, 3 Jon. & L., 200, (m) Goss v. Lord Nugent, 5 B. & Ad., 58. . 209; Whiitakerv. Fox, 14 W.K ,19-2; Harrison {ti) luira, § 1016. V. Brown, 14 W. R., 193 n. ; Cliflord v. Kelly, (o) Price v. Dver, IT Ves., 3o6; Robinson v. 7 Ir. Ch. R., 333; Cartau v. Bury, 10 Ir. Ch. Page, 3 Russ., 114. Lord Thurlow seems to R., 400. have thought that a part might be rescinded (k) Moore v. Crofton, 3 Jon. & L., 438, 445; by parol, in Jordan v. Sawkins, 1 Ves. Jun. Whittaker v. Fox, 14 \V. R., 192. 404. (,1) Ehrensperger v. Anderson, 3 Ex., 148; ' Where a contract is rescinded it must be entirely rescinded. Glassel v. Thomas, 3 Leigh, 118. So, where A. sold to B. a plantation of slaves, a part of whom had been introduced in the State (Mississippi) contrary to the consti- tution, and B. paid a large portion of the purchase money, knowing of the illegal introduction of the slaves, it was held, that the court could not order the money to be paid back and rescind the whole contract, and, therefore, must refuse its aid, the contract being entire, and it being contrary to the doctrines of equity to rescind a contract only in part. Hope v. Evans, 1 S. 6: M.'s Ch., 195. The same principle is carried out at law. Potter v. Titconib, 9 Shep., 300. And, therefore, where a party to an agreement for the purchase of land sought 496 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 1007. The cases, of which many have arisen at com- mon kuv (and wliich will be considered siibsequently[^7]), of the rescission of a contract by the one party based on an absolute refusal to perform by the other, may well be broug-ht under the head of agreement to rescind. § 1008. It is to be borne in mind that the conduct of one party, which may debar him from insisting on a contract, may yet not prevent its being enforced against him or amount to a rescission of it :{q) and further, that there are many cases in Avhich there has been such a departure in conduct from the contract between the parties, that the court will refuse to execute the contract, though the effect of that conduct may not have been to substitute a valid contract for the old one, or absolutely to rescind the old one for all purposes, (r) 2. All agreement upon new terms. § 1009. Where the parties to a contract come to a fresh agreement of such a kind that the two cannot stand together, the effect of the second agreement is to rescind the first. This is one form of novatio in the Roman law. (5) § 1010. But it is not every change in a term of the original contract which will amount to such a substitution as to extinguish that contract. Thus where there was a contract for a lease, and a parol agreement was subsequently made for the reduction of the rent, which, it was contended, worked a rescission of the original contract, Lord St. Leonards said, "I should be sony to hold that because a landlord abates the rent for a time or permanently, he therefore abandons the whole contract. ^- * '•• I should do a most mischievous thing were I to hold that a mere abatement of rent, wliich occurs every day, would altogether put an end to the existing contract, and create a new tenancy (p) See infra, § 1035. ob'igatlonem aut civilesm autnaturalem et (q) Price V. Assheton, 1 Y. & C. Ex., S2. translatio : hoc est cum ex pra?cedenti causa (r) An example of this seems afforded by ita nova constituatur, ut prior perimatur." the case of the l^aris Chocolate Co. v. Crystal Dig. lib. xlvi. t. 2, c. 1. See, also, Instit. lib. Palace Co., 3 Sm. & Gif., 119. iii. tit. 30, s. 3. («)"Novatlo est prioris deblti in aliam to affirm the agreement in part, and rescind it in part, and maintain assumpsit for the price paid for the part which he claimed to rescind, the court prevented him from so doing. Rinker v. Sharp, 5 Blackf., 185. Upon these grounds, an agreement which is rescinded in part will be treated as rescinded in toto. Ray- mond V. Bearnard, 12 Johns., 274. THE EESCISSIOlSr OF THE CONTRACT. 497 from year to year. The abatement of the rent was rather a confirmation of the existing tenancy, with a relaxation of one of the terms of it.(^) § 1011. So, also, a suggestion made by either party after contract for the purpose of obviating any difficulties in the completion of it, will not be taken to amount to a novation, so to hold would be to X3reclude parties from endeavoring to remove objections by concessions of any kind.('?^). §'10l!3. But where the defendant being in possession of -a house under a contract for a lease, the plaintiff and the defendant entered into a further contract to the effect that the plaintiff would accept H. W. as his tenant in lieu of the defendant, and on the same terms, the defendant under- taking to guarantee the rent during H. W.'s tenancy, and H. W. accordingly for several years occupied the property and paid rent, it was held that the latter contract must be considered a substitution for the former. («) § 1013. As it is the existence of the new contract that works the extinction of the old, this new one must, of course, be a valid contract : so that, for instance, where a second contract is alleged, but without consideration, the original contract will remain intact, and may be executed without regard to the second. (?«)' § 1014. This makes it requisite to consider the evidence of the new contract alleged. (1) Where the original contract is by j)arol, the new one may, of course, be by parol also." (<) Clarke v. Moore, 1 Jon. & L., 723, par- (v) Moore v. Marrable, Lr. I Ch., 217. iicularly 73S-9. (wj Rob«on v. Collins, 7 Ves. 130. (u) Monro v. Taylor, 8 Ha., 51, particularly 61. ^ In Thurston v. Peicival, 1 Pick., 415, services were performed by one per- son for another, and afterwards the parties entered into a contract as to the ■compensation, which was illegal. It was held that this agreement did not operate as a merger of the original demand. ^ Possession undei' parol gift.] Naked posses.sion under an alleged parol gift of land will not constitute such part performance as will take the case out of the operation of the statute of frauds Stewart v. Stewart, 3 Watts, 253; •Cronk v. Trumhle, 66 111., 428; Pinckard v. Pinckard, 23 Ala., 649. Bule as to the degree of occupation.'] In order that a court of equity will decree specitic performance of a parol agreement the possession of the vendee. must be such that if the vendor refuses to complete it will be a fraud upon him. White V. Watkins, 23 Mo., 423; Chambers v. Lecompte, 9 id., 566. Possession must be tflkpii with the permission of the vendor and must refer to and be connected with the contract ; in such a case it shows a part performance by the vendor. Lord v. Underdunk, 1 Sandf.'s Ch., 46; Beau v. Valle, 2 Mo., 103; Jar vis v. 32 498 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 1015. (2) "Where the original contract was in writing,, though not by law required so to be, the new contract may be evidenced in any way which establishes it according to the principles of the court. Thus a contract, though under seal, may in the contemplation oi' the ciourt of equity be waived by a course of conduct from whence the presump- tion of a new contract in substitution arises. " In ordinary partnerships," said Lord Eldon, "nothing is more cltiar than this, that although partners enter into a written agree- ment, stating the term upon which the joint concern is to be carried on, yet if there be a long course of dealing, or a course of dealing not long, but still so long as to demon- strate that they have all agreed to change the terms of the original written agreement, they may be held to have changed those terms by conduct. "(i2?) And accordingly, in another case, where a contract for a partnership was decreed to be specifically executed, the court directed an inquiry whether any and what variations had been made in the^ (X) Const V. Harris. T. & R., 496. 523; Ged- Sedgwick, 1 Sw , 460, per Lord Langdale M. des V. Wallace, 2 Bli., 27u, 297; Jackson v. R. in Smitii v. Jeyes, 4 Beav., 505. Smith. 1 Hoflf.'s Ch., 470; Givens v. Calder, 2 Dessau. 's Eq., 171, 190; Wills v Stradling, 3 Ves., 381; Greaiorv v. Misrhell, 18 id., 333: Thompson v. Scott, 1 McCord's Ch., 39; Cole v. White, 1 Bro., 409; Morphett v. Jones, 1 Swanst., 179; Foot V. Mitchell, 1 B. & B., 400; Harris v. Knickeibocker, 5 Wend., 638; Aitkin v. Young, 12 Pa. St., 15; Cristy v. Barnhart, 14 id., 260; Carroll v. Cox, 15 Iowa, 455; Moore v. Higly, 45 Ind., 487. Lord Manners, in Kine v. Balf e, 2 Ball & Beatty, 343, said : ' ' Whether possession be an unequivocal act amounting to part performance must depend upon the transaction itself. If it be distinctly referred to, the contract alleged in the pleadings, I think no case has denied that it is a part performance. The defendant is protected from lia- bility as a trespasser, and the plaintiff is disabled from dealing with any other person." There was a parol agreement for the sale of a mining claim, under which the vendee took possession, paying a part of the agreed price with the proceeds of the mine, all of which he appropriated to his own use. Held, sufficient to take the contract out of the operation of the statute of frauds. Taterm v. Brooker, 51 Mo., 148. Length of time of possession important.'] LoDg continued possession, with the acquiescence of the vendor, will be regarded as a strong circumstance against permitting the statute to be pleaded. Blatchford v. Kirkpatrick. 6 Beav., 232; Bonier v! Caldwell, 8 Mich., 463; Rhea v. Jordan, 28 Graft., 678; Lester v. Lester, id., 737; Miranville v. Silverthorn, 1 Grant (Pa.), 410; Palmer v. Rich- ardson, S Strobh.'s Ecj., 16. Poissession must be under the parol contract sought to be enfoi'ced and none other.'] In order that a parol contract may be taken out of the operation of the statute of frauds, where possession has been given, the posscs.-^ioJi must have been sur- rendered under the very contract and none other. A U -j^vA in possession, pur- chasing, would not come within the rule, he would La\. entered under another agreement. Danfoith v. Laney, 28 Ala., 274: Tate v. Jcik.s, 16 Fla., 216^ Charpiot v. Liugerson, 25 ]\Io., 63; Cole v. Potts, 10 N. J. iJq., 67; Litton v. Shipp, 65 Mo., 293; Knoll v. Harvey, 19 Wis., 99; Davis v. Moore, 9 Rich.,. 215; Mohana v. Blunt, 20 la., 142; Rosenthall v. Freeburgher, 26 Md., 75. THE RESCISSION OF THE CONTRACT. 499 original contract by tlie consent of the partners, and di- rected tlie deed to be settled by the master having regard to such variations. (?/) § 1016. (3) Where the original contract is by law re- quired to be in writing, the new one must be in writing also, if the plaintiff insists on it as jjart of his case ; so that, for instance, where the relation of landlord and tenant is con- stituted by writing, a contract for an abatement of rent set up by the plaintiff must be in writing also.(£'V From the principles of the court, liowever, in regard to part perform- ance, an exception naturally arises, as the new contract may in this, as in any other case, be by parol, if supported by acts of part performance.' Thus, for example, where W. leased to N. a house for eleven years, and was to allow £20 for repairs, and this contract was signed and sealed by the parties, and N., finding that the repairs of the house would cost more than £20, laid out a further sum, in consequence of W.'s having i^romised to enlarge the term, but without mentioning for what term : Jekyll, M. R., carried the parol contract into effect, on the ground that it was a new con- tract, and that the laying out of money was a part perform- ance on the one part, which made it needful to execute the parol contract on the other, (a) § 1017. But where the new contract is relied on only as an extinguishment of the old one, the mere fact that it is not in writing, and so could not be put in suit, seems to be no ground for denying its effect in rescinding the original contract. The statute of frauds does not make the parol contract void, but merely prevents an action upon it ; and . it does not seem to be necessary to the extinction of one contract by another that the second contract could be actively enforced. The point has never, it is believed, been (y) England v. Curling, 8 Beav., 129. (a) 5 Vin. Abr., 522, pi. 38. (») O'Connor v. Spaight, 1 Sch. & Lef.,305. ' So where the subject matter of an agreement was the sale of land, a parol promise made by the vendee, that he would take no advantage of a delay of. perfoi-mance beyond the time fixed, was not deemed a waiver of the party's right to recover a stipulated sum as liquidated damages for not performing on the day, such promise being void by the statute of frauds, and, therefore, in- capable of affecting the previous contract. Hasbrouck v. Tappen, 15 Johns., 200. - This doctrine is equally well estalilished in this country. "Walker v. Wha- ley, 2 Humph., 119; England v. Jackson, 3 id., 584; McCorkle v. Brown, 9 Sm. & Marsh., 167. 500 FRY ON SPECIFIC PEllFOllMAXCE OF CONTRACTS. matter of decision. (&;) But in point of principle it seems to stand on the same footing as a good simple agreement to rescind. 3. An agreement with a third 'person. § 1018. An agreement between the original parties and a third person, b}^ which the third person takes the place of one of the original contractors, creates a new contract on the old terms between the new parties and rescinds the original contract. § 1019. So where M. agreed Avitli a company to take certain shares, and no payment was made by M., so that according to the contention of the liquidator of the company he had no right to the shares : and M. then transferred the shares to G., and G. was registered : it was held that, assum- ing the contention to be correct, the contract with M. was restricting in fieri,, /ind the transfer to which the company was a party constituted a new contract to take the same shares between the company and G., and that the old con- tract with M. was discharged by the new contract with G.(c) § 1020. So again where A. sold shares to B., and B. sold them to C, and A. executed a deed of transfer to C, which C. refused to register ; A. brought a bill for specific per- ■ formance against B., but it was held that A., having assigned the shares to C, had determined the privity of contract with B., and that he could not make a title to the shares. The main question in the case was whether C. was merely the nominee of B., or- there was a substantive contract between A. and C. : the latter was the view taken under the circumstances. (^Z) § 1031. In the chapter on contracts for the sale of shares, (e) it will be seen that questions of novation by the introduction of a third person arises upon sales on the stock exchange. The reader is referred to that chapter for their bearing on the question of novation. § 1033. There are two other classes of contracts in respect of which the question of novation has frequently (ft) See Vinnius, Common, in Inst. lib. lii. {d) Shaw v. Fisher, 5 De G. M. & G., 590? tit. 30. As to a parol contract at common Holden v. Hayn, 1 Mer., 47; Hall v. Laver, 3 law to vary (in effect) the terms of a deed, see Y. & C. Ex., 191; Stanley v. Chester and Nash V. Armstrong, 10 C. B. N. .S., 259. Birkenhead Hallway Co., 9 Sim., 264; S. C. 3 (c) Morton's case, L. R. 16 Eq., 104. Of. My. & Or, 773; supra, § 151. Ex parte Beresford, 3 Mac. & G., 197; Moore (e) Infra, Part VI., chap. 1, § 1472, et seq. T. Marrable, L. R. 1 Ch., 217. THE EESCISSION OF THE CONTRACT. 501 arisen — the first relating to continued dealings between A. and one set of partners and A. and another set of partners successors in trade to the former ; and the second relating to the dealings of a person insured in one company and continuing to make X->ayinents to another with which the first had amalgamated, or to which it had assigned its busi- ness. The full discussion of these classes of cases would be too remote from the subject of these pages to be here proper. 4. Exercise of a power to rescind resermd hy the contract. § loss. Generally speaking, one party to a contract can- not rescind it, except by consent of the other party, but this general principle is liable to exceptions. The first that falls to be noticed is where the contract reserves to one or both of the contracting parties a power in certain specified cir- cumstances to rescind the contract. (/) Such stipulations are frequent in contracts for the sale of land. It will be desirable briefly to consider these stipulations. § 1024. When a contract stipulates that on the happen- ing of a certain event it shall be void, the construction put upon it by the courts generally is, that it may on this event be rescinded by the party injured by such event. Thus a proviso that in case the vend.or of an estate cannot deduce a good title, or the purchaser shall not pay the money at the appointed day. the contract shall be void, has been held to mean that in the former case, the purchaser, and in the latter the vendor, may avoid the contract, and not that the contract is utterly void, {g) § 1025. A right to rescind a contract on the non-perform- ance of an act, wdiich act it is the duty of the party invested with the riglit of rescission to perform if he can, will not give such party a right to refuse to perform his part of the contract, but will be held to apply where the act cannot be done : thus where there is a condition that, if any objection shall not be removed within a limited time, the vendor shall be at liberty to annul the contract, the vendor is not entitled to neglect to remove any objection, and then, on the strength (/) E g Mareden v. Sambell,28 W.B,952. also, Doe d. Nash v. Birch, 1 M. & W., 402; (g) Roberts v. VVyatt, 2 Taunt., 268. fc>ee, Hyde v. Watts, 12 M. & W., 254. 502 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. of his own neglect, to annul the contract, (/^) but the condi- tion will entitle him to rescind the contract if, having done all that is incumbent on him, he fails to show a good title, (i) But whei'e the right to rescind is limited to arise in case of his being unable or unwilling to do the act, the case is of course diiferent, and he is generally exemx)ted at his election from any obligation to do the act.(y) § 10^6. Instances of the exercise of this right to rescind may be found in the following cases. {7c) The contract stipu- lated that if from any cause whatever the purchase was not completed by the time specified, the vendor was to be at liberty to annul the contract. At the day appointed the parties met, and the vendor oifered and the purchaser accepted the vendor's undertaking to satisfy certain unsatis- fied requisitions. Nevertheless the purchaser refused to pay the purchase-money, whereupon the vendor said that he would annul the contract if the money was not paid : the purchaser refused to j)ay till the requisitions were satisfied : the vendor on the same day annulled the contract by notice, and successfully maintained a bill for an injunction to restrain any proceedings at law on the contract. (Z) § 1027. In another case, one condition i)rovided that if any objection to title were persisted in, the vendor might rescind the contract : another provided that if any mistake should appear in the description of the property or of the vendor's interest therein, compensation should be given. A question arose as to the rights of the lord of the manor to certain mines or minerals, the purchaser claimed compensation and the vendor rescinded : the pur- chaser brought his bill for performance with compensation : the vendor relied on his rescission. The court held that the question in dispute was one of title, and that the vendor was therefore entitled to rescind, (m) § 1028. A condition enabling the vendor to annul the sale if the purchaser should make any objection or requisi- tion which the vendor should be unwilling on the ground of expense or otherwise to comply with, does not enable a (A) Greaves v. Wilson, 25 Beav., 290; cf. Re ever Powell v. Powell, L. R. 19 Eq. 422; Re Jackson & Oakshott, 14 Ch. D., 851. Jackson & OakshoU. 14 Ch. D., 851. (i) Page V. Adams, 4 Beav., 269. (k) See too infra, §§ 11G4. 1165. U) Tanner V. Smith, 10 Sim., 410; Morley (I) Hmlson v. Temple. 29 Beav., 536. DIs- V. Cook, 2 Ila., 106; Duddell v. Simpson, L,. tlnfculsh Turpin v. Chambers, ib., 104. R. 2 Ch., Wi, varying S. C. L, R. 1 Eq., 578; (m) Maweon v. Fletcher, L. R. 10 Eq., 213; Gray v. Fowler, L. R. 8 Ex , 249. See how- 6 Ch , 91. THE RESCISSION OF THE COISTTRACT. 503 vendor who shows no title whatever to rescind. Such a vendor was consequently made to pay damages for his non- performance, ill) § 1029. Where a right to rescind a contract must be •exercised within a reasonable time after it arises, or at any time before it is waived or abandoned, may be open to question, (o)' But it is conceived to be clear that a party who, having a right to rescind, either himself does some act under the contract which involves or im]olies the con- tinued existence of the contract, or suffers the other party to do such act without asserting the right to rescind, has thereby lost that right. § 1030. Thus where conditions of sale stipulated that if there was any objection which the vendor should be unable or unwilling to remove he might rescind the contract, and the purchaser should be entitled to his deposit without interest or costs, it has been held that such a condition is confined to the objections first taken after the abstract is delivered, and that a treaty between the parties for the completion of the purchase is a waiver of the condition, (7:») It being, of course, evidence of the vendor's willingness to remove the objection.' Such a condition will apply, if it be acted on by the vendor the moment the defect is kno^Ti to him, but will not allow him to spend time in fruitless efforts to remove the objection, and then to rescind the contract on the terms of the condition. (^) And so where money is pay- able by instalment, and there is a power to rescind on breach of the contract, the receipt of money due on a subse- quent instalment is a waiver of the right to rescind for (n) Bowman v. Hyland, 8 Oh. D., 588, and 952; Ker v. Crowe, L. R. 7 C. L,., 181; and see Re Jackson & Oakshott, 14 Ch. D., Sol, supra, § 709. cited infra. Part V. , chap 1, § 1165. (p) Tanner v. Smitli, 10 Sim., 410; Morley (0) See Morrison v. Universal Marine In- v. Cook, 2 Ha., 1C6. See, also, Cutis v. surance Co., I.. R. 8 Ev., 40, 197, particularly Thodey, 13 Sim , 206. ^05; and see Marsden v. Sambell, 28 W. K., (q) Md ulioch v. Gregory, 1 K. & J, 236; Lane v. Debenham, 17 Jur., 1005. * The same doctrine obtains at law. Canfield v. Wescott, 5 Cow., 270; Man- cius V. Sergeant, id., 371; Church v. Ayres, id., 272. But when a contract shall be thus rescinded, if there be a mode of rescission provided, it must be rescinded in that way. McKay v. Carrington, 1 McLean, 50. * And an application for a rescission must likewise be made as soon as the cause of rescission is discovered. Ayres v. Mitchell, 3 S. & M., 683. In aU cases there must be promptness on the part of the one seeking the rescission; he must move in the matter on the first knowledge of the breach ; and if, after knowledge of the violation of the contract, he negotiates with the other party, he waives all right of rescission. Lawrence v. Dale, 3 John.'s Ch., 23; McKay V. Carrington, 1 McLean, 50. 504 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. default in respect of a previous one.(r) So the receipt of royalty at a reduced rate is a bar to the exercise of a right of rescission reserved on the non-payment of royalty at a higher rate. (5) § lOSl. Where the contract stipulates for a right of rescission in respect of separate breaches, the waiver of one will not waive another : so that where there was a contract for the payment of money by instalments, and that time should be of the essence, and further, a power to rescind on breach of the contract, it was held that each default of pay- ment of an instalment at the stipulated time was a fresh breach of the contract, on which the right to rescind arose. (^) § 103:3. Where there are conditions for compensation and for rescission('?^) the courts will, for obvious reasons, generally construe them so as to confine the right to rescind to cases not within the condition for compensation. Thus, in a case in which j^iarticulars of sale by error, but without fraud or gross negligence on the x)art of the vendor, described part of the property as a customary leasehold holden of a manor renewable every twenty-one years on payment of a customary fine, and the property was in fact holden only for a term of twenty-one years with no customary right of renewal ; the fourth condition of sale, after providing for the delivery of the abstract and of objections to the title, stipulated that the vendor should be at liberty at any time after the delivery of such objections to vacate the sale, and that the deposit was thereupon returned without interest, costs, or other compensation ; the fifth condition of sale provided that the purchaser should accept the existing lease and the assignment to the vendor as a sufficient title to this property ; and the sixth condition stipulated that if through any mistake the estate should be improperly described or any error or mis-statement be inserted in the particular, the same should not vitiate the sale, but that conijpensation should be made by either party, as the case might be. The purchaser tiled a bill for specific performance with com pensation, contending that the error was within the sixth condition : the vendor resisted performance and sought to vacate the contract, on the ground that it was within the (r) Hunter v. Daniel, 4 Ha., 420. (t) Hunter v. Daniel, 4 Ha. , 420. (») Warwick v. Hooppr, .3 Mac. & G., 60. {u Cf. infra, §§ 1258, 1259. See, also, Langridge v. Payne, 2 J. & H., 423. THE KESCISSION OF THE COXTKACT. 505 fourth condition. Lord Hatlieiiy (then V. C), referrino- to the fifth condition as exi^laining the nse of the word title in the condition, held that this was rather a mis-statement of the subject-matter of the sale than of the vendor' s title to it, and therefore within the sixth and not within the fourth condition of sale ; and he accordingly enforced specific per- formance with compensation -.{v) and Lord Romilly, M. R., put a like construction on similar conditions in a similar case, (w) § 1033. It remains to remark that the plaintiff, bringing an action for the specific performance of a contract, may claim in the alternative that, if the contract cannot be enforced, it may be rescinded and delivered up to be can- celled, (re) provided that the alternative relief is based on the same state of facts, though with different conclusion as to law. (7/) When the action is brought by the vendor, and the purchaser has been in possession, this alternative claim may embrace an account of the rents and profits. (2) But, for the reason already stated, an action to set aside a trans- action for fraud or, in the alternative, for specific per- formance of a compromise cannot be sustained, (a) 5. Rescission on the ground of fraud or mistake. § 1034. Either party to a contract who has been led into it by fraud may rescind the contract: (6) and either party to a contract who by fraud of the other part}- has been pre- vented from obtaining the full benefit of it may rescind the contract. (c) This right is discussed in the chapter on fraud. ((^Z) Mistake is also under some circumstances a ground for rescission, (e) 6. Wliere one party has refused to perform or unreas- onably delayed performance. § 1035. Where one party to a contract absolutely refuses (f) Painter v. New by, U Ha., 26; Xelthorpe (z) Williams v. Shaw, 3 Russ., 78 n. V. Holgate.l Coll., 203. Pee, also, Mawson v. (a) Cawley v. Poole, 1 H. & M., 50. Dis^ Fletcher, L. R. Id Eq., 2]2; 6 Ch.. 91. tinjtuish Bagot v. Easton. 7 Ch. D., 1. (M)) Hoy V. Smithies, 22 Beav., 510. (b) Onions v. Cohen, 2 H. & M., 354, 361. (a;) Moseley v.Virgln,3Ves., 184; Costigan (O Panama &c. Telegraph Co. v. lurjia- V. Hastier, 2 Sch. & Lef., 160, 166; Stapylton rubber, etc , Co., L. R. 10 Ch., 515. V. Scott. 13 Ves., 425; Clarke v. Fauxe. 3 (d) Supra. Pait III., chap, xiv., § 673 et Rns.-. 32(1 ; King v. King, 1 My. & K., 442; eeq. ; and ci. Cargill v Bower, 10 Ch. D.. 502, Douglass V. London and >»orth- Western Rail- and per Lord Blackburn in Brownlie v. way Co., 3 K. & J., 173; Forster v. Great Can pbill, 5 App. C. 949 Eastern Railway Co., W. X. 1868, 122. te) See supra, § 750; and cf. Cullen v. {y) Rawliugs v. Lambert, 1 J. & H., 458, O'Meara, I. R. 1 C. L.,640, 4 C. L., 53/ (mis- and see Ord. XIX. r. 8. description). 506 FRY ox SPECIFIC PEUFOllMANCE OF CONTRACTS. to perform his part of the contract, either before or after the hour for perfoniiaiice lias arriYed,(/) the other party may accept that refusal and thereupon rescind the contract. So that wlKn-e a man contracted to buy straw to be deliv- ered by instalments, and to pay on delivery, and after a time refused to pay for the last load delivered and insisted on always keeping one payment in arrear, the other party was held entitled to rescind the contract. (^) But to justify rescission for this reason, the refusal to perform must not be mere non-performance or neglect in performance : " there miist have been something equivalent to saying ' I rescind the contract,' — a total refusal to perform it, or something equivalent to that which would enable the plaintiff on his side to say, ' If you rescind the contract on your part, I will rescind it on mine.' "(7^) In an earlier case in the Queen's Bench, these cases were exj^lained by Coleridge, J.,(/) as depending upon the concurrence of the parties in the rescission, so that they may reallj^ be considered as cases in which an agreement to rescind is proved by the acts of the parties.,/) § 1036. Where, on becoming insolvent, a contracting party practically gives notice to his creditors and those who have contracted with him that he does not mean to pay any of his debts or j)erform any of his contracts, there is a refusal which may be accepted by the other side, and that by conduct as well as by express rescission. (^') § 1037. The right to rescind which arises from unreason- able delay in performance will be considered in the next chapter. (/) 7. W7iere one party leas made performance impossible.. § 1038. It is a clear principle of law that if by any act of one of the parties the performance of a contract be rendered impossible, the other party may, at his election, rescind the contract, (m) so that where A. contracted with B. to supply B. with a chariot for five years, which A. was to repair, and (/■) Danube and Black Sea Railwav.etc, Co. (ft) Ex parte Chalmers. L. R. 8 Ch , 289; V. Xenos.ll C. B X. 8 .ISi; 13 C H. N.S.,825. Morg;ni v. Bain, L. R. 10 C. P , 15; Cf. Scrim- {(1) Withers V. Reynohls, '2 B. & Ad., 882 geour's claim, L. R.. 8 Ch., 921. (/i) Ehrcnsperger V. Anderson, 3 Ex., 148, (/) See too Micholls v. Corbett, 34 Beav., per Parke B , 158; Freeth v. Burr, L. R. 9 C. 376. P . 208 im) Panama, etc.. Telegraph Co. v. Indla- (t) Franklin v. Miller, 4 A. & E., .599. rubber, etc., Co., L. R. 10 Ch. 515, 532. (j) See further 2 Smith, L. C 35 et seq. (Sth ed.) THE RESCISSION OF THE CONTRACT. 507 before the five years had expired A. made over the chariot to his successor in trade and thereby disabled himself from performing the unperformed part of the contract, B. was held at liberty to rescind it.(7i) Similarly it seems queer that a contract to convey an estate may be rescinded if the vendor convey the estate to a third person :{o) that a con- tract to pay in goods may be rescinded if the payer part with the goods :(^j) that a contract to write an essay for a particular series may be rescinded if the publisher finally abandon the series :{q) that a contract to accept and pay for a telegraph cable on the certificate of an engineer may be rescinded if the party to deliver the cable bribe the en- gineer, (r) § 1039. The impossibility must, it seems, arise in respect of some substantial or essential part of the contract ■,(s) though it is not perhaps clear on principle why a contract- ing y)arty who disables himself from performing modo et forma should be at liberty to allege that the incapacity which he has produced is in a non-essential particular. § 1040. But even though the particular in respect of which the impossibility arises may not be of the essence of the contract, yet if it be brought about by the fraudulent misconduct of the defendant, the plaintiff's right to rescind is clear 'in equity. Thus where Company A. contracted with Company B. to lay a telegraph cable for Company B., and then bribed the engineer for whose services in certify- ing as to the work the contract provided, Mellish, L. J., held that even if the certificate of the engineer could not be considered so much of the essence of the contract that the plaintiff would at common law have been entitled to rescind, yet that the fraudulent misconduct of the defendant com- pany having made it impossible that the plaintiff company could have the full benefit of the contract, they were at liberty to rescind. (?^)' (n) Robson v. Drummonil, 2 B. & Ad., 303. (r) Panama.etc.TelegraphCo.v. India-rub- (o) Palmer V. Temple, 9 A. & E. ,50b; Love- ber, etc., Co. b. R. 10 Ch.. 51o. lockv Franklyn, 8Q. B., 371:Fordv. Tllley, (s) Panama, etc., Telegraph Co. v. India- 6B &'0 325 rubber, etc., Co., L. R. 10 Ch., 532. (p) Keyes V. Harwood, 2 C. B., 905. (t) Panama, etc.. Telegraph Co. v. India- iq) Planche v. Colburn. 8 Blng., 14. rubber, etc., Co , L. R. 10 (Jh., 515. 1 Tender. '\ A party agreed to pay a part of the purchase price by executing and delivering his bond, with a mortgage upon the hind, and the balance in cash upon delivery of the deed upon a day specified. Defendant agreed to ■deliver the deed when so paid. The parties met ; defendant produced a deed 508 FRY ox SPECIFIC PFKFORMANCE OF CONTRACTS. bearins? date the day the contract was executed; plaintifE produced and handed to defendant the Ixmd and mortgage, and had a certified check for the cash to be paid; neither party made a tender. Defendant claimed that he was entitled to interest on the whole purchase money from the date of the contract ; the matter was discussed and defendant left the room for consultation. Upon liis return he offered to carry out the contract according to its terms. In an action to compei specific performance, held, that a formal tender was not necessary in order to maintain the action. The defendant having taken an untenable ground, if he changed his views, or receded from his position, he was bound to notifv plaintiff, and his refusal to pass the title, except upon payment of the interest claimed, was a good excuse for not making a tender. Selleck v. Tall- man, 87 N. Y., lOG. The possession must be exclusive and absolute.'] The possession, in order to- satisfy the statute, must be exclusive and absolute: must not be as a tenant in common or as a joint tenant; it must be actual, open and notorious. A merely technical possession will not answer. Elliott v. Thomas, ;3 M. & W., 170;. Mills V. Hunt, 17 Wend., 838: Smith v. Underdunk, 1 Saudf.'s Ch., 579; .Jones V. Pease, 21 Wis., 644; Briggs v. ^hisking, 25 Eng. L. and Eq , 257; Bout- well V. O'Keefe, 32 Barb., 434; McKnight v. Dunlop, 5 N. Y., 537. Parol partition between several grantees.'] Where there are several grantees of real property, a parol partition between themselves, if followed by actual pos- sessession, is sufficient to take the case out of the operation of the statute. Corbin v. Jackson, 14 Wend., 619; Piatt v. Hubbell, 5 Ohio, 243; Williams v. Pope. Wright, 406: Ebert v. Wood, 1 Bin , 216; Cummins v. Nutt, Wright, 713; Calhoun v. Hays, 8 Watts & Serg., 127; Wilday v. Bonney, 31 Miss., 644. This is not true, vvhere possession is not taken. Shoe v. Derrick, 2 Rich., 627^ An action of ejectment was pending, and the parties verbally agreed to divide the property, each holding their respective shares in severalty; all entered into- possession. Held, that "there is no substantial differences in principle between such an agreement when carried out by taking possession in severalty under it, and a parol partition of land between parties in possession and claiming title, accompanied and followed by possession by each party of the part conceded to him " Handy, J., in City of Natchez v. Vandernelde, 31 Miss , 706. JDivii<.ion line, acceptance and possession under.] A disputed boundary line- may be settled by an express parol agreement, where possession is immediately entered upon ; the parties, in such a case, cannot afterwards, set up the statute of frauds as a defense. Boyd v. Graves, 4 Wheat., 513; Jackson v. Corlear, 11 Johns., 123; Jackson v. Dyeling, 2 Caines, 198; Davis v. Townsend, 10 Barb., 333; Lindslev v. Springer, 4 Harring. (Del.), 547; Fuller v. County Commr., 15 Pick., 81; Blair v. Smith, 16 Mo., 273; Kipp v. Norton, 12 Wend , 127; Adams- V. Bockwell, 16 id., 285; Yorborough v. Abernathy, Meigs, 413. Exclxunge of real property by parol possession] "If the evidence shows an unequivocal and complete taking possession of one of the subjects of an ex- change by the party owning the other subject, it strengthens the evidence of possession taken by the opposite parly of the corresponding subject. Proof of possession that might seem weak and inconclusive, in the case of a parol sale, is thus made convincing in the case of an exchange." Agnew, J., in Mossv. Culver, 64 Pa. St., 4l4; see, also, Johnson v. Johnson, 6 Watts, 370; Bennett v. Abrams, 41 Barb., 619; Cauldwell v. Carrington, 9 Pet., 86; Beebe V. Dowd, 22 Barb., 255; Parrill v. McKinuey, 9 Graft., 1 ; Reynolds v. Hewett, 27 Pa. St., 176. In Miles v. Miles, 8 Watts & Serg., 135, it was held, that notwithstanding each party did not take immediate possession of his allowance, yet a parol exchange of land might be valid. Irnpi-ovements to real property upon the faith that it will be p)resented.] Where- there has been an actual delivery of possession, and valuable improvements made of which the donor had knowledge, a parol promise that land would be deeded to another will be specifically enforced. Freeman v. Freeman, 39 N. Y. , 34; see, also, Haines v. Haines, 4 Md.'s Ch., 133; S. C, 6 Md., 435. Improvements made on land of child under parol gift] In order that a parol contract for the gift of land from a father to a sou can be sustained, all the THE EESCISSION OF THE CONTRACT. 509 acts necessary to its validity must have special reference to it, and not to any- thina; else; tlie terms of the'contract must be clearly settled. The fact that the father has called the land his son's property, is not alone sufhcient. Hugh v. Walker, 12 Pa. St., 173: Cox v. Cox, 2G id., 373; Poorman v. Kilgore. id , 305; King V.' Thompson, 9 Pet.. 204; Eckert, v. Mace, 3 Pear. & Watts, 3G4; Shell- hammer V. Ashbaugh, 83 Pa. St., 24; Sower v. Weaver, 84 id., 2G2. Where large expenditures have been made, which have resulted ia the permanent im- provement of the estate, in consideration of his parol promise to couvej' the same, and with his knowledge, in such case the court will enforce the promise. Young V. Gleudenning, (i Watts, 509; Willis v. Mathews, 46 Tex., 478; Lob- dell V. Lobdell, 3G K Y., 327; Moore v. Pierson, 6 Iowa, 279; Golhiarth v. Golhiarth, 5 Kan., 402; Bright v. Bright, 41 111., 101; Hardisty v. Richard- son, 44 Md., G17; Lewis v. George, 33 Mich., 253; Atkinson v. Jackson, 8 Ind., 31; Savler v. Eckhart, 1 Bin., 378; Davidson v. David.son, 13 N. J. Eci., 246; France v. France, 8 id.. 650; Laur v. Henry, 39 Ind., 414; see, however, For- ward V. Annistead, 12 Ala., 124. 510 FRY OX SPECIFIC PERFORMANCE OF CONTRACTS. CHAPTER XXV. OF THE LAPSE OF TIME, § 1041. The lapse of time before application to the court for its interference to enforce an uncompleted contract, or the fact that the plain tiil has not performed his part of the contract at the time speciiied, may furnish grounds of defense to an action for specific performance. 5j 1042. Before the judicature acts, the plaintiff in a conjmon law court had to show that all things on his part to be performed had l)een performed within a reasonable time, or, where a time was specified in the contract, within the time so specified : and at common law time was thus always of the essence of the contract. («) But in equity the question of time was differently regarded, for courts of equity discriminating between these formal terms of a con- tract, a breach of which it would be inequitable in either party to insist on as a bar to the other's rights, and those which were of the substance and essence of the contract, (&) and applying to contracts the principles which governed the interference of those courts in relation to mortgages, (c) held tiniH to be ^;rma facie non-essential, and accordingly granted specific performance of contracts after the time for their performance had been suffered to pass by the party asking for the intervention of the court, if the other party had not shown a determination not to proceed, {dy ' ' When ' * (a) Berry v. Young, 2 Esq., 640 n ; AVilcle ib) Parkin v. Thorold, ]6Beav.,59. V. Fort, 4 Taunt. 334; Stowell v. Robinson, 3 (c) See per Lord Eldon in Seton v. Slade, 7 IJing X. C, 9i8; Alexander v. Godwin 1 Ves., 273. Bing N. C.,671; Vernon v. Stephens 2 P. (d) Pincke v. Curti8,4 Bro. C. C, 329; Rad- Wms.. 6G; and cf. Xoljie v. Edwardes, 5 Ch. cllffe v. Warrington, 12 Ves., 326. See per D , 378. Where a condition as to time is a Lord Kede8i\', neces- sarily preclude the right to fulfill them afterwards, and apply to equity a cor- responding f ultiUmcut by the other part3\" 512 FKY OX SPECIFIC PERFOUMA^XE OF COXTP.ACTS. tracts in a court of equity, receive in all courts the same construction and effect as tl'iey would formerly have received in equity. (/) In other words, the doctrines and rules of equity as to the effect of of lapse of time are now applicable to and govern every contract that falls within the jurisdic- tion of any of the courts, superior or inferior, (r/) of this country. These doctrines and rules then we now proceed to con- sider. § 1044. It is proposed to discuss the subject in hand under the following heads, viz.:— (1) Cases where time was originally of the essence of the ■contract : (2) Cases where time, though not originally of the essence of the contract, has been engrafted into its essence by subsequent notice : (3) Cases where the delay has been so great as to consti- tute laches disentitling the party to the aid of the court, and evidencing an abandonment of the contract irresi^ec- tively of any particular stipulation as to time : (4) Cases where time does not run : (5) Cases where the objection on the ground of lapse of time is waived. 1. Time originally of the essence of the contract § 1045. Time is originally of the essence of the contract in the view of the court of equity, whenever it appears to have been part of the real intention of the parties that it should be so, and not to have been inserted as a merely formal part of the contract. (/^^ As this intention may either be separately expressed, or may be implied from the nature or structure of the contract, it follows that time may be originally of the essence of a contract, as to any one or (/) Jud. Act., 1873. 8. 25 (7) ; Jud. Act, 1875, (p) See Jud. Act, 1873, b. 91. 8. 10. Cf. Noble V. Edwards, 5 Ch. D., 378. Qi) Hipwell v. Knight, 1 Y. & C. Ex., 401. • Therefore the time of payment, in a contract for the sale of lands, may be made of the essence of the contract, and on a default, without excuse, or any acquaintance or waiver on the part of the vendor, equity will not aid the vendee. Reed v (Chambers, 6 Gill & J., 490. See Wells v. Smith, 2 Edw. Ch., 78; S. C. 7 Paige, 23; Smith v. Brown, 5 Gilm., 305. So where a certain act has been clearly stipulated to be done within a given time, as, for example, giving security, a party will not be relieved against his failure to perform the act at the time specified. Doar v. Gibbes, 1 Bailey's Ch., 371. THE LAPSE OF TIME. 513 more of its terms, either by virtue of an exi^ress condition in the contract itself making it so, or by reason of its being implied. It will be convenient to consider the cases sei)ar- ately ; premising, however, that the point that time is of the essence of the contract is one which should be made by the party insisting on it without delay. (i)' (i) Monro v. Taylor, 8 Ha., 51, 62. ' 2'ime when a contract is complete.'\ Tlie time when the negotiation cul- minates in an agreement is often of importance. When the answer containing the acceptance of a distinct proposition, is dispatched by mail or messenger, if due dilligence is used, and no intimation that the offer has been withdrawn has been received, completes the contract. Adams v. Lindsell, 1 B. & A., 681; Mactier v. Frith, 6 Wend., 103; Levy v. Coke, 4 Ga., 1; Bri.sbane v. Boyd, 4 Paige's Ch., 17; Averil v. Hedge, 12 Conn., 426; Hamilton v. Lyeswing Ins. Co.. 5 Pa. St., 339; Abbott v. Shepard, 84 N. H., 14; Stockton v. Stockton, 32 Md , 136; Chicago R. R. Co. v. Done, 43 N. Y., 260; Potts v. Whitehead, 20 N. J. Eq., 55; Kent's Com. (9th ed.), 640. The agreement is held to date from the posting, and not from the receipt of the letter. Potter v. Saunders, 6 Hare, 1; Brisbane v. Boyd, 4 Paige's Ch., 17; Vassar v. Camp, 11 N. Y., 441; •Clark V. Dales, 20 Barb., 42; Falls v. Garther, 9 Porter, 605; Chiles v. Nelson, 7 Dana, 281; Levy v. Coke, 4 Ga.. 1; Averil v. Hedge, 12 Conn., 424; Beck- with V. Cheever, 21 N. H., 41; Bryant v. Boone, 55 Ga., 438, contra, McCul- loch V. Eagle Ins. Co., 1 Pick., 278; Hayer v. Middlesex Ins. Co., 10 Pick., 326; Gillespie v. Edmonston, 11 Humph., 553. When time made a distinct feature of tlie contract.'] It makes no difference what the nature of the subject matter is, the time for the performance of the agreement will be regarded, when the time of performance appears to have been made a distinct feature of the transaction. Ganetson v. Vanloon, 3 Iowa, 128. Want of miitiialifi/, time "-of the essence."] Where there is a want of mutual- ity in the obligations arising" from the transaction, in equity as well as at law, time is of the essence. Manghlin v. Perry, 35 ]\Id., 352; Magoffin v. Holt, 1 Duvall, 95. Mmj i^tipidate that time >i)7. 1 Time is of the essence of the contract wherever it appears material to the parties, and, therefore, where the value of the property has greatly diminished and injustice might be done, equity will not decree a specific performance. McKav V. Carriugton, 1 McLean, 50. '1 hercfore, in Pillow v. Pillow, 3 Humph., G4-4, where it was agreed between a judgment creditor and debtor, that the latter should pav the judgment in land, at a value to be fi.xed by per- sons designated, and the debtor defeated the performance of the agreement until his^land had risen in vahie. it was held that he could not maintain a bill to compel a specilic performance of the agreement. See, also. Holt v. Rogers, 8 Pet., 420 And where land lias been purchased to sell, and such a purpose a lawful one, which may be considered by a court of chancery, time will be deemed of the essence of the contract. 3IcKay v. Carriugton, 1 :McLcan, 5U; see .Jones v. Robbins, 20 Me , 351. 2 "It seems the doctrine of the court that in almost every case, except the purchase of lands in fee simple (but in that case only by express agreement ; Sug. V. & P., 2112), time will be considered as of the essence of a contract. The cases establish that it will Im considered essential in tlie ]-turchase of a house for residence (Levy v. Linds, 3 Mt-r., 81), or of lands or houses tor the purposes of trade (Coslalie v. Till, 1 Russ., 376; Walker v. JeflVeys. 1 Ha., 341), 518 FF.Y ON SPECIFIC PKKFOKMA^CE OF CONTKACTS. § 10."51. And so, again, where the object of the contract is a commercial enterprise, the conrt is strongly inclined to hokl time to be essential, whether the contract be for the pnrcliase of land for such jjurpose, or more directly for the prosecution of trade. (c) This principle has been acted on in tlie matter of a contract respecting land which had been purchased for the erection of mills, (cZ) and in several cases of contracts for the sale of public houses as going con- cerns, (e) For the purchaser of a public house presumablj'^ buys it for the purpose of carrying it on, and it would be ruinous to him if he were kept out of it.(/) § 105'3. The same principle applies with especial force to contracts relating to mines. The nature of all mining transactions is such as to render time essential: 'for no science, foresight, or examination can afford a sure guar- antee against sudden losses, disappointments, and reverses, and a person claiming an interest in such undertakings ought therefore to show himself in good time willing to partake in the XDOSsible loss as well as profit. (^7) 'So -in several cases time has been held of the essence in contracts for the sale of mines and works. (7^) § 105S. Again, where the contract had relation to the supply of coal, and eleven months -were allowed to elapse before filing the bill, the article being one fluctuating from day to day in its market price, the court held the delay a ground for declining its interference :(?') and where the contract contemplated the payment of moneys to be applied (c) Walker v. Jeflfteys, 1 Ha., 341, 348; gastv. Turton, 1 T. & C C. C , UO, and in CoBlake v. Till, 1 Russ., 376, Clegg v. Edmondfion, 8 De G. M. & G., 814. (rf) Wright V. Howard. 1 S. & S., 190 (A) Parker v. Frith, 1 S. & S., 199 o.; per (e) Senton v. Mapp. 3 Coll., .556 (where the Lord Eldon in City of London v. Mitlbnl, 14 essentiality of time was arrived at from the Ves., .58; Walker v Jeffrevs, 1 Ha., 341; AUo- conditions as well as from the subject- way v. Braine, -26 Beav., 57.5; and of. Eacls v. matter); Day v. Luhke, L. R. .5 Eq., 336; Williams. 4 De G M. & G . 674; Clegg v. Cowles V. Gale, L. R 7 Ch., 12. .see too Edraondson. 8 ib 787; Uuxham v. Llewellyn, judgmentof Hall, V.C.,m Westonv. Savage, 21 W. R.. 570,766; Glasbrook v. Richardson, 10 Ch D., 741, and Claydon v. Green, L. R. 3 23 W. R., 51; intra, § 1078. C. P., 511. (i) Pollard v Clayton, 1 K. & J., 463; per (/) Per James, L. .J., in Cowles v. Gale, L. Lord Re(iesdale iu Crofton v. Orrasby, 2 Sch. R. 7Ch,l.-. & Lef,, 604 Cf. Huxham v, Llewellyn, 21 (g) Per Knight Bruce, L. J,, in Prender- W. R., 570, 766; infra, § 1079. in dealing for reversionary interests (Newman v. Rogers, 4 B. C C, 391), or concurrent leases (Carter v. Dean of Ely, 7 Sim., 2lT), where the contract is for the grant of an annuity for the life of an individual (Withy v. Cottle, T. & R., 81), and in covenants to renew leases for lives or years (Eaton v. Lyon, 3 Ves., 690). where the contract relates to stock in the pul)lic funds (Forrest v. Elwes, i Ves,, 492), or where there is a reference to ar))itrators as to the price (Morse v. Merest, 6 Mad., 27), or where the vendors are an ecclesiastical cor- poration or other fluctuating body. Carter v. Dean of Ely, ubi sup." Batten Spec. Per., 12(3, 127; see Southern Life Ins. Co. v. Cole, 4 Flor., 359. THE LAPSE OF TIME. 519 towards obtaining patents, time was from the nature, of the object in view held to be of ^^e essence. (./) § 10."5i. So, again, where a contract specified a time by which calls were to be paid up, or in default the shares were to be forfeited ;(^) and where a contract gave an option to be exercised before a certain time to convert loan notes into shares :(Z) in both these cases time was from the nature of the subject-matter of the contract held to he essential. § 1055. The case of Macbride v. Weekes(m) is a strong illustration of this principle ; for there the plaintiif by the contract undertook to purchase a field adjoining his own, •to procure an assignment of a term, and to do other things which usually require time : but the nature of the subject- matter of the contract, which was a colliery, was held to make time of the essence of the contract, to the extent of rendering it incumbent on the vendor to use his utmost diligence in completing the contract, and giving the pur- chaser a right to decline completing, if the vendor failed in so exerting himself. In this case the purchaser, after little more than two months had elapsed from the date of the contract, gave the vendor notice that, unless he completed it within another month, the purchaser would rescind, and the time so limited by the purchaser was held to be, under the circumstances, reasonable. § 1056. The essentiality of time may also be implied from the surrounding circumstances connected in each case with the particular contract. (?i) Thus where a man pur- chasing a house with the object of immediately occupying it as his own residence stipulated in the contract that pos- session should b§ given on a specified day, and the vendor failed to show a good title by that day, it was held that the stipulation as to time was of the essence of the contract, (o) and the vendor, though he offered actual possession, failed to enforce specific performance, (i?) Possession in such a contract means possession with a complete title previously shown. (^) U) Payne V. Banner, 15 L. J. Ch , 227. (w) Per Turner. L. J., in Roberts v. Berry, (k) Sparks V. Liverpool Waterworks Co., 3 Ue G. M. & G., 291. «„„♦..„.„ ok 13 Ves. 428 (o) See Gedye v. Duke of Montrose, 26 («) Campbell V. London & Brighton Rail- Beav.,4.V t n \ m. r< way CO . 5 H. A., .'■>19, 529. (P) Tilley v. Thomas, L R. 3 Ch. 61. (/«) 22 Beav., 533, 539; cf. Huxham v. (9) Per Rolt L. J., L R. 3 Ch., 6b. As to Llewellyn, 21 W.R., 570,766; and, as to the • possession,' see also Lake v. Dean, 2b Beav., notice, infra, § 1062 et scq. •>""• 520 FKY ox SPECIFIC PERFOTJ.MA]NrCp: OF CONTRACTS. § 1057. The later case of Webb v. Hiighes(r) is not at variance with this principle, bat illustrates a limitation of it. There, too, the house and land, the subject-matter of the contract, were required by the purchaser for immediate residential occupation, but the conditions of sale after nam- ing a day for comp)letion went on to provide that if, from any cause whatever, the purchase should not then be com- pleted, the purchaser should pay interest on the unpaid purchase-money from that day until the actual completion of the purchase ; and it was accordingly held that, inas- much as parties to the contract evidently contemplated the possibility of the conq^letion being x^ostponed beyond the day named, time was not of the essence. The ratio deci- dendi of this case is obviously applicable whatever the nature of the subject-matter of the contract, and it has accordingly been applied even to the sale of a reversionary interest, {sy § 1058. Again, where the members of a company in general meeting agreed to certain conditions on wdiich dis- senting members should be allowed to retire from the com- pany, and one of those conditions fixed a date by which the option to retire was to be declared, the House of Lords held that that date was so essential a part of the arrangement, that the directors had no power to allow any member to (r) L. R. 10 PJq., 281. (s) Patrick v. Milner, 2 C. P. D., 342. ' ^Mle)•e no time hats been desirjnated.'\ An action for specific performance can- Dot Ijc maintained, where no time has been designated for the performance of the contract. Potts v. Whitehead, 20 N. J. Eq., 55. Contracts for the sale of real estate; time not usually "of the essence."'\ In such cases the intent usually is, that the purchase shall be completed within a reasonable time under the surrounding circumstances of the case. Rader v. Nea], Vd W. Va., 374; Chadwell v. Winston, ;3 Teun. Ch., 110; Abbott v. L'Hommedien, 10 W. Va., 677. Parol proof that time was "of the esse7ice."'\ In an action for specific perform- ance, parol evidence may be introduced to show that time was to be considered as of the essence of the contract when it was made. King v. Kuckman, 20 N. J. Eq., 316. When performance icithin a given time material.'] Time is of the essence,, where the other party would be seriously injured by a non-performance within the stipulated time. Doar v. Gibbes, Bailey's Eq., 371. Or, whenever from change of circumstances, a performance, which would alone answer the ends of justice, has become impossible. Pratt v. Low, 9 Cranch, 406; Longworth V. Taylor, 1 McLean, 395; Garnett v. Macon, G Call., 308. See as examples where time was held material, Hipwell v. Knight, 1 Y. & C. Ex., 401; New- man V. Rogers, 4 Bro. C C, 391; Merritt v. Brown, 19 N. J. Eq., 286; Gall v. Archer, 42'^Barb., 320; Edwards v. Atkinson, 14 Tex., 373. THE LAPSE OF TIME. 521 retire who had not declared his option within tlie limited time.(^^) § 1059. Where hardship would result from considering time immaterial, as where delay in completion would involve one of the jiarties in a serious liability or loss, the court will incline to consider time as being of the essence. Thus where a tenant, without any definite interest, agreed for the sale of his goodwill and business to a purchaser to be completed on the 2otli of Marcl), that day Avas considered essential, inasmuch as if the conti^ict were not then com- pleted, the vendor might render himself liable as tenant for the ensuing jen.v.(u) And so, again, where the body to par- ticipate in the purchase-money, being a chapter, was liable to variation, non-payment of the consideration money at the specified time was held fatal to the subsistence of the contract. («)' § 1<$60. Where the vendor stipulates that time shall be of the essence in respect of some of the conditions in his favor, the court inclines to hold it essential in respect of others also against him. Vendors so stipulating for the essentiality of time in their favor, ''cannot fairly," said Knight Bruce, V. C, "complain of being held strictly to the conditions themselves * -^ * The plaintiffs' propo- sition is that the purchaser shall be held b}^ a cable, and the vendors by a skein of silk."(?o) Accordingly where it was, by one clause of the contract, provided that the vendors should deliver the abstract to the purchaser within twentj'- one days from the date of the contract, and by another chmse, that the purchnser should send in his requisitions within twenty-eigiit days from the delivery of the abstract, and in this respect time should be of the essence of the con- tract ; and the vendors did not deliver the abstract until more than two months after the date of the contract ; the court refused to hold the purchaser bound to comi')ly with (t) Houldsworth v. Evans, L. R. 3 H. L., Ch. D., 589; Roberts v I'errj-. 3 De G. M. & 263 G., 292 ; St. Leon. Vend , 227 (?/) Coslake v. Till. 1 Russ., 376; Wells v (ri Carter v DeancfElv 7 Sim . -ni. Max^\ell (No. 1), .32 Beav., 408, aflirmed33 I.. (w) Seaton v. .Miipp, 2 Coll., 556, £.64. J. Ch.,44, IIW. R., 842; Gr. en v. Sevin, 13 ' Dour V. Gibbes, 1 Bailey's Ch., 371; Colcock v. Butler, 1 Dessau., 307, ■where the court refused to tlecree specific performance of a contract for the sale of a house, where there had been a delay of ei;,dit months in completing the house, which had greatly depreciated in the meantime. See .Jackson v. Edwards, 22 Wend., 498. 522 FRY ox SPECIFIC PERFORMANCE OF COTs^TRACTS. the stipulation as to tlie time for sending in requisitions, holding that, in such a case, the time for taking the objec- tions, and the mode in ^^■hit■h they are to be considered as waived, should depend upon the general principles of the court. (i2^) § 1 061 . Where the contract contains stipulations in favor of one party and not of the other,— as, for instance, an option, — or is in anywise unilateral, the court, if it does not consider time as originally of the essence, will, as we shall hereafter see, look at it with more than usual strictness. (2/) 2. Time engrafted hy notice. § iOOS. Where time was not originally of the essence of the contract, but one party has been guilty of gross, vexatious, unreasonable, or unnecessary delay or default in relation to it, the other party becomes entitled to limit a reasonable time within which the contract shall be perfected by the other ; and in default of obedience to such notice the court will not enforce specific performance, but will leave the parties to their strictly legal rights. (2)' It is to be observed that it is only when such delay or default has happened * that this right occurs. There is no general right in either party to limit a time. § 1063. This beneficial principle is of comparatively recent introduction. In a case before Leach, V. C, in 1821, he did not consider it to be then decided that time could thus be made essential by subsequent notice ;(a) and where clear notice had been given that a purchaser would insist on completion by the time specified, Lord Erskine had previously refused to consider time as of moment in the contract. (&) But the principle is now well established. § 1064. It is not, of course, possible for either party arbitrarily and suddenly to put an end to negotiations as to title, (c) or other matters pending between the parties. The time specified by the notice must be reasonable,' i. e. long («) Upperton V. Nickolsoii, L R 6Ch.,436. v. Lamb, 9 Beav., 502; Nokes v. Lord Kil- (w) tiMiC inl'ra, § 1073. AS to the exercise of morey, 1 De G & Sm., 444. oplionH, see Moss v. Barton, L'. K. 1 Eq , 474 (a) lleynokis v. Nelson, 6 Mad., IS. (lease), and Austin v. Tawney, L. K. 2 Cli., (b) Hadclifte v. sVarrington, 12 Ves. 326. 143 (purchase). (c) Taylor v. Brown, 2 Beav., 180; Green (8) Taj lor V. Brown, 2 Beav., 180; Benson v. Seviu, 13 Ch. U., 589. ' Wi.swall V. ItlcGowan, 1 Hoff.'s Ch., 125, expresses precisely this principle. THE LAPSi: OF TIME. 523 enough foi- tlie proper doing of tlie things required to be done -.ifl) if it be not so (and the question of reasonableness must be determined as at the date wlien the notice is given[e]), the notice will fail in engrafting time into the essence of the contract. Thus, in one case, six weeks, being a "less time than the vendor took to furnish the abstract, were held to be an unreasonably short time for the vendor to insist on the ]iurchaser's completing, and the notice was therefore inoperative ;(/") in another case, four- teen da.ys were held not to be a reasonable time- within whicli to require the plaintiffs to produce a deed' and com- plete the title •,{gy and, in another, Avhere, after negotiations as to the title had been going on for upwards of three years, the purchaser gave notice that, unless a good and market- able title were shown and made out within five weeks he would treat the contract as at an end, the notice was held held unreasonable and bad. (A) § 10$lo. But where a vendor has previously refused to remove an objection, a time which would be unreasonably shcn-r in the iirst instance for the removal of it may tlien become a reasonable iDeriod, after which the purchaser nvdy treat the contract as rescinded.r/) § 1060. Again, where a noti«e to rescind was waived in case evidence requisite to prove the title was produced im- mediately, the evidence not having been produced, the bill was dismissed.(/) § 1067. And the nature of the contract rendering expe- dition obligator}^, may make reasonable a notice Avliich would otherwise be too short. Thus, where A. agreed to grant B. a mining lease, and for that purpose undertook to buy a held adjoining his own, to procure an assignment of {d) King V. Wilson. G Beav., 124; but see (No. 1), 32 Beav . 408, affirmed 33 L. J. Ch . Jtacbiyde v. Weekes, 2G Beav., 533; supra, § 44, 11 \V. & , 8)2; Oirecu v. seviu, Crawlord 1055 V. Tuogood, ubi supra (e) Crawlord v. Toogood, 13 Ch. D., 153. (//) McMurray v. Spicor. L. R. 5 Eq., 527. (/) Pcgg V. Wisden. IG Beav., 2;J9. (i) Nott v. iliccard. 22 lieav., 307. {g) Parkin v. Th..rold, 16 Keav , 59 (of S. (j) Stewart v. Smith, G Ua., 22i n. (Leach, C, 2 Sim. N. S. 1). .See too Wells v. Maxwell V. C.) 1 Brashier v. Gratz, 4 Wheat , .528; Rogers v. Saunders, 16 Me., 93; Hatch V. Cobb, 4 .lohu., ooU; Bunuiugtoa v. Israel, 7 Ohio, 97, aud Jacksou v. Logau, 3 Leigh, 161, are all cases to tlie ell'ect that a vendor may determine the con- tract by an express notice that he will consider it at an end, unless the default of the vendee be made good by an immediate jiayment; but Higbj' v. Whitaker, 8 Ohio. I!l8, is an authority to the effect that the contract may be thus deter- mined, without notice, and when the presumption of abandonment is repelled by actual possession. 524 FRY ON SPECIFIC PERFOKMANCE OF CONTRACTS. a term, and do further acts requiring time, and nine weeks elajjsed from tlie contract without any communication from A. to B. to show when the contract was likely to be com- jjleted, and B. then cave A. notice to complete within one calendar month, and in default to rescind the contract ; it was held that the nature of the subject-matter of the con- tract rendered expedition on the part of the lessor essential, and that the month's notice was reasonable. (/»:) § 1068. The notice to engraft time into the contract must be distinct, and unequivocal : thus, a notice that one party would consider the non-performance by a certain day as equivalent to a refusal to perform, was held not to amount to a notice that the contract would then be considert^d as rescinded. (?) The notice should, for certainty, be confined to the next act to be done by the party to whom it is given ' § 1069. It does not appear to be necessary that the notice should be in writing : for this purpose statements made by the purchaser's agent at the time of signing the contract, to the effect that time was essential, were in one case admitted as evidence, (m) 3. Lapse of time constituting ladies or emdencing ahan- donmenl' of contract. § 1070. The Court of Chancery was at one time inclined to neglect all consideration of time in the specific perform- ance of contracts for sale, not only as an original ingredient in them, but as affecting them by way of laches. (^0 But it is now clearly established, that the delay of either i)arty(o) in not performing its terms on his part, or in not prosecu- (fc) Macbryde v. Weekes, 22 Beav., .533. fendant. Whether this makes a difference,. (I) It'^ynolds v. Nel.son, 6 Mad., 18. query. See per Knight Bruce, V. , 458. {m) Nokes v. Lord Kilmorey, 1 De G. & (n) See supra, § l(i46. Sm., 444. In that case the purchaser was de- (o) Rich v. Gale, 24 L. T. (N. S.), 745. 1 Demand of performance before action for specific pejfoj'mcmce.] The court said lu >bvets v. Andrews, 2 Blaclvl, 27-4, that a demand for conveyance "is hest calculated to .secure the specific execution of contracts, and to prevent a multiplicity of suits. Besides, it may be often a convenience to the purchaser, for a variety of reasons, not to receive the title as soon as he is entitled to it; and he may, therefore, prefer its continuance for some time in the vendor. If lie can obtain the title to which he has a right whenever he may choose to de- mand it, he ought not to complain." See, also, Hubbell v. Van Schoening, 49 N. Y., o2(J; Delavan v Duncan, id , 485; Gall v. Archer, 42 Barb., 3---*0; AVnght V. Le Clain, 4 Green (Iowa), 420; Kimble v. Tooke, 70 111., 55o: Crabtree v. Leviugs, 5o id., 52(5; Walker v. Douglass. 73 id., 445; Brown v. Hart, 7 Blackf., 429; Bowen v. Jackson, 8 id., 203; Mather v. Scoles, 35 Ind., 1;. Fairbanks v. Dow, 6 N. H., 2(36. THE LAPSE OF TIME. 525 ting his right to tlie interference of the court by the institu- tion of an action, or, Lastly, in not diligently prosecuting his action when instituted, (^) may constitute such laches as will disentitle him to the aid of the court, and so amount, lor the purpose of specific performance, to an abandonment on his part of the contract.' {p) Moore V. Blake, 1 Ball & B., 62. ' Courts of equity will not aid in enforcing stale demands, where the party has been guilty of negligence, and has slept upon his rights. Piatt v. Vattier, 9 Pet., 4Uo; Hawley v. Cramer. 4 Cow., 717; e'olemau r. Lyne, 4 Rand., 4:j4; Johnson v. Johnson, 5 Ala., 90; Atwater v. F<>wler, 1 Edw Ch , 417; Rich- ardson V. Baker, 5 Call, 514; Craig v. Leiper, 2 Yerg., 198. But it is said that lapse of time is permitted in equity to defeat an acknowledged right, only on the ground of raising a presumption that the right has been abandoned; and this presumption will never prevail against opposing facts and circumstances outweighing it. Nelson v. Carrington, 4 Munf., yj2; Reardon v. Seary, 1 Litt. , 53. And, in Ohio, lapse of time is no bar to a claim where an action of debt would not be barred by the statute of limitations. Fahs v. Taylor, 10 Ohio, !04; See Larrone v. Beam, id., 498 It seems clear, that where nothing is to be done by one to entitle him to specific performance of a contract, lapse of time does not constitute a defense by him to a bill for that purpose, as in case of a bond conditioned to make title as soon as the obligor shall get one. Koen V. White, Meigs, 358. And delaj^ amounting even to apparent negli- gence, maj', it would appear, be explained: and uuder special circumstances, as where there is a difhculty about the title, it presents no bar to relief in equity. King v. Morford, Saxton, 274; Aj'lett v. King, 11 Leigh, 480; Nelson V. t'arrington, 4 Munf., 332; see, also, CouLson v. Walton, 9 Pet., 62. Thus, the coverture of a female complainant, during a great portion of the time of delay, is a circumstance accounting for and excusing the delay. Baker v. Morris, 10 Leigh, 284. In Tate v. Greenlee, 2 Hawks, 486, where the com- plainant w^as married in her infancy, but immediately on the death of her hus- band, asserted her rights, although thirty-five years after the cause of her complaint had accrued, the same doctrine was repeated, and her bill sustained. See, also. Falls v. Torrance, 2 Hawks, 490. Again, where a turnpike company contracted for the purchase of land, and took possession and occupied the land, for the purposes of the company, twenty-three years, the contract was specifically enforced at the instance of the company. New Barbadoes Toll Bridge v. Vreeland, 3 Green's Ch., 157. Upon these same grounds was based the decision in Craig v. Leiper, 2 Yerg., 193. In that case the importance of promptitude was acknowledged, but it was considered sufiicient explanation tBat a part of the delay had been occasioned by the mutual agreement of the parties, and the residue, with the exception of three j^ears, by the in.sanity of the complainant's ancestor who made the contract. The bill was sustained, notwithstanding a delay of thirty years. Poverty, however, is no excuse. Perry v. Craig, 3 Miss., 316. Rule tchere there lias been considerable delay. '\ In such a case either party? when asking specific performance, must satisfy the court that during the whole time he was ready, and intended to fulfill ; and that the delay was not in order to take advantage of a possible change in value of the property. Tiernan v. Roland, 15 Pa. tSt., 429; see, also, O'Fallon v. Kennerly, 45 Mo., 124. Considerable cliamje in value of the property pending delay. 1 The parties will be left to their remedy at law, where they cannot be placed in the situation which they would have occupied had the contract been originally carried out, and the value of the property is ma'^'^'-'^ilv changed. Boston R. R. Co v. Bart- lett, 10 Gray, 384; Brashier v. Gratz, 6 Wheat., 528; McKay v. Carrington, 1 McLean, 50; Demorest v. ilcKee, 2 Grant's Pa. Gas., 248; Finch v. Parker, 49 N. Y., I; Delavan v. Drum, 49 id., 485; Peters v. Delaplane, id., 362; Cluner V. Saratoga Co. Bank, 47 How. Pr., 376; Callen v. Ferguson, 29 Pa. St., 347; 526 FRY ON SPECIFIC PERFOR:\rANCE OF CONTRACTS. § 1071. One of tlie earliest cases tending to establisli tliis principle was Mackreth v. Marlar(7) before Lord Kenyon, M. R. : Lord Loiighboroiigli followed it, and held in one case where a vendor delivered no abstract on or before the day for completion, nor till after an action for the deposit, and the purchaser had demanded back his dejDosit at the (q) 1 Cox, 259. Pickerinii' v. rickeriug, 88 X. H., 400; Ruckiiian v. Cing; 19 N, J. Eq., 360; Jobus V. Norris, 22 id., 102; Pratt v. Carroll, 8 Crancli, 471; Roby v. Cassitt, 78 111., G;]8; Jackson v. Edwards, 22 Wend., 498. Excuse fo?- delay on the part of tlie veiuUf.?^ Equity will not refuse its aid in a case where tlie vendee has made delay in payments, but such delay has not operated injuiiously, and the condition of the parties is the same as if payment had been promptly made; particularly where a reasonable excuse is made for the default. Loui:;\vorth v. Taylor, 1 McLean, :)9o; Spaulding v. Alexander, 6 Bush (Kv). IfiO; Penuock v. Ela, 41 N. II.. 191; Morgan v. Scott, 2(1 Pa. St., 51; Galla\^'ay v. Bau. 12 Ohio, 854; Williston v. Williston, 41 Barb., G35; Trimble v. Elliott, Wright, 810; Farris v. Bennett, 2G Tex., 568; Iluljble v Van Schoening, 49 N Y , o2(J; Barnard v. Lee, 97 Mass., 92; Ewens v. Gor- don, 49 N H., 444. In Coulsou v. Walton, 9 Pet. (U. S.), 62, it was held, that in a case where the complainant had made no default, and had made an attempt to enforce his agreement, that a great lapse of time was not a sufficient bar to prevent a court of equity from decreeing specific performance. Great delay uneicused, laches.] It is now well-settled, that where there is great unexplained delay on tlie part of any of the parties to an agreement, that this will constitute an abandonment of the same, and wili amount to such laches as will bar a court of equity from decreeing specific performance. An unjustified default is ecpiivalent to a re.sci.sion. Getchell v. Jewitt, 4 Me., 350; King V. Hamilton. 4 Pet , 311 ; De Cardova v. Smith, 9 Tex., 120; Haughwort V. Murphy, 2 K J. Eq., 118; jMnrgan v. Bergen, 3 Neb., 209; Vangant v. Mayor of New York, 8 iiosw., 375; Sarter v. Gordon, 2 Hill's Ch., 121; Lud- low V. Cooper. 13 Ohio, 552; Grundy v Wilson, Lift. Sel. Cas , 129; Higby v. Whittaker, 8 Ohio, 198; Richardson V. Baker, 5 Call., 514; Smith v. Hampton, 13 Tex., 459; Hemphill v. Miller, 16 x\rk., 2'\ ; Lawrence v. Lawrence, 2 N. J. Eq., 317; Miller v. Henlan. 51 Pa. St., 265; Childress v. Holland, 3 Ilayw , 274; Kerby v. Harrison, 2 Ohio St., 326; Merritt v. Brown, 3 N. J. Hq., 401; Maddox v. McQueen, 8 A. K. Marsh., 400; Gallon v. Ferguson, 29 Pa. St., 247; Dubois V. Baum, 46 id., 537; Marston v. Humphrej', 24 Me, 513; Shortall v. Mitchell, 57 111 . 161; Hough v. Coughlan, 41 id., 131; Hedenburgh v. Jones, 73 111., 148; Taylor v. Merrill, 55 id.r52; Fitch v. Harding, 73 id., 114; Alex- ander v. Hoffman, 70 id., 114; Fitch v Willard, 73 id., 92. Where the ven- dor attempts to resell the property, or exercises unequivocal ownership over it unexplained, this will imply an abandonment of the contract. Garnet v. Macon, 6 Call., 308. An action for specific performance was held to be based on the ground that the delay constituted laches Thirty-seven years, Ewing V. Beauchamp, 6 B. Monr., 422; thirty-four years, Tate v. Conner, 2 Dev.'s Eq. , 224; thirty years, Ritson v. Dodge, 33 Mich., 463; twenty years, Baird v. Baird, 5 J J. Marsh., 580; Williams v. Hart, 116 Mass., 518; eighteen years. Johnson V. Mitchell, 1 A. K. Marsh., 225; eight years. Brink v. Steadmau, 70 111., 241 In Huffner v. Dickson, 2 Har. 6c Johns., 46, twenty-seven years was held to be no bar in an action for specific performance. Specific performance, delay.] A party bought shares in a corporation from a member of a firm and received an authority authorizing a transfer on the books of the corporation. The seller at that time owned a large number of shares. The purchaser delayed for several months in applying for a transfer of his shares, and during the delav all the shares owned by the seller were sold la other parties, who obtained transfers. The shai^es had in the meantime risen in value. Held, that the purchaser could not in equity demand that a member TPIE LAPSE OF TIME. 527 date for completion, that there was evidence of an abandon- ment of the contract by the vendor, (r) These cases were approved by Lord Alvanley, M. E. ;(5) and finally the doc- trine in question was adopted and acted on by Lord Eldon : thus, for example, in one instance he on this ground dis- discharged a purchaser under a decree, error having been shown in the decree, though the i^arties were proceeding to rectify it.(^) § 1079. The doctrine of the court thus established, there- fore, is that laches on the part of the plaintiff (v/hether vendor or purchaser), either in executing his i)art of the contract or in applying to the court, will del^ar him from relief. "A party cannot call upon a court of equity for specific iierformance," said Lord Alvanley, M. ^.,{u) ''unless he has show^i himself ready, desirous, prompt and eager;" or, to use the language of Lord Cranworth,(«) "specific performance is relief which this court will not give, unless in cases where the parties seeking it come promptly, and as soon as the nature of the case will permit, "(^o) § 14^7S. Where the contract is in anywise unilateral, as, (r) LlOYd V. Collett, 4 Bro. C. C, 469; Har- (v) In Eads v. Williams, 4 De G. M. & G , rington V. Wheeler, 4 Ves , 686^ 691. (s) Fordyce v. Ford, 4 Rro. C. 0. 494 (w) See also Alley v. Deschamps,-13 Ves., (<) Lochmf re v. Brazier, 2 J & W , 287; 225; Williams v. Williams, 17 Beav., 213; Coster V. Turaer, 1 R & My., 311. See also Firth v. Greenwood, 1 Jur. N. S , 866 (VVood, Cubitt V. B ake, 19 Beav., 4.54. V. C.) ; Mills v. Haywood, 6 Ch. D., 202. (w) In Milvard v. Earl Thanet, 5 Ves., 720 n. of the firm who sold the shares, but who was ignorant of the trausactiou, should deliver shares of the same character owned by him. Held further, that the purchaser was entitled to a decree for the amount which he had paid for the shares. Winsom v. Fenno, 129 Mass., 405. Example of great delay.'] See Holt v. Rogers, 8 Pet. (U. S.), 420. And where there was not only delay, but failure of proof. Col vert v. Nichols, 8 B. Mon., 264. Belay by consent.'] It will, of course, operate as a defen.se where a party can show that the delay was acquiesced in, or that the other party has accepted a substitute for a literal performance. Hutchinson v. McNutt, 1 Ohio, 14; Koen V. White, Meigs (Tenn.), 358; Mitchell v. Long, 5 Litt., 71. Example of waiver of paymend. ] The vendee of real estate was distinctly recognized by the vendor as the owner; said vendee Avas asked to refund a' year's tax the vendor Lad paid for the year subsequent to the time fixed for the completion of the cbntract. Held, that it might be inferred that the time of pajnnent was waived. Mix v. Baldne, 78 111., 213. Waiver, where mere Jiad been both delay and depreciation.] The vrrdor ac- cepted payment, and gave a receipt for the same, uotwithsiandir .; U.;;e iiad been delay as to a portion of the payment and depreciation as tc value He'd, that the del-iy was waived. Hale v. Wilkin-?on, 21 Gratt., 75. This case ^ :;s- cited and followed in Ambrobe v. Keller, 22 Gratt., 76".). 528 FKY ox SPECIFIC PEKFOKMANCE OF CONTRACTS. for instance, in the case of an option to purchase, a right of renewal, or of any other condition in favor of one party and not of the other, tlien any delay in the party in whose favor the contract is binding is looked at with especial strict- ness, (.t) On this principle, the delay of a purchaser in deciding whether he will or will not accept the title is an injustice, because tlie purchaser can enforce the contract against the vendor whether the title be good or bad, whereas the vendor can only do so in case of a good title. (2/)' ^ 1074.' So where a railway company agreed to make such crossings as the landowner's surveyor should wiihin one month direct and notify in writing to the company or their engineer, and the surveyor did not give any such direction or notilication until after the expiration of the stipulated time, it was held that the landowner's right to have the crossings made under the contract was lost. (2:) § 1075. But where no time has been oiiginally limited within which a tenant's option to have a lease must be exercised, and the landlord has never called upon the tenant to declare his option, mere lapse of time will not preclude the tenant(a) or his assignee(5) from exercising it. § 1076. Acquiescence in the breach of a covenant will form a bar to its specific performance in equity, (c) § 1077. In many of the cases there has been a general dilatoriness in all the proceedings, so that it is almost impossible to state briefly the actual amount of delay which has been considered to bar the plaintiif ' s right to relief : but some notion of the present doctrine of the court on this point will be gained from the following cases." (X) Allen V. Hilton, 1 Fonbl. Eq., 432; (y) Spurrier v. Hancock, 4 Ves., 667, 673- Brooke V Garrod, 3 K. & J , 62; Lord Raue- 673 lagh V. Melton, 2 Dr. & Sm., 27S; Weston v. («) Earlof D rnley v. London, Chatham Collhis, 13 W. R,510. Distinguish Ward V. and Dover Railway, 1 De G. J. &S.,204, 3 Wolverhampton Waterworks Co., L. II. 13 ib. 24, L. R 2 H. L 43. Eq., 243, and see Austin v. Tawney, L. R. 2 (a) Moss v. Burton, L. R. 1 Eq., 474. Ch., 143, where the necessity of strict com- (6) Buckland v. FaplUon. L. K. 2 Ch., 67. pliance with the terms of option as to time (c) Harrett v. Blagrave, 6 Ves., 104. was recognized, and held to have been satis- fled. ' See, also, Lloyd v. Collet, 4 Bro. C. C, 469; HarriDgton v. Wheeler, 4 Ves., C86; Guest v. Ilomfray, 5 id., 818; Walker v. Jeffreys, 1 Ha., 352; Southcomb V. Bishop of E.xeter, 6 id., 213; Doriu v. Hawey, 15 Sim., 49. - Option to jyurchase-l In such a case, delay on the vendee's part will be re- garded with suspicion. The conduct of the party claiming ^he benefit of such a contract will be closely scaned, and the court will exercise its discretion with great care. Allen v. Hilton, 1 Fonbl. Eq., 432; Brooke v. Gauod, 27 L. J. Ch., 226; Estes v. Furlong, 59 111., 298. Vendor's delay in giving deed.'] A vendor failed to make title for an unrea- THE LAPSE OF TIME. 529 § 1078. In the oldest case of The Marquis of Hertford v. Boore,(<:Z) a delay of fourteen months was not considered a bar to the plaintiff' s bill. But in the comparatively recent €ase of Eads v. Williams, (e) where the contract was for the lease of a coal mine, a delay of three and a half years was considered fatal : in Southcomb v. The Bishop of Exeter,(/) a delay from the 17th of January, 1842, to the 30th of August, 1843, was held to have the same effect : and in Lord James Stuart v. The London and North-western Railway C".,(^) Knight Bruce, L. J., seemed to think that a delay from October, 1848, to July, 1850, must be fatal to such a bill.' § 107t>. Where one j^arty to the contract has given notice to the other that he will not perform it, acquiescense in this by the other party, by a comparatively brief delay in (d) 5 Ves , 711). Wheeler, 4 Ves., 686; Guest v. Horn fray, 5 le) 4 De G. M. & G., 674; cf. supra, § 1052. Ves., 818; Thomas v. Blackman, 1 Coll., 301, (/") 6 tla.,'213. 313; Sharp v. Wright, 28 Biav., 150; .MOore (g) 1 DeG. M. & G.,721; and see also Spur- v Marrable, L. R. 1 Ch. 217. rler V, Hancock, 4 Ves., 667; Harrington v. sonable time, aud not until an action had been commenced to recover back the purchase money paid. Held, that where no material change of circumstances was shown, such vendee was not entitled to relief. Anderson v. Fry, 18 111., 94; Pratt v. Carroll, 8 Cranch, 471; Cadwalader's App , 57 Pa. St., 153; Tay- lor v. Porter, 1 Dana, 421; Watts v. Woddle, 6 Pet., 3S9; Harris v. Kidwell, 7 J. J. Marsh., 382. Unreasonable delay. ] The court will not decree specific performance of a contract in favor of a party who has unreasonably delayed the fulfillment of his part of the contract. Jones v. Jones, 11 Phila. (Pa.), 559. ' In Strickland v. Fowler, 1 Dev. & Bat.'s Ch., 629, a delay of nine years, unexplained, was held a bar to a suit for specific performance of a contract for the delivery of slaves. In Randolph v. Ware, 8 Cranch, 503, a delay of tliirty jears was held to be fatal. In Atkin.son v. Robinson, 9 Leigh, 398, twenty- seven years was thought, when spent in sleeping on their rights, sufficient to preclude relief. In Barett v. Emerson, 6 Monr., 607, twenty years' delay was held to constitute laches. In Caruthers v. Trustees of Lexington, 12 Leigh, 610, a lottery was authorized in lb02, and the funds realized were expended by 1809, most of them passing through the hands of the treasurer, who died in ISIk In 1830 a bill was filed by parties interested, against the repiesentatives of the treasurer, for an account, aud the court refused to entertain the bill, on the ground that it was a stale claim. And in McMillin v. Milliu, 7 Monr., 560, a lapse of five years was held to bar a bill in equity for the specific performance of a parol contract for the sale of land, of which the plaintifl" had not held pos- session. But in Osborne v. Bremar, 1 Dessau , 486, a delay of three years in making title, by a vendor of land, was held to be no answer by him for specific performance of the contract of sale. In Burrows v. McWhann, 1 Dessau., 409, a surety, six years after the death of his co-sur ^y pnicl the debt, and, nearly two years afterwards, demanded contribution of the administrator of his co- suritJ^ Held, that the claim was not barred by lapse of time, the administrator having made no payments Jn the mean time except to himself. In Kinna v. Smith, 2 Green's Ch., 14, the lapse of twelve years, without payment of interest, was not thought to make a stale demand. In Glenn v. Hebb, 12 Gill. & J., 271, where, in 1821, one partner was intrusted with the winding up of the partner- 34 530 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. enforcing liis right, will be a bar : so that, in one case(70 two years' delayin iiling a bill after such notice, in another case(/) one year's, and in a third(i ) (where the contract was for a lease of collieries) five months' like delay were held to exclude the intervention of the court. 4. Whe?'e time does not run. § 1080. Where the contract is substantially executed, and the pkiintiif is m iDossession of the property, and has got the equitable estate, so that the object of his action is only to clothe himself with the legal estate, time either will not run at all as laches to debar the plaintiff from his right, or it will be looked at less narrowly by the court ;(A-) for the plaintiff has not been sleeping on his rights, but relying on his equitable title, without thinking it necessary to have his legal right protected. (Z). § 1081. Therefore, where a tenant holds under a con- tract for a lease, pays his rent, and has possession of the property and the enjoyment of all the benefits given him by the contract, the effluxion of time will not be a ground for resisting its enforcement :(m) and so, where there was a contract for the lease of a shop and the sale of the stock, and the stock had been paid for, the plaintiff had been put into possession as lessee, and the rent had been paid,— in fact, everything had been done but the execution of the lease, which the defendant had refused to execute on a ground which was untenable,— specihc performance of the lease was granted, notwithstanding considerable laches on ih) Heaphy v I] ill 2 S. & S., 29. (k) Per Lord Rosendale InJCrofton v. Orms^ (i^ ^Vat^<>n v.Reid, i R & Mv., 236. See, by. a ^ch. & Lef , 604. alBO per Lord Romilly, M. R . in Parkin v. {1} See Cartan v. Bury, 10,^ Ir. Ch. R., 395; Thorold 16 Beav , 73. and Lehmann v. Ale- Homan v. Sbelton, 11 Ir < h R., 96. Arthur L R 3 Cti , 49«. iwi) Clarte v. Moore, 1 Jon. & L.. 723; (j) Huxhani v Llewellyn, 21 W. R., 570, Sliarp v. Milligan.22 Reav.,6C6 (affirmed by 766 See too Glasbrook V Richardson, 23 W. theL. J. J.); Shepheard v. Walker, L. R. 20- L., 51 (delay ofS months and 13 days). Eq., 659. ship concerns, at an annual salary, and in 1825 the other partner died, but ad- ministration was not taken out until 1832, and the administrator filed a bill for an account against the surviving partner in 1837, it was held that the right to- an account was not barred by lapse of time. In Maryland, tbe lapse of twenty- seven years is no bar to a bill for the specific performance of a contract. Hatf- ner v. Dickson, 2 Har. &. J., 46. And in South Carolina, it would seem that the court of chancery had established the rule that it will not interfere, unless under very special circumstances, to interpose lapse of time as a bar to a claim^ unless excluded by the statute of limitations. Gi.st v. Cattell, 2 Dessau., 53. THE LAPSE OF TIME. 631 tlie part of the plaintiff subsequent to tlie defendant's refu- sal, but therefore without costs. (ti)' § 10S2. But possession, to save a purchaser from the usual consequence of delay, must be possession under the contract sought to be enforced, and the vendor must, have known or have been bound to know that the purchaser claimed to be in posession under the contract. Accordingly in a case where the tenant of a tavern, with an option of purchasing it during his term, duly gave notice that he elected to purchase, but after some correspondence allowed the subject to drop, and then for upwards of five years remained in possession without ever insisting on the effectu- ation of the purchase, and from time to time making pay- ments to the lessor" s mortgagee for most of which he took receipts ex[)ressing them to be for rent, it was held by the Court of Ai:^i3eal that his possession had not been such as to prevent his delay being fatal to his claim for sx)ecific per- formance, (o) § 1083. Nor will time run as laches pending a negotia- (n) Burke v. Smytn. 3 Jon. & L., 193. See, Brophy v. Connolly, 7 Ir. Ch. R , 177; Finu- also, per I.ord St. Leonards iu Rklgwav v. cane v. Turner, 13 Ir Ch. K., 488, 494. Whaiton, 6 H L. C, 292; and consider (o) Mills v. Haywood, 6 Ch. D., 196. 1 It seems to be well established, in this country, that lapse of time is no ob- jection to a specific performance of a contract to convey land, where the per- son originally entitled to the conveyance, and those claiming under him, have been in uninterrupted possession of the land. Miller v. Bear, 3 Paige, 466; Longworth v. Taylor, 1 McLean, 395, is a case of this nature. There A. pur- chased a lot of land from B., paying one-third of the price and taking posses- sion. B. agreed to give a deed in three mouths, and A. to give a mortgage to secure the balance of the price, which was payable in six and twelve months. B. did not make a deed, nor did A. pay the second installment, but payment was suspended on an agreement that interest should be paid instead. A. elected buildings on the lot, but on learning that the title was contested, he withheld any further paymeuls in 1810. B. recovered possession in 1822, in an action of ejectment. In 1825, A. filed a bill for specific performance. Held, that the parties might be considered as mortgagor and mortgagee, as the defendant's default had prevented them from occup\ ing that position in law ; that the plaintiiT's equity was not extinguished by lapse of time, and that he had not been guilty of such negligence as to cut off liis right to a decree for perform- ance. So, in Waters v. Travis, 9 John., 450, where, by a contract for the sale of land, the vendor Avas to convey at a time specified, and the vendee was, "at the same time," to secure the purchase money, and the vendee took possession under the contract, but no conveyance was executed, and the purchase money was not paid for fifteen years, it was held that the lapse of time was no objec- tion to a decree for specific performance at the suit of the vendee. And again, where A., the owner ol' a survey in 1774, agreed to convey a portion thereof to B., who took, tiud held, pos.session of sucli portion until 1822, when A. never having assigned bis right to .such land to B., nor himself obtained a grant, and having died, his devisee obtained a grant of the whole survey, it was held that the Irpce ( ' *'iT.e was not a bar to a bill by B. against the devisee for a specific performanLe of A.'s contract. Williams v. Lewis, 5 Leigh, G86. 532 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. tion between the parties to the contract, even though it may be carried on without prejudice to a notice given by one party that he hokls the contract rescinded. (i?) But where the negotiation is about a point whicli is not the real cause of the delay, its pendency will not prevent the effluxion of time operating as laches: so where there were two pur- chases, and disputes arose about the title and a valuation incident to the purchase, but from the evidence it appeared that want of means in the purchaser who had instituted the suit, and not these disputes, was the real cause of delay, Knight Bruce, V. C, though after some hesitation, refused specific performance, as the plaintiflf in such suits must have more tliat ;i doubtful title. (g) § 1084. When the delay arises from an untenable objec- tion taken by one party, that party cannot avail himself of the delay caused by it, as a ground for the non- performance of the contract. (?•) And generally, whenever the delay is attributable to the defendant, he will not be allowed to avail himself of it as a defense. (5) § 1085. In Lamare v. Dixon(i^) an intending lessee, rely- ing on a verbal promise by the owner of some wine vaults that they should be made dry, signed a written conti-act to accept a lease of the vaults at a specilied rent, and went into possession. The vaults not being made dry, the tenant constantly complained, and, though he paid rent, always paid it under protest ; until, finally, after having actually occupied the vaults for upwards of two years, he refused to take the lease on the ground that the owner's promise had never been fulfilled. The House of Lords held that the tenant' s payments were referable merely to his actual use and occupation of the premises, that such payments and possession did not amount to such acquiescence as to debar the tenant from defending his refusal on the ground of the non-performance of the i)romise which had been the induce- ment to the contract, and that the owners delay and con- duct in the matter generally disentitled him to insist on specific performance of th^ contract; but the house con- (p) Southcomb V. Bishop of Exeter, 6 Ha , (s) Morse v. Merest, 6 Mad., 26; Shrews 213- McMurray v Spicer, L. K. 5 Eq , 527; bury ami Birmingham llailway (Jo. v. L,on and cf Lehman V. McArthur, L. R. 3Ch., don ami Xorth- Western Railway Co., 2 Mac 5Q4 & G. 324, 355; per I>oril St. Leonards in Jiidg (a) Gee v Pearse, 2 De G. & S., 325. way v. Wharton, C 11 L. C, 292. (r) Monro v. Taylor, 3 Mac. & G. 713, 723. (t) L. K. 6 H. L , 414. THE LAPSE OF TIME. 533 sidered the delay which had occurred so chargeable to both parties that the bill, though dismissed, was dismissed with- out costs. § 10S6. The fact that the purchaser has allowed the deposit to remain in the hands of the vendor from the time when the former rescinded the contract until the filing of the bill has been decided not to affect the question of laches. (?/) § 1087. So also continuing in possession, if under an arrangement to that effect, will not affect the question. («) § 1088. In a case already referred to Lord Romilly, M. R., expressed the opinion that time does not run as laches in the case of land taken under a railway act, until the time during which the company had the power to make the rail- way ceased, as the fact whether the company would require the land or not could not be ascertained until that time •,{w) but this view was not adopted by Knight Bruce and Lord Cranworth, L. J. J., who seem to have thought that time would run from the date of the contract. § 1089. It is to be observed that a mere claim or protest by words or letters, tliough continual, unaccompanied by any act to give effect to them, will not prevent time operat- ing as laches against the party making the claim, nor keep alive a right which would otherwise be precluded. (^) 5. Waiver of delay. § 1090. Objections grounded on lapse of time are waived by a course of conduct inconsistent with the intention of insisting on such an objection : and in this respect it is immaterial whether time were originally of the essence or subsequently engrafted on the contract. (?/)' § 1091. Therefore, where a title is in a state which may cause delay, or a good title has not been completely shown by the day for completion, and tlie purchaser goes on deal- ing about the title after that day, this will waive his right (t/) Watson V. Reirt.l R. & My., 236; South- North-Westem Railway Co., 15 Beav., 513; comb V. lUshop of Ex.-ter, 6 Ha., 213, 224. S. C. 1 De G. M. A G.. 721. (r) Southcomb v. Bishop of Exeter, ubl (a?) ClepR v. Eilniondson, S De G. M. & G., supra. 787. 810; Lehmann v. McArthur, L. R. 3 Ch., (MJ) Lord James Stewart v Lomlon and 490, 604. {!/) King V. Wilson, 6 Beav., 124. ' Specific performance will be decreed against a party, who, by bis acts, has waived the materiality of time. Rector v. Price, 1 Mis., 373. 534 FRY ON- SPECIFIC PERFORMANCE OF CONTRACTS. to insist on the time. (2) So the examination of the abstract after the time will prevent a defendant insisting on time as essential, for he had no right to look into the abstract if he meant to abandon his purchase, (a) And such conduct will amount to a waiver, even though a formal notice to abandon the contract may have been given. (^>) So again, insisting on the contract after the time limited for completion is an act waiving the right to insist on that time as essential. (c) But where a purchaser protests against delay, and then under protest deals about the title, this will not, it seems, amount to a waiver. ((^) § 1093. As a general principle, a stipulation as to time cannot be bindingly waived otherwise than by an intentional act, done with knowledge of all material circumstances. Ac- cordingly, in a case already cited, where a railwaj^ company agreed to do certain works to be directed by the award of a surveyor, to be made within a specified time, and the award was not made within that time, the company were held not to have waived the condition as to time by having, in ignor- ance of the fact that the award was made late, taken it up and paid the surveyor's charges for it.((?) § 1093. Again, as to time for jDayment : where an assignor of a lease insisted on a forfeiture of the assignment by reason of non-payment of part of the purchase money at the time stipulated, he was held to have waived it by getting the assignee to pay the rent to the superior landlord, that not being consistent Avitli the notion that the agreement was at an end.(/) In another case there was a contract that if the residue of the purchase money was not paid at a certain day, the contract should be void : it was not paid, but the vendor, allowing the i)urchaser to retain possession and taking from him a warrant of attorney to confess judgment in ejectment, was held to have waived the condition. (^^) § 1094. As to the time for the delivery of objections, a subsequent corsespondence as to title was in one case held to work a waiver :(7i) and a similar lesult was in another (z) Pincke v. Cxirtis. 4 Bro. C. C, 329. and Dover Railway, 1 De G. J. & S., 204, 3 (a) Seton v. Slarle, 7 Ves., 265 id 24, L. K 2 H. L., 43. (b) Hipwell V. Kniglit, ] Y. & C. Ex ,401. (/) Hudson v. P.artram, 3 Mjid., 440; Webb (c) Pegg V. WiBden, 16 Beav.. 239. v. Hughes. L. R. 10 Eq , 2S1. (d) Magennis v. Fallon, 3 Moll., 561, 576. (q) Ex parte Gardner, 4 Y. &C. Ex., 5(3. But see St. Leon. Vend , 291. (h) Cutis v. Thodey, 13 Sim., 206. (e) Earl of Darnley v. London, Cliatham THE LAPSE OF TIME. 535 case held to follow froiri the subsequent renewal of negotia- tion as to price. (/)' § 1095. So, again, taking possession after the default as to time may, it seems, i3reclude the objection •.{j) but merely- giving i)ossession before the day for payment has arrived is no Avaiver of a vendor's right to insist upon payment on that day. {Jc) § 1096. The mere extension or giving of time, where time is of the essence of the contract, is only a waiver to the extent of substituting the extended time for the original time, and not an utter destruction of the essentiality of the time. And so where, by the terms of a contract for the sale of the benefit of a building contract, a moiety of the price was to be paid on a specified day, and the vendors after- wards by letter gave the purchaser until a later (named) day to make the payment, but the money was not paid by that day, Jessel, M. R., held that time was originally of the essence of the contract, and the letter only a qualified and conditional waiver of the original stipulation ; and that, consequently, the vendors were entitled to treat the contract as at an end.(Z) § 1097, It is perhaps scarcely needful to remark, that a waiver as to the time in which an act is to be done, is not necessarily in any degree a waiver of the act itself. So that where it was agreed that A. should repair some warehouses by the first of April, and that B. should then take a lease of them, and the rej^airs were not done by the day appointed, but B. continued to deal in a way which was held to amount to a waiver of the time as essential (if by the contract it had ever been so), and afterwards and before a lease was execu- ted the warehouses were burned down : it was held that B., though he had waived the essentiality of time, had not (i) Elds V. Williams, 4 De G. M. & G., C74. distinctly dissented from the view expressed 0") IJochm V. Wood, IJ . & W., 420. by LordKomilly, M. K., in ParKin v. Thorold (k) See Barclay V. Messenger, 2-2 W. II., 523. (16 Beav., 59), as to the eflVct of a letter ex- (i) Barclay v. Alessenger, 22 W. It., 523; 43 tending the lime for completion. L. J. Ch., 449. In this case Jessel, M. R., ' What will relieve the vendor of the necessity of execiitinfj a deed.'\ Tbe vcudor need not execute and tender a deed where tbe vendee pcsilively refuses to receive it at the time and phiee agreetl upon. It is the same where the vendee abandons the possession and refuses to take the property. ^laxwell v. Pet- tinger, :{ N. J. Eq., 156; Crary v. Smith, 2 N. Y , tiO. Tlie vendee need not tender tlie purchase price where the vendor notifies liim that lie will not fultill. "White v. Dobsou, 17 Graft , 202; Brown v. Eaton, 21 Minn., 409; Mattociis v. Young, GG Mo., 459. 536 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS, waived the condition that the repairs should be effected prior to his taking a lease, and consequently, that the pro- posed lessor A., and not the proposed lessee B., must bear the loss.(w-) § 1098. The question whether time was originally of the essence, and whether it has since been waived, is one of evi- dence, and can therefore be disposed of only at the trial. (7i)* (m) Counter v. Macpherson, 5 Moo. P. C (.n) Levy v. Llndo, 3 Mer., 81. C, 83 ; and See Hughes v. Jones, 3 De G. F. & J., 307. ' Mciension of time.] Where delay has been by common consent, and particu- larly where it has occasioned no injury, equity will not refuse specific per- formrnce. Leaird v. Smith, 44 N. Y., 618; Hull v. Sturtevant, 46 Me., 34; Bass V. Gillilaud, 5 Ala., 76; Schroeppel v. Hopper, 40 Barb., 425; King v. Ruckman, 24 N. J. Eq., 356. WJiere both parties are in default.} When this is the case, of course neither can complain of non-performance. Crabtree v. Levings, 53 111., 526, Default of vendee in payment of purchase money.] The vendee's failure to pay the purchase money upon a particular day, almost always admits of adequate compensation, either by the payment of interest or the imposition of a greater penalty; and where time is not made a definite part of the agreement it is not essential, and will not operate to prevent equity from decreeing specific per- formance. Gibbs V. Champion, 3 Ohio, 335; Magoffin v. Holt, 1 Duvall, J)5; Keeler v. Fisher, 7 Ind., 718; Pinckney v. Hagedoru, 1 Duer, 89; Grouer v. Fisher, 11 111., 666; Hall v. Delaplaine. 5 Wis., 206; Andrews v. Nullivan, 7 111., 327; Crittenden v. Drury, 4 Wis., 205; Reed v. Jones, 8 id.. 302; Arm- strong V. Pierson, 5 Iowa, 317; De Arras v. Keyser, 26 Pa. St., 249; Converse v. Blumrich, 14 Mich., 109; Bromier v. Cauldwell, 8 id., 465; Primm v. Bar- ton, 18 Tex., 200; De Camp v. Crane, 19 N. J. Eq,, 106; Shaffer v. Niner, 9 Mich., 253; Shouman v. Harford, 55 Me., 197. Example of due diligence in attempting to pay purchase money.] Hubble v. Van Schoening, 49 IS. Y,, 326; reversing S, C, 58 Barb,, 498, is an instructive case, as explaining what is deemed due diligence in an attempt to tender the purchase money. Delay constituting a " stale equity."] There is no certain rule as to what will constitute a " stale equity;" each case mu.st be decid. d upon its surrounding- circumstances, what has been paid, and any reasonable excuse for delay. Pas- chell v. Hiuderer, 28 Ohio St., 568; Rayner v. Pearsall, 3 John.'s Ch., 578; Atwater v. Fowler, 1 Edw., 417. A delay of fourteen months was excused. Marquis of Hertford v. Boore, 5 Ves., 719; Glover v. Fisher, 11 111., 666. Valuable improvements were made upon land conveyed, and several years were permitted to elapse before an action was brought. Held, that the mere delay was not fatal. Laverty v. Hall, 19 Iowa, 526. Delay, for the following time, was held to be fatal: One year, seven months and thirteen days, South- comb V. Bishop of Exeter, Hare, 213; one year and nine months. Lord James Stuart V. Loudon and Northwestern R. 11. Co,, 1 De G. M. & G., 721; three years and a half, Eads v, William.s, 4 id., 674. The parties differed as to the construction of the agreemement. Held, that a delay of seven years was fatal. Milward v. Earl of Thanet, 5 Ves., 720. Waiver.] A party cannot insist on a forfeiture, in a case where he has waived a condition, or treated the contract after default, as continuing in force. Sharp V. Trimmer, 24 N. J. Eq., 422; Morgan v. Herrick, 21 III, 481; Ewins V. Gordon, 49 N. H., 460. Where valuable improvements have been made after default, see Bellamy v. Ragsdale, 14 B. Mon., 364. A tender having been refused on the ground that it was not made in time — held, that the objection could not afterwards be taken that the tender was not made in money. Duffy THE LAPSE OF TIME. 537 V O'Don.nvan, 4fl N. Y.. 223; sec. also, Lavcrty v. Moore, 33 id., CIS; v'un- ninL^luun v Brown, 44 Wis., 72; Hcdeiibiirtih v. Jones, 73 111 , 149; Hoyt v, Texburv, 70 id., 331 ; Dittou v. Harding, 73 id., 117; De Wolf v. Pratt, 42 id , 19s. The vendor agreed to execute a deed when demanded, and did not make the collection of pai)er, assigned in payment, a condition precedent to the con- veyance of title. Held, that he took the risk of collection, and that the con- tract would be specilically enforced. Smoot v. Rea, 19 iMd.. 3'.)S. AVhere either party shows by his acts that he has waived or abandoned the contract, and particularly where circumstances justify the belief that he intended to perform only in case it suited his interest, in such a case he forfeits all claim to equitable relief. Eastman v. Plumer, 46 N. H., 464- No lime fixed for payment, and making titlr.] W^here real property is sold, and there is no 'time fixed either for the payment or delivery of the deed, tlie payment must be made uiion request, or within a reasonable time. Andrews v. Bell, 56 Pa. St., 343. Abandonment of tlic contract by vendee.} Any action on the part of the ven- dee which clearly indicates an abandonment of the contract on his part, will deprive him of 'the right to demand the interposition of a court of equity. Finch v. Parker, 49 X."Y., 1 ; Fuller v. Hovcy, 2 Allen, 324; Sprigg v. A i.in, 6 J. J. Marsh., 1.58; Brackin v, .Alartin, 3 Yerg., So; Mann v. Dunn. 2 Ohio St., 187; Eflhiger v. McGreal, 31 Tex., 147; Rose v. Swann, .50 111 , :'.71; Lre- iner v. Connecticut. U Ohio, 18'.); Howe v. Rogers, 32 Tex , 218; Bennett v. Welch, 25 Ind., 140; Campbell v. Hicks, 19 Ohio St., 4- 3; Gentry v. Rogers, 40 Ala., 442; Weber v. Marshall, 19 Cal., 447; Scott v Barker, 14 Ohio, ;)4/; Broaddus v. Ward, 8 Mo., 217; Patterson v. Martz, 8 Watts. 373; Thompson V. Brueu, 40 111., 125; Green v. Covillaud, 10 Cal., 317; Peck v. Brighton, 09 111., 200; Mix v. Bulduc, 78 id., 215. GrosH laches; vendor may resell.} Where the vendee of real property has been guilty of gross laches, "the vendor will be justified in reselling the property; this he may do'^ without first making a tender of the money already i)aid him. Mason v. 'Owens, 5(i 111.. 259; see, al.so, Williams v. Starke. 2 B. Monr., 190; Hawthorn v. Bronson, 16 Serg. ct Rawle, 209; Gariss v. Gariss, 2 N. J. Eq.. 79. Failure, to enforce his riffhts of action.] A party must not sleep on his rights. Where a party has risrhts under a contract, it will be a good defense to his action, wheu'finally brought, that he sull'ered an unrea.sonably long time to elapse ^vithout atteinpliug to enforce such rights. This is true, iinless there is some special equity which requires a specific performance. \ an Doreu v. Robinson, 16 N. J. Eq., 250; Preston v. Preston, 5 Otto, 20U; Keller v. Lewis, 53 Cal., 113; McLaurie v. Barnes. 72 111.. 73. An agreement was made to exe- cute a mortgage. Held, that a delay of eight years before commencement of the action, Avas fatal. Nelson v. Hagerstown Bank, 27 ]Md., 51. A party paid no taxes, exercised no ownership over an estate, ami asserted no rights under a contract for eleven years, and allowed a subsequent purchaser, without notice, to improve the property. Held, that the delay was such as to bar all claim for relief at equity. Inglehart v. Vail, 73 111., 03: see, also, Conway v. Kins- worthy, 21 Ark., 9; Fitch v. Boyd, 55 111.. ;107; Dubois v. l?aum. 40 la. br. 537; King v. Hamilton, 4 Pet., 311. A vendee paid the purchase money, and then slept on his rights for sixteen years, before bringmg his action for specitic perfornuince. HeUl, that the contract could not be enforced, in the absence of any strong equities. Johnson v Hopkins, 19 Iowa, 1 72 A decree was refused where the delay was for seventeen years. Peters v. Delaplaine, 49 N 1 ., 363. And where the delay was eighteen years. Watson v. Inniau, 23 Tex., 031. I 638 FRY ON SPECIFIC PEKFORMANCE OF CONTRACTS. PART IV. OF THE MODE OF EXERCISING THE JURISDICTION. CHAPTER I. OF THE IIS^STITUTION OF THE PROCEEDINGS. § 1099. At the time when the judicature act, 1873, came into operation, tlie usual mode of proceeding in order to obtain the specific performance of a contract was to insti- tute a suit for the pur^^ose by bill of complaint in Court of Chancery. § llOO. By the 34th section of the Judicature act, 1873, all causes and matters for the specific performance of contracts between vendors and purchasers of real estates, including contracts for leases, are specially assigned (sub- ject to the rules of the Supreme Court[«]), to the chancery division of the high court of justice. § 11©1. Causes or matters for the specific performance of other contracts are not expressly assigned to any par- ticular division of the high court, and may accordingly, it would seem, be instituted, at the plaintifi"s option, in any division, subject to the powers of transfer exercisable under the judicature acts and the rules of court. (&) § 1 103. A form of endorsement for the writ in an action for the specific x^erformance of a contract for the sale of land is given in Appendix A. (Part II. § i. 9), to the first sched- ule to the judicature act, 1875. § 11 Oil. It is provided by the acts and rules (c) that any action may be transferred from one division of the court to another. Accordingly, where, in an action for the recovery of land commenced in the exchequer division the defendant set up a counterclaim for specific performance of a contract for a lease of the land to himself, and it apx)eared that there (a) See Ord. L. I. (c) Jud. Act, 1873, 8. 36; Jud. Act, 1875, 8. (b) See Jud. Act, 1873, s. 33; Jad. Act, 1875, 11 ; Ord. L. I. rr., 1, 2. 3.11; Ord. L I. INSTITUTION- OF Till: PKOCEEDINGS. 539 was ii2yrimd /ac/'e case for specific performance, the actir>n was transferred, on the defendant's ax)plication and against the i^laintiff's will, to the chancery division. (<^) And a similar order was affirmed by tlie Court of Appeal in the case of Holloway v. York,(e) where, the liquidation-trustee of a person who had contracted to purchase real estate hav- ing commenced an action in the exchequer division against the vendor for a return of the deposit, the vendor had deliv- ered a counterclaim for specific performance of the contract. § 1104. But a defendant sued in the Queen's Bench di- vision of the court does not become entitled to have the action transferred to the chancery division merely by put- ting in a counterclaim for the specific performance of some contract relating to land between himself and the plain- tiff. (/') The court v.ill, however, take notice of an equita- ble right to specific pei'formance appearing incidentally in the course of an ejectment action, though there be no counterclaim for such performance. (^) § 110*3. The determination by the court of questions of law between vendoi's and purchasers of real or leasehold estate, and judicial declarations as to their respective rights under the contract of sale, mny, it is conceived, be obtained upon a si)eciMl case stated in the action. (//^) The court of chancery could not enforce specific performance in a pro- ceeding of this nature ;(/) but under the present practice, where the answers te the special case dispose of the action, they may be turned into a judgment making declarations to the san!e effect. (,/) i; 1 iO<5. A convenient mode of obtaining an authoritative decision of questions arising upon some of the class of con- tracts discussed in this treatise has been introduced by the vendor and purchaser act, 1874, under which (section 9) a vendor or purchast^r of real or leasehold estate or their re- spective representatives may at any time apply in a sum- mary way to a judge of the high court in chambers in respect of any requisitions or objections or any claim for compen- (d) Hillman v. Mayhew, 1 Ex D., I3i!. deoree for specific performance), and Ord., («) 2 Kx I).,:5:>3 XXXI v. (/) Sti>rey v. Waddle, 4 Q. B D., 289 (i) See Evans v Saunders, 22 L. T.. 4:5, 51. (g) Willidina v. Snowden, \V. N., 1880, 124 T lie pr.>cediire by special case under >ir (C. 1'. Div.) George Turner's act {\:i & 14 Vict., c 3'),) is (h) Compare Sabin v. Heape, 27 I5eav., .^53, now abolished )Ord.. XXXlV. r. 7). 661 (where the decision was tantamount to a (j) IIarri-.on v. Cornwall Minerals R:iil- way Co., 16 Ch. D., 67, SO. 540 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. satioii or any other question arising out of or connected "with the contract (not being a question affecting the exist- ence or validity of the contract), and the judge is to make- such order upon the application as to him shall appear just, and to order how and by whom all or any of the costs of and incident to the application are to be borne and paid. In very many of the disputes that arise between vendors and purchasers of realty and leaseholds an application under this section is an advantageous and efficient substi- tute for an action for specific performance. (A*) The parties to such an aj^plication are in the same position as they would be under a reference as to title in such an action. (Z) A person who has availed himself of the provisions of the act is not entitled afterwards to bring an action for the spe- cific x)erformance of the contract which was the subject of the summons. {'/n) § 1107. By the county courts act, 1865, section 1, all the jurisdiction of the Court of Chancery in suits for specific performance(7?) was given to the county courts where the purchase-money did not exceed the sum of £500; and by virtue of the 6th section of the county courts act, 1867, the jurisdiction so given may now be exeicised in all actions for specific performance of any contract for the sale, purchase, or lease of any property, where, in the case of a side or pur- chase, the purchase money, or in the case of a lease the value of the property, does not exceed £500. Apparently, however, the jurisdiction under these enactments is confined to cases where the consideration for the sale is a sum certain. g 1 108. Directions are given in the county courts acts of. 1865 and 1867 (28 and 29 Vict. c. 99, 10 ; 30 and 81 Vict. c. 145, s. 1) as to the particular county court to be selected, in any particular case, for an action for specific performance ; and the details of the practice and procedure in all county court actions are regulated by the county couit rules, 1875 and 1876. Every county court has, in dealing with actions- within its jurisdiction, all the i)owers of the high court of (k) For cases uiKier this section see lie 774; Drai)er8 Co. v. McCaun, 1 L. R Ir., 13 Waddell's contract. 2 Ch. I)., 172; Re Cole- (hunimons may be served out of the jiirlsdic- nian and .Jnrrom, 4 Ch. D., 165 (where, to tion) strengthen the purchaser's title, .lessel, M. (/) In Re Burroughs, Lynu and Sexton, 5 R., delivered jud)inieritin court; He Popple Ch D..611I. and Barratt's contract, 25 W. R., 4S; Ke (»i) Thompson v. Rinpor, 29 W. R. 520. Keitrl.yand Clayton's contract, 7 Vh I>.,615; (n) See Wilcox v. Marshall, L. R. 3Eq.,270- Ke Metropolitan District Railway Co. & Cosh, (contract for lease). 13 Ch. D,,C07; Osborne to Kowle'tt, 13 Ch. D., INSTITUTION OF THE PROCEEDINGS. 541 justice (judicature act, 1873, s. 89) ; and, in a proper case, any action may be transferred either from a county court to the high court, or mce versd^ or from one county court to another, (o) An appeal lies from the decision of a county court judge in an action for specific performance to a divis- ional court of the high court ; but, except by special leave, there is no further appeal. (^) i; 1109. The jurisdiction of the high court in cases of specific performance has not been ousted by that conferred by county courts. Though the matter may be within the jurisdiction of the inferior court, a plaintiff is at liberty to bring his action in the high court (subject, of course, to the statutory provisions as to transfer already referred to), and is entitled, if successful, to tiie usual costs of a suitor tliere.(<7)' i; 1110. It may here be mentioned that by the land transfer act, 187.3, it has been enacted that (s. 1)3) where a suit is instituted for the specific performance of a contract relating to registered land, or a registered charge, the court having cognizance of such suit may by summons, or by such othei- mode as it deems expedient, cause all or any j^arties who have registered estates or rights in such land or charge, or have entered up notices, cautions, or inhibitions against the same, to appear in such suit, and show cause why such contract should not be specifically performed, and the court may direct that any order made by the court in such suit ^liall be binding on such parties or any of them. Further, by the 94th section of the same act, all costs incurred by any party so appearing in a suit to enforce against a vendor (o) 28 & 29 Vict. c. 99, ss. 3, 8, 9, 11; 30 & 31 (q) Scotto v. Heritage, L. R. 3 Eq , '212; Vict, c 142, 8 a; Jiid. Act, 1873, a 90. Brown v. Rye, 1.. R. 17 Eq., 343; Carpmael v. (p) 28 & 29 Vict. c. 99, 88. 18, 19; Jud. Act, Carvell, 18 vV. U., 513. 1873, 8. 45. ' Concurrent jurisdiction.'] Equitj' will not assist where the remetly at law- has licen barred by the statute, in cases of concurrent jurisdiction. IJhuichard V.Williamson, 70 111., 647. Statute a bar in Neic T<^rk after ten yearn.] " The provisions of the Code re- quiring a written acknowk-dgiuent to take a case out of the statute of limita- tions has effectually destroyed the old doctrine on which courts of equity relieved vendees from forfeitures incurred in couseciueuce of their failure to perform executory contracts for the sale of lands. That doctrine rested on the principle that time was not of the essence of the contract; but now the statute Las interpo.sed an absolute bar after the lapse of ten years." Gilbert, J., in McCotter v. Lawrence, 4 Hun, 107. 542 FRY ox SPECIFIC PERFORM ANCK OF COXTKACTS. specific performance of liis contract to sell registered Lind or a registered charge are to be taxed as between solicitor and client, and, unless the court otherwise orders, paid by such vendor, (r) § 1111. How far the summary jurisdiction conferred by the 35th section of the companies act, 1802, is properly applicable to the enforcement of contracts for the sale and purchase of shares is a question which has been much dis- cussed, but can hardly be said to be even now satisfactorily settled. That section provides that if the name of any per- son is without sufficient cause entered in or omitted from the register of members of a company under the act, or if default is made or unnecessary delay takes place in enter- ing on the register the fact of any person having ceased to be a member of the company, the person or member ag- grieved may apply by motion or summ; Blaydes v. Morris v. McNeil, 2 Rusb., 604; and seeSeton, Calvert, 2 J. & W., 211; Boehm v. Wood, T. 316. 1329. & R., 33-2; Jenkins v. Parker, 2 My. & K., 5; ij>) See Drover v. Beyer, 13 Ch. D , 242, 243. ' A complainant is not entitled to a writ of ne e-teat on a bill for the specific: performance of a contract, previous to the time at Avhicli tlie contract is to be performed, and before any right of action has accrued thereon, either at law or in equity, against the defendant. The debt must be shown to be actually due. De Rivalinoli v. Consetti, 4 Paige, 264; Brown v. Hati", 6 id., 535. It has been laid down that a writ of ne exeat cannot be granted, unless, 1. There is a precise amount of debt positively due. 2. It must be an equitable demand, on which the plaintiff cannot sue at law, except in cases of account, and a few others of concurrent jurisdiction. '6. The defendant must be about to quit the country, proved by affidavits as positive as those required to hold to bail at law, Rhodes v. Cousins, 6 Randolph, ISy. But in Alabama the rule is not precisely the same. Writs of ne exeat may, there, be properly granted. in the following cases: 1. Where the demand is exclusively equitable, whether a sum certain be due or not, and the defendant is about to remove beyond the jurisdiction of the court 2. Where the courts of law and equity have concurrent jurisdiction^ the defendant being about to remove, and wheie bail has not been obtained, it will be granted in aid of the action at law. 8. Where the two courts have con- current jurisdiction, and no action at law^ has been commenced, but in a suit in equity mstituted, the removal of the defendant will be restricted. 4. In cases of extreme necessity, and where it becomes necessary to prevent a failure of justice. The fourth clause is, however, not established as a fixed rule of law. Lucas V. Hinckman, 2 Stew., 11. ,554 FRY OlSr SPECIFIC PERFORMANCE OF CONTRACTS. lieuded, and that the absence of the defendant from England will materially prejudice the plaintiff in the prosecution of his action, the judge may order such defendant to be arrested and imprisoned for a period not exceeding six months, unless and until he gives security (not exceeding the amount claimed in the action) that he will not go out of England without leave of the court, (c)' (c) 32 & 33 Vict. c. 62, 8. 6; cf. Jud. Act, 1873, s. 76. 1 Rule in this country.'] This is a writ of right, rather than a prerogative writ. It is only granted in cases of eq\iitable debts and claims. Seymour v. Hazard, 1 John.'s Ch., 1; Forrest v. Forrest, 10 Barb., 46. It is a mesne pro- cess, holding the party to equitable bail; it commands the arrest of the parly if the bail is not furuished. ' Adams v. Whitcomb, 46 Vt., 708. Until the party refuses to give the required security he cannot be restrained of his liberty. Bushuell V. Bushnell, 15 Barb., 309. Writ of capias. ] In Samuel v. Wiley, 5 N. H. , 353, it was held that the power of a court of equity independently of any statute to obtain security for the performance of its decree by ordering, by a writ of capias, the arrest of a party intending to leave the State to avoid such decree is analogous to the practice pertaining to the writ of Jie exeat, AitMchment.'] The remedy may be by an order, that the party within a given time give security, and upon default an attachment will issue for contempt. Attorney General v. Macklow, 1 Price, 289. JVo adequate remedy at laic.'] In order that the writ may be granted it must be affirmatively shown that there is no adequate remedy at law. Orme v. Mc- Phersou, 36 Ga., 571. Courts of concurrent jurisdiction.] Such courts will not refuse this writ merely because the plaintiff has a remedy at law. Lucas v. Hickman, 2 Stew., 11; Mackdonough v. Gaynor, 18 N. J. Eq , 249. Certainty.] The demand must be capable of being reduced to a certainty. Whitehouse v. Partridge, 3 Swaust., 365; Bonesteal v. Bonesteal, 28 Wis., 245. Fraud must be sJtoion.] Where this is not done, and the action is not of an equitable nature, this writ will be refused. Malcolm v. Andrews, 168 111., 100. Where the contingency might never happen, the writ was refused. Anon., 1 Atk., 521. Partnership settlements.] The defendant had sold all his ])roperty and was threatening to leave the State; he refused a partnership settlement. Held, that this writ was properly issued. Dean v. Smith, 23 Wis., 488; Myer v. Myer, 25 N. J. Eq., 28. Rule in Arkansas.] In this State this writ is allowed by statute in cases of executory contracts, and the time for performance has not arrived, if the com- plainant entered into the contract in good faith and without notice on the part of the defendant that he intended to leave the State. Gresham v. Peterson, 25 Ark., 377. RELIEF AFTER JUDGMENT. 655 CHAPTER IV. OF RELIEF AFTER JUDGMEl^T. § 1138. It may and not unfrequently does happen that, after judgment has been given for the specific performance of a contract, some further relief becomes necessary, in con- sequence of one or other of the parties making default in the performance of something which ought under the judg- ment to be performed by him or on liis part; as, for instance, where a vendor refuses or is unable to execute a proper conveyance of the property, or a purchaser to pay the purchase-money. The character of the consequential relief appropriate to any particular case will of course vary according to the nature of the subject-matter of the con- tract and the position which the applicant occupies in the transaction ; but in every case the application must, under the present practice, be made only to the court by which the judgment was pronounced, (a) and the multiplicity of legal proceedings which sometimes(5) occurred before the fusion of the jurisdictions of the Courts of Chancery and common law is now practically impossible. (c)' (a) Jud. Act, 1873 (36 & 37 Vict. c. 66), 8. 24 722; Ford v. Compton, 1 Cox. 296; Reynolds (5) ; xppell. Juris. Act, ISie C39 & 40 Vict. c. v. Xelson, 6 Mad., 29i); Frauk v Basuelt, 2 59), «. 17. My. &K.,618. (6) Plielp« V. Prothero, 7 De G. M. & G., (c; Jud. Act, 1873, 8. 24 (/). 1 It is well settled that, while proceedings are pending in the court of chan- cery, all applications to other courts are looked upon with jealousy. It is a rule thoroughly established, that chancery will administer complete redress to the parties, and this, though in its progress it may decree on a matter which was cotruizable at law. Where equity can do complete justice between the parties,lt will never turn them out of court to pursue their remedy at law. Cathcart v. Itobinson, 5 Pet., 263; Beardsley v. Halls, I Koot, 86G; .Milter v. McCanu, 7 Paige, 457; Chinn v. Heale, 1 Munf., «:{; McHaven v. Forbes. (5 How. (Miss ), otiy; Hume v. Long, 6 Monr., 116; Miami Exporting Co. v. United States Bank, Wright, 249; Oliver v Pray, 4 Ham., 175; Brown v. Gardner, Harring.'s Ch., 291; Hawley v. Sheldon, id., 420. So where a bill was tiled against^'a mortgagee, who was also lessee of the mortgaged premises, to obtain a1?et-off of the rent against the amount due on the mortgage, the bill was re- tained to compel paynient of the rent, though the plaintiff failed to support his claim of set off. Walcott v. Sullivan, 1 Edw.'s Ch., 339. Again, where, on a bill by a vendor to enforce the specilic performance of a contract for the sale of land, it appeared that by the contract the vendee had the right to relieve him- self from the purchase by paying a stipulated sum, it was held that the right of the vendor to come into equity for a specific performance being clciir, the court, in refusing to decree such specific performance, might decree the payment by 556 FRY ON SPECIFIC PEKFOKMANCE OF CONTRACTS. § 1139. There are two kinds of relief after judgment for specific performance of whicli eitlier party to the contract may, in a iDroper case, avail himself. ti 1140. (1) He may obtain (^on motion in the action) an order ai)pointing a definite time and place for the comple- tion of the contract by payment of the unpaid purchase- money and delivery over of the executed conveyance and title deeds, (<:Z) or a period Avithin whicli the judgment is to be obeyed, and, if the other party fails to obey the order, may tliereupon either at once issue a writ of sequestration against the defaulting party's estate and effects, (e) or, if the default was in some act other than or besides the payment of money, may move, on notice to the defaulter, for a writ of attachment against him.(/) Indeed, in a case where a person who had agreed to accei)t a lease would not, though ordered by the court to do so, execute the lease, it was held that an attachment was the only means to which the court could resort for enforcing such execution. (/7) § 1 141, (2) He may aj^ply to the court (by motion in the action) for an order rescinding the contract. On an appli- cation of this kind, if it appears that the party moved against has positively refused to complete the contract, it& immediate rescission may be ordered : otherwise, the order will be for rescission in default of completion within a limi- ted tmi(i:{k) and the court will decline to order the deposit ((Z) Morley V. Clavering, 30 I5eav., 108; Dor- under the Debtors Act, 1869; and Order lins V. Evautf, belore Bacon, V. C, 18 July, XLIV. r 2. 1878 (cited Seton, 132S). (.91 Grace v. Baynton, 25 W. R., 5n6 (6) Order XLVII. r. 1. Cf. the Debtors (A) Foligno v. Martin, 16 lieav.. 586; Simp- Act, 1869, s. 8. son V. Terrv,34 Beav., 423; Clark v. Wallie, (/) .^ee Uule 6 of the Order (7th Jan. 1870), 35 Beav., 4(50; llenty v. Schroder, 12 Ch. D., 666. the vendee of such stipulated sum to the vendor, although the vendor might have received the same at law. Cathcart v. Hobinsou, 5 Pet., 2(i3; Long v. ]\IcMillan, 5 Dana, 484, is an authority of similar nature In that case the de- fendant denied fraud, alleging that through mistake he had not received suffi- cient credit; and it "was held that although the remedy was complete at law, yet, as the subject matter of the bill and cross-bill were connected the court might take jurisdiction. Upon the same general principle, where a note was made payable in the year "one thousand eighteen hundred and thirty-six" by mistake for IH'dQ, it was held that chancery would correct the mistake on a bill for that purpose, and having obtained jurisdiction for that purpose would enforce payment of the note. Savage v. Berry, 2 Scam., 545. And though, chancery will not rever.se the judgment of a court of law, nor decide against a point decided in such court, they will, neveitheless, hear the same subject of controversy upon grounds not litigated at law, either for want of legal testi- mony, s\ipplied in chancery by the party's oath, or because it was a subject of equity jurisdiction only, or perhaps lor other causes, and enjoin the judgment at law; even though the grounds may, at the time of the injunction, be cog- nizable at law, if they were not so considered by the courts of law when the judgment was rendered and the bill brought. Dana v. Nelson, 1 Atk., 252. RELIEF AFTER JUDGMENT. 557 to be returned to a defaulting purchaser. (/) An order for the defendant to pay the phiintiff's costs, and a stay of further proceedings in the action, may also be obtained on this motion. § 1143. In some cases the order has expressly excepted from the stay of proceedings any application to the court to award and assess damages sustained by the plaintilrs by reason or in consequence of the breach of the contract. 0) In Henty V. Schroder, (^O however, Jessel, M. R., declined to make this exception, considering that the plaintiffs could not at the same time obtain an order to have the contract rescinded and claim damages for the breach of it. If this be so, it would seem that in many cases the court must fail to give the iDlaintiff the full measure of relit-f requisite for replacing him in the position in wdiich he stood before the contract, — the payment for instance, of expenses incurred b}^ him in showing his title. § 1143. The vendor has in many cases another form of relief open to him after a judgment for specihc performance, in the enforcement of his lien for unpaid purchase-money, with interest and his costs of the action. § 1144. ''Although," said Bacon, Y. C.,{1) "the rule of law upon which the doctrine of an unpaid vendor's lien de- pends must be very frequently influenced by the particular circumstances of each case in wdiicli it is said to arise, there is one piain principle which guides and governs its applica- tion in all cases. If it be ex^Dressed, or can be safely and j)roperly inferred from documentary or other evidence, or from the nature of the contract, that it was the intention of the parties that the s?Je or transfer, however absolute in its terms, was subject to the condition that the purchase mpney should be paid, or that the thing contracted to be done by the vendee should be performed, the lien will prevail. If, on the other hand, no such inference can be properly drawn, if the performance of the thing contracted to be done by the vendee was not the condition uj^on which the transfer was made, but the engagement to do the thing was the consid- eration for the transfer, the vendor, having accepted that (t) Dunn V. Vere, 19 W. K., 151. (k) 12 Ch. D., 666. Ij) Sweet V. Mereaith, 4 Giff.,20T; Watson (l) lu Ke Albert Life Insurance Co., L. B. V. Cox, L. K. 15 Eq., 219. See too Corpora- 11 Kq., 178. tlon of Hythe v. East, L. R. 1 Eq.. 630. 568 FRY ox SPECIFIC PEKFOKMAXCK OF CONTRACTS. engagement, lias the very thing he bargained for. and can- not say that the consideration has not passed to him. In such cases the lien cannot prevail. The rale I have men- tioned and its application cannot be more pointedly illus- trated nor more clearly explained than in the judgment of lord Cranworth in Dixon v. Gayfere."(m) § 1145. Where this lien exists, a vendor obtaining judg- ment for the speciiic performance of a contract for the sale of hereditaments of any tenure may have embodied in the judgment a declaration of the lien, and a clause giving him liberty to apply to the court, in case of need, for its enforce- ment.(n) Then, if default in payment of the moneys pay- able under the judgment by the purchaser ensues, the vendor may have further relief in some or all of the follow- ing ways as occasion may require, viz.: — (1) By sale of the propecty. (2) By the appointment of a receiver pending the sale. (B) By means of an injunction operating to restore to him the possession of the property. § 114®. (1) Upon the vendor satisfying the court that the purchaser has made default in payment of the moneys directed by the judgment to be paid, an order will be made, on motion or petition in the action, for the sale(6») by the court of the property comprised in the contract, and the vendor may have liberty to hid.{p) The proceeds of the sale will be directed to be paid into court, and leave will be reserved to the vendor to apply in chambers for pay- ment. (2) § 1147. A vendor of land to a railway company is, with respect to his right to such an order, in no different position from any other vendor, and, if the company fail to pay, is entitled to have the land sold, although the rail- (m^ 1 re G & J.. 655. See further Mack- Watfoni and Rlckmansworth Railway Co., reih V. Symmons. 1.'. Ves. 329. and the note 36 L. J. Ch., 379, an immediate sale was di- on thatcase In 1 W. & T. Lead. C. (4ili ee G. M. & (j.,537,. Buckingham Railway Co. 21 W. R. 819. Dis- the order was niudc on a petition. tinguish Latimer v. Aylesbury and Bucking- ham Railway Co., 9 Ch. D., 385. 560 FRY ON SPECIFIC PEIIFORMANCE OF CONTRACTS. PART V. OF INCIDENTAL MATTERS. • CHAPTER I. OF CONDITIONS OF SALE AND rAPvTICULAES. § 1 153. The conditions of sale subject to wMch property- is sold constitute part of the contract. Particular con- ditions of sale are considered in several other parts of this treatise. («) But it will be desirable here briefly to state the general principles upon which the court acts in construing conditions. § 11*53. It is to be observed, in the first place, that the circumstances connected with the title and character of the property are, of course, in the knowledge of the vendor rather than of the purchaser ; and secondly that, subject to any stipulation to the contrary in the contract, the legal right of a purchaser is to have a good title, according to the rules laid down in the vendor and purchaser act, 1874, and an estate free from all incumbrances ;{b) and, therefore, that conditions tending to give the purchaser less than this are in restraint of a legal right, (c) § 1154. Proceeding on these principles, the courts have held that it is incumbent on the vendor to express himself wdth reasonable clearness, and, in the case of sales by auction, so to state his plans, particulars, and conditions of sale as to convey clear information to the class of persons who ordinarily frequent auctions. (cZ) If the vendor uses terms reasonably capable of misconstruction or ambiguous w^ords, the purchaser is not bound to take on himself the (a) E. K. §§ 11123 et seq. (rescission), 1046 et to title, see Jones v. Clifford, 3 Ch. D., 779; seq (tinie"l 2114-31 and 1251-Gl (compensa- Wadclell v Wolle, L. R. 9 Q. B., 515; and tion), 1287-97 (title). See, also, St. Leon, infra, § 1287 et seq. Vend ch i 8 2. (d) Gibson v. d'Este, 2 Y. & C. C. C, 542, (6) Phillips V. Caldcleuqh, L. R. 4 Q. B., 558-9; Dykes v. Blake, 4 Bing. N. C, 463, 476. 159; (iatayes V. Flather, 34Beav.,38S. See, too, per Lord Westbury m Cordiugley (c) As to conditions precluding inquiry as v. Cheeseborough, 4De G. F. & J., 381. CONDITIONS OF SALE AND PAETICULABS, 561 peril of ascertaining the true meaning of the statement, (e) "but may generally construe it in the manner most advan- tageous to himself :(/) and it may be gathered from the case of Taylor v. Martindale(,^) that, where a condition of sale is so obscurely worded that, taken in connection with the particulars, it is likely to mislead an ordinary person as to the nature of the property, the court will on that ground alone, and even on the argument of a summons to vary the certificate as to title, discharge a purchaser from his bargain. § 1155. The case of Torrance v. Bolton(7i) affords a notable illustration of this principle. There the adver- tised particulars described property about to be offered for sale as an absolute immediate reversion of a freehold estate, to fall into x)ossession on the death of a lady in her 70th year, and no conditions of sale were issued, but just before the auction the auctioneer's clerk read out from a manu- script a string of conditions, in one of which the property was stated to be [subject to three mortgages, and it was stipulated that the purchaser should take a conveyance subject to them. On the purchaser proving that he bought without distinctly hearing or understanding the effect of this condition, it was held by the court of appeals in chancery that he was entitled to have the contract rescinded, on the ground that the description in the j)articulars was misleading, and onus was therefore on the vendor to show (which he failed to do) that the purchaser was not actually misled. § 1156. Again where, on a sale by auction in four lots of leaseholds in Liverpool, it appeared from the particular and conditions that three of the four lots were held under the corporation, upon whose leases there is usually only a nominal rent reserved ; ^and as to the fourth lot, the par- ticular stated the rents at which the houses comprised in it were underlet, and that it was subject to a mortgage for £500, but by an accidental slip neither particular nor con- dition mentioned the fact that the lots was subject to a (e) Martin v. Cotter, 3 Jon. & I.., 496; (£j) 1 Y. & C. C. C, 658. Cf. Jones v. Rim- Graves V. SVilson, 25 Beav., 29U. Cf. Torrance nier, 14 Oh. D., 588. V. Bolton, L. R. S Ch., US. (ft) L. R. 8 Ch., n9. Cf. Re Arnold, 14 Ch. (/) Seaton v. Mapp, 2 Coll., 556. See, too, D., 27C, <5eoghegan v. Connolly, 8 Ir. Ch. R., 598, 603; Gardiner v. Tate, I. R. 10 C. L., 460. 36 562 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. ground rent of £43, 175. Q>d. ; upon the purchaser of this lot applying to be discharged from his purchase, deposing that he had bought under the belief that the property was not subject to any ground-rent, it was held that he was entitled" to be discharged with costs. (/) ' ' The real question J think," said Jessel, M. R., "is, is this a fair particular ; is it one in which a purchaser is told wiiat he has to buy, so as to enable him to form an idea of the value of the thing to be purchased. * * * No doubt the purchaser, if he had been a careful purchaser, would have inquired. But is it for the vendor who sends out such a statement as this of the nature of the property to say that the purchaser only was careless ? I think the vendor also was careless. It cannot be said to be a fair mode of drawing a particular of sale of leasehold houses subject to a ground-rent of £43 a year, to say nothing about the rent." (J) § 1157. So where there was an ambiguity as to whicb of tw^o leases was referred to, the purchaser's construction w-as admitted by the court, and the bill dismissed. (^•) So a condition that no title should be called for prior to a lease was not held so explicit as to preclude inquiry into dealings with the contract for the lease wiiich had taken place prior to its being granted. (Z) And where a vendor selling a reversionary estate stipulated that a statement in a deed of 1836 that a life annuity had not been paid for eight years, and a declaration by the vendor that no claim had been made on him since 1841, and that he believed the annuity had not been claimed for the last twenty years, should be- conclusive evidence that the annuity had determined ; and it appeared that the annuity w^as granted by a person entitled only in reversion, and was granted for the life of the survivor of four persons ; it was held that the descrip- tion of it as a life annuity was likely to lead to the belief that the annuity w^as for one life only, and that the omission to state the facts disentitled the vendor to specific per- formance, (m) And so, again, where property sold was described as subject to articles of agreement, bearing date 1804, for a lease for four lives and one year, and in fact the (i) Jones v. Rlmmer, 14 Ch. D., 588. (I) Rhodes v. Ibbetson, 4 DeG. M. & G., 787. (j) 14 Ch. D., 591, 592. See Sheard v. (m) Drvsdale v. Mace, 2 Sm. & Gif., 225, Tenables, 15 W. R., 1166. affirmed '5 De G. M. & G., 103; cf. Geoghegan. (ft) Seaton v. Mapp, 2 Coll., 556. v. Connolly, 8 ir. Ch. R., 598. CONDITIONS OF SALE AND PAKTICULARS. 563 terms of the agreement were such that the lives were not named until 1845, this was considered so ambiguous as to amount to an objection to the performance of the con- tract. (?i) § 1158. In Phillips v. Caldcleugh(o) the plaintiff con- tracted to buy a house, described in the particulars as "a freehold residence," subject to conditions, one of which was that the abstract should commence with a conveyance of April, 1860, and no objection should be taken in respect of the prior title, and another provided that if any error should appear to have been made in the particulars it should not annul the sale. The abstract of the deed of April, 1860, showed it to have been a conveyance of the property, sub- ject "so far as the same premises were subject thereto," to the (unspecified) covenants and conditions on the guarantee' s part contained in an indenture (not abstracted) of March, 1850. It was held that, the property having been sold as freehold, neither of the above conditions protected the vendors from explaining what these covenants and con- ditions were, and showing that the property was unincum- bered by them. § 1159. The inclination of the courts to construe con- ditions of sale strictly is shown by many other cases, (p) but, perhaps, it is not more strongly illustrated by any than one at the rolls, where, on a sale of leaseholds, one of the conditions stipulated that the possession under the lease should be deemed conclusive evidence of the due perform- ance, or sufficient waiver, of any breach of the covenants in the lease up to the completion of the sale : Lord Romilly, M. R., held that this condition covered all breaches up to the date of the contract, but not a breach between the con- tract and completion for which the lessor was entitled to enter, and that notwithstanding the express words "up to the completion of this sale."(§')' (n) Martin v. Cotter, 3 Jon. & L., 496. See, Nowell, 25 L. J. Ch., 709 (Kindersley, V. C ); too, Gardiner v. Tate, I. K. 10 C. L , 460 Brumflt v. Morton, 3 Jur. N. S , 1198 (Stuart, where an equitable interest was described in V. C.); Cox v. Coventon, 13 Beav., 378; language w^ich might naturally be read as Russell v. Harford, L. R. 2 Eq, 507 (construc- iniporting a legal interest. tlon of condition as to rights of water and (o) L. R 4Q. B.,159. easements-), cf. Brooks v. Drysdale, 3 O. P. (])) Southby V. Hutt, 2 My. & Cr , 207; D, 52 (construction of the word " covenant " Symonds v. James, 1 Y. & C. C. C, 487; In a contract for sale); and .'^ee §§1296,1297. Adams V. Lambert, 2 Jur., 1078; Cruse v. (q) Howell v. Kightley, 21 Beav., 331. ' Dykes v. Blake, 4 Bing. (N. C), 463, is a case in point. There several lots were sold by number. The plaintiff purchased lots Nos. 13 and 13. In lot 564 l-llY ON SPECIFIC PERFORMANCE OF CONTP.ACTS. § 1160. Again, wliei-e one of the conditions stipulated tliat all objects should be delivered within fourteen daj^s from the delivery of the abstract, and another that "if the purchaser shall fail to comply with these conditions his or her deposit shall be tliereupon actually forfeited to the vendors ;" and after the expiration of the fourteen days the purchaser delivered an objection showing a fatal defect in the title ; the ground upon which the majority of the court proceeded, in holding him entitled to recover his deposit, was that the latter condition did not apply to the case of vendors unable to give a good title. (r) § 1161. Where on the sale of leaseholds, the conditions provided that the purchaser should have possession on the 14th of November, all outgoings up to that day being cleared by the vendors, the purchaser was held to be entitled to insist that an apportioned part of the current rent from the last quarter-day to the 14th of November was an " outgo- (»•) Want V. Stallibross, L. R. 8 Ex., 175. No. 7 there was a reservation to the occupants of that and other lots, of a car- riage-way and foot-path, over lot No. VS; but the plans and particulars did not show any such right of way : the lease of lot No. 7 not being .at the place of sale, although referred to by the descriptions and particulars. It was held that the plaintiff might rescind the contract in toto, the agreement being entire. See, also, Adams v. Lambert, 2 Jur., 1078; Judson v. Wass, 11 John., 526. And a vendor will be held to make good his descriptions and particulars uncontrolled by verbal statements made at the time of the sale by the auctioneer. Gurmis v. Erhart, 1 H. Bl , 289; Olgivie v. Foljambe, '3 Aleriv., 53; Rich v. Jackson, 4 Bro. C. C, 514. But it seems that declarations so made are admissible as evi- dence to explain the written terms of the conditions of sale : and they were so admitted in Cannon v. Mitchell, 2 Dessau., 320, where it was stated publicly by the agent of the vendor, at an auction sale of two tide mills, and also by the auctioneer, that the stream upon which the mills were situated was to be kept open for the use of both, although the written terms of sale contained no such statement. It has been said that an estate cannot be too minutely described in the particulars: for although it is impossible that all the particulars relative to the quantity, situation, etc., should be so specifically laid down as to call for some allowance when the bargain comes to be executed, yet, if a person, how- ever little conversant with the actual situation of his estate, will give a descrip- tion, he must be bound by that, whether conversant with it or not. Although it is not to be supposed that no care or diligence is required of the purchaser. If every nice and critical objection be admissible, and sufficient to defeat the sale, it would greatly impair the eflScacy and value of public judicial sales; and, therefore, if the purchaser gets substantially the thing for which he bargained, he may generally be held to abide by the purchase, with the allowance of some deduction from the price by way of compensation for any small deficiency in the value, by reason of the variation. Pars. Contr., vol. 1, p. 415, note (t). See Foley v. McKeon, 4 Leigh, 627. It appears, further, that any declaration, in the terms of the sale, that such sale shall not be avoided by any misdescrip- tion of the property, on the part of the vendor, will be without effect, and the contract may be rescinded, if the variation is of moment. Duke of Norfolk v. Wortley, 1 Camp., 237; Stewart v. Alliston, 1 Mer., 26; see, also, Robinson v. Musgrove, 3 Mood & Rob., 92; see post, g 803. CONDITIONS OF SALE AND PARTICULAES, 565 ing" within the meaning of the conditions. (5) And a stipulation tliat purchasers are to receive "all rents and profits'' from the day fixed for completion has been held to entitle them to an occupation rent from the vendors, on the latter remaining in possession after that day.(^) § 1162. Thn court, construing conditions thus strictly, will not by implication extend the terms of one condition so as to enlarge another beyond what it actually expresses. In the case of Southby v. 'H.utt,{u) the interpretation of con- ditions in this respect was fully considered. There, by the conditions of sale, the vendor agreed to deliver an abstract and deduce a good title, except as to part of the estate acquired under an inclosure, as to which he was not to be required to go back beyond the award ; and by a subse- quent condition it was stipulated that the vendor should deliver to the largest purchaser all deeds in his custody, but should not be required to produce any other deeds than those in his possession and set forth in the abstract : and it was held that the latter condition did not so affect the former as to entitle the vendor to insist on verifying his abstract only so far as could be done by deeds in his jdos- session, but that the purchaser was entitled to a general verification. And so a condition that certain specified deeds only should be given up, does not limit the title to be shown to that disclosed by these deeds. (?^) § 1163. On the same principle of strict construction, where (as commonly hapjDens), there is a condition that all objections to the title are to be taken within a specified num- ber of days from the delivery of the abstract, or to be deemed waived, and that time shall, in that respect, be of the essence of the contract, the time will not begin to run against the purchaser until the vendor has delivered a per- fect abstract, (zo) § 1164. It is a natural principle of interpretation, that a vendor shall never be allowed to avail himself of the con- ditions of sale for the purpose of acting fraudulently. The court requires good faith in conditions of sale, (a?) Accord- (s) Laws V. Gibson, L. R 1 Eq., 135. {v) Dick v. Donald, 1 Bli, N. S 655. («) The Metropolitan Railway Co v. De- (to) Hobson v. Bell, 2 Beav., 17; Want v. fries, 2 Q. B. D., 189. 387. 8talUbra?8, L. R. 8 Ex., 175; Cf. Re Jackson (u) 2 My. & Cr , 207; Osborne t Harvey, 7 and Oakshot, U Ch. D. 851. Jur., 229 See also Gabriel v. Smith, 16 Q. (a;) Per TurBer. L. J., in Dimmock v. Hal- B., 847; and cf. Lord Westbury's judgment lett, L. R. 2 Ch., 28. In Cordingley v. Cheeeeborough, 4 De G. h\ &J.,384et seq. 566 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. ingly a condition for compensation will not apply where there has been misrepresentation ;(?/) and under a condition giving the vendor a power of rescission in case of any ob- jections to the abstract, he will not be permitted fraudu- lently to deliver an imperfect abstract to which objections would necessarily be taken, and thereupon avail himself of his fraud to avoid his contract by means of this condition. (2) So it seems that a condition as to objections to title being delivered by a certain time, would not apply where there had been misrepresentation ;( Munn V. Hancock, L. R. 6 Ch , 850. (A) Williams v. Wood, 16 W. R., 1005. CONDITIONS OF SALE AND PARTICULARS. 569 any," it was held that the vendors were entitled to have the words " subject to all free rents, etc.," inserted in the conveyance, notwithstanding the purchasers objection that they were wholly inapplicable to the property. (?^) (n) Vale v. Squier, 4 Ch. D., 226, affirmed 5Ch. D.,625. Of. Sidney v. Clarkson, 35 Beav.,. 118. 570 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. . CHAPTER II. OF COMPENSATION. § 1 1 74. Where a vendor is able to perform the contract in its substance, but unable to perform it liberally in all its parts, he may yet sue the purchaser for its sjDecific perform- ance. On the other hand, where a vendor has not substan- tially all that he has contracted to sell, he cannot sue for S])ecific performance, but the purchaser may generally insist on taking what the vendor has. § 1175. From these princii:>les arises a right in the pur- chaser to compensation in respect of the difference between the thing which the vendor insists that he shall take, or he himself insists on taking, and the expressed subject-matter of the contract. It will be shown that the subjects of com- pensation in the two cases are very different, and that maay defects for which the purchaser may obtain compensation will not be made the subjects of compensation at the in- stance of the vendor, {a) The rights of the parties to com- pensation may be and frequently are qualified by the con- tract, which in many cases contains a condition on the point. § 1170. It was formerly held that, where the vendor sought to enforce the performance of a contract with com- pensation, his biU was demurrable, unless it showed that the defect was a fit subject for compensation, (&) and in a case before Stuart, V. C, where the whole of the vendor's bill was framed on the view that a good title had been shown by the time iDrescribed, and that was the sole issue raised by it, the court held that, the plaintiff having failed in that contention, sj^ecific performance would not be enforced with compensation. (c) It is conceived that, under the present practice, if either party is aware of any case for compensa- tion, and means to insist on it, he ought distinctly to raise the question of his pleading ; (d) but it seems that compen- (a) Compare Nelthorpe v. Ilolgate, 1 Call., (6) Boyer v Bright, 13 Pri, 698. 203 with Collier v. .Jenkins, You.. 295. See (o Ashton v Wood, 3 Sm & G., 436. also Wilson v. Williams, 3 Jur. N. S., 810 (d) Oraer XIX. rr., 4,8, 18. (Wooil, V. C.) COMPENSATION. 571 sation may be granted for a defect appearing on the investi- gation of title, though the pleadings and judgment make no reference to compensation, (e) § 1177. It will be convenient to consider separately (1) the cases where the vendor is the party insisting on the per- formance of the contract, subdividing these into (a) cases where either the contract contains no condition for compen- sation, or at any rate no such condition enters into the ■question, and (b) cases where there is such a condition ; and then (2) to deal in a similar way with the cases in wliich the purchaser is the party insisting on the contract. 1 . (a) Vendor insistinr/ on the contract^ there heinff no condition, for coiwpensation.' § 1178. The description by which a thing is contracted to be sold is a matter for which a vendor is jyriind facie re- 4sponsible. Accordingly, when he seeks to enforce a con- tract it is incumbent u\)Oi\ him to show that he is able to perform his part of it. Inasmuch, however, as equity looks to the subs' ance rather than to the mere letter of a contract, if the vendor shows that he can substantially do what he contracted to do, he is entitled to enforce specilic perform- (e) Wilson v. Williams, 3 Jur. N. S., 810 (Wood, V. C.) ' Compensation for deficiency in the purchase of lands, is essentially a matter of equity jurisdiction. Castleton v. Veitch, 3 Rand., r)98. But it is clear that conditions expressly inserted in the articles of sale, to the effect that variations or misdescriptions sliall not vitiate the sale, will render the agreement cogniza- ble at law. Adams' Eq., pp. 89, 90. From its more extended jurisdiction, equity has no difiiculty ni granting aid, to a purchaser wlio has entered into a contract without knowledge that the other party cannot fulfil his part of the contract in into : and upon a proper case being made by the bill, of enforcing so mucli of the contract as lies within the power of the vendor, and awarding ■compensation for the deficiency. The cases upon this point are numerous. Thomas v. Dering, 1 K., 729; Wheatley v. Slade, 4 Sim., 126; Graham v. Oli- ver, o Bea., 124; Nelthorpe v. Ilolgate, 1 Coll., 203; Couse v. lioyles, 3 Green's ■Ch., 212; Nelson v. Carrington, 4 Munf , %S'l; Crenshaw v. Smith, 5 id., 415; Blessing v. Beatty, 1 Rob (Va.), 287; Neal v. Logan, 1 Gnitt.. 14; Barton v. Bird, I Overton, 00; Mo.ss v. Elmendorf, 11 Paige, 277; Hepburn v. Auld, 5 Cranch, 202; Jacobs v. Lake, 2 Ired.'s Ch., 280; Henry v. Leles, id., 4ur; Weatherford v. James, 2 Ala., 170; Ba.ss v. Gilliland, 5 id., 701; Rankin v. Maxwell, 2 A. K. Marsh., 488; see Jones v Shackleford, 2 Bibb., 410. Nor vpill equity refuse to grant a specific performance in favor of the vendor, not- withstanding its greater reluctance to interfere in favor of vendors than pur- chasers. AlcWhorter v. McMahan, 1 Clark, 400. And there are cases in which a vendor of land may come into equity to compel a specific performance of the contract of sale, although he may have a remedy at law by an action for the purchase money. Pliyfe v. Wardell, 5 Paige, 208; see Brown v. Half, id., 235. All that IS required, to obtain a specific performance on the part of a vendor, is that he shall perform his agreement in substance. A mere trifluig variation will not defeat a decree. Willard's Eq. Jur., 290; Winne v. Reynolds, Paige, 572 in\ ON SPECIFIC pekfokmance of coxtracts. ance, although he may be unable to do it modo et formd according to the letter of the contract ; the difference be- tween what he contracted to do and what he can actually do becoming the subject of coni[)ensation. §1179.. "Lord Thurlow," said Lord Eldon, in a pas- sage already cited, '"used to refer this doctrine of specific performance to this ; that it is scarcely possible, that there may not be some small mistake or inaccuracy ; as that a leasehold interest, represented to be foi- twenty-one years, may be for twenty years and nine months : some of those little circumstances, that would defeat an action at law ; and yet lie so clearly in compensation, that they ought not to prevent the execution of the contract. "(/) g 1180. But "if (to quote Lord Erskine), a court of equity can compel a party to perform a contract, that is substantially different from that, which he entered into, and proceeded upon the principle of compensation, as it has compelled him to execute a contract substantially different, and substantially less than that, for which he stipulated, without some very distinct limitations such a jurisdiction, having all the precision of law, the rights of mankind under contracts must be extremely uncertain." (z/) Jj 1181. It falls then to be considered (1) what defects or circumstances will be considered by the court so material or essential as to debar a vendor from enforcing the contract at all, and (2) what, on the other hand, will be held so im- material or non-essential as to allow of the contract being enforced at his instance. § 1182. (1) The contract will not be enforced against the (/) In Mortlock v. Buller, in Ves . 305; Elflon in Calcraft v. Hoebuck, 1 Ves Jun. supra, Part I.cliap. ii. § 29. JSee too perLonl 223, 221 i,g) In Halsey v. Grant, 13 Ves., 76. 407. Kingv. Bardeau, 6 Jobn.'s Ch., ;^8, is a case in point. Two lots were sold at auction at the same tinn; and to the same person, and the buildings upon the one projected upon the other, and it was hekl that the vendor might enforce the purchase in equity, because the vendee obtained substantially what he bar- gained for. and the deticiency was capable of compensation. Henry v. Grady, 5 B. Monr , 450, is very much of the same nature. 'I here was a contract for the conveyance of land, which, although not crried into execution at the time appointed, was not considered by either vendor or vendee as abandoned. The vendor refused to deliver full pos.session at the time fixed for surrender to the vendee, and the vendee, in consequence, refused to pay the purchase money. It was held that the vendor might enforce a specific performance, because the injury to the vendee in not getting possession was slight, and might be com- pensated out of the purchase money still to be paid. COMPENSATION. 573 purchaser with compensation where a material part of the subject-matter is wanting. Formerly the court went far beyond what it now does in enforcing contracts substanti- ally different from those entered into ; as where a wharf- inger who contracted for a house and wharf was compelled to take the house without the wharf : but of this mode of proceeding Lord Eldon frequently expressed his disap- proval, and it is now abandoned by the court. (A) "The court," said Lord Eldon on one occasion, "is from time to time approaching nearer to the doctrine that a purchaser shall have that which he contracted for, or not be compelled to take that which he did not mean to have."(/) § 1 1 83. Accordingly where a wharf and jetty w^ere con- tracted to be sold, and it turned out that the jetty was liable to be removed by the corporation of London, specific performance was refused. (y)' In the case of the sale of a residence and four acres of land, a slip of ground of about a quarter of an acre between the house and the high road, to which no title was made, was held not to be a subject for compensation. (A-) And in case Lord Eldon thought that a defect in title in respect to eleven out of seventy acres, which do not ajopear to have been peculiar in their position or character "would probably be material to the suit.'X^) § 1184. In some cases a part of the estate contracted for may be material because, if any one else were to possess it, it would probably be turned to some purpose prejudicial to the enjoyment of the estate ; as where land near a mansion was such that it would be most profitably used for building ground or for a brick-kiln. But the nuisance thus appre- hended must be probable, and not merely distant, fanciful, and conjectural. (m)' (h) Drewe v. Hanson, 6 Ves., 675; Halsey (i) 3 Mer., 146. See. too, the judgments of V. Grant. 13 Ves , 73; Stapylton v. Scott, 13 the L. J. J. in Re Arnold. U Ch. D., 2,0. Ves., 425; KnatchbuU v. Grueber, 3 Mer., 124. ( j) Peers v. Lambert, i Beav., o46. 8ee also Howland v. Norris, 1 Cox, 59. The (k) Perkins v. Ede, IG beav., 193. decision in Shirley v. Davis, to which Lord (I) Osbaldsiton v. Askew, 2 J. & AY ., 539. Eldon frequently alludes, aupears to have Cf. Portman v. Mill, 2 Kuss., o,0, o,4 been in fact the opposite of that which his (wi) See per Plunier, V.C.in Ku tchbull v. Lordship stated. Shirley v. Stratton, 1 Bro. Grueber, 1 Mad., 167 (the case oa appeal is C C, 440, n. (2). reported 3 Mer. 124). 1 Deficiency essential to the enpyment of tlie residue.] Where the deficiency is so great that the remainder could not be enjoyed profitably, or where the defi- ciency is essential to the enjoyment of the residue, equity will not enforce sp_e- ciflc performance against a purchaser. Howard v. Kimball, 05 X. C, 175; Philips V. Stanch, 2U Mich. , 36!). - Doctrine of comiyensation.'] Sir Thomas Plumer, V. C, said in Kuatchbull 574 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 1185. Again where the tenure of an estate contracted to be sold is in fact altogt^ther, or to a substantial extent, different from that which the vendor has represented him- self to be selling, he will not be able to enforce performance, unless indeed the purchaser has wiuved the objection. § 1180. Thus where, on a sale by auction, the particu- lars described the property to be sold as a "freehold estate with a leasehold adjoining," and it turned out that, of the seventy acres of which the estate consisted, sixty-two were leasehold and only eight freehold, Lord Alvanley, M. U., said that, if the purchaser had objected on that ground, he should have thought the purchase ought not to be carried into execution. As, however, the purchaser had not taken the objection, his lordship granted an injunction restraining an action for the dej^osit on the terms of the vendor bringing the money into court, (ti.) § 1187. Again, where an estate is sold as tithe free, subject to a modus, and it is in fact subject to tithe, the court will not, as a general rule,(o) compel the pur- chaser to take it with compensation. (^j") § 1188. Nor, it seems, would the court compel a person who had contracted for the purchase of an estate free from incundjrances to take, instead of that, an estate subject to (w) Fordyce v. Forrt, 4 Uro. C. 0.,494 Cf. (p) Ker v. Clobury. St. Leon, Vend., 267; Cox V. Coventon, 31 Beav., 378; ind eee Binks v. Lord Ittikeby. 2 Sw., 222. Lord Hughes V. Jones, 3 De G F. &J.,3(i7. Stanhope'scase cited 6 Ves.. 678,isexplalned (o) See, however, iuira, § 1199. by Lord St. Leonards, Vend., 266 V. Giueber, 1 Mad., 153: "There is great difficulty of applying the doctrine of compensation to a reluctant purchaser. 1 here is no standard by which to ascer- tain what is essential to a ]nirchaser. The motives for purchasing real property are very ditferent in different persons Facts, opinions and ages create differ- ent views Some particularity, some whim, may have induced him to purchase. What is desirable to one is not so to another. One wants a wood for game, another dislikes tithes. It therefore seems a little arbitrary to insist on a party takiug compensation. Why am I bound to take what I did not mean to buy ? You say yiai will give me compensation, but who is to judge of the compensa- tion ? Can you be sure it is a compensation ? It is a dillicult thing for a mas- ter to ascertain what is essential to the enjoyment of the estate, and what is a proper compensation. It is as difficult for the court to decide, if, having all the data before it, it decides, as it is then proper to do, without sending it to the master. Are you to look at the land in its present state, or to consider in Avhat state it may be in future ? It is said a purchaser should communicate his motives lor purchasing. If so. the vendor might enhance the price. It is also said that the defendant's objection that these twelve acres are essential was an after thought. Suppose it was. Is a court of equity to say no advantage can be taken of the objection ? Though a purchaser may not, at first, be aware of tlie essentiality of the land to which no title can be made, yet, if he after- wards finds it is es.sential, is a court of equity to say he shall not avail himself of the obiection ? " See, also, Foley v. Crow, 37 Md , 51 ; Shaw v. Vincent, 64N. C.,'690. COMPENSATION. 575 an incumbrance amounting to one half of the purchase- money \{q) though if there is only a small incumbrance upon a considerable estate, the decision may, as will be shown, be otherwise, (r) § 1189. In some cases the compensation to be made for a defect may take the form of an indemnity ; which is a species of compensation— inasmuch as something else is given in place of the very thing contracted for— applicable to cases where the defect or loss is not certain but con- tingent. § 1190. The court will not, however, at a vendor's in- stance, compel the purchaser to take an indemnity, unless such indemnity was part of the contract between the par- ties. (-?) Thus, where the sub-lessee of a house had con- trajcted to grant a twenty-one years' lease of it to the defendant, but, owing to the house in question being, with five others, subject to the covenants and proviso for' re-entry contained in the head lease, could not give the defendant a secure lease for the term of his contract, specific perform- ance was refused, though the plaintiff offered to indemnify the defendant in case of his eviction. (zJ) Similarly it has been held that a purchaser could not be forced to take an indemnity in respect to a misdescription, (-z^) or of a possible liability under an ambiguous covenant. («) § 1191. In a case decided by Lord Hatherley (then Wood, V. C.,) in the year 1858, the contract was that the defendant should procure a lease then vested in his father to be surrendered to the plaintiff, and would thereupon accept a new lease from the plaintiff and pay a premium of £3U0 for it. The father refused to surrender his lease, whereupon the plaintiff filed her bill for specific perform- ance, praying that, if the defendant could not obtain the surrender, he might be decreed to accept a lease com- mencing from the expiration of his father's lease, and in other respects in the terms of the contract, and also to make good her loss resulting from the non-performance of the con- tract. It was held on demurrer that the court could not (a) Per Lord Eldon in Wood v. Bernal, 19 §§ 1245, 1246. See too Wood v. Bernal, 19 Ves "21 Yes ,221. (r)' See' infra, § 1196 et seq (<) Fildes v. Hooker, 3 Mad., 193. (s) See per Lord Eldon in Balmanno v. («) Ridgway v. (iray, 1 Mac. & Or., 109. Lumley 1 V. & B., J25, a:nl (-\...,l-3 cited Infra, {v) Nouaiiie v. Fli^jlit, 7 Bcav., 521. 576 FRY ON spkcifk; pekformaxce of contkacts. interfere to decree specific performance, but would leave the I)laintiff to her remedy at common law in damages. (wj) . § 1 192. The principle of compensation will not be applied at the instance of a vendor who has been guilty of misrex)re- sentation. This point will be illustrated hereafter. (re) § 1193. Even where the circumstances are such that the vendor might originally have enforced the contract with compensation, he may lose his right to do so by subsequent conduct inconsistent with the contract — as for instance where, one of the terms of the contract being that im- mediate possession should be given, and the purchaser liaving taken possession accordingly, the vendor, on a question as to compensation arising, turned him out of p)Ossession.(?/) § 1194. (2) On the other hand, in each of the following cases the defect was considered a proper subject for com- pensation, but not so essential as to debar the vendor altogether from enforcing the contract : — where an estate of about 186 acres was described as freehold, and in fact about two acres, part of a i)ark, were held only from year to year ;{z) vfhere there was an objection to the title of six acres out of a large estate, and those acres do not appear to have been material to the enjoyment of the rest ;(a) where fourteen acres were sold as meadow, and only twelve answered that description ;{b) and where, on a purchase by a tenant in possession, property described as forty-six feet in depth proved to be only thirty-three feet.(c) § 1195. In one case where, on a sale of colliery works, the vendors had stated the annual profits of the concern at a sum largely in excess of the actual amount, they were nevertheless allowed to enforce the contract, but on the terms of making compensation to the purchasers by sub- mitting to an abatement from the purchase-money, bearing the same proportion to the excess as the total purchase- money bore to the caj)italised value of the amount of profits stated by the vendors, {d) § 1196. On the general principle already stated, (e) the mere fact of* the existence of some small or (to the pur- (w) Beeston v. Stately, 6 W. R., 20G; 27 L. {z) Calcraft v. Roebuck. 1 Ves. Jun., 221. J. Ch., 156; sec now infra, §§ 1265, 1270. («) McQueen v. Farquhar, 11 Ves., 46*. (a;) Infra, § 1217 et seq. (b) Scott v. Hanson, 1 K. & My , 128. (y) Knatchbull v. Grueber, 3 Mer., 124, 144, (c) King v. Wilson, 6 Beav., 124. 14^7. (d) Powell V. Elliot, L. R. lU Ch., 424. COMPENSATIOlSr. 577 €haser) immaterial incumbrances on the property is not enough to deprive a vendor of his right to insist on the specific performance of the contract. § 1197. Thus, where titlies contracted to be sold were subject to sundry small charges, (/) and where the estate sold was subject to quit-rents (which may be regarded as incidents of tenure, [p']) the court enforced the contracts, in one case with an inquiry whether there ought to be any and what indemnity in respect of the charge, (7^.) and in the others with compensation to the purchaser by way of abate- ment from the purchase-money. § 1198. And in a case where an estate sold as fen land, and so described in the particular, was subject, under a local but public act, to certain embanking and drainage taxes which were not mentioned in the particulars, the €ourt, on the ground apparently of the act imposing the charges being a jJi^blic act, decreed against the purchaser specific performance of the contract without compensa- tion, (z) § 1 199. Further, although, as we have seen, (,/) a man who contracts to purchase an estate which is described as tithe- free will not generally be compelled to complete his pur- chases, if it turn out that the land is subject to tithe, — it being considered that, as a general rule, the right to the tithe is so material to the enjoyment of the land as to have formed the inducement to the purchase, — still, where the circumstances show that the right to the tithe is not thus material, the general rule ceases to apply. For instance, where an estate of about 140 acres was described as subject to tithe except thirty-two acres, and the exem]3tion from tithe of those thirty-two acres was not proved, (A*) and again where the circumstances showed that the question whether the land was to be tithe free or not was an immaterial one in the view of the x^urchaser ;(Z) the court compelled the purchaser to complete the contract witli comj)ensation. § 1300, On the principle that a warranty or a represen- (e) Supra, § 1178, (i) Barraud v. Archer, 2 Sim., 433; affirmed If) Halsey V. Grant, 13 Ves, 73; Horniblow on appeal (not reported: see 2 R. & My., 751), V. Shirley, 13 Ves., 81. Of. Drewe v. Hanson, (J) supra, § 1187. 6 Ves, 675. (A) Binks V. Lord Rolceby, 2 Sw., 222, In ig) Esdaile v. Stephenson, 1 S. & S., 122, this case there appears to have been a con- 124. dition that errors of description should not {h) Halsey v. Grant, ubi supra. vitiate the sale. See 2 Sw., 225. (I) Smith V. Tolcher, 4 Kuss., 302. 37 578 FRY ON SPECIFIC PERFUKMANCE OF CONTRACTS. tation is not bindino;, where in respect of some defect that is perfectly patent, (^^i) the court will not give a purchaser comiDensation for defects of this nature : so that a contract was enforced, at a vendor's instance, without any compen- sation in respect to the misdescription of a farm described as lying within a ring fence, which did not so lie, as the purchaser had himself seen and knew ; while in the same case compensation was given for latent defects. (?z) § 1301. But in order that this principle shall apply, the defect must be perfectly visible to everybody : therefore^ where a representation was made by a vendor as to the dry- rot in a house, w^hich was not a matter so perfectly visible, the court gave compensation :(o) and where a tenant in pos- session purchased the property, which was represented as forty-six feet in depth, but was in fact only thirt}' -three feet, he was held entitled to compensation, inasmuch as occupiers are not in the habit of measuring their premi- ses, {p) § 1S03. Moreover, if the purchaser, after he knows of a defect, acts in a manner implying a waiver of it, the vendor becomes entitled to insist on the completion of the purchase without compensation. Thus, where the abstract, delivered in January, showed part of the estate to be subject to a right of sporting, and in the following A^Dril the purchaser at his own request was let into possession, and afterward several letters passed between the parties, and most of the purchase-money was paid without any objection on the score of the right before, in October of the same year, the pur- chaser claimed compensation ; it was held that he had waived the objection, and si^ecific performance without com- pensation was decreed against him. ((7) § 1303. In an Irish case specific j)erformance was en- forced, at the vendor's instance, without compensation for a deficiency of nearly one-half in acreage of propert}^ de- scribed in the contract as "about 200 acres of mountain land," the land being a waste of heath of trifling value. (r) (ot) Supra, §§ 658, 659, 849. Of. Horsfall v. (;;) King v. Wilson, 6 Beav., 124. Thomas, 31 L. J. Ex., 322; 10 W. R., 650. (q) Burnell v. Brown, 1 J. & W., 168. Dis- (n) Dyer v. Hargrave, 10 Ves., 505. tinguish Hugbes v. Jones, 3 De G. F. & J.,. (o) Grant v. Munt, Coop., 173. 307. (r) Corless v. Sparling, I. R. 9 Eq., 595. coMPENSATioisr. 579 1. (b) Vendor insisting upon the contract, there being a condition for comyensation. § 1304. In the cases now to be considered, while the general principles already stated are applicable, and the rights of the vendor are usually somewhat extended by the language of the particular condition, at the same time, con- ditions of sale being, as we have seen,(.^) construed strictly against the vendor, it is incumbent upon him, if he rely upon the condition to compel the purchaser to carry the contract into execution, taking compensation for some de- fect, to show that the defect is of such a nature as pro^^erly to fall within the condition. (^) § ISOS. Quite apart from any consideration of fraud, where there is in a contract a misdescription " in a material and substantial point, so far affecting the subject-matter of the contract as that it may be reasonably supposed, that, but for sncli misdescrij)tion, the purchaser might never have entered into the contract at all, in such case the contract is avoided altogether, and the purchaser is not bound to resort to the clause of compensation." (^0 § 1206. Thus, where the particulars of a leasehold house in Covent Garden stated that, by the lease, "no offensive trade was to be carried on, and that the premises could not be let to a coffee-housekeeper or working hatter," and there was a condition for compensation in case of error or mis- statement, and the original lease, in fact, prohibited a vast variety of other businesses than those described, including the sale of any provisions, the i^urchaser was held to be entitled to rescind the contract, (-y) § 1207. Again, where there was a condition for com- pensation in the case of error in the description of the premises, or of any other error whatsoever in the particulars, and the jiroperty which was described as coj)yliold turned out to be partly freehold. Lord Romilly, M. R., refused to compel specific performance by the purchaser : he had con- tracted to purchase one thing, and he might refuse to accejDt another. (w) («) Supr », § 1154 et seq. Phillips, Prec. in Cli., 575, a bill by a vendor (<) See per Lord Westbury in Cordingly v. of an estate, which in the articles was treated Cheest.boi. ..,-.i, 4De G. F & J., 384. as freehold, was refused hecaiise about one- (M) Per Ml tlal, C. J., in Flight v. Booth, 1 sixth in value was copyhold, but nothing is Bin.p;. N . C ;. . stato ^ as to the peculiar nature of the tenure. (r) r!i;.htv /'-octh, 1 Bing. N. C, 370. Dis- Of. the observations of Romilly, M. R , in tii.Miisli Groaveu.-i v Green, 7 W. R., 140. Hui-.roii v. Cook, L. R. 13 Eq., 4J0. See too ^M7) Ayles V. 0;x, i6 Beav., 23. In Hick v. Evans v. Robins, 8 Jur. N. S., 846. 580 FRY ON SPECIFIC PEKFOIIMANCE OF CONTRACTS. § 1208. In anotlier case a yard, which was essential to the enjoyment of tlie property sold, was held from year to year, instead of for the term of twenty-three years for which the rest of the i)remisHS were held, and at a separate rent : this was considered to be a defect which the vendors were not entitled to bring witliin a condition for comj)ensation for mistake in the description of the property or anj other error whatsoever in the particulars. (:c) § 1209. In Madeley v. Booth(i?/) leasehold iDroperty was sold for the residue of a term of ninety-nine years, which commenced on the 24th of June, 1838, under conditions which prohibited the purchaser from calling for the lessor's title, and stipulated that any error or misstatement of the property, term of years, or other description, should not vitiate the sale, but that a compensation should be given : the term sold was really not the residue described, but a derivative term less by three days than the original one : Knight Bruce, V. C, held that the underlease was not sub stantially the same thing, the resulting rights being different, and accordingly dismissed with costs a bill by the vendor praying for specific performance with comi^ensation. This decision, however, has been Judicially disapproved of, and does not seem to be consonant with principle. (^) § 1210. The principle under consideration of course applies where, though the whole land is conveyed, it, or a part of it, is subject to rights which materially affect its enjoyment : thus a right of way, which would render use- less for building a close advertised as building-ground, has been held not to come within a condition for compensa- tion ;{a) so grants of rights to the owners of lower lands, to fetch water from a spring on the upper lands, to cut and cleanse drains leading the water to the lower lands, and other similar rights having reference to four and a half acres out of about thirty sold, were held to constitute a material defect in the title to the upper lands, and con- sequently were not the subject of compensation, notwith- standing a condition that a mistake in the description or an {X) Dobell V. Hutchinson, 3 A. & E., 355. way, 13 Ch. D., 760, and infra, § 1215. See (y) 2DeG. & Sm., 718. too Darlington v. Hamilton, Kay, 557, 558; (z) See per Jessel, M. R., in Camberwell ami Hayford v. Criddle, 22 Beav., 477 and South London Building Society v. UoUo- (a) Dykes v. Blake, 4 Bing. N. C, 463. COMPENSATIOlSr, 581 error in the particulars sliould be the siibject of com- pensation, and not annul the contract. (6) § 1211. Generally, where there is a proper case for com- pensation, and the amount can be reasonably estimated, the court is disposed to grant it.(c) § 1219. But where thi« reasonable estimate is not attain- able, the court refuses to compel the purchaser to take com- pensation : thus, where a house and grounds were sold by the court, and, pending the making out of the title, some ornamental timber was cut down, the purchaser was dis- charged, because the act affected the value of the property to the purchaser, as a residence, in a way which the court was unable to measure. (rZ) And where the particulars represented the average size of the timber in the wood, which was the property sold, as approaching fifty feet, but in no way specified the number of the trees ; and the witnesses for the plaintiff (the vendor) treated no trees con- taining less than ten feet as timber trees, and on this basis showed an average of thirty-four feet six inches ; whilst the defendant's witnesses, reckoning all trees containing not less than five feet as timber trees, showed an average of twenty-two feet only ; it was held by Lord Hatherley (then. Wood V. C.) that the subject-matter sold fell short of the description ; but, in the absence of any representation as to the number of trees, the court had no data for calculation, and therefore could not give compensation, but dismissed the bi]l.(e) § 1213. The same principle seems to have governed another case, in which the premises were described as in the joint oc(?upation of A. and B. as lessees, whereas they were in fact in their joint occupation, but not as lessees, but A. was the assignee from C, the original lessee : it was held that this was not a case for compensating the pur- chaser, but that he could not be forced to take an in- demnity. (/) § 1214. On the other hand, where the conditions pro- vided that any misstatement of the quality, tenure, out- (b) Shackleton v. Sutcliffe, 1 De G & Sm., (e) Lord Brooke v Rounthwaite. 5 Ha., 298. 609. Ct. Nouaille V. Flight, 7 Beav., 521. Cf. infta, § 1261. (c) .see infra, § 1242. (/) Kidgway v. Graj', 1 -Mac. & G., 109. (d) Magennis v. Fallon, 2 Moll., 561, 584. Distinguish Farebrother v. Gibson, 1 De G. Cf, Cox. V. Coventon, 31 Beav., 378. & J.. 602. 582 FRY ON SPECIFIC PEKFOKMANCE OF CON TPwACTS. goings, or other particulars of the property, described by an innocent mistake as "valuable freehold estate," should be the subject of compensation ; and one lot was in fact of copyhold tenure, but it appeared that under a composition with the lord of the numor the difference in value between copyholds in that manor and freeholds was very slight ; it was held that the vendor was entitled to compel the pur- chaser to take the lot in question with compensation. (^) § 1S15. Further, although, where a man sells a lease for a definite term of years, and nothing mti;\vart v. AUlston, 1 Mer. 26; eupra, § 1164; ton, Kay, 558; Havford v. ('riddle, 22 Beav , and .Mstinguish Powell v. Ellioit, L. R. 10 477; Nouaille v. Flight, 7 Beav., 521 ; Hen- Ch., 424. „ ,. „ ,c p. ^ dernon v. Hudson, 15 \V. R., &6t); Flood v. (j) Price v. Macaulay, 2 De G. M. & L... Pritchard, 40 I,. T., 873; Turner v. Turner, 339, 344. W.N. 1881,70. COMPENSATION. 583 yielding a yearly rental of about £60, and it turned out that this rental arose from supplying with water from the reservoir some houses between which and the reservoir lay lands of other proprietors, through which the vendor had no right to carry the water except under a license from year to year for which he paid rent ; it was held that the de- scription contained such a misrepresentation as to debar the vendor from enforcing specific performance. (A') § l!31». Representation as to the tenancy of a house, the court refused to hold the purchaser to his contract and make him take compensation for the delay which would have been needed for an ejectment, although the purchaser Ibought for investment, and not for residence. (Z) § 129©. Again, where the particulars of sale described a farm, which formed about one-third of the estate sold, as . ''lately in the occupation of A. at an annual rent of £290, 155," and the facts were that A. had occupied the farm for a year and a quarter only, and then at the nominal rent of £3, for the first quarter, and that since his tenancy (which came to an end about sixteen months before the sale) the vendor had been willing to let the farm at £225, and knew that nothing like £290 a year could be obtained for it, the court held that such misrepresentation was not a matter for compensation, but entitled the purchaser to be discharged altogether from his purchase, (m) § 1221. But it seems that a mere flourishing description in particulars, such as that land is fertile and improvable, whereas part of it has in fact been abandoned as useless, cannot, except as in extreme cases — as for instance where a considerable part is covered with water, or otherwise irre- claimable—be considered such a misrepresentation as to •entitle a purchaser to be discharged. (?z) 2. (a) Purcliaser insisting on the contract, there being no condition for compensation. § 1 222. Although, as a general rule, where the vendor has not substantially the whole interest he has contracted (Ti) S. C Sf»e too Leyland v. lllingworth, («) S. C. 27 (per Turner, L J See too 2 De G F. & J , 248. Johnson v. Smart, 2 Glflf., 151 (" substantial (0 f-aclilan v". Uevnolils, Kay, 52. and convenient " awelling.kouse). (to) Dimmock: v. Hallett, L K. 2 Ch., 21. 584 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. to sell, lie, as we have seen, cannot enforce the contract against the purchaser, yet the purchaser can insist on hav- ing all that the vendor can convey, with a compensation for the difference (o) § 1S23. "If," said Lord Eldon,(^) "a man, having- partial interests in an estate, chooses to enter into a con- tract, representing it, and agreeing to sell it, as his own, it is not competent to him afterwards to say, though he has valuable interests, he has not the entirety ; and therefore the purchaser shall not have the benefit of his contract. For the purpose of this jurisdiction, the person contracting under those circumstances is bound by the assertion in his contract ; and, if the vendee chooses to take as much as he can have, he has a right to that, and to an abatement ; and the court will not hear the objection by the vendor, that the purchaser cannot have the whole. "(<7)' § 1234. The principle was acted on by Lord Notting- ham, in the case of Cleaton v. Gower,(r) where the defendant Gower was tenant for life of certain estates in Shropshire, and he and his late father agreed with the ijlaintiff that the plaintiff should open and work certain mines, and should enjoy the minerals raised for ten years, if the defendant or his issue male should so long live, at a yearly rent of £25. The i^laintiff sought a specific performance of this contract : the defendant objected that he was only tenant for life, and subject to account for waste, and that he could not execute the contract because it was inconsistent with his power : the court decreed the defendant to execute the contract so far as he was capable of doing it, and likewise to satisfy the plaintiff such damages as he had sustained in not enjoying the premises according to the contract. § 1335. The principle is also well illustrated by Lord (o) See e. g. per Turner, L. J , In Tluphes Day, 1 Ves. Sen., 224; Milliifan v. Cooke, 16 y Jones, 3 De G. P\ & J., 315 The authority Ves., 1; Pale v. Lister. 16 Ves., 7; Uill v. of James V. Lichfield, L. R. 9 Kq., seems at Buckley, 17 Ves., 394; Western v. Russell, 3 least questionable. Compare Phillips v. V. & B., 187; Neale v. Macktnzie, 1 Ke., 474; Miller L. R 9 C. P., 196, IOC P., 420, with Bennett v. Fowler. 2 Beav.,302; Sutherland Caballero v. Henty, L R. 9 Ch., 447. See, v. Briggs, 1 Ha., 26, particularly 34; Wilson however, Keays v Carroll, I. R. 8 Eq , 97. v. AVilliams. 3 .'ur. N. S.,810 (Wood V. C); (p) In Mortlocb v. Buller, 10 Ves, 315. and cf. Dyas v Cruise, 2 .Jon. & L., 487. Iq) See accordingly Attorney -General v. (r) Finch, 164. J Clark V. Reins, 12 Gratt., 98; Waters v. Travis, 9 John., 450; Herbers v> Gadsden, 6 Rich.'sEq., 281; Voorhee v. De Myer, o Sandf.'s Ch., 614; Jacobs V. Locke, 2 Ired.'s Eq., 286; Erwin v. Myers, 46 Pa. at., 96; Mapier v. Dar- lington, 70 id , 64; Weatherford v. James, 3 Ala., 170. COMPENSATION. 585- Bolin,ul)roke' s case, {s) before Lord Tliiulo w. The incumbent of a living had contracted with a tenant in remainder for the purchase of the avowson, and on the faith of the contract had built a much better house on the glebe than he would otherwise have done : the tenant for life refusing to concur in the sale, Lord Thurlow compelled the tenant in remainder to convey a base fee for levying a fine, with a covenant to suffer a recovery on the death of the tenant for life. § la^G. In Wheatley v. Sladef^ Shad well, V. C, held the principle under discussion not to apply where a large part of the property could not be conveyed ; and con- sequently, the contract in that case being for the sale of a lace manufactory, and it turning out that the vendors were only entitled to nine-sixteenths of the whole, and that those parts were subject to a debt which would exhaust nearly the wdiole of the purchase- money, he refused specific per- formance. The vice chancellor's decision appears to have been influenced by the circumstance that the vendors entered into the contract under a mistaken impression that they were possessed of the entirety of the property. But the case, even if it can thus or otherwise upon its own particular circumstances be supported, is not, it is submitted, likely now to be followed. For it will be shown that, though the difllerence between the property contracted to be sold and that which the vendor can actually convey may be great, the court will generally, notwithstanding this circumstance, enforce the c5ntract where it sees that its intention is the sale of whatever interest the vendor has. § 1297. Indeed the tendency of the court in recent years has been to apply the principle liberally. Thus where two vendors contracted to sell two-sixths of certain leaseholds " together with all other their rights and interests therein," and it turned out that they were only entitled to two twenty- first parts each, the purchaser was held entitled to specific performance of the contract to the extent of the vendors' interests, with a proportionate abatement of the purchase- money, (w) (s) ] Sch. & Lef., 19 n., quoted by Lord also Maw v. Topham. 49 Beav., 576, where Cottenham in Great Western Railway Co. v. the vendors were only entitled lo three- BlrminRham and Oxford Junction Railway lourtha. Co 2 Ph., 605. (?<) Jones V. Evans, 17 L. J. Ch.. 469. See (/) 4 Sim., 126. See the observations of too Leslie v. Crommelin, I. R. 2 Eq., 134. Lord St. Leonards on this case, Vend., 263; 586 FRY ON [SPECIFIC PERFORMANCE OF CONTRACTS. § 1228. Again, where A., wlio had only an estate jyer autre vie in property, the remainder in fee belonging to his wife, contracted to sell the fee simple to B. (who was ignor- ant of the state of the title), and then got his wife to concur with him in conveying it to C. (who knew of B.'s contract), it was held that B. was entitled to have a conveyance from C. of A.'s interest, with compensation in respect of his wife's interest which he was unable to convey or bind without her consent. (v5) § 1229. So where vendors contracted to sell the entirety -of certain freeholds, and it was afterwards discovered that they were entitled to an undivided moiety only, the pur- chaser obtained a decree for the specific performance of the contract by the vendors to the extent of their moiety, with an abatement from the purchase money of one-half the amoii nt. {w) § 12:i. And so where A. and B. contracted to sell lease- hold property to C, and on examining the title it appeared that A. was entitled to a moiety subject to a mortgage for its full value, and that B. had no interest at all — facts which were not known to C. at the time when he entered into the contract — C. was held entitled to an assignment of A.'s moiety, on the terms of covenanting to pay the rent and perform the covenants in the lease, and also to pay the mortgage-debt, and to indemnify A. in resjject to those lia- bilities, (re) § 1231. In each of the cases referred to i^i the last four sections, the purchaser was unaware, at the time when he entered into the contract, of the imperfection of the vendor's title. (?/) But even if the purchaser has from the first been aware of the state of the title, that circumstance will not necessarily exclude him from the benefit of the principle under consideration.' (v) Baruesv. Wood, L. R. 8 Eq., 42-1. Cf. {x) Horrocks v Rigby, 9 Ch D., ISO. Xelthorpe v. Holgatc, 1 Coll., 203. (y) See supra, § 453 et seq. (w) Hooper y. Smart, L. R. 18 Eq., 683. ' The law, as it now exists in this country, is stated by Mr. Justice Story. After considering the numerous conflicting cases on the subject, he says: " Tliere is, however, a distinction upon this subject, which is entitled to con- sideration, and may, perhaps, reconcile the apparent diversity of judgment in some of the authorities. It is, that courts of equity ought ni>t to entertain bills for compensation or damages, except as incidental to other relief, where the contract is of such a nature that an adequate remedy lies at law f(jr such com- pensation or damages. But, where no such remedy hes at law, there a peculiar COMPENSATION. 587 § 1333. Thus, in a recent case, real estate stood limited hy marriage settlement to such uses as A. and his wife should appoint, and in default of appointment to the use of the trustees of the settlement during the wife's life, in trust for her separate use, with renuiinder to A. in fee. A. agreed to sell the fee simple to C. by a contract in which the wife's interest was mentioned, but which went on to say that A. would procure a proper assurance to be executed by all proper parties ; afterwards the purchaser actually paid over the purchase-money to the trustees, but the wife refused to oonvey lier interest. Bacon, V. C, held that C. was entitled to have the purchase completed to the extent of A.'s rever- sion in fee, with comp^-nsation for the life interest of the wife and a lien on the fund in the hands of the trustees. (?") "If," said the Vice Chancellor, "a man enters into a con- (a) Baker v Coi, 4 Cli. D , 464 (cf. S. C on gulsh Castle v. Wilkinson, L. R. 5 Ch., 535, demurrer, 3 Ch. D., 359) See too Wilson v. infra, § 1236. Williams, 3 Jur. N. S., Slu. ( f. and clisiiii- ground for the interference of courts of equity seems to exist, in order to pre- vent irreparable mischief, or to avoid a fraudulent advantage being tal^en of the injured party. Thus, where there has been a part performance of a parol contract for the purchase of hxnds, and the vendor has since sold the same to a bona fide purchaser for a valuable consideration without notice: in such a case, inasmuch as a decree for a specific performance would be ineffectual, and the breach of the contract being by parol, would give no remedy at law for com- pensation or damages, there" seems to be a just foundation for the exercise of -equity jurisr.iction." Eq Jur., J^ 798 See the case of Robertson v. Hogs- heads, 3 Leigh, mi. It has also been said, upon the highest authority, that where the vendor never had any title to the laud contracted to be sold, or where he has conveyed the same subsequent to the making of the contract, so that he has not the power specifically to perform his contract, and that tU fact ts kmton to the vendee, the latter cannot tile a bill in equity for the mere purpose of ob- taining compensation in damages, for the nou-performance of the contract by the vendor: but he must resort to his remedy at law for that purpose. But where the defendant deprives himself of the power to perform his contract spe- cifically, durinq the pendency "fa suit against him, to compel such performance, the court will retain the suit; and will award to the complainant a compensa- tion in damages, for the nou-performance of the contract by the defendant. The principle on which this is based is to prevent a multiplicity of suits. ^ Be- sides, the plaintiff, who had a iiood cause of action when his bill was tiled, ought not to be turned out of co\irt, by the mere act of the defendant, without either the relief for which he originally filed his bill, or a compensation m lieu of it. But while a court of equity does not entertain jurisdiction where the sole object of the bill is to obtain a compensation for the breach of a contract, except "when the contract is of equitable cognizance merely, it would seem that if the complainant filed his bill in good faitli, supposing at the time he insti- tuted his suit that a specific performance could be granted, and wt knoinng that the defendant had previously parted with the title, the bill may be^ retained for compensation. VVa-lworth, C3h., Moss v. Elmendorf, 11 Paige, 277; Hatch V Cobb, 4 Johu.'s Ch , 559. Kent, I'h., Kimpshall v. Stone, 5 id., \m; AVood- ward V. Harris, 2 Barb.'s Sup. Ct. R., 439; VVillard's Eq. Jur., 291; see Wis- wall V. McGowan, 1 Hoff.'s Ch., 125. 688 FKY ON SPECIFIC PEKFOMMANCE OF CONTJiACTS. tract to sell something, representing- that he has the entire interest in it, or the means of conveying the entire interest, and receives the price of it and does not perform his con- tract, then the other party to the contract, who has parted with liis money or is i-eady to pay his money, is entitled to be placed in the same joosition he would be in if the con- tract had been completed ; or if not, by compensation to be placed in the same position in which he would be entitled to stand." («) § ]^:i3. It is obvious that, in thus proceeding, the court is executing the contract cij pres, or rather perhaps is carry- ing into execution a new contract, (&) a course in which difficulties sometimes arise which put restrictions on the aijplicatiou of the princix3le under discussion. These have now to be considered. § 1234. The principle will not, it seems, be applied where the alienation of the partial interest of the vendor miglit prejudice the rights of third persons interested in the estate. Thus where a tenant for life without impeachment of waste under a strict settlement had contracted for the sale of the fee, the court refused to compel him to alienate his life interest, on the ground that a stranger would be likely to use his liberty to commit waste in a manner different from a father, and more prejudical to the rights of those in remainder, (c) § l^S.*. If the purchaser is, from the first, aware of the vendor s incapacity to convey the whole of what he con- tracts for, he cannot, generally, insist on having, at an abated price, what the vendor can convey, (r/) I I'^^SO. Thus where a husband and Avife signed a con- tract for the sale of the wife's fee simple estate to the plaintiff, who knew from the plain language of the contract the true state of the title, it was held that, as the plaintiff clearly never could have believed for a moment that the husband could sell the fee simple, he was not entitled to have a conveyance of all the husband's interest, /. e. his estate for the joint lives of himself and his wife and his (n) 4 Ch. D., 469. (c) Thomas v. Dering, 1 Ke , 729. Of. 8iipra»- (b) Seeper J.oril Langdale, M.B., in Thomas § StS et seq V. Bering, 1 Ke., 746. {d) Cf. bupra, § 1231. COMPENSATION. 589 estate by curtesy with an abatement of the pnrchase-money; and the bill was accordingly dismissed, (e) § 11337. Similarly where vendors were entitled only to three-fonrths of the property, and the pnrchaser was at the time he filed his bill aware, or had good reason to believe, that no good title could be made to the whole of the premises, Lord Romilh% M. R., held that, though he might probably have recovered damages, yet, as he chose to lile a bill for specihc performance, he was not entitled to any abate- ment from the i)urchase-mone3% but that he might take without abatement the three-quarters which the vendors could convey. (/') And it has been decided that where a person has dealt with a tenant for life for a certain lease, being at the time aware that it would be in excess of the tenant for life's power, and so endeavoring to put a fraud upon the settlement, he will not afterwards be allowed to call for a lease from the tenant for life to the extent of his interest : the contract was not at the time it was entered into a fair and proper one, and the coui't therefore would not interfere, (p') ^ 1238. In the case of Edward Wood v. Marjoribanks,(^) the purchaser of an advovvson discovered, after accepting the title, that the benefice was subject to a mortgage to Queen Anne's bount}^ which he might have discovered before : there had been no misrepresentation or willful con- cealment on the part of the vendors : on bill filed by the purchaser for specific performance with compensation, Stuart, V. C, decreed specific performance, but without compensation, and ordered the purchaser to pay the costs of the suit ; and this decision w^as affirmed by Knight Bruce and Turner, L. J. J. § l!33i>. Where there is a defect in the quantity of the estate, the principal on which the abatement is calculated is 'prima facie acreage. But where woodland was sold as so many acres, and the w^ood as having been valued at so much, (fi) Castle V. Wilkinson, L. R. 5 Ch., 535. St. Leonards appears to doubt this decision. Of. and distinguish Hooper v. Smart, L. R., Vend., 257; and it certainly seems difficult IS Eq., 683, supra, § 1229; Barker v. Cox, 4 to reconcile it with some of the more recent Ch. D , 464, supra, 1232. See too Keayes v. Ciises already cited supra, § 1227 et seq. Carroll. 1. R. 8 Eq., 97; Fairhead v. .-iouthee, (g-) O'KourKe v. Percival, 2 Ball & li., 58. 11 \V. R., 739. {h) 1 Gifl-., 384; 3 De G. & J., 329; 7 H. L. (/) Maw V. Topham, 19 Beav.,576. Lord C.,806. 690 FRY ON SPECIFIC PEKFOKMAXCE OF CONTUACTS. the abatement was for so mucli as the soil covered with wood would be worth without the wood.(/) § 1340. Where the difference in value of the interest contracted for and the interest that can actuallj^ be con- veyed is incapable of computation, the court will not, in- deed cannot, enforce specific performance. (,/) But having regard to some of the decided casps ah-eady referred to,(Z:) it is conceived that the court will seldom now consider a difficulty of this kind insuperable. § 1341. In one case what was contracted to be sold was an absolute and indefensible estate in fee, and it turned i^'Ut that the vendors held under a crown grant, containing va- rious reservations and conditions with a proviso for re-entry on breach of condition. The court considered that the l^roper amount of compensation was not estimable, but held that the purchaser was not bound to take the property with- out compensation, and therefore was entitled to the pay- ment with interest of a part of the purchase-money that he had paid, and to a lien on the estate for the amount. (Z) § 1243. Althougl], where there are no data from which the amount of compensation can be ascertained, the court cannot enforce the contract with compensation, (w) the ob- jection that the compensation is unascertainable is, as has Ibeen already in substance observed, one which the court is unwilling to entertain ; and it grants relief with compensa- tion in many cases in which the ascertainment of the amount to be paid cannot be said to be certain or exact, but only the reasonable estimate from the evidence of competent per- sons ; as, for instance, where compensation was granted for the existence in a stranger of the right to dig coals in the lands sol d.(7?)' (i) Hill V. Biukley, 17 Ves., 394. See too life was dismissed by Lord Lyndhurst (then) McKcDzie V. ELesketh.T Cii. D 675, where the C. B Cf. Thomas v. Dering, 1 Ke , 729; reut was reduced proportionately to the de- Graham v. Oliver. 3 Beav , 124. flclency of acreage, and Powell v. Elliott, L. (/.;) See supra, § 1227 tt seq K 10 (.'h., 424, 430. iO VVestmacott v. Robins, 4 De G. F. & J., (j) See supra, § 1212, infra, § 1248, and Col- 390. Her V. .lenliins. You.. 29.5, whtre bill by pur- (to) '^ee infra, § 1212 chaser's heir lor specific perlormance with (w) Ramsden v Hirst. 4 .Jur. N. S.,200. Cf. compensation for an outstanding lease for Powell v. Elliot, L. K. lOCh., 424. ' Eule as to cmapenmtion.'] In oider tliat a party be entitled to compensa- tion, the defect complained of mu.st he;— l.st. Such that it can l)e made the subject of compen.satiou or of recompense in damages 2d. It must be a case in which the court is satisfied that the purcha.ser would not have declined the contract had he known the defect at the time of the piu'chase, Byer v. Marks, 2 Sweeney, 715. Spencer, J., said in this case: 1st. A purchaser may insist COMPETiTSATIOlSr. 691 § 1343. Again it iriay, it is conceived, be laid down gener- ally that, wherever the court sees that the enforcement of the contract with compensation \vonld be unjust or unfair, or would disappoint the reasonable expectation of the par- ties, there it refuses to take such a course.' § 1344. Thus, where an estate which really contained only 11,814 acres was, by a bond fide mistake of the vend- or's agent, described in the contract as containing 21,750 acres, and it appeared that the vendor had accepted the price on a computation of the rental of the estate. Lord Komilly, M. R., considered that to force him to sell the es- tate for little more than half the price contracted for would be a hardship, and that the case was one of mistake ; and he accordingly held that the purchaser might, at his option, either take the actual quantity at the contract price or have the contract rescinded, but that he was not entitled to spe- cific performance with an abatement for the deliciency of acerage. (o) § 1345. A purchaser cannot insist on the vendor per- (0) Earl of Durham v Lcgard, 34 Beav., Colver v. Clay, 7 Beav , 188; and distinguish 611. Cf the remarks of Lord Abinger. € J . Hill v. Buckley. 17 Ves , 394 (.supra, § 1-230), in Price v. North, 2 Y. & C. Ex , 626, and and McKenzie v. Ilesketb, 7 Ch. D., 675. upon a good, valid and unincumbered title. 2d. He is entitled to receive sub- stantially, from bis vendor, all tbe property for wbicb be contracted. 3d. If he obtains such a title, and, by the conveyance offered, obtains substantially the property for which he contracted, a court of equity will enforce perform- ance on his part, otherwise not. These general rules are not, in my opinion, modified or affected by those relating to compensation, which the court will enforce, in all proper cases, in favor of the purchaser against the vendor, when specific performance has been or shall be decreed; as, for instance, in the case of a slight or immaterial deficiency in the estate, a variance of description, or an incumbrance affecting the title. The doctrine of compensation, as a rule of equity, follows these and like cases, in order to pay the ]jurchaser for those slight defects that in equity he may be entitled to, if in equity he should be compelled to fulfill the contract of purchase; and, in such cases, compensation follows as a matter of right, and I hold must be provided for in the decree." See, also. Caun v. Cann, iJ Sim., 530; King v. Bardean, « John.'s Ch., 38; Morss V. Elmendorf, 11 Paige's Ch., 277; Powell v. Elliott, L. R., 10 Ch., 424; Lee v. Home, 27 Mo., 521; Hepburn v. Auld, 5 Cranch, 262; Hcbers v. Gads- den, 6 Rich.'s Eq., 284; Stockton v. Union Oil Co., 4 W. Va., 273; Bell v. Thompson, 38 Ala., 633; Smith v. Fly, 24 Tex., 345; Scott v. Bilgerry, 40 Miss., 119. Where there is a pecuniary charge against an estate which is amply protected by an adequate security, equity will compel a vendee to re- ceive the title in such a case. Halsey v. Grant, 13 Ves., 75; Horniblow v. Shir- ley, 13 id., 181; Fildes v. Hooker, 3 Mad., 193; Thompson v. Carpenter, 4 Pa. St., 132. 1 Where A. purchased of B. 686 acres of land for cultiva'.lon, and the ven- dor's title to 2U9 acres thereof was found defective, it wac ho' ' 'hat the vendee should not be compelled to take the residue, although it lay disliix ', and separated from the other portion by a pubhc road. Jackson v. I.igon, ;; A-^-,,h, 161 ; see Bryan v. Read, 1 Dev. & Bat.'s Ch., 78; Read v. Noe, \j Yorg. ;.'83. ^592 FRY ON SPECIFIC PEIiFOKMANCE OF COXTIIACTS. forming the contrnrt, giving an indemnity against a defect, unless the indemnity was contracted for.(^) § 134©. In Bainbridge v. Kiunaird,(<7) a vendor (since deceased) had contracted to sell to tlie plaintiff a property Avhich was, in common with other estates, subject to a charge of £10,000 raisable for the benefit of the vendor's sisters. Lord Romilly. M. R., held tliat the plaintiff might have a simple decree for specific performance against the trust devisees of the vendor, but was not entitled either to compensation in respect of the charge or to an indemnity against it. § 1217. Within what limit of time after the conclusion of the contract a claim for comi)en:?ation must, if made at all, be made, is a question that may obviously in many cases be important, § 1S48. There is, it is conceived, no doubt that the court will enforce compensation, at any time before the com- pletion of the transaction by the execution of the conveyance and the payment of all the purchase-money, in respect of any matter, the fit subject of compensation, which has arisen before that time, and whether before or after the con- clusion of the contract. Thus, where an estate was sold as tithe free, and, after a claim had been started by the incumbent of one parish, the conveyance was executed, but a part of the purchase-money w^as set aside as an indemnity against this claim : the claim came to nothing, but, before the indemnity fund w^as transferred, it appeared that the land was in another parish, and was subject to tithe to its incumbent : it was held, on a bill filed by the purchaser, that he was entitled to compensation in respect of these tithes out of the fund.('r) § 1249. And on the same principle the court will allow comiDensation for deterioration which may have occurred in the value of the estate, between the time when the contract ought to have been completed by the vendor, and the time when he does in fact make out the title, (5) whether it have arisen by the willful default or merely by the negligence of (P) Balnianno v. Lumley, 1 V. & B., 224; 353. Cf. (under the old practice) Gator v. per Liord Eldon In Paton v. Brebner, 1 Bli., Earl of Pembroke, 1 Bro. C. C, 301 ; 2 Bro. ■66; Aylett v. Ashton, 1 My. & Or., 105; cf. C 0., 282; Frank v. Basnett. 2 My. & K., 618; supra, § 119J. Phelps v. Paothero, 7 De G. M. & G., 722. (5) 32 Beav , 346. (s) Binks v. Lord Kokeby, 2 Sw., 222. {r) Crompton v. Lord Melbourne, 5 Sim., coMPEisrsATioN. 593 the vendor or his tenants, (i^) Thus, where stone had been subtracted from a quarry pending a suit for specific per- formance of a contract to grant a license to work it, com- pensation was obtained by means of a supplemental bill.('?^) § 1^50. Whether, after conveyance has been executed ^nd purchase-money paid, the court still has jurisdiction to enforce comjDensation, is a question on which there has been «ome conflict of judicial opinion. (?)) It is submitted that rights to compensation under the contract may exist even ^f ter the conveyance and payment have been executed and made ; and further that, whenever such rights exist, they may now be asserted in the same action as that in which specific performance is claimed. Where the contract gives no right to compensation the case is, of course, different, (zo) 2. (b) PurcJiaser insisting on the contract, tJtere being a cond/ition for compensation. § 1351. The language of the condition must of course have an important effect on the subject for compensation under any particular contract, and in every case serves at least to indicate the nature of the matters in respect of which, and the circumstances under which, both parties intended that the purchaser should have a right to com- pensation. But the purchaser is not, it is conceived, bound to show that the subject-matter of his claim is of a kind expressly embraced by the words of the condition : except in so far as there may be anything in the contract excluding his claim, or empowering the vendor to defeat it — which are matters to be determined according to the ordinary rules of •construction(a?) — he is entitled not merely to the right expressly given to him by the condition, but to the full measure of relief applicable to the case according to the general princij)les already discussed : in other words, his right to compensation under the condition is generally cumulative to a purchaser's ordinary right to it: but he must, of course, submit to the cor j esponding limitations of the general I3rincii3les. (0 Foster v. Deacon, 3 Mad., 394. Cf. per (v) Compare the cases cited in §§ 1252, 1253, Lord Eldon In Binks v. Lord Rokeby, 2 Sw., infra. 226. (ao) Consider Brett v. Clowser, 5 C. P. D., (M) Nelson v. Bridges, 2 Beav., 239. On 376. the question of deterioration see further (a;) Consider the observations of Lord West- inlra. Part V. chap. v. § 1404 et Eeq. bury in Cordingley v. Cheeseborough, 4 De 38 G. F. & J.,3S4. 594 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 1S53. In accordance with a principle already stated, (?/)• it lias been held, in cases decided before and also since, the passing of the Judicatnre acts, that a condition for com- pensation may be enforced notwithstanding that the con- veyance has been executed. In Cann v. Cann,(2) Shadwell, y . C. , decided that a right of the purchaser to receive com- pensation, under such a condition, for a misstatement (dis- covered after possession taken) in the particulars as to the value of the property was not at all affected by the circum- stances of his having paid the whole purchase-money into court and taken a conveyance. Subseqviently the court of exchequer unanimously adoi:>ted the same view :{a) and the jurisdiction has again been emphatically asserted, upon a full consideration of the authorities, by Jessel, M. R., in a case in which his lordship held a purchaser entitled to the- benefit of a condition for compensation, in respect of a deficiency of acreage discovered by measurement after the execution of the conveyance. (5) § lSo3. On the other hand, in a case wdiere the land sold was described as "available" for a building site for a ware- house, and after the completion of the purchase the pur- chaser discovered that under the land ran a culvert (not mentioned in the particulars) with which he could not interfere, Malins, V. C, held that, there being no question of fraud, the purchaser could not after conveyance have the- benelit of a condition for compensation in respect of errors or misstatements :{c) and his lordship subsequently expressed his deliberate adherence to this \iew.{d) § 1354. The decisions referred to in the last preceding section appear to be irreconcilable with the authorities previously cited. It is suggested that if a vendor wishes to preclude the j)0ssibility of controversy on the point, he may effectually do so by simply inserting in the contract words to the effect that compensation shall be taken and given (y) Supra, § 1250; and cf. per Hall, V. C, (c) Manson v. Thacker, 7 Ch. D., 620. Cf.- In Jones v. Cliflford, 3 Ch. D., 779, 792. Brett v. dowser, 5 C. P D., 376. (s) 3 Sim., 447. Cf. Horner v. Williams, 1 (d) Besley v. Besley, 9 Ch. D., 103; Allen v. Jones & C, 274. Richardson, 13 Ch D., .524, 541. where the (a) In Bos V. Helsham, L. R. 2 Ex., 72. Vice Chancellor expressly dissented from ib) Re Turner and Skelton, 13 Ch. D.,130. Re Turner and SkcUon, 13 Ch. L>., 524, con- See too Phelps V. White, 5 L. R Jr., 318, sidering that the doctrine of caveat emptor where the purchaser was held entitled to applies to such cases. Consider Browlie v. compensation, though he had means of dis- Campbell,5App. C, 925,936; Leuty v. Hillas,. covering the error before completion; and 6 W. K. 51, 2 De G. & J., 110. distinguish Brett v. Clowser, 5 C. P. D., 376. COMPENSATIOISr. 595 only for errors or other things discovered before the com- pletion of the purchase. § 1255. In consonance with the general principles on which the court deals with conditions of sale,(e) its tendency is to put a liberal and comprehensive construction upon conditions giving compensation to a purchaser, and a strict one upon any which limit his right to it. § 1956. Thus, where by an innocent mistake the par- ticular described part of the estate as customary leasehold renewable every twenty-one years, whereas in fact there was no such custom to renew; the fourth condition of sale empowered the vendor to vacate the sale upon objection taken to the title, and another condition stipulated that if, through any mistake, the estate should be improperly described, or any error or misstatement should not vitiate the sale, but the vendor or purchaser should pay or allow compensation for it; Lord Hatherley (then Wood, V. C.,) held that the misstatement fell within the condition for compensation, and further that it was not an objection to title, within the meaning of the fourth condition, enabling the vendor to vacate the sale.(/) § 1357. And where land was described in the particulars as containing 753 square yards, whereas it actually con- tained only 573 square yards, and one of the conditions pro- vided that if any error, misstatement, or omission in the particulars should be discovered, the same should not annul the sale, nor should any compensation be allowed by the vendor or purchaser in respect thereof, it was held by Malins, Y. C, that such a condition must be construed as intended to cover small unintentional errors and inaccuracies, but not to cover reckless and careless statements, and that so large a deficiency as 180 square yards out of 753 did not come within the condition ; and that the purchaser was therefore entitled to compensation. (^) § 1358. AYhere, however, the conditions stipulated that (1) the admeasurements should be presumed to be correct, but if any error were discovered therein, no allowance should be made or required either way; (2) if any error of (c) See Part V. chap. i. § 1153 etseq.; and (g) Whitemore v. Whitemore, L. R , 8 per Lord Westbury in Cordingley v. Cheese- Eq., 603. Cf. Porlman v. Mill, 2 Russ., 570. borough, 4 De G. F. & J. , 381 et eeq. 574. (/) Painter v. Newby, 11 Ha , 26. 596 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. any kind were made in the description of tlie premises such error should not invalidate the sale, but a fair compensation should be given or taken ; and (8) if the purchaser should make any objection as to compensation or otherwise which the vendor should be unwilling to remove or comply with, the vendor should be at liberty to vacate the sale : and the area of the property, stated in the particulars to 7,683 square yards, was found by the purchaser upon actual admeasurement to be only 4,350 square yards: and the vendor before suit offered to vacate the contract, but the purchaser refused the offer and insisted upon the perform- ance of the contract with compensation for the deficiency : Lord Westbury held that the right of the purchaser must be determined by the operation of the conditions read in connection with one another, and that, though the court probably would not, at the vendor's instance, have enforced the condition as to erroneous admeasurement where the error was so great, the purchaser could not, in the face of that condition, have an allowance for the deficiency of area.(7i)' § 1259. It has also been decided that where the con- ditions, while providing that, if any mistake appear to have been made in the description of the property or the vendor's interest therein, it shall not annul the sale, but shall be the subject of compensation, at the same time provide that, if any objection is persisted in, the vendor may rescind the contract, then, if the purchaser persists in a claim for com- pensation which really involves an objection to the title, the vendor may rescind the contract, and, if he does, the court will not afterwards give the purchaser any relief in respect of the condition for compensation. (^) § 1260. Another illustration of the principle that a purchaser's right to claim compensation may be abrogated, notwithstanding a condition for compensation, by the (h) Cordlngley v. Cheeseborough, 4 De G. affirmed L. R. 6 Ch., 91. And see Cordlngley F. & J., 379, affirming 8. C. 3 Giff., 496. v. Cheeseborough, 4 De G. F. & J., 379. (») Mawson V. Fletcner, L. R. 10 Eq., 212, ? See Hepburn v. Auld, 5 Cranch, 262, and Foley v. McKeon, 4 Leigh, 627, where a lot was advertised for sale at auction as containing nearly two acres. At the sale, the auctioneer stated that there were nearly two acres, and pointed out the boundaries— the sale was in gross : and there was in reality but one acre and twelve poles. Held, that the deticiency should not avoid the sale. COMPENSATION. 597 operation of another term of the contract, is afforded by the case of Williams v. Edwards. (/) There A. had contracted to sell to B. certain freehold property, and the contract con- tained a stipulation that errors in the description of the premises should not vacate contract, but a reasonable abate- ment or equivalent should be made or given, but it was also stipulated that, if B.'s counsel should be of opinion that a marketable title could not be made at the time appointed for the completion of the purchase, the contract should be void and be delivered up to be cancelled ; and B.'s counsel was of opinion that a good title could be made only to two- thirds, and that one-third was held for a life only : the purchaser insisted on specific performance with compensa- tion ; but it was refused, because the contract was by its special terms void under the circumstances. § 1^61. In a case which came before the House of Lords, the particulars stated that the fines in the manor of T., which was the subject-matter of the sale, were arbitrary, and also that the clear profits of the manor for the last eight years had averaged £150 a year ; and one of the conditions of sale provided for compensation being given for errors and misstatements. It turned out that by the custom of the manor only one class of fines was arbitrary ; but that the clear profits of the manor exceeded £200 a year. The lord- ships refused to give the purchaser compensation for the misstatement as to the fines, considering that, reading the statements in the particulars as a whole, there had been no substantial misrepresentation : but it was intimated in the speeches of Lord Brougham and Lord Cottenliam(A-) that, if the misstatement as to the fines had been a sub- stantial one, the impossibility of computing the proper amount of compensation would have prevented its being given. (/; § 1S63. Damages may be said to be a species of com- pensation, inasmuch as they are awarded in order to make good to the purchaser some loss or expense which he has suffered or been put to in connection with the contract, but U) 2 Sim.. 78. See per Lord Westbury in (h) Wliite v. Cuddon, 8 CI & F., 786, 792. Cordlngiey v. ChecBeborougli, 4 De G. F. & (l) White v. Cuddon, 8 CI. & F., 766. See J , 885; and cf. Hudson v. Buck, 7 Cti. D., supra, §§ 1212, 1240 et seq. 683, 687. C98 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. they are so distinct a form of relief that they may most conveniently be discussed in a separate chapter. (m)' (m) See Infra, Part V. chap. 111. § 1263 et eeq. ' Small and trifling incumbrances on land are generally disregarded Winne V. Reynolds, 6 Paige, 407; Ten Broeck v. Livingston, 1 John.'s Ch., 357. But, although both quit-rents, and entire rent charges, are subjects of compensation (Esdaile v. Stephenson, 1 S. & St , 124; Horniblow v. Shirley, 13 Ves., 83; Halsey v. Grant, id.. 80), yet, where the charge is only a portion of a rent charge issuing out of an entire estate, the vendee will not be compelled to ac- cept compensation, or to complete the contract, unless the vendor can procure a certain appointment of the charge (Barnewell v. Harris, 1 Taunt., 431), pro- vided the purchaser did not become such under a clear understanding that he was to be exonerated in a specified and different mode; if that were the case, he cannot insist upon a better indemnity than that agreed upon, although it may not be an absolutely perfect exoneration. Casmajor v. Strode, 2 Swanst., 356. Miller v. Chetwood, 1 Green's Ch., 199, affords an example of the strin- gency of the rule. In that case it was held, that, on a bill by the vendor for a specific performance of a contract for the sale of a certain tract of land, although the quantity of the tract is not stated in the contract, the defendant may show by parol evidence that the complainant, before the sale, represented to the de- fendant that the tract contained nine acres, when, in fact, it contained only about six. And, it was further said, it makes no difference in such a case, that the sale was made by the tract and not by tlie acre, and that the vendee lived in the neighborhood of the ground, subject daily to his observation, for this constitutes no excuse for the misrepresentations of the vendor. Upon these grounds specific performance was refu.sed. In a case where it would be difficult to ascertain the injury resulting from a breach of contract, or the sum in damages by which the injury might be compensated, the Supreme Court of the United States have decided that they will not themselves ascertain the in- jury, nor direct an issue of quantum domrdficahis. Pratt v. Law, 9 Cranch, 456; Pratt v. Campbell, 2 Pet., 354. DAMAGES. 599 CHAPTER III. OF DAMAGES. § 1363. In early times, the Court of Cliancery did not •entirely disclaim jurisdiction in respect of damages, where they were incident to the subject-matter already in con- tention before the court, (a) Subsequently the jurisdiction was disowned, and a broad distinction set up between com- pensation and damages, the extent and measure of the one Ibeing regarded as different from that of the other, so that (to follow the illustration given by Lord Eldon) if A. con- tracted to sell B. an estate tithe free, and B. contracted to sell it to C. on the same conditions, and it was found that A. could not convey tithe free, he might be compelled by the court to make compensation for the difference in the Talue of the property, but not for the damage sustained by B. from being unable to complete his contract with C.{b) § 1264. However, in a case which came before the lords justices in the year 1855, the jurisdiction of the Court of Chancery to award damages for the want of a literal per- formance of a contract which it had directed to be specifically performed was re-asserted. "It is the constant course of the court," said Turner, L. J., "in the case of the vendor and purchaser, where a sufficient case is made for the jDur- pose, to make an inquiry as to the deterioration of the estate, and in so doing, the court is, in truth, giving damages to the .purchaser for the loss sustained by the con- tract not having been literally performed. "(c) § 1265. In the year 1858 an express power of awarding damages in cases of specific performances was conferred upon the Court of Chancery by the chancery amendment act of that year(rZ) (commonly called Lord Cairns' act), whereby it was enacted (section 2) that, in all cases in which the Court of Chancery then had jurisdiction to entei tain an (a) Cleaton v. Gower. Finch, 1C4; City of (6) Per Lord Eldon in Todd v. Gee, 17 London v. Nasli, 3 Atk , 51-2, where Lord Ves , 278; Jenkins v. Parkinson, 2 My. & Hardwicke refused speciflc performauce, but K., 5 relieved by way of dii mages, to be ascertained (c) In Protherov. Phelps, 7De G. M. &G. , toy an Issue ol quantum damniflcatus. 734. 600 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. application for the specific performance of any contract, it should be lawful for the same court, if it should think fit, to award damages to the party injured either in addition or in substitution for such specific performance ; and that such damages might be assessed in such manner as the court should direct. It is to be noticed that the jurisdiction given by this enact- ment is a discretionary one, and enables the court to deprive a suitor of what would otherwise be in his right to specific performance. § 1366. It was — as indeed the language of the second section of Lord Cairns' act clearly shows — a condition pre- cedent to the Court of Chancery's awarding damages under that act that the plaintiff should show himself to have been entitled, at the time when he commenced his suit, to some equitable relief of the nature specified in that section. Accordingly w^here a plaintiff prayed for the performance of an alleged contract by a company to allot shares to him,, and also, if all the shares had been allotted to other persons, for damages, and it appeared that all the shares had been allotted before the filing of the bill, it was held that, specific- performance having from che first been impossible, the claim for damages also failed, (e) § 1267. In a case decided by Lord Hatherley (when AYood, V. C), the contract was that the defendant should grant a lease of a paper mill to M. ; that M. should pay £122' for sundry articles on the premises, and should execute sundry improvements ; and that, if the defendant should fail to grant a valid lease, he would repay the £122 and all outlay on improvements. M. paid the £122 and expended about £5,000 on the premises ; but afterwards, on investiga- tion of the title, it appeared that the defendant could not grant a valid lease according to the contract. Upon bill filed by M. for specific performance, or, if the defendant could not grant a valid lease, for repayment of M.'s outlay and damages, it was argued for the defendant that there could be no specific performance of the contract to grant a lease^ that the alternative contract to repay outlay was not a sub- (d) 21 & 22 Vlct., c. 27 V. Earl of Shaftesbury, L. R. 7 Eq ,270; Scott {e) Ferguson t. Wilson, L. R. 2 Ch., 77. v. Rayment, L R. 7 Eq., 112; Rogers v. Compare Howe v. Hunt, 31 Beav, 42U, and Challis, 27 Beav , 175; and Middleton v. Hilton V. Tipper, 16 W. R., 888, with Frank- Magnay, 2 H. & M., 236. linski V. Ball, 33 Beav., 560. See, also, Lewers DAMAGES. 601 ject for specific performance, and that damages would not be given where specific performance was impossible. But these arguments were repelled by the judge, who said, "There is an implied contract in every case between vendor and purchaser, that the purchaser shall have a lien on the property to the extent of the purchase-money he has paid, and here there is an express stipulation that the money expended shall be repaid. This right will sustain a claim for damages just as much as the right to specific perform- ance of a contract to grant a lease which has dropped by reason of the impossibility of performance. "(/) § 1268. In a case decided in the year 1866, where, after specific performance of a contract had been decreed, certain facts occurred from which it was alleged that damage had arisen to the plaintiffs, Kindersley, V. C, held that the Court of Chancery had, under Lord Cairns' act, no jurisdic- tion to make after decree, on motion in the cause, an order for assessing damag^-s ; inasmuch as such an order would in effect be a supplemental decree founded on what had occurred since the decree was made.(/7) § 1269. Now, however, the jurisdiction conferred upon the Court of Chancery by Lord Cairns' act,(^) and also all the powers of granting damages which before the passing of the judicature acts were exercisable by the common law courts, are by virtue of the judicature act, 1878 (sections 16, 76), vested in the high court of justice ; and by the last mentioned act it is expressly enacted (section 24) (7) that the high court and court of appeal, in the exercise of their respective jurisdictions, in every cause or matter pending before them respectively shall grant, either absolutely or on such reasonable terms as to them shall seem just, all such remedies whatsoever as any of the parties thereto may appear to be entitled to, in respect of any and every legal or equitable claim properly brought forwai'd by them respectively in such cause or matter ; so that, as far as possible, all matters so in controversy between the parties may be completely and finally determined, and all multi- plicity of legal proceedings concering any of such matters avoided. (/) Middleton v. Magnay, 2 H. & M., 237. ment, upon defendant's default, see supra, {(/) Corporation of Hythe v. East, L. R. 1 Part IV. chap. iv. § 1142. Eq., 620. As to granting damages after judg- (ft) see Fritz v. Hobson, 14 Ch. D., 542. ■602 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 1270. The court therefore can now give damages in any -of the following cases, viz.: — (1) In substitution for specific performance where there is a case for specific performance — under Lord Cairns' act. (2) Where there is no case for specific performance — under the judicature acts.(^) (3) In addition to specific performance in whole or in part— under Lord Cairns' act, and probably also under the judicature acts. ^ 1271. Notwithstanding the judicature acts, the ob- servance of the condition mentioned in a previous section(y) is still obligatory upon the court in the exercise of its dis- cretionary jurisdiction under Lord Cairns' act ; and damages in addition to or in substitution for specific performance will be given by virtue of that jurisdiction only when the plaintiff had a case for specific performance at the time when he issued his writ. (A*) § 1973. The court's jurisdiction in damages is an apt and flexible instrument for doing exact justice under the diverse and complicated circumstances of many of the cases upon which the court has from time to time to adjudicate. § 1373. For instance, where the plaintiff contracted with the defendant to take a lease of property belonging to the latter, for the purpose, as he knew, of carrying on a busi- ness which the plaintiff intended to carry on there, and, owing to the defendant' s willful refusal to perform his x^art of the contract, the plaintiff was for fifteen weeks unable to commence his business ; the court, in addition to giving judgment for the specific performance of the contract, awarded £250 to the plaintiff by way of damages, in respect of his loss of profits during the fifteen weeks. (Z) , § 1374. Where the i^laintiff was at the time when he filed his bill entitled to specific performance, and also to damages for injury occasioned to him by tlie defendants' delay of performance, and before the suit could be brought to a hearing the defendants ]3erformed the contract ; it was held that the plaintiff was nevertheless justified in bringing his suit to a hearing for damages. (???.) (i, See infra, § 1278. 2), 26 VV . R , 3GS ; Wesley v. Walker, iO W. R., (j) Supra. § 1266. 36S. Consuler Hyani v. Terry, 25 Sol. .Jo ,371. (k) While V liokty, 2« W. R , 133. im) ( <>ry v. Tlie Thames Iron Works and U) Jauues v.i.\Uller,6Ch. D.,153; S.C. (So. Shipbuildiiif; < o., il W. R , .589; cf. S. S. (in Q. l^.;3 L K. Q. U.,181. DAMAGES. 603 § 1375. Sometimes the court can best do justice by en- forcing the specific performance of one part of the contract and awarding damages for breach of the remainder. Where, for instance, a man contracted to pull down an old house, to rebuild, and to accept a lease of the new building, and then made default in rebuilding. Lord Hatherley (then Wood, y. C.,) held the intended lessor entitled to have damages for the non-building, and also specific performance of the contract to accept a lease. (t?) § 1276. Again it may well happen that, though the court has jurisdiction to enforce the specific performance of a con- tract, the justice of the case will be better met by awarding damages in substitution. Thus where a railway C(»mpany contracted with a landowner to " erect, set up and construct a station," on land which they had bought from him, but the contract contained no further description of the station, and no stipulation as to. the user of it when erected ; and the company afterwards refused to erect a station on the agreed site ; the court of appeal in chancery, considering that it could not satisfactorily do justice by means of a decree for si)ecific performance, directed that the damage sustained by the landowner by reason of the non-perform- ance of the contract should be ascertained (by an inquiry in chambers) aiid the amount paid to him by the company.(o) ^ 1277. It may happen that a purchaser finds himself unable to obtain specific performance of a contract owing to some fatal defect in his vendor s title, which was unknown to him (the purchaser) at the time when he had entered into the c(mtract. In such a case damages are the only possible form of relief ; and the vendor will not be allowed to escape from liability to pay them by purporting to rescind the contract under a condition entitling the vendor to rescind in the event of the purchaser making any objection or requisition in respect of the title which the vendor is unwilling to comply with : foi- such a condition does not apply to a case where the vendor has not any title at all.(77) § 1978. Where an action is brought for specific per- (n) Soames v. Edge, Johns.. 669, followed (o) Wilson v. Nortliamplon and Banbuiy in MavtT and Corp(iratioi) of London v. juncti..n Railway Co , L. K. it Lh, 2i_9 Soulhgate, 17 W. 1{., 197. Distinguibh Xorris (;>) Bowman v. llj ia-id, 8 e h._D_, obh, 590; V. JacKsoD, 1 J. & II.. 319; and see Samuda cf. Oaliel. y v. Kanl^ay.'2l L. T., .4o. bee too . K. 3 Q IJ., 181. Cf. Nelson v. 16Ch. D.,81. Bridges, 2 Beav., 239, and Fersusou v. Tad- (t) Jnques v. Millar. 6 Ch. D., 153; Wesley V. Walker, 26 W. R , 368; seton, 1319. ' AffreemeiU to rescind contract, renting in parol only.] Where the agreement to rescind a contract rests only in parol, such rescission must be proved by acts ■which can leave no doubt of the intent. There must be a cancelling of the contract, or a removal from the possession, or some act which will make the intent positive. Where the agreement is unexecuted, it must be clearly pioved, and must be founded on a new consideration. Liiuer v See, 42 Pa. S., I(j5; Pratt V. Morrow. 45 Mo., 404; Washington v. McGee, 7 T. B. Mour , i;31;. Phelps V. Seely, 22 Graft., 578. Example of insufficient proof of rescission of the sale of real j^ropeity.] For an instructive case, see Pipkin v. Allen, 24 Mo., 520. Contract rescinded, both parties must content to renew.] A contract had beea rescinded. Held, that it could not be renewed without the mutual consent of both parties. Lassen v. Mitchell, 41 111 , 101. Tico parcels of land purchased ; rescission, if at all, must be as to both.] A con- tract was entered into for the purchase of two parcels of laud for a detinite sum; one was conveyed at the time and the other was to be when both were paid for. Held, that it was an entire purchase, notwithstanding two-thirds of the purchase price was to be applied to one of the parcels, and that if there was a rescission at all it must be as to both parcels. Fay v. Oliver, 20 Vt., 118. What imll amount to an abandonment of an agreement?] An intention to re-^ scind a contract of sale may be shown bj' circumstances, or it may be shown by such a coiu'se of action as establishes clearly that such was the intention of the party. Wheeden v. Fiske, 50 N. H., 125; Green v. Wells, 2 Cal., 584. What will constitute an abandonment f] Whenever either party so conducts himself that his conduct can be viewed in no other light than that of a relin- quishment of the contract, it will be regarded as rescinded. Any act by any of the parties which of necessity prevents the performance of the mutual agree- DAMAGES. 605 ment will constitute an abandonment Suber v. Pullin, 1 S. C. (N S.). 273: Wright V. Haskell, -45 Mo., 4!<9; see, also, Tibbatts v. Tibbatts, (J McLean, 80. Where the vendor sold the land to a third person, this was held to be a rescis- sion of the contract of sale. Little v. Thurston, 58 Me., 86; Warren v. Rich- mond, 53 111., 53. Where ejectment was brought to recover the land m pos- session of the vendee under a parol contract of sale, this was held to be a rescission of the contract. Hairston v. Jandsou, 42 ]Miss., 3s0. Where the written contract of sale was surrendered, and such act was followed by acts which were inconsistent with its continuance, this was held to be a rescission. Crane v. De Camp, 21 N. J. Eq , 414. When application of rescimon not a remssionf] A party applied for the re- scission of a contract and requested the other party to rescind it. Held, that such application did not amount to a rescission, and that it did not imply any breach or abandonment on the part of the applicant. Picot v. Douglass, 46 Mo., 497. Mere contract ofaqencij.'] A railroad corporation employed a party to obtain donations and right of way for an extension of the road ; he was to be allowed a large proportion of the amount received for his services Held, that such contract might be revoked whenever the company saw fit. The following is an extract from the opinion. Per curiam: "We can regard the relations between the defendant and the plaintiff, created by the instrument, in no other right than that of principal and agent. It is a familiar principle at law, that an agency is revocable at the will of the principal, unless the power conferred on tiie agent be given for a valuable consideration or as a security, or is coupled with an interest. It is not claimed that the authority conferred upon the plain- tiff was based upon a consideration, or was given as a security. Is it a power coupled with an interest ? What was the interest of plaintiff ? It was to re- ceive a certain compensation in value and kind of the donations he should receive for defendant. His interest existed in that which should be produced by the exercise of the power conferred upon him. Now, it is plain that the thing in which he had, or rather was to have, an interest could not exist until the power was exercised The exercise of the power was necessary to bring the thing in which he was to have an interest into existence. In each instance, where a donation was given, the power was exhausted when the donation was received. Hence, the power and the interest were not united. The interest, coupled with a power which gives it an irrevocable character, must be in the thing upon which the power is exercised, and not in that which may be pro- duced by the exercise of the power. Before the exercise of the power con- ferred by the instrument in question, nothing did or could exist in which plaintiff had an interest. He had a right to a part of the donations which he should procure. He had no interest in a thing, but a right to a thing when it should be created. His power, therefore, was not coupled with an interest and was revocable at the will of the defendants." Smith v. Cedar Falls and Minn. R. R. Co., 30 Iowa, 244. One party refusing to execute a substantial pari of the contract.] Where one party to an agreement refuses to execute any substantial part of his contract by that act he gives the other party to the mutual agreement the option to rescind the entire contract by offering to restore what he has received and replacing the parties in their original position. This is true, provided the offer is made within a reasonable time, and the parties can be placed in their original posi- tion; the offer must, however, be made distinctly and unequivocally. Webb V. Stone, 24 N. H , 282; Allen v. Webb, 24 id., 278; Sumner v. Parker, 36 id., 449; Fay v. Oliver, 20 Vt., 118; Fletcher v. Cole, 23 id., 114. Application to rescind must be made icithout delay.] Where a party asks for the rescission of a contract deliberately entered into, he must make his election with all due promptness. Lowber v.'Selden, 11 How. Pr., 526; Lawrence v. Dale 3 John.'s Ch., 23, 41; Wheaton v. Boker, 14 Barb., 594; Bruce v. Dav- enport, 3 Keyes, 474; Tobey v. Crown, 37 Md., 51; Hunter v. Daniel, 4 Hare, 420. Agreement to rescind at future time; waiver.] There was an agreement that if certain acts were not performed at a future day that the contract might be rescinded. Held, that either party might, if so disposed, stand with the con- 606 FRY OlSr SPECIFIC PERFORMANCE OF CONTRACTS. sent of the other, cither express or implied, upon the terms of the orijiinal contract; he may waive whatever advantages he has under the agreement of waiver. Echols v. Butler, 28 Miss., 114. Example of fraud diticorered too late to renc/'nd.] A purchaser discovered fiaud in his contract and raised no objection ; afterwards he found other evidence of fraud and did so. Held, that he was too late to rescind the contract. Patter- son, J., said: " To entitle him to do so he should, at the time of di.scovering the fraud, have elected to n'liiidiate the whole transaction. Instead of doing so, he deals with that for which he now says that he never legally contracted. Long after this, as he alleges, he discovers a new incident in the fraud. This can only be considered as strengthening the evidence of the original fraud, and it cannot revive the riirht of repudiation which has been once waived " Camp- bell v. Fleming. 1 A. & E., 40. Reference to determine the amount of dn mages.] A reference is usually made to a master, or commissioner, to ascertain the amount of damages in an action for specific performance. Where a reference has been ordered, the money should be brought into court. Stevenson v. Jackson, 4o Mich., 702. Wh<'re it is proper that a jurv should assess the damages, the court may either order an a.ssessment, or remit the parties to an action at law. Milkman v. Ordway, lOH Mass., 2;:i2. The contract could not be specifically enforced, for the reason that "it was not mutual, fair, just and reasonable in all its parts;" the plain- tiff had been deprived of the benefit of the contract by the defendant's fraud. Held, that the money paid should be returned with interest, and this was done without ordering an issue (juan/um danmifentus. Rider v. Gray, 10 Md., 282^ See, also, Pratt v. Law, S) Cranch, 494. liule as to measin-e of damages in specific performance.'] Where the title has failed, without the fault of the vendor, the proper measure of damages is the purcha,se price, together with legal interest. Luckett v. Williamson, 37 Mo., 808. In a case where the vendor has refused, or put it out of his power to make title, the measure of damages is the difference in the value of the estate at the time the agreement ought to have been completed, and what was to have been paid, if that value exceeds the price mentioned in the agreement. Dustin v. Newcomer, 8 Ohio. 49; Ilall v. Delaplaine, 5 Wis., 206. Clavton, P. J., said in Burk v. Senill, 80 Pa. St , 413: "The law regulating the dam- ages to be recovered, makes a distinction between the cases where there is a fraudulent breach of contract and those where the breach is occasioned by some unforeseen aod unavoidable obstacle. As where one covenants to convey a good title, and it is afterwards discovered that he does not possess, and by no means in his power can procure, such a title, or the wife of the covenanter, without any collusion, persuasion or request, on his part, refuses to join in the deed. In cases of this kind, when the covenanter does all in his power to ful- fill his contract, and, without any fault of his, cannot perform it, the damages to be recovered against him are only such actual and immediate losses as he may have suffered, such as the money paid with interest thereon, the time lost and expenses incurred in examining the title, conveyancing expenses, and such work or improvements as he nia}^ have made upf)n the land upon the faith of the contract. But where there is a wanton or dishonest refusal to perform the contract, or where the covenanter, by some fraudulent act on his part, renders the performance impossible — as where, by collusion with his wife, or by re- quest on his part, she refuses to sign the deed, or where her refusal is not her own free and uncontrolled act, but made at the implied or actual request cf her husband — the law, in such a case, awards full compensatory damages, and permits a recovery for all the party has lost by reason of the default of the other party, including the value of the bargain, and all injury and damage he may have suffered by reason of any act of bis made upon the faith of the broken covenant." Hoar, J., said in Woodbury v. Luddj', 14 Allen, 1: "The plaintiff seeks the aid of a court of equity, to compel the specific performance of the defendant's contract to convey land. The defendant is unable to make a perfect title, and the court, at the plaintiff's election, will compel the con- veyance of so much as the defendant can convey, and will award comi>ensation in the nature of damages for the deficiency. The defendant has not undertaken to apportion the contract. If he was sued at law, the whole market value of DAMAGES. 607 the estate would be the measure of damage. But dividing the estate may very much increase the proportionate damages, vpithout any corresponding advan- tage to the defendant. By making the election, the plaintiff undertakes to re- ceive what the defendant never agreed to give, namely, a partial conveyance of the estate; and equity will only allow this ou the condition that the defend- ant shall not thereby be subjected to unreasonable injury. The i)laintif[, in effect, elects to take satisfaction, partly in land and partly in money; and if he is allowed to do this, he should only, in equity be allowed to receive the fair money value of the part of the estate which is not conveyed to him. In the adjudged cases, though this is sometimes called damages, it is more usually spoken of as an equitable compensation for the value of that which the defend- ant does not convey. It is not always proper to estimate the value of the de- ficiency, at the average price per acre. The true inquiry should be, how much more was agreed to be paid by reason of the supposed additional quantity ? Wilcoxon v. Calloway, 07 N. C, 468. Where the estate is of uniform value, the price agreed upon to be paid per acre, would, of course, furnish a proper measure of damages in a case of excess or deficiency. King v. Hamilton, 4 Pet., 311 Where the vendor, in an executory contract for the sale of land, fails to make title without fraud or bad faith, but tlirough an inability which was not known to him at the time of contracting, he is liable for nominal dam- ages only. 3 Wm. Black.. 1078; Conger v. Weaver, 20 N. Y.. 140. Where the vendee insists on a conve3^ance of a part, he must pay to the vendor the value of such part proportioned to the price which was to have been paid for the whole. Jacobs v. Locke, 2 Ired.'s Eq., 28(5; Chandler v. Geraly, T) S. C, 5U1 ; see, however, Stockton r Union Oil and Coal Co., 4 W. Va., 273. Rule as to damages in equitable actions.'\ Where the claim is solely for dam- ages, whether for breach of the contract or for fraud in making it, and it is not sought to rescind it altogether, the party is, as a general rule, confined ta his action at law ; but a bill to have the contract res'anded for fraud, and for the recovery of damages, lies, though it does not ask for a discover}^ Com- pensation in damages in an action for specific performance, is an incident merely. Unless, in very specific cases, chancery takes no cognizance of suits for damages only, founded on contract. Hatch v. Cobb, 4 John.'s Ch., 559; Kempshall v. Stone, 5 id., 198; Moss v. Elmendorf, 11 Paige's Ch., 279; Lynch V. Willard, 6 John.'s Ch., 342; Mayne v. Griswold, 3 Sand., 408; Newham v. May, 13 Price, 732; Sims v. McEwen, 27 Ala., 184; Doau v. Mauzey, 33 id., 227; Welch v. Bayard. 21 N. J. Ex., 168; Harrlspn v. Deramus, 83 Ala., 463;, Richmond v. Dubuqe R. R. Co., 38 Iowa, 422; Carroll v. Wilson, 22 Ark., 32; Stevenson v. Buxton, 87 Barb., 13; Horn v. Luddington, 32 Wis., 73. " It must be under very special circumstances and upon peculiar equities, as, for instance, in cases of fraud, or in cases where the party has disabled himself by matters ex post facto from a specific performance, or in cases where there is na adequate remedy at law." Story's Eq. Jur., g 790; see, also, Peler v. Levy, 26 N. J. Eq., 360; Izard v. May's Landing Power Co., 31 id., 511; Gumpton V. Gumpton, 47 Mo., 37. "We think the doctrine ou this subject is now well- settled, and may be succintly stated to be this. Where the court of chancery has jurisdiction of the case, and where it is a case proper for specific perform- ance, it may, as auxiliary to specific ]x;rformance, decree compensation or damages. And where the ascertainment of damages is essential in order to do complete justice between the parties in the case before it, the court ought not to send the parties to another forum to litigate their rights, but should refer the matter to one of its own commissioners, or direct an issue quautiun damni- Jkattis to be tried at its own bar." Christian, J., Nagle v. Newton, 22 Gratt., 814; see, also, Prothero v. Phelps, 35 Eng. Law and Eq., 528; .Masson's App., 70 Pa. St., 26; Bell v. Thompson, 34 Ala., 633; Holland v. Anderson, 38 Mo., , 55; Woodman v. Freeman, 25 Me., 531; American Laud Co. v. Grady, 38 Ark , 550; Hopkins v. Gilm., 22 Wis , 476. A7i action cannot be hroiigJit in equity, solely for damages.'\ Where the vendee files his bill for a specific performance, knowing that the vendor has disabled himself from ])erformirg, •' will not be retained to give him a compensation in damages. Such an action is matter strictlj- of legal, and not of equitable juris- diction. Hatch V. Co'^b. .t«. 'm.'& Ch., 559; Kempshall v. Stone, 5 id., 198; Morrs v. Elmendorf, 11 Paige, 2?7; Doan v. Manzey, 33 111 , 227; McQueen v. 608 FRF ox SPECIFIC PERFORMANCE OF CONTRACTS. ■Chouteau, 20 Mo., 222; Heuty v. Schroder, L. E., 12 Ch. D., 666; Lewis v. Yale, 4 Fhx., 437; Barnctt v. ^Meiulenhall, 42 Iowa, 296; Smith v. Kelly, 56 Me , 64; Frauy v. Ortou, 75 111., 100. Where specific performance cannot be performed.'\ "The rule assumes, of course, a sufficient contract, performance, or an offer to perform, by the plain- tiff, and every other element requisite on his part to the cognizance of his case in chancery ; and that the special relief sought is defeated, not by any defen.se or counter e(iuities, but simply because an order therefor would be fruitless from the inability of the defendant to comply. The jurisdiction is fixed by establisiiing the equitable right of the plaintiff. Relief must tlieu be given by a decree in the alternative, awarding damages, unless the defendant should secure the specific performance sought. In many cases this would be an effec- tive and proper course, insomuch as the defendant, although not having him- self, at the time, the title or capacitj^ requisite for such performance, might be able to procure it otherwise. The jurisdiction is not lost when the court, in- stead of such alternative decree, determines to proceed directly to an award of dan)ages or compensation. The peculiar province of a court of chancery, is to adopt its remedies to the circumstances of each case as developed by the trial. It is acting within that province, when it administers a remedy in dam- ages merely in favor of a plaintiff who fails oi" other equitable relief to which he is entitled, without fault on his part. The diversity of practice, in this re- spect, and the doubt as to the jurisdiction, we think must have arisen less from the nature of the relief to be afforded, than from the character of the means for determining the amount of compensation to be rendered." Wells, J., in Milkman v. Ordway, 106 Mass., 232; Wiswall v. McGowan, Hoflf. Ch., 125; Woodcock V. Bennett, 1 Cow., 71; Hall v. Delaplaine, 5 Wis., 206; Holland v. Anderson, 38 Mo., 55; Chartier v. Marshall, 56 N. H., 478; Hamilton v. Ham- ilton, 59 Mo., 232. EEFERENCE OF TITLE. 609 CHAPTER IV. OF REFERENCE OF TITLE. § 1280. Where tlie vendor of land sues the purchaser for a specific performance of the contract, the defendant may, in some cases, succeed in having the action dismissed at the trial, on the ground of a defect in the plaintiff's title, provided the defect in title has been prominently put forward in the pleadings :{a) but where this is not the case, the defendant is entitled to have an inquiry directed as to the title of the vendor to the lands in question. This right is derived from the extraordinary nature of the jurisdiction which the vendor seeks to put in action, in consideration of which the purchaser has a right, not only to have such a title as the vendor offers upon the abstract unauthenticated, but the highest assurance upon the nature of his title which can be acquired for him by the production of deeds, the directing of inquiries, and the sifting of the vendor's con- science. (5)' Hence it follows that, though the purchaser may admit that he has only one particular objection, (c) or no objection at all((rZ) to the title, he is equally entitled to a general refer- ence as to it. § 1281. Still whenever, in a judgment decreeing the specific performance of a contract, an inquiry whether the vendor can make a good title is directed in general terms, it (a) Lucas v. James, 7 Ha. , 418. 42.5. (d) Jenkins v. Hlles. 6 Ves., 646; cf. Fleet- (6) Jenkins v. Hiles, 6 Ves., 646, 653. wood v. Green, 15 Ves., 594. (c) Lesturgeon v. Martin, 3 My. & K., 255. 1 Part iierformance ; mndee may insist upon.] Where the vendor cannot fully perform the vendee has a right to insist upon part performance with equitable compensation. Barns v. Wood, L. R., 8 Eq., 421; Wright v. Young, 6 Wis 137- Jones v Shackelford, 2 Bibb., 410; Matthews v. Patterson, 2 How. (Miss.), 729- McConnell v. Brillhart, 17 111., 354; Bass v. Gilliland, 5 Ala., 759 ; Col- lins' v. Smith, 1 Head (Tenn.), 251; Harding v. Parshall, 56 111., 219; Wilson V Cox 50 Miss., 133. The vendor contracted to sell land, to which it was afterwards ascertained he had only the ownership of an undiminished half. Held, in an action to recover possession, or a decree for the purchase money, that the vendee might elect to take the half and pay one-half the purchase price or that the contract should be rescinded, and the vendor to receive back the money paid and compensation for improvements, and, if any waste had been committed, damages should be deducted. Erwin v. Myers, 46 Pa. St., 96. 39 610 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. must be understood to mean a good title according to the terms of the contract : but if the vendor wishes to prevent the renewal, under the inquiry, of objections waived before the action, lie should guard himself by establishing such waiver at the trial, and taking care that the judgment expressly recognizes it : for under a general inquiry as to title the court will not enter into any question of such waiver, (e) § 1282. However, where a purchaser allowed the vendor' s suit for specific performance to proceed to the i^oint of the inquiry as to title, before bringing forward an objection which was patent on the face of the abstract originally delivered, he was not allowed his costs of the inquiry, though the objection was fatal to the title. (e) § 1283. The right to the reference is so far that of the purchaser that the vendor cannot except to the title, so as to assert his own title to be bad.(/) § 1284. The purchaser is also entitled to a reference of title where he is plaintiff in an action for specific perfonn- ance ; but inasmuch as in this case it is he, and not the vendor, who is calling on the court to act, he does so at his own risk ; and therefore, if he knows of objections and asks for a reference, and then waives the objections, he will have to bear the costs of investigating the title, {g) And it would seem that the same result must follow where the effect of a reference is to show that the vendor had at the due time disclosed to the purchaser a perfect title. (7^) § 1285. The right to this reference is not confined to sales of real estate, but extends to any species of property with regard to which the court may entertain an action for specific i)erf ormance, and the nature of which renders such an inquiry i)rox)er. Accordingly, inquiries have been directed into the title of vendors to shares in railway companies, (z) and in mining concerns. (,/) The nature of the inquiry, of course, varies according to the nature of the property, and the essentials of a good title to it. § 1280. But there are necessarily many contracts in (e) Upperton v. Nickelson, L. R. 6 Ch.. 437; (g) Bennett v. Fowler, 2 Beav., 303. Of. Curling v.Austie. 2 Dr. &Sm.,129;McMurray Freme v. Wright, 4 Mad.. 364. V. Spicer, L. R. 5 Eq , 527. Cf. Corless v. (ft) See Lyle v. Earlof Yarborough, John., Sparling, I. R. 8 Eq., 335. 70. (/) Bradley v. Munton, 15 Beav., 460. (i) Shaw v. Fisher, 2 De G. & Sm., U. •^ (j) Curling v. Flight, 2 Ph., 613. REFERENCE OF TITLE. 611 respect of wliich no sucli inquiry is or can be made. Where the contract is not for the sale of any property, such a reference is of course out of the question. And so, too, where a contract is ratlier in the nature of a compromise of disputed rights than of a contract for sale, the court will not make the inquiry. (A') In a case where a small piece of land was described as held of certain commissioners of waste lands at a rent of six shillings, it was doubted whether a purchaser could call on a vendor for the title of the com- missioners. (Z) § 1287. The court will not direct an inquiry where, though the contract be one of sale, the vendor only sells such interest as he has :{m) such a contract is, of course, perfectly valid, but, being in restraint of the purchaser's implied right to a good title, it must be made clear and unambiguous to the x")urchaser.(7i) A vendor may, of course, stipulate that a purchaser shall take such title as he himself bought with.(c») § 1S88. Of such restrictive stipulations there are many cases : thus where a i^urchaser agreed to accept the vendor's title without dispute, he was held to be debarred from taking an objection on account of an incumbrance which left the legal estate outstanding. (_/^)' So, again, where con- ditions of sale of a free-farm rent stated that no evidence (k) Godson v. Turner, 15 Beav., 46. See, also, Anderson v. HIggins, 1 Jon. & L., (I) Ashton V. Wood, 3 Jur. N. S., 1164 718. (Stuart, v. C). (o) Monro v. Taylor, § Ha., 51, 71. (m) See supra, § 857. (p) Duke t. Barnett, 2 Coll., 337; Wilmot (n) Southby v. Hutt, 2 My. & Cr., 207, 212. v. Wilkinson, 6 B. & C, 506. 1 Contracts only partially in restraint of trade.] Such contracts are sometimes enforced in equity. Tallis v. Tallis, 18 Eng. Law and Eq., 151 ; Pierce v. Woodward, 6 Pick., 206; Chappell v. Brockway, 21 Wend., 158; Mott v. Mott, 11 Barb., 127; Hoysland v. Segar, 28 N. J. Eq., 230; Dwight v. Hamil- ton, 113 Mass., 175; Roller v. Ott, 14 Kan., 600; Brown v. Rounsevall, 78 111., 589; Peltz v. Eichele, 63 Mo., 171; Oregon Steam Nav. Co. v. Windsor, 20 Wall., 64; Noah v. Webb, 1 Edw. Ch., 603. Contracts to erect public buildings in a given locality sustained. ] Specific per- formance will be decreed of a contract to pay money toward the erection of public buildings, provided the same are erected at a given locality, or are not removed therefrom. Carpenter v. Mather, 3 Scam., 374; State Treas. v. Cross, 9 Vt., 289; Bull v. Talcolt, 2 Root, 119; Comm'rs of Canal Fund v. Perry, 5 Ohio, 56; Cauldwell v. Harrison, 11 Ala., 755; University of Ver- mont V. Buell, 2 Vt., 48; Religious Society v. Stone, 7 Johns., 112; McAuley V. Billinger, 20 John., 89; Collier v. Baptist Educat. Society, 8 B. Mon., 68; Trustees of Amherst Acad. v. Cowles, 6 Pick., 427; Williams Col. v. Dan- forth, 12 Pick., 541; George v. Harris, 4 N. H., 533; Odineal v. Barry, 24 Miss., 1; State v. Johnson, 52 Ind., 197; contra, Comm'rs v. Jones, Breese, 237; Stilson V. Comm'rs of Lawrence Co., 52 Ind., 213. 612 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. should be required of the receipt, or payment, or existence of the gi'ound-rent, other than that disclosed by a conveyance mentioned, and that no objection should be taken to the title in consequence of the non-payment or non-receipt of the said rent, and the purchaser objected that the rent had not been paid for twenty years, and so was extinguished, and that there was therefore no subject-matter of the con- tract, and therefore no contract ; the court held that the purchaser had by the contract taken on himself the chance of being able to substantiate his claim to the rent. ((7) § 1289. The case of Best v. Hamand(r) is a remarkable instance of the upholding of such a stipulation. There, the subject-matter of the contract being land which the vendor had bought from a railway company as superfluous land, the contract contained a stipulation that the purchaser should assume and admit that everything (if anything were necessary) was done and performed by the company to enable them to sell and effectually convey the land as surplus land, and should not call for or require i^roduction of any evidence to that effect. The vendor all along knew (as appeared from the abstract and replies to requisitions) that the statutory offer of i)re-emption had not been made to the adjoining owners ; but the court of appeal neverthless held that the purchaser was bound by the stipulation ; — to the extent, at any rate, that his refusal to abide by the stipulation was a breach of the contract which disentitled him to sue for the repayment of his deposit. Unless the decision may be limited in this way, it seems difficult to reconcile it altogether with the principles laid down by the same court in the almost contemporaneous case of Re Banister(.9) already referred to. ^ 1290. Where the vendor was entitled to one undivided third in a leasehold interest in certain collieries, and the purchaser to another undivided third under the same title, and the contract was for an assignment of the vendor's share and not of the land, and the vendor was held not liable to show the lessor's title. (^) § 1291. The vendor may generally by express stipula- tion, as we have seen, entirely exclude any inquiry into his (g) HankB v. Palling, 6 El. & Bl., 659; cf. (r) 12 Ch. D., 1. Smith V. Harrison, 26 L. J. Ch., 412, 5 W. R., (s) 12 Ch. D., 1.31; supra, § 1166. 408. stated supra. § 374. (0 Phipps v. Child, 3 Drew., 709. KEFERENCE OF TITLE. 613 title. But lie will not be allowed to fall back upon such a stipulation in support of a misleading condition of a sale \{u) and where, the contract containing such a stipulation, the purchaser at first under a mistake common to both parties accepted the title, but on discovering the mistake objected to complete, it was held that his objection was not pre- cluded by the stipulation. (71) § 1293. Or the vendor may take a middle course, and, without excluding, may limit the inquiry. He may, for instance, exclude all objections in respect of a particular instrument, (?o) or all objections to title earlier than a certain deed,(ic) or he may sell merely an equitable and not a legal estate. (?/) § 1293. The cases on the question whether and how far the inquiry into title has been limited fall into two cate- gories ; first, where the stipulations of the contract preclude the purchaser from making requisitions upon or inquiries from the vendor as to his title,— which relieves the vendor from the necessity of complying with or answering any such requisition or inquiry, but does not prevent the pur- chaser from showing, by any means in his own power, that the vendor's title is defective ; and secondly, cases in which the stipulations preclude the purchaser, not only from making such requisitions upon and inquiries from the vendor, but from making any inquiry or investigation about the title anywhere ;— which may quite validly be stipulated, and will generally, provided that the stipulation be clear, altogether preclude inquiry and investigation for every purpose. (2) § 1394. Of the first of these categories an illustration may be found in the case of Darlington v. Hamilton(a) where there was a stipulation that the lessor s title should not be produced, and the purchaser discovered that the lessor s title was objectionable by reason of its being in- volved with the title to other property, so that the pur- chaser would run the risk of being ousted by reason of a (w) Re Banister, 1'2 Ch. D., 131; cf Harnett (?/) Ashworth v. Mou-.isey, fl Ex., 175. Cf. V. Baker. L. R. 20 Eq , 5(). Distinguish Official Manager of Sheerness Waterworks Blenkhorn v. Penrose, -29 W. R., 237. Co. v. Poison, 20 Beav.,70, 3 De G. F. & J., 36. (V) .Jones V. Clifford, 3 Ch. D., 779. («) See Jones v. Clifford, 3 Ch. D , 790 (w) Corrall v. Cattell, 4 M. & VV.,734; S. («; Kay, 550. See, too. Shepherd v. Keat- C,3 Y. & C. Ex.. 413 ley. 1 Cr. M. & R.. 117; GeogheRan v. Con- \x) Taylor v. Martindale, 1 Y. & C. C. C, noUy, 8 Ir. Ch. R., 598, 604. €58. Cf. per Mallns. V. C, in Harnett v. Baker, L. R. 20Eq.,53. 614 FRY ON SPECIFIC PERFUKMANCE OF CONTRACTS. breach of covenant in respect to other property ; and the court accordingly refused specific performance. § 139.1. On the other hand, where the condition provided that the lessors' title should neither be produced nor in- quired into,(^) and the purchaser offered a(;ts of parliament in evidence that the lessors (a public company), had no power to grant leases, tlie objection was held to be pre- cluded, (c) § l!396. But conditions restrictive of a purchaser's com- mon law rights are, as we have seen,(rZ) construed very strictly. Thus in AVaddell v. Wolfe, (e) where on a sale of leaseholds held by underlease there was a condition that no requisition or inquiry should be made respecting the title of the lessor, or his superior landlord, or his right to grant the underlease, and the purchaser, in investigating the title, discovered for himself that the lessor had no power to grant the underlease, it was held that the purchaser was not pre- cluded l)y the condition from insisting on the objection. The court appears to have considered that the language of the condition pointed only to requisitions and inquiries be- tween vendor and purchasor ; so that the case really fell within the principle of Darlington v. Hamilton. (/) § 129r. Again, in Smith v. Robinson, (r/) the defendant having in 1877 agreed to purchase freehold property, sub- ject to a condition that the abstract should commence with a deed dated in 1867, and that no earlier or other title should be required or inquired into by the purchaser, there happened to be, among the muniments handed to the defendant's solicitor for comparison with the abstract, a deed, of the existence of which the vendor was then ignor- ant, which threw grave doubt on the title ; and it was held that, the objection having arisen not from any requisition or inquiry by the purchaser but from the vendor s own dis- closure, the condition did not apply. § 1298. Generally, where an estate is sold subject to conditions of sale as to title, the inquiry is whether a good title is made in accordance with such conditions. (7^) (b) See now the Vemlor and Purchaser (e) L. R 9 Q. B., 515. Cf. Musgrave v. Mc- Act, 1874, 6. 2 (li; infra. § 1317. Cullaph, U Ir. Oh R. 496. (c) Hume v. Bentlev, 5 De G. & Sm.. 520. (/) Kay, 5f,0; eupra, § 1294. SprattT. Jeffery (10 B. & C, 249), which is [(/) 13 Lh. D., 14s .., x* ■ w at variance with the distinction above stated (A) See §§ 1281, 1337; and consider Meyrick must now be considered as overruled. v. Laws, 34 Beav., 58. (d) See snpra, § 1153 et seq. REFEEENCE OF. TITLE. 615 § 1299. Accordingly, in the case of Re Banister(/) already referred to, although the purchaser was relieved against a misleading condition, still, as the conditions pro- fessed on their face to give only a good holding title, the reference was confined to ascertaining whether such a title could be made out.(y) So, again, where at the time of the written contract (an open one), being signed, the purchaser verbally agreed to take a limited title, and negotiations went on for a long time upon that footing, the court at the hearing limited the inquiry as to title accordingly. (^') And where A. contracted with B. for a lease, B. knowing the pur- poses for which A. wanted the house, and A. knowing that B.'s title was merely leasehold, a reference was directed having regard to the covenants in the lease, and the i)ur- poses for which the premises were taken. (Z) § 1300. Generally, either vendor or purchaser has a right to have the inquiry in question — the one thing entitled to an opportunity of perfecting, and the otlier of investiga- ting the title. But there may be, on the part of either of them, a waiver of the right. § 1301. Thus, if the vendor states his title, and conclu- sively avers that he can make no other or better title, and the title disclosed is objected to by the purchaser, the court may decide without a reference ;(m) but if in such a case the decision were in favor of the vendor, it seems that the purchaser would then be entitled to call for a reference. § 1302. But it is with regard to a waiver by the pur- chaser that this question more often arises : for a j)urchaser originally entitled to examine the vendor's title may subse- quently waive that right, either expressly or by implication ; and this waiver may be either as to the whole title or limited to j)arts :{)i) and in case of an express waiver, it may be either absolute or conditional. § 1303. An admission of title by a defendant in his pleading is an express waiver, which excludes the right to a reference of title : for this purpose it is enough if the de- (i) 12 Ch D., 131; supra, § 1166. Rose v. Calland. S Ves., ISi; Omero'l v. Ij) See too Smith v. Robinson, 13 Ch. D., HardmaD,5 Ves., "'2-, explained in Jenkins 148. V. Hilee, 6 Ves., 6o4-5. &ee too Austin v. (k) McMurray v. Spicer, L. R. 5 Eq., 528 Martin, 29 Beav., .535. , ll) Wllbraliam v. Livesey, IS Beav., 206. im) e. g. Corless v. Sparling, I. R 8 Kq., For form of reference where the vendor has 335. a power of sale with the consent of trus- (n) Townley v. Bond, 2 Dr. & War., 240 tees, see Graham v. Oliver, 3 Beav., 124. 261. 616 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. fendant pleads belief that at the time of the contract the plaintiff had a title ;(o) or even if, the plaintiff having pleaded the facts constituting his title, they are not denied (specifically or by necessary implication), or stated to be not admitted, in the pleading of the defendant. (^) § 1304. But this waiver, where not express, must be clearly implied from the acts of the purchaser. "The court/' said Lord Eldon, "will at least take care that, where it is contended that the defendant has waived his right to a reference, it shall be clear that there was no sur- prise upon him, and that there has been a full and fair rep- resentation as to the title on the part of the plaintiff :"(§') and so where the vendor relies on any dealings in respect of the abstract as a waiver of objections to title, the contents of the abstract must raise the objection in question clearly and explicitly, and not merely by inference or notice, (r) ^ 1305. It is often the case that there is only a particu- lar objection to the title that is of moment, and it is then frequently a question whether the purchaser has not waived all right to object to it. §1306. The cases thus fall into three classes: (1) those of acts done by the purchaser after the objection is known to him, the objection being in its nature curable ; (2) those of similar acts where the defect is incurable, and (3) those of acts before the objection is known to the pur- chaser. It is evident that under the last we may treat the question of a general waiver of title. ij 1307. (3) Where the defect, though known, is yet one which it is, or may be, in the power of the vendor to remedy, acts which indicate an intention to complete may yet not amount to a waiver, because they may be done in the faith and expectation that the remedy will be applied. And a negotiation about the objection between the parties after the acts is, on this i)rinciple, an evidence that it was not waived. (5) P 1308. (2) But where the defect is known to the pur- chaser, and is in its nature incurable, there no such ex- pectation can arise, and much slighter acts will operate as (o) Phipps V. Child, 3 Drew., 709. (r) Blacklow v. Laws, 2 Ha , 40. (p) Ord. XIX. r. 17. (»■) Calcralt v. Roebuck, 1 Ves. Jun., 221. (5) In Jenkins V. Hilea, 6 Ves., 655; Hay- don V. Bell, 1 Beav., 337. EEFERENCE OF TITLE, 617 indications of an intention to waive the objection. So where an estate, sold a freehold and leaseholds attached, turned out to be nearly all leasehold, and this clearly- appeared as a defect which could not be cured, and the purchaser continued to treat, up to and long after the day for concluding the purchase, on points of title irrespective of this objection ; he was held to have waived it.(^) So where an estate was subject as to part to a reservation of rights of si)orting, which appeared on the abstract, and which the vendor could not cure, and after the delivery of the abstract the purchaser took possession ; he was held to have waived his right to object to the reservation in ques- tion. (2^) And where the invalidity of a fiat on which the title depended was known to the purchaser, his granting a lease of the property was held a waiver. (?)) And, Avhere the defect alleged was an erroneous and misleading description of the situation of a house, but the purchaser had proceeded to investigate the title after this was known, he was held to have waived all objection on the score of misdescription. (w) § 3309. So with regard to the contract itself— if the defendant contends that it is a nullity, and, after having become aware of the facts on which he relies for this con- tention, has gone on acting as though there were a subsist- ing contract, he will be estopped from subsequently taking the objection, (x) § 1310. Where, either by the terms of the original con- tract, or by a subsequent arrangement, it is agreed that the purchaser shall take possession and shall be entitled to a good title, no waiver is worked by the possession, or by any acts which do not go beyond the acts of a person entrusted with the possession and bound to take care of the estate. So where a jDerson purchased a share in some iron works to which a good title was to be made in about a year, and it appeared to be the intention of both jDarties that the purchaser should previously take possession and act as partner, his doing so was no waiver of his right to a good title.{y) (t) Fordyce V.Ford, 4 Bro. C. C, 494; S. C, (The contract was, however, rescinded on 6 Yes., ti79. another ground ) (M) Burnell v. Brown, IJ. & W., 16S. (x) Flint v. Woodin, 9 Ha., 618; Campbell (») Ex paite Sidebotham, 1 Moiit. & Ayr., v. Fleming, 1 A. & E., 40. €55; Ex parte Barrington, 2 Mont. & Ayr., (y) Stevens v. Guppy, 3 Ru39., 171; Mar- 245. gravine of Anspach v. Noel, 1 Mad., 310, 315. (w) Stanton v. Tatteraail, 1 Sm. & G., 529. 618 FRY ON SPECIFIC PERFOKMANCE OF CONTRACTS. § 1311. In Burroughs v. Oakley(£:) the original contract was silent as to possession, but possession liaving been taken by the purchaser, and both parties having for more than a year subsequently continued negotiating as to title, Plumer, M. R., concluded that possession was prematurely taken with the consent of both parties, but without an intention of waiving the investigation of title : and so where a purchaser took possession, with the vendor's leave, pend- ing an answer to a requisition as to the tenure of the property, he was held to have not thereby waived the requisition, (rf) § 1313. (3) Acts of ovvership on the part of a purchaser may amount, in the contemj)lation of the court, to a declara- tion that he considers himself as the owner of the property, and then they work an acceptance of title and a waiver of all objections ; or secondly, such acts, though falling short of this, may yet, by changing the property which is subject to the vendor's lien, affect that security, and therefore furnish a motive to the court to order the payment into court of the purchase-money, (b) § 1313. It is obvious that, for acts to amount to the waiver of an objection before it is known, they must be very strong and distinct, (c) — such acts, in short, as are equivalent to a declaration by the purchaser that he has taken the estate at all possible risks, and considers him- self as the absolute and unconditional owner of it, and so preclude any investigation of title at all. Therefore in a case where the objections were not known, the stubbing up of an osier-bed and tilling up a pond, though held to justify an order for payment of the purchase-money into court, and for a receiver, were not held to amount to a waiver of title. (rZ) ^ 1314. Leaving the abstract unobjected to for two years, altering the property, letting it, and apologizing for not paying the purchase-money, which was of course only payable if the title w^as accepted, have been considered strong acts of a waiver, (e) And where the purchaser was in possession twenty years, and, after making frivolous (z) 3 Sw., 159. (d) Osborne v. Harver, 2 Y. & C. C C, 116; (a) Turquand v. Rhodes, 16 W. R., 1074. Small v. Attwood, You., 5(i6. (6) Cutler v. Simons, 2 Mer., 103. («) Margravine of Anspach v. Noel, 1 Mad., (c) Dixon V. Astley, 1 Mer., 133. 310. REFERENCE OF TITLE. 619 objections and refusing any further explanation of them, still continued in possession, the right to investigate title was held to have been waived. (/) The like was held in a case where a purchaser continued twenty-six years in possession after his requisitions of title were sent in, and had paid a considerable part of his purchase-money, and made alterations, (r/) In another case, Lord Romilly, M. R., expressed an opinion that the purchaser, having retained the abstract for five months and made no objections to the title, but simply got the vendor to verify the abstract with title-deeds, had thereby waived all objections as to title, (/i) And where the purchasers of a leasehold interest, after investigating and accepting the vendor's title, delayed com- pletion on the ground that they had since discovered an ancient lease, which they suggested (but did not attempt to prove) would override the vendor' s interest ; they were held to have lost the right to make any inquiry on the subject. (/) § 13 1*5. The right of investigation may sometimes be waived by the silence of a subsequent contract concerning it. Thus where, by a contract for the sale of an estate, the purchaser was entitled to evidence that the buildings were not on the copyhold part of the property, which, except to that extent, the vendor was not to be called on to dis- tinguish from the freehold ; the purchaser asked for evidence of the identity of the parcels in the abstract with the estate sold : subsequently, l)y a supplemental contract, the pur- chaser accepted the title, subject to the production of a declaration of the identity of the parcels in the deeds and land sold— which was produced and approved on the purchaser's behalf : and he subsequently objected that the buildings were on the coj^yhold part of the estate : it was held that this term of the original contract had been waived by the silence on that head of the supplemental one.{J) § 1310. On the other hand, the mere acquiescence of both parties in not enforcing the completion of the con- tract, (A") the continuing of a treaty and at the same time insisting on the objection, (Z) and the approval of the title (/) Hall V. Laver, 3 Y. & C. Ex., 191. (i) Corbett t. The Commissioners of Her {g) Wallls V. Woodyear, 2 Jur. N. S., 179 Majesty's Works, etc., 16 W. R., 889. (Wood, V. C). See too Bown v. Stensou, {j) Dawson v. Brinckman, 3 De G. & Sm.» 24 Be.av., 631. 376; S. 0. 3 Mac. & G., 53. (h) PcKK V. WIsden, 16 Beav., 239. (k) Blachford v. Kirkpatrick, 6 Beav., 232. (I) Knatchbull y. Grueber, 1 Mad., 103. 620 FKY ON SPECIFIC PERFOKMATs^CE OF CONTRACTS. by the i^urcliaser's counsel, (w) liave all been held sufficient to waive the purchaser s right to investigate the title of the vendor. § 1317. By the vendor and purchaser act, 1874, s. 2 (1) it is enacted that (subject to any stipulation to the contrary in the contract) under a contract to grant or assign a term of years, whether derived or to be derived out of a freehold or leasehold estate, the intended lessee or assign shall not be entitled to call for the title to the freehold. But in cases where the purchaser of a lease still has the right to inquire into the title of the lessor, conduct may waive that right which does not waive the right as to the title of the lessee. § 1318. So where B. contracted with A. to take an as- signment of a lease when executed, and inspected the lease and the assignment of it to A., and subsequently directed A. to cause an assignment to himself to be endorsed iotldem verbis, he was held to be precluded from calling for the lessor's title. (?i) Again, where a purchaser, after transmis- sion to him of the original lease, prepared a draft assign- ment, and made various objections as to repairs and other matters, but did not require the production of the lessor's title, it seems that he would have been held to have waived the right, but the point was not decided, (o) And in a case which came before Lord Cranworth, he, affirming a decision of Stewart, V. C, held that joining in a valuation, adver- tising the property to be disposed of, and other like acts on the iDart of the lessee, which implied that nothing remained to be done but the execution of the lease, amounted to a waiver of his right to call for the lessors title. (^9) § 1319. In analogy with the distinction established by the above cases on conditions of sale as to the lessor's title, it is established that acts may amount to a waiver of a right to investigate the title, and yet not compel the purchaser to take it, if it come out collaterally that the vendor has no title. Thus in Warren v. Richardson, (^) the purchaser of a leasehold interest had done acts which the court, at the hearing, held to be a waiver of the right to investigate a (to) Deverell ▼. Lord Bolton, 18 Ves., 505. 665, which see for the form of a declaration Distinguish Corbett t. The Commissioners that the right to call for the lessor's title has of Her Majesty's Works, etc., 16 W. R., 889. been waived. See also Ogllvie v. Foljambe, (n) smith v Capron, 7 Ha., 185, 189 3 Mer., 66. (o) Clive V. Beaumont, 1 De G & Sm., 397. (7) You., 1. (p) Simpson V. Sadd, 4 De. G. M. & G., KEFEKENCE OF TITLE. 621 title ; but it appearing on the report of the Master, to whom it was referred to settle the lease and to state any special circumstances, that the vendor held this together with other leasehold property under one lease, and subject to one proviso for re-entry, so that the vendor, who was plaintiff, could not make a good title ; the court refused to enforce the completion of the contract on the defendant. § 1320. Where the purchaser, having discovered a material defect in the title in the course of his investigation of it, gave notice to determine the contract, and immediately afterwards bought up the interest which had constituted his objection, it was held that, having thus by his own voluntary act cured the defect, he could not avail himself of this purchase for the purpose of destroying the original contract; and specific performance was decreed against him.(r) § 1321. With regard to the proper mode of pleading that the right to investigate the title has been waived, it was decided by Knight Bruce (then V. C.) in Clive v. Beau- mont, (5) that it was not enough for the party relying on such waiver to allege facts from which it is a legal inference ; but that he must allege the facts and that there had thereby been such waiver. And this seems to be the i-)roper course under the present practice of the high court, (i^)' § 13S2. With regard to the stage of the proceedings at which the reference of title may be obtained, it will be con- venient briefly to refer to the former practice of the Court of Chancery, inasmuch as the principles upon which that practice was based will no doubt continue to be observed by the high court, so far as they are applicable to the present procedure. § 1323. The inquiry as to title might be directed by the Court of Chancery, (r) Murrell v. Goodyear, 1 De G. F. & J., Frankum, 2 De G. & Sm., 561^ Cf. Hughes, 432 V. Jones, 3 Ue G. F. & J.,316-^. (!s) 1 De G & Sm., 397. See to Gaston v. (t) Ord. XIX. r., 18. 1 Waiver of tender.^ A tender need not be averred by the plaintiff, wliere he avers and proves that the defendant refused to fulfil the contract, and expressly- waived a tender. Martin v, Merritt, 57 Ind., 34. Cross bill in sjiecific lyerformance.^ Where the vendor, by his answer to the action of the vendee, submit to perform, it is competent for him, by a cross bill to compel the vendee to perform also. He cannot, however, after resist- ing performance, and where the property has depreciated in value, compel specific performance by the vendee. Tobey v. Foreman, 79 111., 489. 622 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. (1) At the hearing : (2) On motion before the hearing but after the answer : (3) On motion before answer. The practice of allowing this inquiry to be directed on motion was introduced by Lord Thurlow.(?^) § 1334. (1) Where an inquiry as to title alone was directed at the hearing, it was taken as excluding all other questions but that of title, so that the court would not, on further consideration, enter into any other question set up as a defense by the answer, (t^) § 1335. (2) The inquiry might be directed before the hearing where, the defendant having answered, there was no other question on the record but that of title, or where, there being some other question, the objection on that score was removed by consent. (^) § 1336. Where other qu-estions were raised, but the court, on looking into the defendant's answer, saw that they were mereh' frivolous and entirely uuAvorthy of argument, it would treaty them as no questions at all, and direct the inquiry as if they had not been raised, (x) § 1337. Unless, however, the other question raised by the answer were merely frivolous, even though the defend- ant's contention might be such as the court judged unlikely to succeed, an inquiry before the hearing— which was in one case described by Leach, V. C, as "in its nature an extraordinary indulgence to the plaintiff, out of the common course of i3roceedings,"(2/) — was not granted. (^) § 1338. Accordingly, such references were refused in the following cases : — where there was a claim for com- pensation, (a) even though the defendant submitted to com- plete his contract ;(5) where a purchaser insisted on laches as a defense ;(c) where there was a question as to the pro- duction of a lessor's title ;{d) and where there was a ques- tion whether there was any subsisting contract. (e) "The rule was quite obstinate," said Lord Eldon in the last-cited {«) 1 Sw., 551 n. ; Anon. v. Skelton, 1 V. & Wood, 1 J. & W., 419; Boyes v. Liddell, 1 Y. B., 517; Eldridge v. Porter, 14 Ves., 139; & C. C. C, 133; Wood v. Machu. 5 Ha., 158. Cons. Ord. XX. See also Briscoe v. Brett, 2 (y) Gordon v. Ball, 1 S. & S., 180. V &B 377 (s) Withy V. Cottle, IS. &S.,174; Gordon (V) Le Grand v. Whitehead, 1 Russ., 309; v. Ball, IS & S., 173; Portman v. Mill, 2 cf. Hor»d V Oglander, 34 Beav., 513. Russ., 570. (?u) Blyth V. Elmhirst, 1 V. & B. 1; Paton (a) Paton v. Rogers, 1 \ . & B., 351. V. Rogers, 1 V. & B. 351; Moss v. Matthews. (6) Lowe v. Manners, 1 Mer., 19. 3 Ves.. -279; Wright v. Bond, 11 Ves., 39. (c) Blyth v. Elmhirst, 1 V. & B., 1. (X) Withy V. Cottle, T. & R., 78; Boehm v. (d) Gompertz v. Anon, 12 Vea., 17. (e) Morgan v. Shaw, 2 Mer., 138. REFERENCE OF TITLE. 623 case, "that a reference of title cannot be had except in a case where there is no question but of title ; and this must be the rule ; for otherwise, we should fall into the absurdity of having the master's report upon a title, and a subsequent decision that there is no subsisting agreement." (/) § 1 329. By questions of title are meant those which can only become properly the subject of adjudication upon the investigation of the title, although they may not arise on the abstract taken by itself; so that where, the validity of the conditions of sale being admitted, the question was as to the application of them, the question was held to be one of title. (.17) § 1330. AVhere the circumstances were such as, on the principle already stated, to justify this inquiry on motion, the Court of Chancery would make it on such an applica- tion, even though the question in dispute might be one which could be conveniently disposed of at the hearing without a reference, (7/) § 1331. In one case, where the defendants by their an- swer set up inability on the part of the plaintiff to make a title, and further that he has not done so within a period specified by-the contract for that purpose, and had also de- livered a notice to rescind the contract. Turner and Knight Bruce, L. J. J., affirming the decision of Stewart, Y. C, held that the defendants were not entitled to move, before the hearing, for a reference as to title according to the con- tract, and when first shown, without prejudice to any ques- tion in the cause. Turner, L. J., expressed a doubf whether defendants could ever so move successfully. (/) § 1332. (3) An inquiry as to title might also be made on motion before answer, where the vendor, being plaintiff, undertook to do all such acts for the purpose of executing what the court should \liink right, as if the answer had been put ui,U) and it being admitted at the bar that there was no other question than that of title. (A-) Where such an admission was not made, the motion was refused. (Z) Nevertheless in one case Shadwell, V. C, held that, after such a reference, the defendant might by his answer, which (/) 2Mer., 140. Mining Co., Limited, 3 De G. J. & S., 593, (g) Machu, 5 Ha., 158, 161. 595. (A) Curling v. Flight, 5 Ha., 248. (/) Balmanno v. Lumley, 1 V. &. B. 224. (i) Reed v. Don Pedro North Del Key Gold («) See per Lord Eldon in 1 Mer., 372. (I) Matthews v. Dana, 3 Mer., 470. 624 FRY ON SPECIFIC PEKFOKMANCE OF CONTRACTS. was called for by the plaintiff, make any defense he pleased, and was not confined to the question of title. (??^) "It does not appear," said the Vice Chancellor, " on the face of the order of reference, that the defendant did not object to the order being made, or that he said that there was no objec- tion as to title. "(;i) It would seem from this that the order should have been prefaced with such a declaration. § 133^1. In the case of Phillipson v. Gibbon, (o) the pro- priety of the vendor taking the earliest possible opportunity of obtaining the reference, where only title is in question, w^as plainly intimated by James, L. J. "In almost every case," said his Lordship, " It is the duty of a vendor, where there is no question but that of title between him and the purchaser, to avail himself of the opportunity of having an immediate reference as to title and so saving a multiiilica- tion of unnecessary costs. (^:>) § 1334. The inquiry as to title is now, it is conceived, obtainable either under Ord. XXXIII., which provides that "the court or a judge may, at any stage($') of the proceed- ings in a cause or matter, direct any necessary inquiries or accounts to be taken, notwithstanding that it may appear that there is some special or further relief sought for, or some special issue to be tried, as to which it may be proper that the cause or matter should proceed in the ordinary manner ;' ' (r) or, in an appropriate case, under the eleventh rule of Order XL., ]providing that "any party to an action may, at any stage thereof, ajDply to the court or a judge for such order as he may, uj)on any admission(5) of facts in the pleadings, be entitled to, without waiting for the determi- nation of any other question between the parties, -s^- * * Any such application may be made by motion, so soon as the right of the party applying to the relief claimed has appeared from the iDleadings. The court or a judge may, on any such ax)plication, give such relief, subject to such terms, if any, as such court or judge may think fit."(^) § 1335. The order for reference is not strictly confined to an inquiry whether a good title can be made, but may (m) Emery v. Pickering, 13 Sim., 583. {r) Compare Consol. Ord. XX., and see (n) 13 Sim., 584. Ord. I. r. 3; also Ord. XXXVI. r. 6. (o) L. R., 6 Ch., 423. (s) .^ee Symonds v. Jenkins, 24 W. R., 513. (p) L. R. 6 Ch., 435. (t) The Judge of first instance has a discre- Iq) For form of judgment where the inquiry tion as to making or refusing an order under is directed, see Seaton, 1287. this rule. Mellor v. Sldebottom, 5 Ch. D., 343 (C. A.) KEFERENCE OF TITLE. 625 extend to everything that appears to be connected with the title, (w) It should therefore include an inquiry as to the time at which a good title was shown, («) unless for some reason stated at the time — e. g., that the contract itself, (20) or the plaintiff's right to specific performance, (a?) has been disputed— and by the exiDress direction of the court, this inquiry was omitted. (?/) As this inquiry, if to be made at all, should be directed at the original reference, the court has refused to direct it subsequently on a second motion. (2;) § 1336. On the same principle, the inquiry may extend to whether it appeared by the abstract that a good title could be made :(a) and on the like ground, an inquiry was in one case added whether the defendant objected at any time to the want of evidence as to the identity of the premises ; but an inquiry whether the abstract was perfect, and if deficient, in what respects, and whether it was ever perfected, was considered to be not so connected with the title as to be added to the reference. (5) § 1337. The inquiry may be limited in any manner appropriate to the circumstances of the particular case, as, for instance, by directing that regard is to be had to, or that the inquiry is to be made subject to, specified requisitions or declarations. (c) § 1338. In Harnett v. Baker, (rZ) the court (Malins, V. C), having come to the conclusion that a condition of sale restrictive of the title was not binding on the jDurchaser, on the ground that it was founded on an erroneous statement of facts which the vendor was bound to know was erroneous, held that the vendor (plaintiff") must either take an open reference of this title (which he refused), or have his bill dismissed with costs. § 1339. The inquiry is whether the vendor can make a good title, not whether he could do so at the date of the contract ; and therefore, when one of the inquiry has been (M) Jennings v. Hopton, 1 Mad., 211; Ben- practice on this point was somewhat vari- nettv. Rees, 1 Ke., 4u8; Enraght v. Fitzger- able. Moss v. Matthews,;? Ves, 279; Gibson aid, '2 Dr. & War., 43. See too Gedye v. Clarke, 2 V. & B., 108 Commissioners of Public Works, 16 W. R. (z) Hyde v. Wroughton, 3 Mad., 279. 1106. (a) Wright V. Bond, U Ves., 39; Horniblow (V) Seton, 1297, 1303. See Foxlowe v. Am- v. Shirley, Seaton, 129&*; Jennings v. Hopton, coats, 3 Beav., 496. 1 Mad., 211. (w) Gibbons v. North-Eastern Metropolitan (b) Bennett v. Rees, 1 Ke., 405, 40S-9. Asylum District, 11 Beav., 1; Morris v. WIl- (o) Saul v. Bolton, Seton, 1297; Remnant v. son, 5 Jur. N. S., 168. Holt, Id., 1298; Hume v Pocock, L. R. 1 Eq., (X) Potter V. Crossley, 5 W. R.. 33. 423, 431, 1 Ch , 377; and supra, §§ 1298, 2299. (y) Bennett v. Rees, 1 Ke., 409 The old {d) L. R. 20 Eq., 50, 58. 40 626 FKY ON SPECIFIC PERFORMANCE OF CONTRACTS. directed, (c) he may make out his title at any time before the certificate, and if he can do so he will be entitled to a judgment or order in his favor, (/) at least where there has been no unreasonable delay, and time is not material. ((7) § 1340. The Court of Chancery often allowed time for the completion of the title : in an old case it more than once allowed the vendor time to get an act of Parliament ;(7i) and where upon the face of the contract it appeared that there was a difficulty in the plaintiff's title, Lord Hatherley (then Wood, Y. C.,) refused on demurrer to stop a suit for specific performance, on the ground that the act of Parlia- ment contemplated had not been obtained. (/) So, in another case, the court allowed the vendor time to procure a small part of the estate ^{J) and, in another case, allowed a limited time to procure the concurrence of an assignee in insolvency. {7c) § 1341. The court grants indulgence in point of time for getting over any difficulties in matters of conveyance, as much where the vendor is the plaintiff, as where the pro- ceedings are instituted by the purchaser. (^) § 1343. But this indulgence will not be granted where the defect to be remedied was known to the vendor or his agent, and was concealed from the x^urchaser -,{771) nor where there has been great delay, and there is no probable chance of the difficulty being got over in a short time ;{%) so that a purchaser under the court would be discharged if it appeared requisite to his title that an account should first be taken in an action to be instituted, (0) or that an action should be instituted to try whether certain devisees were trustees for the seller or not. {p) § 1343. Nor will the court grant additional time where the vendor j)roposes, not to cure a defect in the title which he had at the sale, or to produce fresh evidence in support of it, but to get an entirely new title : for the court will not (e) Questions as to time and delay may, it (i) Devenlsh v. Brown, 26 L. J. Ch. 23. is conceived, be properly raised on the ap- (j) Chamberlain v. Lee, 10 Sim., 444. plication lor the inquiry. (k) Sidebotham v. Barrington, 4 Beav. 110. (/) Bennet College v. Carey, 3 Bro. C. C, See too on this point. Re Banister, 12 Ch. D., 390; per Lord Eldon in Jenkins v. Hiles, 6 145. Ves., e.'i.'j, and In Seton v. Slade, 7 Ves., 279; (0 Duke of Beaufort v. Glynn, 3 Sm. &. G., Wynn v. Morgan, 7 Ves., 292, 315; Vancou- 213 ver V. Bliss, 11 Ves., 4.58 (m) Dalby v. Pullen, 3 Sim., 29; S. C. 1 R. () Noel v. Hoy, St. Leon. \ end., 293. 205. EEFERENCE OF TITLE. 627 force a buyer to take an estate froin a vendor who is neither owner of it, nor possessed of the power by the ordinary course of legal proceedings to make himself so ;{q) for it is not the purpose of the court to enable one man to sell another man's estate. (r) As to this point, it was in one case decided that a title from possession defeasible by the crown on account of the alienage of the original owner, cured by a grant from the crown Avhilst the question was in the master's office, was the same title, and the purchaser was compelled to take it.{s) And the fact that the vendor may have had no title to a small part of the estate at the time of sale, and subsequently i^urchases it, will not make the title a new one within this rule.(^^) § 1344. But even where the vendor has no title at all at the time of sale, so that the purchaser may withdraw if he choose, yet, if he acquiesce in steps taken by the vendor to get in the estate, he will thereby have waived the want of mutuality, and be bound to accei^t the title, if made out at the trial or other necessary time.{u) § 1345. The inquiry as to title takes place in the cham- bers of the judge, and the result is embodied in a certificate of his chief clerk, which, when approved by the judge, is signed by him, and filed in the central office of the court. (?)) § 1346. Evidence by affidavit of matters of fact material to the title is admissible under a reference of title, (-w) Accordingly where, under such a reference, after the con- veyancing counsel had given his opinion in favor of the title, but before the certificate had been actually signed, a very serious defect of title, not in any way disclosed or raised by the abstract, was discovered by the jmrcliaser's insj)ecting the property, evidence of the matters so dis- covered was admitted. (.t) § 1347. Whatever can be done in chambers upon a reference as to title under a judgment where the contract is established, can be done upon jDroceedings under the ninth section of the vendor and purchaser act, 1874, already (q) Tendringv. London, 2 Eq Cas. Abr., (v) Dart, Vend. (5th eu.), 1099; Ord. LXa. 680, pi. 9; Magennis v. Fallon, -2 Moll., 561. As to objecting: to the certificate before it is (r) Chamberlain v. Lee, 10 Sim.. 444. signed by the Judge, see Parr v. Lovegrove, (s) Eyaton v. Simmons, 1 Y. & C. C. C, 608. 4 Drew., 17';. It) Chamberlain v. Lee, 10 Sim., 444. (,w) Re Burroughs, Lynn and Sexton, 5 Ch. (M) Hoggart V. Scott, 1 R. & My., 293; Sails- D., 603. bury V. Hatcher, 2 Y. & C. C. C, 54. see (a;) Phillipson v. Gibbon, L. R. 6 Ch., 428. supra, §§ 447, 448, and Murrell v. Goodyear, 1 De G. F. & S., 433. 628 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. referred to.{y) That act enables the luirties in such cases to dispense with the formal pleadings of an action, and at once to put themselves in chambers in exactly the same position in which they would have been, and with all the rights which they would have had, under the old form of decree, (z) § 1348. The certificate should, it seems, be on the fact of title aye or no : and accordingly it is improper to certify that a defendant with the concurrence of a third party could make a good title, (a) or that he could do so subject to the performance of certain conditions ;(6) but where the certificate is against the title, it should state the precise points in which it is defective, (c) § 1349. If any party is dissatisfied with the certificate as filed, he must apply (by summons or motion) to dis- charge or vary it within eight clear days from the filing ; otherwise, at the expiration of that time it becomes binding on all the parties to the proceedings, and will not after- wards be opened except upon special grounds. (cZ) § 13oO. If the certificate is in favor of the title, and either no application to discharge or vary it is made, or such application fails, specific performance will generally be ordered at the hearing (original or on further considera- tion, according to the stage at which the reference was directed), of the action, (e) After such an application has failed, it seems that no other objection to the title can be made. (/) Under the^old practice, where the report was in favor of the title, but the court thought it too doubtful to force on a purchaser, the court might dismiss the bill without allow- ing the exceptions, (p')iand either with(7i) or without(/) costs, as the court might think right. § 1351. Where the court varies a certificate in favor of the title, (,y) or refuses to vary one against it,{Jc) and the ven- (y) Supra, § 1106. ly at chambers to give effect to the lien, and there- upon the bill was dismissed, with costs. (?^) § 1356. As an ordinary rule, costs are given not to, but against, a vendor up to the time at which he has lirst shown a good title. («)' But there is also another general rule, that if a purchaser has taken certain objections to the title of the vendor, and those objections wliicli have been the cause of the litigation are overruled, the vendor will be entitled to his costs, and the purchaser will not escape paying them by reason of some evidence, the want of which was never the subject-matter of dispute between them, not having been supplied until the title was investigated in chambers. (20) And where a defendant prevented the plaintiffs (vendors) from obtaining the usual reference as to title on interlocu- tory motion by setting up defenses wdiicli, at the hearing, he failed to establish, he was ordered to pay the plaintiffs^ costs up to and inclusive of the hearing, (ic) § 1357. In the inquiry as to the time when a good title was shown is involved the question, what is showing a good title. (2/) In relation to this, two distinctions are to be borne in mind, the one between questions of title and of convey- ance, the other between questions of title and of evidence. § 1358. As to the first, the rule was thus stated by Lord Eldon in Lord Bray broke v. Inskip :{z) ''As to the question whether the abstract was complete, the abstract is complete whenever it appears that, upon certain acts done, the legal and equitable estates will be in the purchaser. That may be long before the title can be completed." So that a good title is shown when it appears from the abstract that the vendor has the whole equity, and in what persons the out- standing portion of the legal estate is vested. («) The acts to be done, of which Lord Eldon speaks, must be confined (u) Turner v. Marriott. L. K. ?, Eq.. 744. (v) See §§ 1281, 136-2. [v) Phillipson v Gibbon, L K 6 Cti., 434. (s) 8 Ves , 436. {w)S c;,434. Cf. Bridges v. l-oiigman, 24 (a) Avarne v Browne, 14 Sim.,3(i3; Cam- Beav., 27. herwell and South London Building Society (a;) Hyde v. Dallaway, 4 Beav., 606. v. HoUoway, 13 Ch. D., 7o4, 763. 1 Demand as Mving relation to the question of costs.'] Where a party is entitled to a conveyance on request, he may commence an action for specific perform- ance -without previous request. Proof of previous demand in equity is only important in reference to costs. The party liable to perform is put in the wrong, where there is a demand and refusal, and is chargeable with costs- Bruce V. Tilson, 25 N. Y., 194; see, also, Gray v. Daugherty, 25 Cal., 266; Jones V. City of Petaluma, .36 id., 230; Morris v. Hoyt, 11 Mich., 9. EEFERENCE OF TITLE. 631 to acts the performance of which the vendor can enforce in a court of justice, as, for instance, by calling on a trustee to convey the estate vested in him. Tlierefore, where an estate tail was outstanding in a person who had consented to bar it, but was not in any way a trustee for the vendor, the court held that the title was not made out till the recovery had been fully perfected, (b) § 1359. In Esdaile v. Stephenson, (c) Leach, V. C, after consultation with Lord Eldon, laid down the rule "that where a necessary party to the title was neither in law or equity under the control of the vendor, but had an inde- pendent interest, unless there was produced to the master a legal or equitable obligation on the part of the stranger to join in the sale, the master ought to report against the title ; otherwise where a necessary party to the title was under the legal or equitable control of the vendor, as a mortgagee, where the master might well report that upon payment of the mortgage a good title could be made." § 1360. The rule is further illustrated by other cases. In one, it was held to be no objection to title, that a satis- fied term was outstanding in a lunatic against whom no com- mission had issued, so that there was then no person com- petent to make the assignment :{d) and in another case, the legal estate of a moiety of the property was outstanding in a married woman or those claiming under her, but she being under the order of the court to convey was bound by it, and became absolutely a trustee for the purchaser under the order of the court : the title was tlierefore held good, but without prejudice as to the question of conveyance, (e) § 1361. it appears to have been considered by Shad- well, V. C, to be sufficient, if the abstract showed that the outstanding legal estate had been formerly vested in a trus- tee for the vendor, and that the abstract was then complete, though a supplemental abstract was necessary to trace the legal estate. (/) But this decision seems at variance with the rule enunciated by him in the same case, of which one condition is that the abstract must disclose in whom the legal estate is vested, not in whom it was formerly vested. And accordingly Lord Gifford, M. R., held that where an (b) Lewin v. Gust, 1 Ruse., 325. (e) Jumpson v. Pitcher, 1 Coll., 13. (c) 6 Mad,, 366. (/) Avarne v. Brown, 14 Sim., .303. Id) Berkeley v. Dauh, 16 Ves., 380. 682 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. abstract only showed that the legal estate had long since been vested in persons who would be trustees for the ven- dor, but did not show in whom the legal estate was then vested, the defect was one of title and not of conveyance. (<7) § 1363. A distinction has also been taken between show- ing and making a good title. A good title is shown when all the matters essential to the title are stated in the ab- stract : it is made, when those matters are proved. (7/) § 130:t. It is evident, further, that there is a distinction to be drawn between matters of title and of the evidence, whereby that title is supported. The verification of the ab- stract may be either the one or the other : thus, the verifica- tion of the deeds stated in the abstract is matter of evidence ; whilst, on the other hand, the proof of a fact essential to the title, which can only be proved by evidence documentary or oral — as, for example, the identity of a person, or of par- cels apparently different on the deeds — is a matter of title. (/) ig) Wynne v. Griffith, 1 Russ., 283. See, Kindersley, V. C, in Oakden v. Pike, 13 W. further, as to what is a perlect abstract, per R., 674; 11 Jur. N. S., C66. Wigram, V. C , in Morlev v. Cook, 3 Ha , 111 ; (h) Parr v. Lovegrove, 4 Drew, 170, 181. Ward V. Ghrimes, 11 W. R., 794; and per (i) Sherwin v. Shakspear, 17 Beav., 267, 275; varied on appeal, 5 De Q. M. & G., 517. INTEREST, RENTS, DETERIORATION, ETC. 633 CHAPTER V. OF INTEREST, RENTS, DETERIORATION, AND PAYMENT INTO COURT. § 1364. In the case of every contract of sale, the ques- tion arises — At what time does the property in the thing- sold pass from the vendor to the purchaser V In the case of a contract for the sale of real or chattel real property in this country, the answer to this question involves important consequences, some of which it is i)roposed to discuss in the present chapter. It will be convenient, there- fore, briefly to consider the effect of such a contract as between the parties to it. § 1305. Where such a contract is entered into, the legal estate in the property passes, not by the contract, but only upon and by virtue of the execution of a subsequent formal deed of conveyance, (a) The equitable estate or beneficial ownership, however, passes, as between the contracting parties, by the contract itself (&) but only sicb modo, or, in other words, conditionally upon the contract being ulti- mately completed by the "fulhllment by the vendor and l)urchaser respectively of the mutual obligations imposed on them by the contract.* (a) See Austin's Jurisp , 388, 1001-2; and (6) Per Lord W estbury in Rose v. Wataon, per Grant, M. R., in Fludyer v. Cocker, 12 10 H. L. C ,678. Of. Edwards v. West, 7 Ch. Ves., 27. D., 862, and supra, § 892. ' In equity, a vendee under a contract for the sale of lands, is considered as a trustee of the purchase money for the vendor, who is regarded as a trustee of the land for the fornaer. The laud is, in equitj-, the property of the vendee, who may dispose of it, or incumber it in like manner with land to which he has the legal title, subject to the ritrhts of the vendor under the contract. Wing V. McDowell, Walk. Ch., 175. ' Immediately upon the contract to purchase, an equitable estate arises in the ven- dee.'\ "The doctrine of the English courts is necessary to give effect to the principle that, in equity, immediately on the contract to purchase, an equitable estate arises in the vendee, the legal estate remaining in the vendor for his benefit Qualified by the obligation to make compensation to any subsequent bona fide purchaser, who has paid only part of the consideration moriey, for all disbursements made l)efore notice, the rule is every way consonant with correct principles. Such indemnity is protection pro tanto. The rule of law which deprives a subsequent purchaser who has contracted and accepted a convey- ance, and paid part of the purchase money, in good faith of the fruits of Ms purchase, without indemnity, is extremely harsh, and often oppressive in its application. Mitigated by the obligation to make indemnity for payments 634 FRY ON SPECIFIC PEKFOKMANCE OF CONTRACTS. It follows (it is conceived) that upon the completion of the contract the condition is satisfied, and the vesting of the equitable as well as of the legal estate becomes absolute ; but that upon the contract coming to an end in any other way than by completion the equitable estate revests in the vendor, (c) § 1360. It is, then, important to inquire what are the mutual obligations of the parties to a contract of the kind under discussion. It is submitted that, in the absence of express stipulation, they are shortly as follows : — ^ 1 367. The vendor is bound — 1. To show a good title to the property contracted to be sold. 2 i (a) To take reasonable care of the property, and ( (b) to pay the outgoings, until the jiurchaser takes, or ought to take, possession of it. 3. Upon being paid the purchase -money, and any interest on it that may have become payable, (c) to execute and i^rocure the execution by all other necessary parties (if any) of a proper deed of conveyance vesting the legal estate in the purchaser, and (d) to put him in possession of the property. § 1368. It is in regard of these or some of these obliga- tions that the vendor has been said to be a constructive tmstee, or a trustee suh modo, of the estate for the pur- chaser from the time when the contract is constituted. («^) § 1369. On the other hand, the purchaser is bound — 1. As soon as either the vendor has shown a good title, or he (the purchaser) has accepted such title as the vendor shows or has, (c) See per Plumer, M. R„ in Wall v. L. R. 5 H L, 338,349, 350; per Jeseel, M. B., Briffht IJ & W . 501. in Lvsaght v. Edwards, 3 Ch. D., 506-510; (d) See per Plumer. M. R., in Wall v. per James, L. J., in Rayner v. Preston, 29 Bright, IJ. & W., 500-51)3; Shaw v. Foster, AV. R., 550. and expenditures before actual notice, its operation is nevertheless frequently- inequitable. A party who seeks the enforcement of a rule of this nature against another who is innocent of actual fraud, must seek his remedy promptly. He may lose his right to specific relief against the land by laches, and be remitted to the unpaid purchase money as the only relief which will be equitable." Dupue, J., in Houghwout v. Murphy, 22 N. J. Eq., 531. INTEREST, KENTS, DETERIORATION, ETC. 635 (a) to pay the purcliase-money, and any interest on it that may have become payable, and (b) to take possession of the property (that the ven- dor may be relieved from all future liabilities incident to the ownership.) 2. To bear the loss resulting from any accidental injury to the property happening after the contract has been constituted, (e) In regard to the first of tliese obligations the purchaser has been said to be constructively a trustee of the purchase- money for the vendor. (/") § 1370. In addition to the above obligations, the con- tract gives or may give rise to certain liens — of the vendor for unpaid purchase-money, and of the purchaser for the deposit or other portion of the purchase-money paid before completion, but these really result from the non-perform- ance, in some respect, to the contract, rather than from the contract itself. § 1371. If the foregoing statement of the obligations of the parties to the contract of the kind under discussion be correct, it follows that, where the contract contains no ex- press stipulation on the jjoint, the transfer of the possession of the estate from vendor to purchaser ought to be contem- i:)oraneous with the completion of the contract. In practice, however, possession is often taken by the pur- chaser at an earlier date, in pursuance either of an express term of the contract, or of some extrinsic act of, or arrange- ment between, the parties.' § 137S. Now it is obviously inequitable, in the absence of express and distinct stipulation, that either party to the contract should at one and the same time enjoy the benefits flowing from possession of the property and those flowing («) See Lyeaght v. Edwards, 2 Ch. D , 507; (/) See the cases cited at the footof § 1368 and cf. Inet. Hi 23, 3. Distinguinh Counter supra. V. Macpherson, 5 Moo. P. C. C. 63, eupra, § 893. 1 Purchase of property pendenU lite.'] Where a party purchases property pcn- dente lite, he is bound by the decree made against his vendor. It is not neces- sary that he should be made a party to the action. Sorrell v. Carpenter, 2 P. Wms., 482; Garth v. Ward, 2 Atk., 175; Gaskell v. Durdin, 2 B. & B., 169; Masson's App., 70 Pa. St., 27; Metcalf v. Pulnertorft, 2 V. & B., 205; Snow- man V. Harford, 57 Me., 397. 636 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. from possession of the purchase-money. The estate and the purchase-money are things mutually exclusive. "You cannot," said Knight Bruce (then) V. C, in a case arising out of the sale of some slob lands in Chichester harbor, "have both money and mud." And so neither party can at the same time be. entitled both to interest and to rents. (.7) § 1373. The general principles laid down in the prece- ding section of this chapter are of primary importance in determining (1) The respective rights and liabilities of vendor and purchaser in regard of interest on the purchase-money and the rents and profits and outgoings of the estate : (2) their respective rights and liabilities in regard of the deterioration of the estate after the constitution of the contract : (3) the right of the vendor to have unpaid purchase- money paid into court. The application of these principles to any particular case of contract may, however, be, and in practice usually is, modified by express stipulations embodied in the contract. § 1374. With these preliminary observations it is pro- posed to consider the rather complicated questions which arise between vendor and purchaser in respect of rents, interest, outgoings, deterioration, and payment into court, under the following heads, viz. : I. Where the vendor is in possession of the estate, either by receipt of the rents or by personal occupation. II. AVhere the purchaser is similarly in possession of the estate. 1. WJiere tlie vendor is in possession. § 1375. Where the contract fixes no time for the com- pletion of the purchase, and is silent as to the rents and interest, there prima facie the vendor, it is conceived, is entitled to the produce of the purchase-money, in the shape of interest, and the purchaser has a corresponding right to (a\ As to manorial fines, see Garrick v. Earl Camden, 2 Cox, 231; Cuddon v. Tite, 1 ^^' Glff.,395. INTEREST, RENTS, DETERIORATION, ETC. 637 the produce of the estate, in the shape of tenants' rents or occuj)ation rent, as from the time when the contract ought to have been completed and the transfer of possession to have taken place as a part of such completion, § 1376. Where, as is usually the case, the contract fixes a time for completion, there prima facie, and in the absence of stipulation, the time so fixed is the time from which the purchaser is liable to the payment of interest and is entitled to the rents. But this rule must be taken sub- ject to several exceptions. (7<^) § 1377. First, where the interest is much more in amount than the rents, and the delay in completion is clearly made out to have been occasioned by the vendor, the court, to prevent the vendor from gaining an advantage by his own wrong, gives him no interest, but leaves him in possession of the interim rents. (/) In such cases, the day at which the interchange of j)roperties is treated as taking place is re- moved from the time fixed for completion to the time at which a good title is first shown. (j)' § 1378. In one case, where a vendor had retained pos- session of the whole of the estate and of one- third of the purchase-money for fifteen years, and the delay was wholly due to his wrongful conduct, Plumer, M. R., not feeling himself justified in removing the time for the interchange of properties from the time fixed for completion, endeavored to meet the equity of the case by giving the purchaser the whole of the rents and interest on one-third of the rents in each year from the time of their accruing. (/»:) § 1379. Secondly, where the title is made out in cham- bers, the day when the title is made out is the day on which the purchaser comes under an obligation to complete. Hence up to that day, the vendor is entitled to the rents, and the purchaser to interest on the deposit paid to the vendor ; and from that day the purchaser takes the rents {h) Consider Blnks v. T,ord Rokeby, 2 Sw., Rogers, G Mad., 230. It seems previously to 225, 22G; Carrodus v. Sharp, 20 Beav , 58; have been held that Interest necessarily ran Wells V. Maxwell (No 2), 32 Beav., 550; and from the date for completiou. See Wilson v. see supra, §§ 1369, 1371. Clapham, IJ. & W., 36; per Plumer, M. R., (i) Esdaiie v. Stephenson, 1 S. & S., 132. in Burton v. Todd, 1 Sw., 260. (j) Jones V. Mudd, 4 Russ., 118; Paton v. (A) Burton v. Todd, 1 Sw., 255. ' See Sohier v. Williams, 2 Curtis C. C, 195; Springle v. Shields, 17 Ala., 295. It is to be said that whenever interest is recoverable at law, the courts of chancery allow it. Crocker v. Clements, 23 Ala., 296. 638 FRY ON SPECIFIC PERFORMANCK OF CONTRACTS. and pays the vendor interest on the unpaid balance of the purchase-money. {lY § 1380. Accordingly where a suit was instituted for the specific performance of a contract to buy a mill, and the decree was made in Februarj^, 1854, but a good title was not shown till December of that year, and a question arose as to who was to bear the expenses and outgoings belonging to the mill, and to the repairs and sustentation of the premises and the machinery, Lord Romilly, M. K., decided (D Pincke v. Curteis, 4 Bro. C. C, 333. Cf. Enraght v. Fitzgeral (a sale of a reversion), 2 Dr. & War., 43. 1 Who is liable for repairs and losses ?] By the coatract of sale, the vendee was to cut no timber until the entire price had been paid. Held, that the vendee had an equitable right to such timber, and that his legal ri^ht dated from the time that he fulfilled, or offered to fulfill, the contract, notwithstand- ing he, or some one else, had wrongfully cut such timber. Where the loss is accidental, and happens entirely without the fault of the vendor after the prop- ert}' has been sold, such loss must be sustained by the vendee. Thompson v. Gould, 20 Pick., 134; Blem v. McClelland, 29 Mo., 804; Hill v. Cumberland Co., 59 Pa. St., 474. If the vendor cannot make a good title, and a loss occurs after a sale, the vendor must sustain the loss. Christian v. Cahill, 22 Gratt., 82. Where an accidental loss occurs pending a contract of sale, the true test as to which party should bear the sale is, wiio ow^ned the property at the time ? Willis V. Culver, 107 Mass., 514. Tinpromments.'] A purchaser of land was in possession, and, on a bill of specific performance, established his right against the vendor and a subsequent purchaser having notice. Held, that specific performance would be decreed, so as to give him his improvements. Boyd v. Vanderkemp, 1 Barb. Ch. , 273. In a case where a vendee makes valuable improvements on the faith of a con- tract, but specific performance is denied him, compensation for such improve- ments may be made a charge on the land, imless the equity of a third person has intervened. Alday v. Echols, 18 Ala., 353; Hilton v. Duncan, 1 Coldw., 313; Evans v. Battle, 19 Ala., 389; Pitcher v. Smith, 2 Head, 208; Cox v. Cox, 59 Ala., 591; Williams v. Champion, 6 Ohio, 169. Story, J., said in Bright v. Boyd, 1 Story, 478: "It appears to me, speaking with all deference to other opinions that the denial of all compensation to such bona fide purchaser, in such a case, where he has manifestly added to the permanent value of an estate by his meliorations and improvements, without the slightest suspicion of any in- firmity in his own title, is contrary to the first principles of equity. Take the case of a vacant lot in a city, where a bona fide purchaser builds a house thereon, enhancing the value of the estate ten times the original value of the land, under a title apparently perfect and complete. Is it reasonable or just that, in such a case, the true owner should recover and possess the whole, without any com- pensation whatever to the bona fide purchaser ? To me it seems manifestly un- just and inequitable, thus to appropriate to one man the propertj^ and money of another who is in no default. The argument, I am aware, is, that the moment the house is built, it belongs to the owner of the land by mere opera- tion of law, and that he may certainly possess and enjoy his own. But this is merely stating the technical rule of law, l)y which the true owner seeks to hold what, in a just sense, he never had the slightest title to — that is, the house. It is not answering the objection, but merely and dryly stating that the law so holds. But, then, admitting this to be so, does it not furnish a strong ground why equitj' should interpose and grant relief ? I have ventured to suggest that the claim of the bona fide purchaser, under such circumstances, is founded in equity. I think it founded in the highest equity, and, in this view of the mat- ter, I am supported by the positive dictates of the Roman law." INTEREST, KENTS, DETEEIOEATION, ETC. 639 tliat these must be borne by the vendor up to the time at which the imrchaser conkl prudently take jDossession, which is the time at which a good title is shown, and after that by the i3urchaser.(m) § 1381. Where, however, the title has not been made out till after action brought, but the delay has arisen from the purchaser's raising other points which made the action necessary, then, the delay not being the fault of the vendor, interest will run from the day fixed for completion. (7i) § 1383. Thirdly, where the contract leaves the amount of the purchase-money to be subsequently ascertained, interest will not begin to run until the purchase-money is actually ascertained, notwithstanding that the time fixed hj the contract for completion may have arrived before this is done. Thus in a case where the contract provided that the price should be determined by the award of a surveyor, the Court of Ai)j)eal in Chancery held that the vendor must pay the outgoings up to the date of the award, and was en- titled to interest only as from that date, although the con- tract also contained a clause providing that the purchase- money paid at a time which, in the events which haj)pened, arrived more than fourteen months before the award was made.(o) § 1383. Fourthly, the purchaser was discharged from his pri7Jid facie obligation to pay interest on the unpaid pur- chase-money where the purchase-money has been appropria- ted by him and has been unproductive, (p) and notice to this effect has been given by the i^urchaser to the vendor. (^) "Where nothing appears to occasion the delay," said Lord Cottenham, "the rule no doubt is, that the purchaser, who on the face of the contract is under the necessity of paying on a certain day, sets apart his money, and gives notice that it is ready, interest stoj)s from that time, provided it be shown that he made no interest of it."(r) And even in con- tracts by railway companies taking land under their (m) Carrodus v. Sharp, 30 Beav., 56. (7) Powell v. Martyr, 8 Ves., 146; Roberts (n) Monro t. Taylor. 3 Mac. & G., 713. v. Massey, 13 Ves., Stjl; Dyson v. Hornby, 4 (o) Catling v. Great Xorthern Railway Co., De G. & Sm., 4S1 ; Ilowland v. Norris, 1 Cox, 18 W. R.. 1-21; 21 L. T. X. S , 17. In this case 59; Regent's Canal Co., v. Ware, 23 Beav., the possession appears to have been vacant 575. Cf. Kershaw v. Kershaw (purchaser in during the period in dispute. Cf. Re Eccles- possession), L. R. 9 Eq., .")6. hill Local Board, 13 Ch. D.. 365. (r) lu De Visme v. De Visme, 1 Mas. & G., (p) As to the result where the purchaser 352. maKes any profit on the appropriated money see infra, § 1424. 640 FRY ON SPECIFIC PERFORMANCE] OF CONTRACTS. compulsory powers, where the owner makes default in completing the sale, interest will cease upon appropriation of the purchase-money, with notice that it is unemployed. (5) § 1384. The general rule which we have been discussing may, of course, be excluded by express stipulation, as where conditions of sale reserved the rents to the vendor, which Avas held to exonerate the purchaser from the payment of interest on the unpaid purchase-money. (^) § 1385. The contract very commonly contains a condi- tion to the effect that the purchaser shall pay interest from the day apxDointed for completion from whatever cause the delay may arise. In a case decided in the year 1822, Leacih, V. C, held that the mere fact of the delay having arisen on the part of the vendor did not release the purchaser from the obligation of such condition, and that accordingly he was bound to pay interest, ('2^) and in a case where the con- ditions of a sale under the court stipulated for payment of the purchase-money on a certain day, and that, if from any cause whatever it should not theij be i)aid, interest should be paid at £5 per cent. ; and there was great difficulty and delay on the vendor's part ; Lord Langdale, M. R., ordered the payment of interest according to the contract, but without prejudice to any application for compensation. («) § 1386. However in another case, where there was a stipulation that if, by reason of any unforeseen or unavoid- able obstacles, the j)urcliase should not be completed by the day fixed, the X3urchaser should from that day pay interest at £5 per cent, on his purchase money and be entitled to the rents, and the vendor did not show a good title till long after the specified day, Leach, V. C, held that the stipula- tion would not make interest run before the time when a good title was shown, but would only affect its vsite.{w) § 1387. In the case of De Visnie v. De Visme,(a;) the effect of such conditions was very elaborately considered by Lord Cottenham, and his lordship held that a condition for (s) Regent's Canal Co. v. Ware, 23 Beav., sion, but the only question that arose was as 575. to Interest. it) Brooke v. Champernowne, 4 CI. & Fin., (w) Monk v. Huskisson, 4 Russ., 121, n. 589, 611. This case seems irreconcilei.ble with the (u) Esdaile V. Stephensen, 1 S. & S., 122. same V. C 's decision in Esdallev. Stephen- See Lord St. Leonards' observations on this son (1 S. & S., 122;, supra, § 1385, and Lord point, St. Leon. Vend., 529 et seq. St. Leonards thought it wrong. St. Leon. (v) Greenwood t. Churchill. 8 Beav., 413. Vend., 521. In this case the purchaser had taken posses- (x) 1 Mac. & G., 336. reversing the decision ot Wigram, V. C, 13 Jur., 205. INTEREST, RENTS, DETERIORATION, ETC. 641 the payment, in case of delay, of interest from the day appointed for completion, from whatever cause the delay might have arisen, did not apply to a case of the vendor's own default, but that in that case interest ran only from the time when a good title was shown. "There are two ways," said his lordship, "in which this case may be met in argu- ment and upon principle. It may either be considered that that which has happened is not within the contract, that is, that the party never did mean to contract that he would pay interest, although he might be prevented from having the benetit of his purchase by the default of the vendor, and in this view it is the ordinary case of doing justice between the parties, an event having arisen which was not expressly provided for by the contract ; or it may be con- sidered that interest must be paid upon the purchase-money, according to the terms of the contract, although the vendor has not performed his part of the contract, and the pur- chaser has been thereby exposed to damage (the damage being the difference between the interest and the annual value of the property), and then, although this is a de- parture from the terms of the previous contract, which the court would not regard as a bar to decreeing a specific per- formance, yet that the court will in this case regard it, by giving to the purchaser comx)ensation for the loss he has sustained by the non-performance of the whole contract by the vendor. "(?/) "My opinion," said his lordshii:>, in con- clusion, (2) "is, that the vendors being in default, the delay having been occasioned by their not performing their part of the contract, are not to exact from the purchaser the pay- ment of interest until the time they shewed a good title on their abstract: the effect of that is to postpone the day agreed on for the completion of the contract, until the time when the vendors put themselves right, and showed their title to be good on the abstract. The result therefore is, that until that time there would be no demand to be made by the vendors for the payment, and therefore the interest, which was to stand in the jDlace of that payment, had not commenced to run :. it did run when they shewed a good title, and not before." (y) 1 Mac. & G , 348. («) 1 Mac. & G., 353. 41 642 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 1388. The cases at commou law, deciding that the exception in a charter-party as to pirates will not be held to exempt the owners from liability, where the ship has fallen into the hands of pirates by the master's negli- gence, (a) and that a stipulation in a bill of lading exempt- ing the carrier from liability in respect of leakage and breakage will yet not comprise leakage and breakage caused by his negligence or that of his servants, (Z>) seem to furnish close analogies with the decision in De Visme v. De Yisme.(c) It is in fact an instance of the general principle, that no man shall take advantage of liis own wrong. § 1389. Still, the decision in De Visme v. De Yisme v\'as an innovation, and the i>rinciples which it applied to con- ditions of the kind now under consideration have not been accepted by co-ordinate authority(<^) as supplanting the former rule of the court — which was and, it is conceived, now is, that such conditions are to have effect given to them according to the natural and literal meaning of their words, except only where there is bad faith, vexa- tious conduct, or gross negligence — in other words, some- thing amounting to willful default — on the part of the vendor, disentitling him, in the view of the court, to the benefit of the stipulation, (e) § 1390. Therefore delay arising from mere accident, or from something which the vendor could not have guarded against, or from difficulties occasioned by the state of the title, is not enough to exemjot the purchaser from the pay- ment of interest in such cases, even though the difficulties may be such as to justify the purchaser in refusing to com- plete till they are removed. (/) Indeed it may fairly be said that the insertion of such a condition in a contract shows that the possilility of delay arising on the vendor's, no less than on the purchaser's part, is from the first contemplated by both iDarties, and that there can therefore be no hardship on the purchaser in holding him, subject (a) Abbott on Shipping (12tb ed.), 330; De 5-23. In Robertson v. Skelton (!2 Beav., 3C3), Rothschild V. Royal Mail bteam Packet Co., Lord Langdale, M. R., simply obeyed Lord 7 Ex., 736. " Cotteuham's decision in De Visme v. De (6) Phillips V. Clark. 26 L. J. C. P., 168. Visme, ubi supra. \c) 1 Mac. & G., 336 (e) St. Leon. Vend., 5-23. See too Herbert {d) Sherwin a. Shakspear, 5 De G. M. & G., v. Salisbury and Yeovil Railway Co., L. R. 2 517 (varying S. C. 17 Beav., 267); Williams v. Eq., 221 ; infra, § 1421. Glenton, L. R. 1 Ch., 200(S. C.31Beav.,52S). { /") Sherwin v. Shakspear, Williams v. Consider Birch V. Podmore, St Leon. Vend., Glenton, ubi supra. 521, 523, and Oxenden v. Lord Falmouth, id. INTEREST, RENTS, DETERIORATION, ETC. 643 only to the admitted exceptions already mentioned, to the literal performance of the condition. § 1391. In accordance with the rule stated in the last section but one, it has been held that the fact that a suffi- cient abstract is not delivered in time will not deprive the vendor of the interest which he has stipulated for:(^) so again in a case where there was a condition of the kind now under discussion, and delay arose from circumstances under which the court's approbation (which was necessary to the sale) was to be obtained, and neither party was to blame, the vendors were held to be entitled to interest by force of the condition, although the interest greatly exceeded the amounts of the rents of the land:(7i) and to where, there being a similar condition in the contract, it became neces- •sary, in order to make a good title, that a suit should be instituted to procure the rectification of the power under which the vendors sold, the x)urcliaser was held bound to pay interest from the day named for completion. (?) § 1893. The condition of course ai)i)lies where the delay arises from an untenable objection taken on the part of the purchaser :(y) it operates also where the delay arises from the act of God, as the death of the vendor. (A-) § 1393. Whether, where there is a condition of this kind, a purchaser can nevertheless exempt himself from the pay- ment of interest by specially investing the purchase-money, and giving the vendor notice that it has been thus appro- priated to the purposes of the contract, seems to be at least doubtful. (Z) § 1394. The court will construe a condition fixing the time from which interest is to run in connection with an- other fixing the time for the delivery of the abstract : so that where there is a condition that the abstract shall be de- livered by a certain day, and interest shall begin to run from another and subsequent day, and a perfect abstract is in fact not delivered till after the time fixed for that pur- pose, interest will not run from the day specified in that behalf, but from a day so long after the actual delivery "of a (£/) Rowley v. Adams, 1-2 Beav., 470. See (J) Storry v. Walsh, IS Beav., 559. also Cowpe V. Bakewell, 13 Beav., 4il; Dy- (k) Bannerman v. Clarke, 3 Drew., 632. son V. Hornby, 4 De U. & Sni., 481; Vickers v. (/) Compare De Visme v. De Visme, 1 Mac. Hand, 26 Beav., 030. & G., 336, and Vickers v. Hand, -26 BeaT., (fc) Tewart v. Lawson, 3 Sm. & Gif., 307. 630, with Williams v. Gleuton, L. R. 1 Ch., oint in the judgment. (7>)' . (2) W//ere tlie ijurcliaser is in possession.'' § 1418. It follows from the principles already stated and discussed in this chapter that generally, in the absence of (m) Metropolitan Railway Co. V. Defries, 2 (o) Leggott v. Metropolitan Bail way Co., Q. B. D., 189; affirmed, id.,3J<7 L. R. 5Ch.,716 (n) Dakiu v. Cope, 2 Russ.. 170, 181. (p) Sherwin v. Shakspear, 5 De G. M. & G., 517, 532. ' Thomas v. Thomas, 1 Bibb., 219, is not an inapplicable case. B., there, agreed to surrender fiftj' acres of land to A., upon the conveyance from A. to B. of 250 acres. A. conveyed the 250 acres, but B. refused to give up the fifty acres. A. brought ejectment; B. his bill for an injunction. Ileld, that B. had no longer any claim to the fifty acres; and that an account of the rents and profitsfrom the time of the commencement of the ejectment should be taken, and set off against the value of the improvements made by B. ; it appearing that bv agreement, all improvements were to be paid for. See Dike v. Greene, 4 R. l!, 2.^5. - Purchasers in possession will be holden to pay interest, but will not be held liable for mesne profits. Portland v. ^Miller, 3 Hawks, (328; McKay v. Melvin, 1 Ired.'s Ch., 73; Rutledge v. Smith, 1 McCord's Ch., 399; Liddell v. Rucker, 13 La. An., 569; Bryant v. Booth, 30 Ala., 311 ; Stevenson v. Maxwell, 2 Sandf.'s Ch., 273; 2 Comst., 408; Seldon v. James, fi Rand., 465; Sebree v. Harper, 4 Dana, 66; Oliver v. Hallam, 1 Gratt (Va.),298; see Irick v. Fulton, 3 id., 193; INTEREST, RENTS, DETERIORATION, ETC. 649 stipulation, a purcliaser in possession of the estate which is the subject matter of the contract must pay interest on the unpaid jDurchase-money from the time when his possession under the contract commenced until completion. (^) § 1419. The rule that the purchaser in p)ossession shall pay interest on the unpaid part of the j)urchase-money will be applied even in cases where the delay arises from the ne- glect of the vendor, and the purchaser makes no actual profit out of the land,(r) "The act of taking possession," .said Grant, M. R., "is an applied agreement to pay inter- est : for so absurd an agreement as that a purchaser is to receive the rents and profits to which he has no legal title, and the vendor is not to have interest, as he has no legal title to the money, can never be implied." (5) § 14»20. Accordingly where a purchase was to be com- pleted by a given day, when the purchaser Avas to have possession, and it was jorovided that, if from any cause whatever the j)urchase-money should not be then paid, the purchaser should pay interest, and a delay of six months was occasioned, but innocently, by the vendor in not delivering i:)roper abstracts, he was put to his election to (q) See Supra, § 1372; and Fhulverv. Cock- (?■) Fludyer v. Cocker, 12 Ves., 25; Ballard er, 12 Ves , 27; Binks v. Lord Rolieby, 2 Sw., v. Shutt. 15 Ch D., 122. 226; Neath New Gas Co. v Gwyn, W. N., (s) Fludyer v Cocker, 12 Ves , 27, 28. 1873, 200; Ballard v. Shutt, 15 Ch. D., 122. Walker v. Ogden, 1 Dana, 247. The fact that delay is caused by the neglect of the vendor is likewise held here not to alter the case. Brockenburgh v. Blyth, 3 Leigh, 619. And interest will be charged upon a purchaser, although the vendor has bound himself to make a good title before calling for the pur- chase money. Oliver v. Hallam, 1 Gratt. 'Va.), 298, But a tender of the money will exonerate the vendee from the payment of interest; and on a bill for a specific performance, he will be obliged to accept withcjut interest. Janu- ary V. Martin, 1 Bibb, 586. And, again, where the purchaser of land was pre- vented from improving it by reason of a suit against the vendor to recover the land, the court refused to charge the purchaser with interest upon the purchase money pending the suit at law% though it was agreed between the vendor and purchaser that the improvements should be at the risk of the purchaser, in case the title should be questioned. Wightman v. Reside, 2 Dessau., 578. But in cases of this kind, where there has been no injury done to ihe vendee in the hindrance of improvements, and the adverse title" is ultimately defeated, the vendee must pay interest. Nor is it suthcient, to excuse the payment of interest in such a case, that the vendee has been willing and ready to pay the princijial during the time of litigation, unless it appear that the money laj' uselessly by him, and unproductive, and that he gave notice to the vendor that it was so unproductive. Selden v. James, 6 Rand., 465; Breckenridge v. Hoke, 4 Bibb, 272 ; see Rutledge v. Smith, 1 Mc(.;ord's Ch , 399. In regard to delay occa- sioned by the vendor, a distinction has been taken between sales of productive and unproductive property. Where the land is vacant, and consequently yields no rents of profits, it has been said that a purchaser, although in po.ssession, shall not pay interest, Stevenson v. Maxwell, 2 Sandf.'s Ch , 273. 650 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. pay interest or give up rents, though notice had been given by the purchaser that the money was lying idle.(^) § 14»31. In a case decided by Lord Rom illy, M. R., the contract provided that the purchasers should i)ay interest on the purchase-money nt four per cent from the time of their taking possession until the 1st of July, 1858 (the day for completion), at five per cent from the last mentioned date until the 1st of January, 1859, and afterwards at eight per cent until payment, with a proviso that the purchasers should not ])e entitled to withhold payment of the purchase- money upon paying interest at the higher rates. The pur- chasers took possession before the end of 1857, but' without any misconduct on the vendors' part, comyJetion did not take place until 1865. His lordship held that the stipula- tion for the payment of interest at the rate of eight per cent was a separate and distinct contract which the pur- chasers were bound to perform, and not as they contended, in the nature of a penalty to secure the completion of the purchase within a reasonable timii.{u) The case well illustrates the principle that stipulations of this kind will have effect given to them according to their natural mean- ing. (?)) § 1423. Again where a purchaser under a decree ac- cejDted possession, and on a report of an objection returned possession, he was ordered to pay interest from time to time at which he took possession, or at which a title was shown under which he might safely have done so, and even for the time during which he returned the possession. (?o) § 14*23. But where a purchaser had l)een let into pos- session at the intended time for completion, and afterwards, difficulties having without any fault on his xmrt arisen to delay completion, paid the purchase-money into a separate account at a bank, and gave notice to the vendors that the money was appropriated to the purposes of the contract, and that he was ready to complete ; Lord Romilly, M. R., held that he w^as not chargable with interest after the date of his notice, but must pay to the vendors any interest he had received from the bank in respect of the sum paid in.(ir) (t) Cowpe V. Bakewell, 13 Beav, 421. (w) Binks v. I.oril Rokeby, 2 Sw., 222. See (w) Berber' v. Salisbury and Yeovil Rail- alf^o Att -Gen. v. Cliristchurch, 13 Sim., 214. way Co., L. B 2 Eq., 221. (x) Kershaw v. Kerehaw, L R. 9 Eq., 56. (V) See supra, § 1389. Distinguisti iJicKenson v. Heron, St. Leon. Vend., 516. INTEREST, RENTS, DETERIORATION, ETC. 651 § 1424. For where the pn^haser in possession makes any profit on any part of the appropriated purchase-money, he is discharged from the payment of interest only in re- spect of the purcliase-money on which he has made no interest. Thus where a purchaser, on entering into posses- sion, paid the money into his banker's, and gave the vendor notice that he was ready to invest in such manner -as the vendor shonkl require ; and during the investigation of the title kept a balance at his banker's equal to the purchase- money, except on four days, when it was a little less ; Leach, V. C, said it was clear that the purchaser had made some profit with the money, '^ first, because his balance was in a small degree and for a few days reduced below the amount of the purchase-money, but principally because the purchase-money supplied the place of that balance which lie must otherwise have maintained at his banker's:" he therefore directed an inquiry as to the average balance which the purchaser had maintained at his broker's for the three years preceding the purchase, and the average balance during the period of the investigation of the title, and de- clared that in respect of the difl'erence between those balan- ces he was not chargeable with interest on his purchase- money. (^) § 1435. 8o strongly does the court hold to this principle, that a purchaser in possession shall pay interest on the un- paid purchase-money, that it will look at any contract which appears to i)revent the application of this rule by the light of this general principle of justice, and, it seems, re- fuse execution of it where it grossly violates this principle : for "a court of equity interposes only according to con- science." (2") § 1426. So that where a contract stipulated that the interest on the remainder of the purchase-money should not commence till lady-day next, in case the title should be perfected and the assurances executed at that time ; and if not, then should commence on the execution of such assur- ances ; and the purchaser was let into possession under a stipulation in the contract to that effect, but the assurances were not executed for forty years ; the House of Lords held {y) Winter V. Blades, 2 S. & S., 393. Lord (2) Per Lord St. Leonards in Birch v. Joy, St. Leonards doubted the correctness of this 3 H. L. C, 59S. decision. St. Leon. Vend., 514. *652 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. that the purchaser's exemption from interest, though per- missible if the contract had been speedily executed, would not, under such circumstances and with such length of time, be enforced by the court of equity. (a) § 1427. In a recent Irish case, the purchaser, who had been allowed to go into possession without paying the pur- ■chase-money, and had afterwards been forcibly dispossessed, sued for specific performance and damages. He was charged with interest for the period during which he was in posses- sion, and, as from the time when the vendor retook pos- session, interest was not charged against the purchaser nor the rents against the vendor ; and no damages were given. (&) § 1428. Where a corporation, acting under some special act of Parliament incorporating the lauds clauses act, 1845, takes possession of land by virtue of its statutory powers before the price had been ascertained, the vendor is gener- ally entitled to interest on the purchase or compensation moneys from the date of the taking possession, (c) § 1429. But in a case where a local board compulsorily purchased lands which were subject to tenancies, and the price of the landlords' [vendors'] interest was ascertained by the verdict of a jury, the court held that interest was payable by the purchasers from the day of the verdict, not- withstanding that they could not and did not obtain actual possession of the property for sometime afterwards ; but it^ was at the same time held that, it* the vendors had received any rents since the verdict, the amount of those rents would be deducted from the interest. (tZ) § 1430. In one case, where the jjurchaser had been let into possession under the contract, and objected to the title, he was allowed to remain in possession on payment of an occupation rent : but the case seems to have been one of arrangement, not of strict right, (e) § 1431. In sales of reversionary estates, the purchaser cannot, of course, be let into actual possession or receipt of the profits of the estate purchased. It becomes, therefore, necessary to inquire from what period he is to be treated as if he were in possession, so as to render him liable to the (a) Birch v. Joy, 3 H. L. C , .%">. (d) Re Eccleshill Local Board, 13 Ch. D., (6) .Johnston v. .Johnston, I. R 3 Eq., 328. 365. Cf. Catling v. Great Northern Railway (c) Rhvs V.Dare Valley Railway Co., L R. Co., 18 W. R., l-JI; 21 L. T. N. S., 17. 19 Eq , 93; Firth v. Midlami Railway Co , L. («) Smith v. Lloyd, 1 Mad , 83; d. C. s. n. H. 21) Eq., 100. Smith v. Jackson and Lloyd, 1 Mad., 618. IISrTEREST, RENTS, DETERIORATION, ETC. 653 payment of interest on liis uni^aid purchase-money : for the wearing away of the lives, or of the time after which the reversion will vest in possession, is justly considered equivalent to possession, and as creating in the purchaser a liability to pay interest. (/') § 1433. The purchaser of such an estate pays interest from the time at which he became by law entitled to receive the rents, (r/) which is prlmd facie the time fixed for com- pletion of the contract \{h) or, where the contract specifies no time for completion, the time at which a good title was- first shown or the title was accepted. (/) This may of course be modified by contract : so where the contract stipulated that the rents should belong to the purchaser only from the time the contract was comjoleted, the vendor was held not entitled to claim interest on the unpaid part of the purchase- money. (/) § 143S. In cases of sales of reversions under the court, interest will, it seems, run from the time when the chief clerk's certificate of the result of the sale becomes bind- ing. {Jc) But where a time is specified at which the money ought to be paid into court, that, and not the confirmation of the sale, will, it appears, be the time from which interest run ; as in the case of an estate in possession that would be the time at which a purchaser would be entitled to enter into the receipt of the rents. So where the 25th of De- cember, 1849. was appointed for the payment of the money into court, but the abstract was delivered in September, 1851, and a good title w^as not made out till March, 1852, interest was directed to ])e paid from the 25th December, 1849. (Z) § 1434. Possession of the estate and of the purchase- money being, as we have seen,(m) mutually exclusive, the vendor is generally entitled to call on a purchaser in pos- session to pay the purchase-money into court. § 1435. Where the purchaser is in x^ossession, and the (/) See, in addition to the subsequent cases, date of the report of good title; and see Davy V. Barber, i Atk., 4t^9; Robertshaw v. supra, § 1375. Bray, 14 L,. T., 101, 12 Jur., iii. (J) Broolie v. Champernowne, 4 01. & Fin , ig) Champernowne v. Brooke, 3 CI. & Fin.. 589; and see Weddall v. Nixon. 17 Beav., 160. 4 (overruling Blonnt v. Blount, 3 Atk., 636). (k) Ex parte Manning, 2 P. Wras., 410. ( f. (h) Bailey v. Collett, 18 Beav., 179; Wallis Seton,1397, 139S; Dart, Vend. (.5th ed), 1200. V. Sarel. 5 De G. & Sm., 429; Davy V. Barber, See, also, Child v. Lord Abingdon, 1 Ves, 2 Atk., 489; Owen v. Davies, 3 Atk., 637. Jun., 94; Trefusis v. LordClinton,2 Sim., 359. (j) Enraght v. Fitzgerald, 2 Dr. & War., 43, ([) VVaUis v. Sarel, 5 De G. & Sm., 429. reversing Lord Plunkett's decision S. C. 2 Ir. (w) Supra, § 1372. Eq. R., 87, that interest should run from the 654 FRY ON SPECIFIC PEKFOUMAXCE OF CONTRACTS. vendor lias disclosed sucli a title as the purchaser ought to accept, the vendor's right thus to i)roceed is clear. And the court will pursue this course where the purchaser in possession admits a good title, though he may claim the right to object, it not having been approved by counsel. (7i) § 14:t0. On the other hand it is a general rule, that where it is through the laches of the vendor that the title remains incomx)lete, the court will refuse an application for the payment of the purchase-money into court. (o) § 1437. But wliere the want of a good title being shown is not from the default of the vendor, the court will, it seems, put the purchaser tb his election, either to pay in his purchase-money or to give up possession. § 1438. Thus, in a case before Lord Eldon, where the purchaser was let into possession, both parties acting in the confidence that the title would soon be made out, and that confidence was "not (to use his lordship's words) made good, and that was a surprise upon both," his lordship expressed the opinion that the purchaser should be put to his election, either to give ujd possession or to pay the money into court : but on a subsequent day his lordship said only that the purchaser ought, at least, to i^ay interest on his purchase-money ; and the point was ultimately settled by agreement detween the j)arties.(jf>) And not- withstanding some doubts cast upon the wisdom of this judgment in a subsequent case by Plumer, V. C, who con- sidered it to be "the imprudence of the vendor in letting the vendee into jDossession before the questions upon the title were disposed of, "(g) the court will generally put a purchaser in j)ossession, where the title has not been made out, to his election, either to pay in the purchase-money or to give wp possession ;(r) and the court did so in one case where it was part of the contract that £5,000, j)art of the purchase-money (£6,300), should be secured by a mortgage of the estate. (5) In such cases(^) two months, and in an- f (11) Crutchley v. Jernlngham,2 Mer., 502. See also King v. King 1 My. & K., 442; and (o) Fox V. Birch, 1 Mer., Id"). Curling v. Austin, 2 Dr. & Sm., 129, 139 (in i Ip) Gibson v. Clarke, 1 V. & B., 500. which case the purchaser had been in pos- [ (q) Clarke v. Elliott, 1 Mad., 607. session without receipt of the rents.) (r) Clarke v. Wilson, 15 Ves., 317; Smith v. (s) Vonnge v. Duncombe, You. 275. Lloyd, 1 Mad., S3; Wickham v. Evered, 4 (/) Younge v. Duncombe, Tindal v. Cob- Mad., 53; Tindal V. Cobham, 2 My. & K., 3S5. ham, Curling v. Austin, ubi supra. INTEREST, RENTS, DETERIORATION, ETC. 655 other(z^) one month, having been allowed the purchaser to elect whether of the alternatives to accej^t. ^ 1439. Where the contract allows possession to be taken before the completion of the title, the court will not gener- ally order the payment of the purchase-money into court on the score of possession. (?)) § 1440. Thus, where by the contract the purchasers, a railway company, were to be at liberty to take x)ossession on depositing a specified sum of money in a bank, and they duly made the deposit and entered into possession of the land and made their railway over it, though they after- wards for a long time neglected to complete, the Court of Appeal in Chancery held that the vendor was not entitled, on interlocutory motion, to have the purchase-money jmid into court, (w)) § 1441. But in another raihvay case, where the purchas- ing comjDany were by the contract allowed to take posses- sion, but the contract also contained a clause providing that the vendors should nevertheless retain their lien for the un- paid purchase-money, and all rights and remedies incident to such lien, Kindersley, Y. C, held that the fact of the company having been let into possession did not prevent the vendors from applying to have either payment into court of the unpaid balance of the purchase-money or de- livery np of X)ossession, and he ordered such paj^ment or delivery to be made within a month, on the terms, however, that if possession were delivered up, the vendors should, within a fortnight after such delivery, pay into court the instalment of the purchase-money which they had already received, (a?) § 144:3. If the purchaser hai^pens to be in j)ossession under some other title than the contract, this is a circum- stance against calling for the j)ayment of the purchase- money into court ; as where the purchaser was in possession not under the contract for sale, but as tenant to the vendor at the time of the purchase \{y) and where the purchaser was (m) Wickham v. Evered, ubi supra. bury Junction Railway Co., L. K. 2 Co. 100, \v) Morgan v. s(haw, 2 Mer , 138; Gibson v. 102; Capps v. Norwich and Spaulding Rail- Clarke, 1 V. & B,500; Gell V. Watson, 3 way Co., 2 N. R ,51, where Kindersley, V. C. Mad., 225. seems to have considered that the company (w) Pryse v. Cambrian Railway Co., L. R. had bought the right to possession by pay- 2Ch.,444. Consider Tonilinson V. Manches- ing part ot the price. ter and Birmingham Railway Co., 2 Rail. C, (x) Cooper v. London, Chatham and Dover 104 (where theacts relied on were done under Railway Co., 14 W R., 0S5 a mistake); Pell v. Korthampton and Ban- (y) Bonner v. Johnston, 1 Mer., 36G. 656 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. a tenant in common with the vendor, and liad with his con- sent been in receipt of the rents of the whole. (2)' § 1443. In a case Avhere the contract of which the plain- tiff sought specific performance was that, when a house of the plaintiff should be completed, he would grant to the defendant and the defendant would accept a lease of it for twenty-one years, and the defendant took possession of the house before it was completed, and occupied it for a year, but refused to pay rent ; a motion by the plaintiff that the defendant should be ordered to pay the year's rent into court was refused, on the ground that the money asked for was no part of the contract, nor w^as the defendant in i)os- session under it.(«) § 1444. Where the mere taking possession of the property does not furnish any ground for ordering the i)ayment of the money into court, the order will yet be made, and with- out giving the option of delivering u^) possession, where the purchaser in possession commits acts of ownership, par- ticularly acts occasioning the deterioration of the property ;(6) and this, even though the title may not have been made out,(c) or the purchaser may be in possession according to the terms of his contract. (<:?) The ground of this proceed- ing is that by such acts the purchaser is altering the (z) Freebody v. Parry, Coop. 91; cf. Walt- (6) Pope v. Great Eastern Railway Co., L. ers V. Upton, Coop. 9-2, n., which appears to R. 3 Eq., 171. depend on the circumstances stated by Sir (c) Bonner v. Johnson, 1 Mer., 366. Samuel Romilly, arguendo, in the case to (rf) Dixon v. Astley, 19 Ves., 564; S. C, 1 which it is a note. Mer., 133, 378, n. (a) Faulkner v. Llewellin, 31 L. J. Ch., 549. ' Tenants in common, or joint tenants.'] " "Where two devisees are in posses- sion, under an imperfect title derived fi'om their common ancester, there would seem naturally and equitably to arise an obligation between them, resulting from their joint claims and community of interest, that one of them should not effect the claim to the prejudice of the other. It is not consistent with good faith, nor with duty which the connection of the parties as the claimants of a common subject created, that one of them should be able, without the consent of the other, to buy in an outstanding title and appropriate the whole subject to himself and thus und(ji"mine and oust his companion. It would be repug- nant to a sence of refined and accurate justice. It would be immoral, because it would be against the reciprocal obligations to do nothing to the prejudice of each others equal claim which the relationship of the parties as joint devisees created. Community of interest produces a community of duty, and there is no real difference on the ground of policy and justice, whether one co-tenant buys up an outstanding incumbrance or an adverse title to dissuage and expel his co-tenant. It cannot be tolerated when applied to a common subject in which the parties had equal concern, and which created a moral obligation to deal candidly and benevolently with each other, and to create no harm to their joint interest." Kent, Ch., in Home v. Fonda, 5 John. 's Ch., 388, 407; see, also, Carter v. Home, 1 Eq. Abr. (7 PL), 13; Fawcett v. Whitehouse, 1 R. & M., 132; Barton v. Wookey, 6 Mad., 367. INTEREST, RETs'TS, DETERIORATION, ETC. 657 property wliicli constitutes the security of the vendor for his purchase-money, and diminishing the value of the vendor's lien on the estate. (e) § 1445. Hence, acts of ownership which are clearly an improvement to the estate will not support such an applica- tion to the court :{/) and hence, also, acts which may not show that the occupier considers himself the owner, and so will not justify a decree of specific performance against him without further investigation of the title, may yet be a ground for an order to pay the money into court, and the appointment of a receiver ; so that in one case stubbing up an osier-bed, levelling the land and filling up a pond, were held to justify an order for payment and the appointment of a receiver, but a reference of title was at the same time made.(p') In another case, Lord Eld on took into considera- tion the unreasonable delay which had been caused by the purchaser in possession as well as his acts of ownership, [h) § 1446. Although, as we have seen, where delay occurs in the completion of a contract and the purchase-money bears interest, the purchaser paying such interest to the vendor is entitled to deduct the income-tax on the amount of the interest, (/) where the purchase-money is paid into court, this deduction is not allowed : because payment into court is not payment to the party as against whom the pur- chaser is entitled to deduct the tax. HoAvever the purchaser may, it seems, apply for the deduction when the money is paid out of court, (y) § 1447. The order for X3ayment into court may be made on motion, (/t) and, if circumstances justify it, before the delivery of the defense. (Z) In the Court of Chancery the order might be made before answer, (m) even though the defendant had filed no affidavit so as to bring the merits before the court, (??) and though the acts of ownershij) relied on were not stated in the bill ;(o) and the facts necessary to (e) Cutler V. Simons, 2Mer., 106, where a (k) Tindal v. Cobham, 2 My. & K., 3So; list of acts upon which such orders had been Wickham v. Evered, 4 Mad., 53. See, also, made is given. See, also. Pope v. Great Buck v. Lodge, IS Ves., 450; and Ord. XL. r. Eastern Railway Co., L. R. 3 Eq., 171, and 11, quoted supra, § 1334. Ballard v. Shutt, 15 Ch. D-, 122. \l) Bonner v. Jonnston, 1 Mer., 366; Dixon (/) Bramley v. Teal, 3 Mad., 219. v. Astley, 1 Mer., 133. (g) Osborne v. Harvey, 1 Y. & C. C. C, 116. (in) e. g. Cooper v. London, Chatham, and (h) Burroughs v. Oakley, 1 Mer., 52, 376, n. Dover Railway Co., 14 W. R , 985. (i) Crane v. Kilpin, L. R. 6 Eq., 339, supra, (n) Blackburn v. Stace. 6 Mad., 69. § 1399; Bebb v. Bunny, 1 K. & J., 216. (o) Cutler v. Simons, 2 Mer., 103. See now (J) Bebb V. Bunny, IK. & J.,216. Ord. XIX. rr. 4,9, 17, 18,20; Ord. XXIX. r. 11. 42 658 FRY ox ^PECrFIC PERFOR.UANOE OF CONTRACTS. support sucli an application niight be supplied by affidavit, wliether stated in the bill and not admitted by the answer, (^) or not stated in the bill.(^)' § 1448. AVhere an order for payment into court has been oi:)posed, and the money is in the hands of a stakeholder who afterwards absconds, the loss has been held to fall on the party who opposed the order, (r) § 1449. It has been decided that, when interest is pay- able by a purchaser in possession, the time at which it first becomes due within the meaning of the 42d section of the Statute of Limitations (3 and 4 William IV, c. 27) is the time when the purchase-money becomes actually payable, though it (the interest) may have to be calculated from a much •earlier date. In the case referred to the contract, made in March, 1811, stipulated that the purchase-money should be paid on the following thirteenth of May, but the transaction remained uncompleted for upwards of forty years under circumstances which kept alive the vendor's right to the purchase-money : it was held that all the arrears of interest irom the IStli of May, 1811, were recoverable by the persons representing the vendor. (5) (p) Boothby v. Walker, 1 Mad., 197. («) Toft v. Stevenson, 5 De G. M. & G., 735. (q) Crulchley v. Jerningham, 2 Mer.,502. Of. S. C, s. n. Toft v. Stephenson, 7 Ha., 1; (r) Fenton v. Browne, 14 Ves., 144; Bur- 1 De G M. & G.,2S. roughs V. Oakley, 1 Mer., 52. * 1 Tender by payment into court.'\ In a case wliere the payment of a sum of money is a condition precedent, and a tender of performance has been made, this entitles the vendee to performance on the part of the vendor. Tlie money need not ])e brought into court until the vendor demands it. Washburn v. Dewey, 17 Vt., 92^ Where money has been conditionally paid into court, the party who denies the existence of the contract upon which it is paid, has no claim upon such money. Lynch v. Jennings, 43 Ind., 276; Soule v. Holdridge, 25 Ind., 119. Where the vendor voluntarily permitted the vendee to take pos- session without any stipulation about paying the purchase money, such vendee cannot be compelled to pay the money into court, before the completion of the title. Clark v. Elliot, 1 Mad., 606. In Binns v. Mount, 28 N. J. Eq., 24, a non-resident purchaser having brought his action for the specific performance of the agreement, although he was not in possession of the property, was re- quired to pay the purchase money into court. THE DEPOSIT. 659 CHAPTER VI. OF THE DEPOSIT. § 1450. It is common on sales of real estate for the pur- 'cliaser to pay to the vendor at the time of the contract a portion of the purchase-money by way of part payment. This is very generally, or perhajjs almost universally, the practice in cases of sales by auction :{a) it is the exception in cases of sales by private contract. § 1451. In many other cases payments are made to the vendor by way of instalment or part payment. Where without any default on the part of the purchaser the con- tract fails, this money should be repaid.' § 145^. Furthermore, it is clear that the payment of this money to the vendor or his agent creates a lien for the amount paid on the vendors interest in the land. "There can be no doubt, I apprehend," said Lord Cranworth, ad- dressing the House of Lords, ' ' that when a purchaser has paid his purchase-money, though he has got no conveyance, the vendor becomes a trustee for him of the legal estate, and he is, in equity, considered as the owner of the estate. When, instead of paying the whole of his purchase-money, he pays a part of it, it would seem to follow, as a necessary corollary, that, to the extent to which he has paid his x^ur- chase-money, to that extent the vendor is a trustee for him ; in oth'er words, that he acquires a lien, exactly in the same way as if, upon the payment of part of the purchase-money, (a) Note that where, on a sale by auction, ally relieve against the lapse of time. See there Is a condition for the forfeiture of the per Lord Redesdale in Lennon v. Xapper, 2 deposit if the purchase be not completed Sch. & Lef., 684. within a certain time, the court will gener- 1 Effect of part payment on tJie rights of the purchaser. '\ For an instructive case, see Keegan v. Williams, 22 Iowa, 378. Rise in value, notice that contract teas at an end.'\ Real estate which had been sold, was likely to rise in value within a few days ; the vendor gave notice on Saturday that the contract was at an end, and would not be renewed, except for a greater price. The vendee made no objection, and the vendor sold to a third party on the following Tuesday. Held, that the original vendee had no remedy, and that his action for specific performance would be dismissed. Hawley v. Jelley, 25 Mich., 94. 660 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. the vendor had executed a mortgage to him of the estate to that extent." (6) § 1453. In Rose v. Watson, (c) W., having successfully resisted a vendor's suit for the specific performance of a contract to purchase a building estate on the ground of the vendor's representations not having been fulfilled, filed a bill to enforce his lien on the estate for deposit and instal- ments, of purchase-money with interest. The House of Lords, affirming the decision of Kindersley, V. C, held the l)laintiff entitled to such lien and interest in priority to per- sons to whom, after the contract, the vendor had mortgaged the property ; and that although some of the plaintiff's pay- ments were made after he had notice of the mortgage. § 1454. The lien is not strictly confined to a case of sim- ple purchase : it extends to the case of a lease, and entitles an intended lessee who has entered under the contract and expended money to a lien on the lessor's interest :((^Z) it ex- tends, too, to a sub-purchaser : so that where A. sold to B. and received part payment from him, and B. sold to C. and received part payment from him, C. was held entitled to a lien on B.'s interest in A.'s estate. (e) § 1455. This lien, in the case of a purchaser, extends to (1) all instalments of the purchase-money ;(/) (2) interest thereon at four per cent per annum ;{g) (3) sums paid under the contract as interest on the unpaid purchase-money ; (4) interest thereon \{h) and (5) the costs of an unsuccessful ac- tion by the vendor against the purchaser. (?') § 1456. It may be observed, in passing, that a vendor under the Lands Clauses Consolidation Act, 1845, has no corresponding lien on the land sold for the costs of an arbi- tration payable to him by the company. (,/) § 1457. The lien can, no doubt, be enforced in precisely the same way as a vendor's lien for unpaid purchase-money, and under the present practice {k) there can, it is conceived, (6) Rose V Watson, ID H. L. C, 683, 684. Webb v.Kirby, 7 De G.M. & G., 376; Wythes See, too, perLord Westbury, inS. C.,678. v. Lee, 3 Drew., 396. (c) 10 H. L (;., 67-2. See, also, Wvthes v. (h) Rose v. Watson, 10 H. L. C, 6<2. Lee, 3 Drew, 396., where the earlier cases are (i) Middleton v. Magnay, 3 H. & M.,233; considered Turner v. Marriott, L. R. 3 Eq., 744 id) Middleton v. Magnay, 2 H. & M., 233 (j ) Earl Ferrers v. Stafford and Uttoxeter (« Aberaman Ironworks v. Wickens, L. Railway Co., L. R. 13 Eq., 524; AValker v. R 4 Ch 101 Ware, Hadham and Buntingl'ord Railway '(/) Bryant v. Busk, 4 Russ., 5; ffick v. Co., L. R. 1 Eq., 195; Gould v. Staffordshire Phillips, Prec. in Ch., 575. See Graves v. Potteries Waterworks Co., 5 Ex., 214. Wright, 2 Dr. & War., 79; cf. Myycock v. {k) See, especially, Jud. Act, 1873, 8. 24,. Beatson, 13 Ch. D., 386. subs. 7. {g) Lord Anson v. Hodges, 5 Sim., 227; THE DEPOSIT. 661 be no difficulty in giving full effect to the purchaser s rights. For— (1) If the vendor be plaintiff, the purchaser (defendant) resisting specific performance may deliver a counterclaim, asking for a personal order for repayment of the amount paid and interest, and for a declaration of his lien on the plaintiff's interest for those sums and costs; and on the plaintiff's action failing, such relief would clearly be granted to the defendant. (2) If the purchaser be plaintiff', he will frame his claim in the alternative, asking for specific performance or the rej^ayment of the amount paid and the enforcement of his lien, and obtain relief accordingly. § 1458. Where the deposit which the purchaser seeks to recover by action is in the hands of the auctioneer at the time when the action is commenced, and is a large sum, the purchaser may properly make the auctioneer a party to the action. If the sum is small, the auctioneer ought not to be made a party unless and until he has refused to pay it into court. (Z)' vi 1459. In a recent case, where the contract was for the sale of a term of twelve and a half years in a public house (a going concern), and the abstract showed that the lessors had a right to determine the lease at the end of five years, it was held that the purchaser was entitled to rescind the contract, and sue for the repayment of the dej^osit and in- terest, without waiting even until the day fixed by the con- tract for the transfer of possession. (??i^) § 1460. On the other hand, where the purchaser, after making a payment by way of deposit, unjustifiably repudi- ates the contract, or it in any other way goes off* through his default, the vendor is, in the absence of stipulation on the point, entered to retain the money, treating it as having been paid to him as a guarantee for the purchaser's per- formance of the contract, (/i.) (i) Earl of Egniont V. Smith, 6 Ch. D.,469; Roberts, 31 Beav., 613. See too Essex v. Dan- Cf. Yates V. Farebrother, 4 Mad., 239 iell, T>. R 10 C. P., 538 (where there was a (to) Weston v. Savage, 10 Ch. D , 736. condition for forfeiture of the deposit) ; and (n) Ex parte Barrel!, I,. R. .10 Ch., 512; De- as to relief against forfeiture of the deposit, pree v. Bedboroueh, 4 Giff., 470; Kell v. see Lennon v. Napper, 2 Sch. & Lef.,684; Kokes, 14 W R.,908; cf. Moeser v. Wlsker, Moss v. Matthews, 3 Ves , 279. L. R. 6 C. P , 120, and distinguish Casson v. ' It is obvious that a covenant to convey, in many instances, carries witli it an obligation to refund. Pratt v. Law, 9 Cranch, 456; Pratt v. Campbell, id., 456; see Fox v. Longly, 1 A. K., Marsh., 388; Campbell v. Bealor, 3 Bibb, 300. 662 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 1461. But conditions for forfeiture of the deposit to the vendor, (o) or its repayment without interest or costs, (^) cannot be enforced by a vendor who is unable to make a good title, § 146'3. It may be convenient briefly to advert to the jurisdiction in respect of part payment of the purchase- money and the lien for it under ,the i^ractice of the Court of Chancery. § 1463. Where the vendor was the plaintiff, and failed in his suit for specific i^erformance, the court might dismiss the bill, and order the plaintiff to return the deposit with interest at four per cent. \{q) or it might declare the defend- ant entitled to a lien for these amounts and the costs of suit, and dismiss the bill subject to this declaration. (r) § 1464. But the proceeding of the court in this respect was discretionary, and depended on circumstances : for the court, by dismissing the bill, sometimes meant to leave the parties to their remedies at common law, in which case it did not order the return of this deposit. (.9)' § 1465. With regard to the power of the Court of Chan- cery to give the i^urchaser relief in respect of his deposit where he was the plaintiff, and specific performance was refused, considerable variation took place. (^) But in Todd v. Gee,('w) Lord Eldon, after fully considering the ear- lier cases, held that, except in very special cases, a bill could not be filed asking the performance of a contract, or, in the alternative, an issue or an inquiry Avith a view to damages. This decision was followed in many subsequent cases. («) § 1466. But if the plaintiff prayed not the mere repay- ment of money but a lien upon the land, he was seeking for (0) Want V. StalUbraBS, L R. 8 Ex., 175. Ves , 276, n.; Greenaway v. Adams, 12 Ves., (») McCulloch V. Gregory, 1 K &J.,286, 3'J5; Gwillim v. .^itone, 14 Ve8., 128. See also 295. t!l"re V. .-ulton, 3 Mer , 237, 248. (q) Lord Anson v. Hodges, 5 Sim., 227; (m) 17 Ves., 273 Webb V. Kirby, 7 De G M. & G. 376; SheaW (v) Kendall v. Beckett, 2 R. & M., 88; Jen- V. Venables, 15 W. R , 1166. kJn» v. Parkinson, 2 My. & K , 5; Van v. (r) Turner v. Marriott, L. R. 3 Eq , 744. Corpe, 3 My. & K., 269; bainsbury v. Jones, (*) Southcomb v. Blohop ol Extter. 6 Ha., 2 Beav., 462; >. C. 5 My. & Cr., 1; WilliamB 225; Rede V Oakes, 2 De G. J & S., 518 v. Edwards, 2 Sim., 78. {t) Denton v. Stewart, 1 Cox, 2.'J8; S. C, 17 ' A vendee of land, in possession, paid part of tlie purchase money under the contract, but on being sued for the residue by the vendor, set up in answer the statute of frauds, and defeated the action. Held, that this was an aban- donment of the contract, which precluded him from a decree of specific per- formance, and entitled him to a restitution of his purchase money. Payne v. Graves, 5 Leigh. 561. THE DEPOSIT. 663 equitable and not merely legal relief, and lie could maintain his bill for specific performance, or, in the alternative, for alien on the vendor's interest and the sale of it accord!- ingly ;{w) or he might enforce his lien by means of a sup- plemental bill.(c'r) § 1467, Where a contract was rescinded on the ground of fraud, surprise, or misrepresentation, and a deposit had been paid, it was within the jurisdiction of the court, when decreeing rescission, also to order the deposit to be returned. (?/V {w) Wythes v. I^ee, 3 Drew., IVX, coinpro- (x) Westmacott v. Robins, 4 De G. F & J., mlsed on appeal, 23 I., J. Ch , 381). CI'. lilore 39). V. Sutton, 3 Mer., 237 (y) Torrance v. Bolton, L,. R. 14 Eq., 124, 135; affirmed L. R 8 Ch., 118 ' Interest irJiere the purchase price has not been paid or tendered.'] The pur- chase price bek)ngs to the vendor from the time fixed for the completion of the contract. He is entitled to interest upon it, provided it is not then paid or ten- dered. Hart V. Brand, 1 A. K. ]Marsh., 161; Breckenridge v. Hoke. 4 Bibb, 278; Drake v. Barton, IfS Minn., 462; see, also, Warrall v. Munu, 88 N. Y., 137; Gillet v. Maynard. 5 Jolin , 8.5; Jones v. Jones, 49 Tex., 683. Rents and jnrj fits.] The property sold belongs to the vendee from the time fixed for the completion of tlie contract, and he is entitled to the rents and profits from that time. The vendee died, leaving minor heirs, after he had paid a portion of the purchase money and taken possession of the estate. After his death the vendor re-entered, wasted the property, and sold it. In an action for specific perforniaiuc held, that the vendor should pay the highest rental value of the land since his re-entry. Cole v. Tyson, 8 Ired.'s Eq., 170. "Whatever maybe the rule where a trustee has not himself occupied and enjoyed the trust estate, but has received rents from it, justice and equity de- mand that where he has wrongfully excluded the true owner, and has himself occupied and enjoyed the fruits of the estate, he shall at least account for its rental value." Per curiam, Henlen v. Martin, 53 Cal , 321. In one case the interest had accumulated until it amounted to considerably more than the rents and profits, and it was held that the vendor should be left in the enjoyment of them until a good title was shown, and that then he should receive interest on the purchase money, and the vendee reasonable rents and profits, notwith- standing, by reason of a fire which destroyed the building, no rents were re- ceived. Lombard v. Chicago Sinai Con., 7.5 111., 271. The owner of an undi- vided half of an estate, contracted to convey the whole Held, that if the vendee elects to take what the vendor can convey, he need pay or tender only one-half the contract price, and the vendor is not entitled to any portion of the rents and profits accruing subsequent to the making of the contract. Marshall V. Caldwell, 41 Cal., 611. 664 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. PART VI. OF SOME CONTRACTS IN PARTICULAR. CHAPTER I. OF CONTRACTS FOR THE SALE OF SHARES. § 1468. The subject-matter of this chapter is contracts for the sale of shares between an existing and an intending shareholder, not contracts for the taking of shares from a company by an applicant. Contracts of the latter kind have been referred to in a previous part of this treatise, {a) § 1469. The vendor or purchaser of shares may gener- ally, as we have ah'eady seen,(&) maintain an action for the specific performance of the contract -.(c) he will be entitled to a direction that the defendant execute a proper deed of transfer and concur in all steps necessary to procure its registration, and also, in the case of the vendor being plain- tiif, to a declaration of his right to indemnity in respect of calls on the shares accruing after the purchaser has become the owner in equity \{d) and where the circumstances of the case do not demand the whole of this relief, the plaintiff may receive so much as suits the necessities of the case : so, for example, the decree or Judgment has, in some cases been merely one for indemnity. § 1470. The courts of common law having recognized the liability of the purchaser to indemnify the vendor, ac- tions were, before the judicature acts came into operation, maintained on this liability in those courts, (e) § 1471, Contracts of this description are, for the most part, made on the stock exchange, and it has been long es- tablished that, in such cases, the contract must be held to (o) Supra, §§ 55, 283, 285. Eq., 544; 16 W. R.,918; approved in 0am. (b) Supra, § 54. ^<"ac , Grissell v. Bristowe, L. R. 4 C. P., 36, (c) A 8 to proceeflingfl under the Companies 151. Act. 1862. 8. 35, see supra. §§ 1111,1112. {«) Walker v. Bartlett, 18 C. B., 845, which {d) As to the form of the judi^ment in such must be taken to overrule Humble v. Lan^s- a case, see Evans v. Wood, L. R. 5 Eq , 9; ton (7 M. & W., 517) on the point of indem- Palne v. Hutchinson, L. R 3 Ch., 338. See, nity. See, ton. Kellock v. Enthoven, L. R., also, Sheppard v. Murphy, I. R 1 Eq., 490; 2 8 Q. B., 458; affirmed, 9 id., 241. CONTRACTS FOR THE SALE OF SHARES. 665 be made with reference to the customs of that body, or such of them as are not unreasonable or otherwise illegal ;(/") the customs being pa.rtly written and partly unwritten, and liable to change from time to time, and to be proved afresh, and possibly differently, in each succeeding case. But contracts for the sale of shares are sometimes made off the Stock Exchange, and then they are not regulated by anj special customs, though they are naturally construed with reference to the constitution of the company, as estab- lished by its special act, charter of incorporation, or other constituent instrument. § 1472. In order to comprehend the nature of contracts on the Stock Exchange, it must be observed that the mem- bers of the Stock Exchange consist of two classes, brokers and jobbers : that a broker is an agent of a vendor or pur- chaser of shares or stock ; that a jobber is a dealer on his own account in the like commodities, who buys them for the purposes of re-sale at a profit : that on the Stock Ex- change there are two classes of contract, those for cash and immediate execution, and those for the ' ' account : ' ' and that, as regards the dealings for the account, there are three successive days or times which, according to the cus- toms of the Exchange, govern the execution of such con- tracts, viz. : first, the name day, when a purchasing broker or jobber has to give the name of the original or of a sub- stituted purchaser to the vendor's broker; secondly, the account or settling-day, which is the day after the name day — on this day the price has to be paid to the vendor's broker ; and thirdly, a period of ten days after the account day, allowed for the completion by registration of the trans- fers of the shares, where registration is required. § 1473. Bearing these facts in mind, the reader will be able to follow the practice on the Stock Exchange, which was fully stated in the evidence of Mr. De Zoete read by Lord Cairns in addressing the House of Lords in the case of Nickalls v. Merry :(//) "In the case suj^posed, Avhere the jobber would stand as purchaser, he would on the day pre- ceding such account day (which was usually called the ' name day') be bound to pass to the broker a ticket containing the (/) Nickalls v. Merry, L. R. 7 H. L., 530. (g) L. R. 7 H. L.. 539-541. See, too, ex parte Grant, 13 Ch. D.,667. 666 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. name of a person, or of several persons, as tlie purchaser or purchasers of the said shares ; or he might, if he pleased, pass his own name as such purchaser, in which latter case only would h':" have been bound himself to take to the shares. If the jobber had failed to i^ass to the broker such a name or nanu-'s by the name day, the selling broker could have sold out the sliares against him, and have compelled him to 23ay any loss thereon. Until the name day it was not seen who might stand ultimately either as purchasers or sellers, or, iu otlier words, who might ))e the persons to transfer or to talve transfers of shares, and until then a job- ber might have had a great many transactions l)oth of buy- ing and selling with the same brokers or jobbers, or with various brokers or jobbers. On the name chi}', in the case supposed, if the jobber having purchased had sold again, a ticket, containing the name oL' the Y)erson to whom the shares were to be transferred, would have been issued by and passed on from the ultimate purchasing broker to his seller, and so on through the hands of the other intermedi- ate sellers and buyers in succession, who, wdiether acting as jobbers or as brokers, had dealt in the shares, until it reached the hands of the original selling broker. Every member passing a ticket was required to write on the back of it the name of the member to whom it was passed ; such ticket would also have contained the amount of purchase- money agreed to be given for the shares by the ultimate purchasing broker, and also a note that he would pay the same. So many transactions of this kind took place during the account, that on the name day the ticket of necessity only remained in the possession of an intermediate jobber or broker for the time required to take the particulars of it. It sometimes happened that the same ticket passed through the same member's hands several times in f ultillment of bar- gains made with other members, and, as a matter of fact, he had neither the opportunity, time, nor the means for making inquiries respecting the name so passed. The original sel- ling broker would not have been bound to deliver a transfer of the shares to the ultimate purchasing broker until the expiration of ten days after the account day, and during these ten days the said purchasing broker could not have bought in the shares against the seller. During this time it CONTRACTS FOR THE SALE OF SHARES. 667 was open to tlie original selling broker to object to the name passed by his buyer, in which case such buyer would, of course, h:\\*^ passed on the o})jection to the person from whom he received the name as hereinbefore mentioned, and practically such Iniyer would have had no liability or inter- est in the question, as whatever grounds there might have been for object iii.i;- to the name would have had to be met by the person from whom it emanated, and who had originally issued the ticket, and the committee of the said Stock Ex- change would, if appealed to by the sellifig broker, have decided as to the validity of any such objection, and would have required ' another name to be given in case they had consideied it right to do so. But after the lapse of these ten days the selling broker was recpiired to deliver the cer- tificates mid transfer of the shares to the said ultimate pur- chasing broker, or in default thereof, the latter could have bought in the shares against the seller. The usual course of business was for the selling broker to deliver the transfer, together with the corresponding ticket, to the said ultimate purchasing broker from whom he received the purchase- money. The said ultimate purchasing broker did not know to whom his ticket had been ultimately passed until the delivery of the tiansfer. According to the long- recognized and weil-established rules and usages of the said exchange, if the original selling broker did not deliver his transfer and certificates and obtain payment of the purchase-money within hfteen clear days from the name day, his immediate buyer was released from all loss caused by the default of the ultimate purchasing broker to pay for the shares, and the latter would alone remain responsible ; in like manner, if the member who issued the ticket containing the name of the intended transferee of the shares did not buy in, or at- tempt to buy in, the same shares within "fifteen days from the account day, his immediate seller was released from all loss caused by the failure of any member through whose default the shares were not delivered to, and the purchase- money paid by, the ultimate purchasing broker ; the jobber had fulfilled all the obligations lequired of liim by the rules and usages of the said Stock Exchange in respect of his contract." § 1474. In this passage, and in several of the cases which 668 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. have occurred, the jobber is spoken of as if his rights and liabilities were distinct from those of a broker. But the broker of a purchaser, and through him as principal the purchaser, appeared to be in precisely the same position as a jobber, (Z() § 1475. Such being the practice, the contract of sale to a jobber has been determined to l^e to the effect that, at the sitting-day, he will either take the shares himself, in which case he must accept and register a transfer and indemnify the vendor, or he will give, as purchaser or purchasers, the name or names of one or more persons capable of contracting and who have authorised him to contract for them, and to w-hom no reasonable objection can be made : and that when the vendor has, by executing a transfer to the nominees, accepted them as purchasers, and the nominees have ac- cepted the shares, through the delivery to their brokers, on a payment by their brokers, of the transfers and certificates of shares, then two things follow, viz., (1) a new contract arises between the original vendor and the nominees of the original purchaser ; and (2) as a consequence, the original purchaser is released and no action can be maintained against him in respect of the contract. (^) So that he is not in any sense a guarantor of the performance of the new con- tracts b}^ his subvendees. § 1476. The peculiarity of this transaction does not con- sist in the extinction of the original contract by the new one : that occurs in many cases : but in the right reserved by the original contract to the purchaser to compel the vendor to accept a new contract in lieu of the old one. In short, the original contract with the purchaser is one for sale and purchase, with a right reserved to the purchaser, under certain circumstances, to call on the vendor to enter {h) See Maxted v. Pain (2d action). L. R. executed and delivered to him : that the 6 Ex., 132, 170; consider Street v. Morgan, 21 vendor has no right to object to execute a L I. N. S , 432 transfer to any one named by the purchaser, (i) Coles V. BrlBtowe, L. R. 4 Ch., 3, re- and does not, by executing the transfer, re- versing S (J. 1-.. R 6 Eq., 149; Grlssell v. lease the purchaser from his liability to in- Bristowe, L R. 4 C. P.. 36, reversing S. C. L. demnify. His Lordship held, as a conse- R 3 C. P., 112. In Maxted v. Paine (2d quence, that Coles v. Bristowe and Orissell action), L. R. 6 Ex., 132, Lord (then Mr. v Bristowe (ubi supra) were rightly decided, Justice) Blackburn suhjected the whole but on wrong grounds, and that Maxted v. jnatter to a very elaborate examination, and Paine [1st action] (L. R. 4 Ex., 81) was held that it was no part of the contract of a wrongly decided. See, as to this judgment, purchaser of shares to give in either his own per James, L. J., in Merry v. Nickalls, L. R. name or that of his real principal: that he 7 Ch., 750. Lord Blackburn's views seem to contracts to accept a transfer into the name be practically overruled by the decision of which he furnishes, and to indemnify the the House of Lords in the last-named case Tcndor against all calls after the transfer Is (L. R. 7 H. L., 530). CONTRACTS FOR THE SALE OF SHARES. 669 into a new and substitutionary contract, and an obligation on the part of tlie vendor to do so. It is an effective con- tract to contract. § 1477. Of the original liability of the first purchaser to be sued in specific performance and for indemnity there is no doubt. Let us now inquire a title more exactly what such original purchaser must have done to relieve himself from his original liability. 1st. He must give as purchaser the name of a person capable of contracting. Accordingly it has been decided that the passing on the name of an infant is no satisfaction of the jobber's liability. (y) 2d. He must give as a purchaser the name of a person who has authorised the original purchaser to bind him to a contract of purchase : so that passing on the name of a person who gave no authority is no satisfaction of the first purchaser's liability. (^') As regards these two p>oints, it has been urged that if no objection was taken to the name within ten days after the settling-day, that being the period allowed for the approval or rejection of the name of the ultimate purchaser, the original vendor lost his right to object : but the contrary has been held ; the j)ersonal re- sponsibility, and not the personal capacity or authority, being the only point left for inquiry and determination within the ten days. 3d. The original purchaser must give a name to which no reasonable objection can be taken. It seems that residence in Smyrna would be a reasonable objection. (^) This objec- tion, if not taken within ten days, would come too late. § 1478. The nominee of the original purchaser, whether jobber or purchasing broker, is in most cases a sub- vendee. But this is not necessary. The exigency of the contract is satisfied if the name given as that of a purchaser be that of a person capable of contracting and who has contracted to take the shares. Thus, where the j)erson named was a man (j) Merry v. Xickalls, L. R. 7 Ch., 733 ; S. C. 118 (James, V. C), and Maynard v. Eaton, L. 8. n. Nickalls v. Merry, L. R. 7 H. L., 530 (re- R. 9 Ch., 414. See, also. Brown v. Black, L. versing the decision of Bacon, V. C, in S. U. R. 15 Eq., 363; 8 Ch., 939. L. R. 7 Ch., 740, and overruling Rennie v. (k) Maxted v. Paine (1st action), L. R. 4 Morris, L. R. 13 Eq , 203) ; Dent v. Nlckalls, Ex., 81. 22 W. R., 218; Watson v. Miller, W. N., 1876, (I) Allen v. Graves, L. R. 5 Q. B., 47S, which 18 (.Hall, V. C.) ; Heritage v. Paine, 2 Ch. D , case, however, was on a special contract. 594. Of. Nickalls v. Furneaux, W. N., 1869, 670 FRY ON SPECIFIC PERFORMANCE OF CONTKACTS. of straw, who for a gratuity accepted the shares in a broken company, and the vendor's brokers did not object to the name given or require a better name, tlie original purchaser was hekl to have performed his contract, and so was no longer bound. (?;?^) Whether the original purchaser is bound to do anything more than produce a new contracting party, /. e., whether he is liable till the new purchaser has actually accepted the transfer of the shares, is a point which is hereafter con- sidered. (?i) § 1479. Where the nominee's name has been given, with his authority, by the jobber or purchasing broker, and such name has been accepted by the vendor by his executing the transfer to the nominee, and the nominee has, through his broker, paid for the shares and accepted the transfer and certificates, a new contract, as we have seen, arises between the vendor and the nominee. (o) This new contract may be enforced by an action for indemnity, (^:>) or by an action for si)ecific performance and indemnity, (g-) § 1480. In accordance with some of the authorities the new contract has, in the foregoing sections, been stated as arising when the nominee lias paid for his shares and ac- cepted the transfer and certificates, or, to put it in other terms, the original purchaser is only discharged when he produces a nominee who himself pays for the shares and accepts the transfer (and does not merely contract so to do).(r)' But there are not wanting authorities which would place the constitution of the new contract at a possibly earlier stage, viz., when by the ticket the new purchaser has been signified to the original vendor, and the vendor has signified his acceptance to the new purchaser. (6-) The point has never been precisely determined : and as the only notification that the original vendor accepts the new pur- chaser appears to be by delivery of the transfer on payment (m) Maxted v. Paine (2d section), L. R. 4 appreved in Cam. Scac. in Grissell v. Bris- Ex., 203, affirmed in Cam. Scac. L. R. 6 Ex., towe, L. R. 4 C. P., 36, 51; Hawkins v. Malt- 132. bv, 1.. R. 4 Eq , .572; 3 Cli . 188; 6 Kq., 505; 4 (71) See infra, § 1480 et seq. Cii., 2iiO; Hodgkinson v. Kelly, 6 Eq , 496. (o) Sec per Cockburn. C. J , in Grissell v. (r) See per Cockburn, C. J., in Grissell v. Brlstowe, i.. R. 4 C. P., 51. Brlstowe, L. R. 4 C. P ,51; per James, L.J. , (p) Davis V. Haycock, L. R. 4 Ex., 373; In Merry v. Nickalls, L. R. 7 Ch , 751. Bowring v. Shepherd, L. R. 6 Q. B.. 309. (s) See per Brett, J , in Howring v. Shep- (g) Sheppard t. Murphy, 16 W. R , 948; I. herd, L. R. 6 Q. B., 328; per Kelly, C. B.. In R. 2 Eq., 544 (reversing S. C, I. R. 1 Eq., 490), Davis v. Haycock, L. R. 4 Ex., 384. CONTRACTS FOR THE SALE OF SHARES. 671 of the price, the point does not seem to be one of much practical importance. § 1481. The new contract is, as we have seen, between the original vendor and the ultimate purchaser or nominee. Between the original vendor and any of the intermediate parties there is no contract. (^) § 1489. In one case, however, it has been held that there is a right to indemnity in equity on the ground of trust. The case alluded to is Castellan v. Hobson.(w) There A. through his broker sold to a jobber, B. B. sold to C. through his broker. C.'s broker gave the name of D., who was a man of straw and was held to be a trustee for C. A. executed a transfer to D. and received the money : D. did not execute the transfer, and before registration the com- pany was woundup: C. was held liable to indemnify A., on the ground that A. was a mere legal owner of the shares and entitled to indemnity from the real equitable owner, and that C. was such owner. It may be doubted how^ far the case can be considered as an authority since the decis- sions in Coles v. Bristowe(?5) and Maxted v. Paine (second action) :{io) for it would appear that A.'s original contract of sale was liable to be extinguished by a new contract which he agreed to enter into with a nominee, and that by executing a transfer to D. he accepted him as purchaser, and it would seem to follow that he could look to him and to no one else for indemnity. The non-registration of the transfer, too, seems immaterial according to the more recent cases. § 1483. In Viscount Torrington v. Lowe,(.r) the court of common pleas held that no action could be maintained against the subvendee whose nominee had been accepted by the original vendor, and they expressed the further opinion that there was no equitable right against him. § 1484. In some cases the ordinary form of contract is departed from, and a contract is made by the jobber or pur- chasing broker with registration guaranteed. This sui)er- adds an important obligation on the original purchaser, so that he has not completed his contract until he has either (t) viscount Torrington v. T.owe, L. R. 4 this case. Cf. Nickalls v. Furneaux, W. N., C P , 26 1869, 118 (James, V. C.) (M) L. R. 10 Eq,. 47 (James, V. C.) The (i) L. R. 4Ch., 3. case of Viscount Torrington v. Lowe does (w) L. R. 4 Ex.. 20S, 6 Ex., 133. not appear to have been cited to the V. C. in (x) L. R. 4 C. P. 26. 672 FRY OlSr SPECIFIC PERFORMANCE OF CONTRACTS. himself paid for the shares and registered tlie transfer, or has procured some nominee to do both these things. There- fore where the jobber procured a nominee to accept or pay for the shares, but the transfer was not registered, the job- ber or original purchaser was still liable to a suit for specific performance and indemnity. (//) § 1485. Cases may, of course, often occur where, inde- pendently of the customs of the stock exchange, a third i)er- son may so adopt the purchaser' s contract as to place him- self in the shoes of the purchaser, and give to t]).e vendor a direct right against himself. The x)ractice of x)assing on shares before transfer executed gives great facilities for such a result to arise. § 1486. In one caseW. directed his broker to buy shares in a discount comj)any : the broker bought them from the plaintiff, and, on W.'s instructions, gave the name of G. (a director of the company) as purchaser. G. received the transfers made out in his name, retained them, and depos- ited them as security for the purchase-money, which was paid out of the com^Dany's funds and debited to Gr.'s firm. G. denied that he had assented to the shares being bought in his name : but Stewart, V. C, held that G. had assented to the new contract, and accordingly made against him a decree of s^Decific performance. (^) § 1487. A somewhat similar state of facts arose in an earlier suit. There A. sold to B., and B. sold to C. A. executed a transfer to C, which C. did not register. A. then sued B,, and obtained a decree directing an inquiry as to A.'s title : the Master certified in effect that A., by exe- cuting the transfer to C, had precluded himself from making a title to B., and on this ground the bill was dismissed on further consideration, (a) § 1488, So again, in the case of a contract between A. and a comxDany to take shares and make certain payments, the registration by the company of a transfer by A. to B., before A. had made the payments entitling him to be registered as a shareholder, was held by Lord Selborne (sitting as a judge of first instance) to be a new contract (y) Cruse v. Paine, L. R. 6 Eq., 641; 4 Ch., iz) Shepherd v. Gillespie, L. R. 5 Eq., 293. 441. (a) Shaw v. Fisher, 5 De G. M . & ti. 596. CONTRACTS FOR THE SALE OF SHARES. 673 between B. and the company which extinguished the earlier contract between A. and the company, (6) § 1489. The following circumstances require considera- tion in actions of this description : The plaintiff in some cases has been only equitably entitled to the shares, which have been registered in the name of some third person. This has been held no objection to a decree for specific performance or for indemnity to the plaintiff, (c) § 1490. Whether the fact that, before the contract was made, a call was made on the shares of which the purchaser was ignorant, was a defense to a suit for the performance of a contract to buy the shares, was a point much considered in the successive stages of the litigation in Hawkins v, Maltby,(rZ) but can hardly be said to have been there decided. In fact there the call was made on the same day as the contract, but whether before or after did not appear. In the absence of fraud or misrepresentation, it does not seem clear wiiy the fact that a call, which the purchaser must have known could at any time be made, has been made, should avoid the contract or prevent either party from enforcing it. § 1491. Where the constitution of the company gives the directors a power to refuse to register transfers, the ■question arises whether the refusal on the part of the directors to register- the purchaser, relieves him from the obligation of performing the contract. This question must be answered differently according to circumstances. § 1492. (1) Where the contract is made on the Stock Exchange, but is made with reference to the constitution of the company, or subject to its rules, and the constitution of the company requires the vendor to do all that is essential to the transfer, the vendor is under an obligation to procure the assent of the directors, and if he fail to do so, the pur- chaser is relieved from the contract, and if he have already paid his purchase-money in ignorance of this refusal, he may recover it back.(6) (b) Morton's case, L. R. 16 Eq., 104. («) Wilkinson v. Lloyd, 7 Q. B., 27; cf. per (c) Paine v. Hutchinson, L. K. 3 Eq., 257; 3 Lord Campbell, C. J., in Stray v. Russell, 1 €h., 388. El. & El., 900. (d) L. R. 4 Eq , 572; 3 Ch., 188; 6 Eq., 505; 4 Cb., 21)0. 43 674 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS, § 1493. (2) Where the contract is made on the Stock Exchange and subject to its rules, it is clear that the refusal of the directors to register the transfer is immaterial ; for, according to the construction put upon such a contract, it is performed on the vendor' s part by the delivery of the transfer and certificates, and the vendee is entitled to the right which he thereby acquires to procure himself to be registered, if the directors so choose : he is not entitled to an absolute and unconditional right to registration. (/ ) In a sale on the Stock Exchange it is no part of the vendor's duty, irrespective of express contract, to i^rocure the regis- tration of the transfer. (^) § 1494. (3) There are numerous contracts for the sale of shares which fall under neither of the two classes just ad- verted to : and with regard to these it is more difficult to say what is the effect of the power of the directors to refuse registration, or of their actual refusal. Opposite views have been expressed. On the one hand, Lord Komilly, M. R. , in one case expressed the view that every contract for sale of shares is conditional on the com- pany accepting the purchaser as a shareholder : (A) on the other hand. Lord Chelmsford intimated an opinion that in no ordinary case will the discretionary power in the directors furnish a defense. " The directors," he said, "may decline to register, but the transaction is complete as between trans- feror and transferee. "(/) The opinion expressed by Lord Romilly, M. R., in the case referred to,0) can probably not now be sustained. § 1495. In a subsequent case, before the last-named judge, the deed of settlement of the company provided that no shareholder should transfer his shares, except in such a manner as the board should approve : a shareholder contracted to sell his share : the board refused its consent to his making the transfer : and the vendor tlien refused to complete : the purchaser filed his bill, and obtained a de- cree on the ground that the deed of settlement did not pre- vent the sale of shares or give the directors an arbitrary (/) Remfry v. Butler, El. B. & E., 887; (h) Bermlngham y Sheridan, 33 Beav.^ Stray v. Russell, 1 El. & El., 888. 660. (ff) Stray V, Russell, 1 El. & EL, 888. As to (i) Hawkins v. Malthy, L. R. 3 Ch.. 194. purchases with registration guaranteed, see See per Lord Romilly, M. R,, in Hodgliinson supra, § 1484. v. Kelly., L. R. 6 Eq., 496 (j) Bermingham v. Sheridan, 33 Beav., 660. COISTRACTS FOE, THE SALE OF SHARES. 675 will on such an occasion : in case the parties differed the conveyance was to be settled in chambers, (/i) g 1496. Whether, independently of the rules of the Stock Exchange or of other special contract, the duty of procuring the transfer to be registered rests on the vendor or purchaser, has not been the subject of any conchisive decision. It is a point of great moment for the determina- tion of the question now under our consideration : for, if it rests on the purchaser, his non-performance of his obliga- tion can never prejudice the vendor. There are in the cases arising upon Stock Exchange contracts(Z) numerous dicta which imply that, generally, the duty is upon the purchaser, and it is apprehended that this will be decision of the ques- tion when it shall arise. § 1497. It is settled, and indeed could hardly be doubted, that when, through the fault or default of the defendant, the transfer had not been presented for registration, and then a winding up had intervened, and there was no evi- dence to show, if the transfer had been duly presented by the defendant, he would not have been accepted as a trans- feree, the objection based on the refusal to transfer must fail.(m) § 1498. The winding up of the company has, in many of these cases, been urged as an objection to the relief sought, here we must distinguish between cases in which the pre- sentation of a petition was before and those in which it was after the making of the contract. § 1499. (1) Where the petition has first been presented, then the contract has been made by both parties in ignor- ance of that fact, and then the petition has resulted in a winding up, there has been common mistake or common ignorance : and in such a case it appears that the court could not compel the specific performance of the contract. (ti) § 1500. (2) But where the petition has been presented after the making of the contract, the defense does not ap- pear admissible : for the general rule, that the destruction or failure of the subject matter of a contract after it is en- tered into is no defense, must prevail, (o) and if the contract (k) Poole V. Midilleton, 29 Beav., 046. (to) Evans v. Wood, L. R. 5 Eq., 9; Paine (l) Sheppard v. Murphy, 1. R. '2 Eq., 544; v. Hutchinson, L. R. 3 Ch.,388. .,^^ 16 VV R 948- Stray V. Russell, 1 El. & El., (n) Emerson's Case, L. R., 1 Ch., 433. '■ ' 888- Evans v Wood, L. R. 5 Eq.,9; Hodg- (o) Coles v. Bristowe, L. R. ti Eq., 149; kinson v. Kelly, L. R. 6 Eq., 496. Taylor v. Stray, 2 C. B. N S., 175. 676 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. cannot be perforaied modo et forma, tlie court can still give relief by way of indemnity. (^) § 1501. The point has been urged in various forms. It has been said that the substitution of the one name for the other on the register of the company is part of the contract, and that by the winding up of the company this has become impossible: and further, as regards companies under the com- panies act, 1866, that the effect of the 131st and 163d sec- tions of that act is to render transfers after the commence- ment of the winding up absolutely illegal and mere waste paper, (^) But neither of these arguments seems valid. As to the first, it may be replied that, unless by special contract, the vendor is not bound to procure the registra- tion, but that duty rests on the purchaser, (r) and that in cases of contracts on the Stock Exchange the registration of the transfer is no part of the bargain : as to the second point, it is clear that the effect of the statute is not to make the transfer illegal or void, but to give a discretion to the liquidator, or the court, to allow them to operate or not to operate as transfers. (5) In short, the question who is on the register is one between the company and the shareholder ; the question who is to bear the calls and take the profits is one between the buyer and seller, with which the company is not concerned, (if) (p) Cruse V. Paine, L. R. 6 Eq., 641, 653. (;•) See supra, § 1496. Birmingham v. Sheridan, 33 Beav., 660, prob- (s) Chapman v. Shepherd and Whitehead ably cannot be supported. Distinguish v. Izod ubi supra; Emmerson's Case, L. R. Holmes v. Symons, L. R. 13 Eq., 66. 1 Ch., 433; Sheppard v. Murphy, ubi supra. (?) Chapman v. Shepherd and Whitehead (t) See per Lord RomiUy, M. R., in Hodg- V. Izod, L. R. 2 C. P., 228; Sheppard v. Mur- kinson v. Kelly, L. R. 6 Eq., 496. phy, I. R. 2 Eq., 544; 16 W". R., 948. ' The doctrines of English chancery have, in this respect, been carried out in this country. So in Lewis v. Madisons, 1 Munf., 308, a contract under seal between two brothers, by which one of them agreed to convey to the other a certain tract of land expected to be devised to him by their father, when he should have obtained possession of it, was held not to contra bonos mares. And it was further said that an action of covenant could be supported thereon, or that it could be specifically enforced in equity. Price v. Winston, 4 Munf., 63, is a repetition of the same principle. There a testator having devised cer- tain slaves to his sister, during her life, and after decease to be equally divided among them, " to them and their heirs forever," a written agreement not under seal, entered into in her life-time by all her children then living, to stand to a fair and equal division of said estate among the children who should be living at her death, and the issue of such as should have then died, or might die be- fore her, was decided not to be a nudum pactum, but founded on sufficient consideration, and, therefore, binding on the contracting parties. CONTINGENT INTERESTS AND EXPECTANCIES. 677 CHAPTER II. OF CONTRACTS RELATING TO CONTINGENT INTERESTS AND EXPECTANCIES, § 150^. At common law it has been laid down that the possibility of succession is not an object of disposition, and that if the heir were to dispose of the succession during the life of the ancestor, such disposition would be void, though the inheritance should afterwards have devolved on him. (a)' However, in a case before the Queen's Bench, the court sup- ported as valid a contract to sell an estate if it should be devised to the vendor by a person then living. (5) § 1503. In courts of equity contracts relating to expect- andes have been long upheld, (c) and that although they may in some sort seem to have defeated the intentions of testators, or been in fraud of parental authority. § ldi04. One of the earliest cases on the subject is Wise- man V. Eoper,(<^) where a covenant to settle an estate, to which the covenantor had only an expectancy as heir, was after the descent of the lands specifically enforced against him. § 1505. In Beckley v. New]and,((S) the plaintili' and the defendant had married two sisters, who were the presump- tive heiresses of Mr. Turgis, a very rich man, who had made and revoked several wills, and ultimately made one leaving a great estate to the defendant, and only a small one to the (a) Per Lord Kenyon, M. R., in Jones v. Lord Eldon In Carleton v. Leighton ^3 Mer., Roe 3T. R.93 The Roman law likewise 671), that the expectancy of an heir could not prohibited such contracts. Pothler, Tr. ues be made the subject of contract seems an Oblig , Part 1. chap. 1. s ct. 4, § 2. error of the reporter. Apparently the word (6) Coofe V Field, 15 Q B , 460. contract is written for conveyance. (c) Of. Alexaniler v. Duke of Wellington, 2 (d) 1 Rep. in Ch.. 154. R. & My., 35. The statement attributed to («) 2 P. VVms.,182. 1 Varick v. Edwards, 11 Paige's Ch., 290; Anderson v. Lewis, 1 Freem. Ch. (Miss), 178; Baylor v. Commonw^ealth, 40 Pa. St., 87; Powers' App., 63 id., 443; Hasten v. JVIarlow, 65 N. C, 695. In Kentucky, a contrary doctrine is held Lomry v. Spear, 7 Bush (Ky.). 451. The husband agreed to convey land belonging to his wife, in which he had a life estate by the custody: the wife refused to convey. Held, that the contract could not be specifically en- forced, and that he could not be compelled to convey his life estate in the same. McCann v. Jones, 1 Rob. (Va.), 256. An executory verbal contract depended upon an event which might never happen. Held, that equity would not de- cree specific performance. Bradley v. Morgan, 2 A. K. Marsh, 369. 678 FRY ON SPECIFIC PERFOKMANCE OF CONTRACTS. plaintiff. Previously to the execution of the will, the plain- tiff and the defendant had entered into a contract for the equal division between them of what should be left to each of them ; and this contract was upheld and specifically en- forced by Lord Macclesfield, who said that the contract was "not disappointing the intent of the testator, for he did not design to put it out of either of the devisees' power to dispose of the estate after it should come to him ; but, on the contrary, when the testator gave it to either of them, he by implication gave that person a j^ower to dispose of the said estate when it should come to him." The same prin- ciple was pursued by his Lordship in another like case,(/') and was followed by Lord Hardwicke, in upholding the validity of the conveyance of a contingency or possibly on the death of a sister unmarried. (5^) § 1506. InHarwood-v. Tooke,(A) the plaintiff and the defendant, the celebrated John Home Hooke, had made a ]3arol contract to divide what should come to them from a testator : in satisfaction of this the plaintiff had given to the defendant Tooke a note for £4,000, which he had endorsed over to the other defendant, Sir Francis Burdett, for valua- ble consideration. All that Lord Eldon ultimately decided in the case may have been that the plaintiff had no equity to follow the note into the hands of this j^urchaser for value ; and it apj)ears from one of the reports that he ex- pressed doubts whether the transaction between the plain- tiff and the defendant Tooke was not a fraud on the testa- tor, and whether the court would at any rate assist in speci- fically performing such a contract. But the case has usu- ally been treated as an authority for the validity of contracts relating to expectancies. (/) § 1507, In another case the contract seemed, at first sight, in fraud of the parental authority, but was upheld on a like ground to that taken by Lord Macclesfield. A con- tract had been entered into by two sons to divide equally between them whatever they might receive from their father in his lifetime or after his decease, by will or otherwise. It was very strongly argued that this was a scheme on the part (/) Hobson V. Trevor, 2 P. Wms., 191. (i) See per Shadwell, V. C, In Wethered v. (g) WrlKht V. Wright. 1 Ves. Sen. 409. Wethered, 2Slm., 191; Hyde v. White. 5Slm., ih) 2 Sim., 192, from Mr. Maddock' MS. n.; 524; and per Lord Brougham in Lyde v. IMy. &K., 685. Mynn, 1 My. &. K.,693. CONTINGENT INTERESTS AND EXPECTANCIES. 679 of the sons to protect themselves from the consequences of misconduct, and to bid defiance to parental authority. But Shad well, V. C, held that, as the testator had the power of giving an estate to his sons, so that they should have only the personal enjoyment without power of alienation, and did not choose so to give it, but gave it absolutely, he had allowed it to become liable to all their antecedents con- tracts, and therefore to the contract in question, of which specific performance was accordingly granted. (,/) § 1508. Similar in principle is the case of Lyde v. Mynn, {k) where a husband granted an annuity for his life, and by way of further security covenanted to charge it on all the property he should, in the event of his wife' s decease, become entitled to by her will or otherwise ; and it was held that no objection could be taken on the ground of its rela- ting to a mere expectancy ; and the court accordingly spe- cifically performed the covenant. And so, again, contracts respecting the costs of proceedings in lunacy, or the ulti- mate division of a lunatic' s i^roperty are not void. {I) § lo09. In a case recently decided by Denman, J., a hus- band and his wife had assigned to one of the iDlaintiffs (who was held by the judge to be a trustee for the other plain- tiffs) all the interest to which the wife or the husband might become entitled under the will of C. (who had, at the time, to the wife's knowledge, made his will leaving his residuary estate to her for her separate use), to secure £4,000 borrowed by the husband for the iDayment of his debts : and C. had died without altering his will. It was held that the wife had power to charge, and had by the contract effectually charged, her expectancy, (??z) § 1510. The circumstances attending such contracts as those now under discussion, are oftentimes of such a kind as to prevent the court from enforcing them. Such were the circumstances in Morse v. Faulkner(7i) in the exchequer, and in the more recent case of Ryan v, Daniel, (o) In the latter case each of the two young officers in the army signed and gave to the other a document, by which each charged his estate with £1,000 in favor of the other, in case the (j) Wethered v. Wethered, 2 Sim, 183. (Z) Persse v. Persse, 7 CI. & Fin.,279. See accordingly Hyde v. White, 5 Sim., 524; (m) Flower v. Buller, 15 Ch. D., 665, HouKhton v. Lees, 1 Jur. N. S., 862; 3 W. B., (n) 3 Sw., 429 n. 135 (Stewart, V. C) (o) 1 Y. & C. C. C, 60. (k) 1 My. &K.,683. 680 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. other should survive him, the consideration of each of these documents being the other of them : many years subse- quently a correspondence passed between these officers with a view to a rescission of the transaction, but that intention was never carried into effect. The court held that, looking at the circumstances of the transaction, the age and con- dition of the parties and their subsequent correspondence, there was no equitable claim which the court would enforce, but it retained the bill for twelve months, with liberty to bring an action to establish, if the xolaintiff could, a legal debt. § 1511. It has been judicially suggested that contracts made by a person before the devolution of the estate or other realization of his expectancy are purely personal, and only capable of being enforced against the contractor per- sonally during his lifetime. In Morse v. Faulkn*'r,(^) in 1792, Eyre, C. B., speaking of such a case, said, " The sur- rendor not having any title whatever to the premises, at the time of the surrender, his agreement would not raise a lien upon the land ; and although the x)resent plaintiffs might have been relieved if they had filed their bill against him in his lifetime, that is after his title had accrued, yet it does not follow that therefore they can be relieved against his heirs. IS^either the land itself or the conscience of the present defendants is bound by this act of William the sur- renderor." It is however believed that this view has not received any subsequent confirmation.' (p) 3 Sw., 429 n. ; shortly reported, 1 Anster , 11. ' Provision by jvirenis for children.^ Equity "will often interpose to sustain defective conveyances by parents for children. The same principle is applica- ble to brothers or sisters. A father, for the purpose of securing a provision for his children, executed deeds of part of his estate to them, retaiuing the instruments in his possession, and directing his wife to hand them to the clerk for record after his death. This was done. There was no claim by creditor or purchaser. Held, that equity would enforce the instruments. Jones v. Jones, 6 Conn., Ill; Belden v. Carter, 4 Day, 68. CONTRACTS FOK PARTNERSHIP. QSt CHAPTER III. OF CONTRACTS FOR PARTNERSHIP. § 1512. As a general rule, the court will not enforce specific performance of a contract to form and carry on a partnership, (a) And notwithstanding some early authori- ties more or less to the contrary, (&) it is clear that the court would in no case compel performance of a contract to enter into a partnership not for a definite term :(c) for it might be dissolved as soon as entered upon, and the interference of the court would thus become simply nugatory. § 1513. "Where, however, the contract defines the term of the partnership, and there has been part performance of the contract, the court may specifically execute it by decree- ing the parties to execute a iDroper deed, and, if necessary, by restraining any partner from carrying on business under the partnership style with other persons, and from publish- ing notices of dissolution.(cZj* § 1514. AYhether the court would siDecifically enforce a contract not in terms to enter into partnership but to exe- cute a deed of partnership to certain terms defined or ascer- tainable, has never, it is believed, been decided. The argu- ment that such a judgment should be pronounced in order to give the plaintiffs legal rights, seems of much less weight now that the courts of common law and equity are united. (a) Scott V Ravment, L. R 7 Eq, 112;Si- Gas Consumers Co. (Repiptered) v. Harrigon, chel V. Mosenthkl. 30 Beav , 371; and see 17Beav.,294; per Kiucersley, "'. C, in New enpra, g§ 73, 824. Brunswick, etc., Co. v. Muggeridge, 4Drew., (6) see per Lord Hardwlcke in Buxton v 69S. Lister, 3 Atk.,3S5; Anon., 2 Ves. .Sen., 629; {d) England v. i urling, 8 Beav., 129; Hlb- Anon , 1 Mad , Ch., 525n.; Hibbert v. Hib- bert v Hibbert. Collyer, PaUn.. 133 Cf. the bert, Collyer, Partn, 133. pleadings In Bluet v. Capstlck, 12 Ch. D., (c) Hercy v Birch, 9 Ves., 357; Sheffield 863. 1 This appears to be clearlj- the rule. Story's Eq. Jur. , § 666 ; Collyer on Partnership (2d Am. ed.), 107, 110; Byrd v. Fox, ^ Mis , 574. It has been supposed, however, that the court would go to the length of .compelling con- tracts of partnership; but it is probable that the court "will only enforce the- execution of partnership deeds, "The reason is clear; a contract of partner- ship is of an essentially personal character; on the lunacy of one partner, the other may apply to the court for a dissolution, and he himself cannot be kept to his part of the contract. So, in general, a partnership is dissolved by the death of either party. It -would be of ill consequence in general to say, that, in articles of partnership in trade, where no provision for the death of either is made, they might subsist for benefit of an executor who may not have skill, therein." Bat. Specif. Perform., p. 166. 682 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. § 1315. Contracts for partnership may in some cases be illegal, as amounting to sales of office, as contravening the laws regulating trade, or otherwise. (d) It is hardly neces- sary to observe that the court will not in any way interfere for the benefit of parties claiming under such contracts, or in favor of contracts for partnership tainted with fraud, hardship, or improper conduct. (/") § 1516. Again, where the contract had reference to the manufacture and sale of a patent medicine. Lord Eldon considered that the court could not decree specific perform- ance, because, if the receipe were a secret, the court had no means of enforcing its own orders, (p') § 1517. There are of course a great many cases(7^-) in which courts of equity give specific relief on partnership articles : but these are not cases of specific performance of executory contracts. (e) See Hughes V. Statham, 4 B. & C, 187; also, as to secret medicines, Williams v. Wil- Knowles v. Haughton, 11 Ves., 168. liams, 3 Mer., 157; Green v. Folglmm, 1 S. & (/) Vivers v. '1 uck, 1 Moo. P. C. (N. S.), S.,398; Yovatt v. Winyarci, 1 J. & \V.. 394. 516; Alaxwell v. Port Tenant, etc., Coal Co., See also Lingen v. Simpson, 1 S. & S., 600. 24 Beav., 495. (h) E. g. Homfray v. Fothergill, L. R. 1 ig) Newbery v. James, 2 Mer., 446. See Eq., 567. CONTRACTS FOR THE SALE OF SHIPS. 683 CHAPTER IV. OF CONTRACTS FOR THE SALE OF SHIPS. § 1518. Contracts for the sale of ships, or of shares in ships, have long been affected by legislation. The present position of legislation is shortly this. By the merchant shipping act, 1854 (17 & 18 Vict. c. 104), it is enacted (s. 55) that a registered ship, or any share therein, when disposed of to persons qnalified to be owners of British ships, shall be transferred by bill of sale, containing such description of the shij) as is contained in the certificate of the snrveyor, or such other description as may be snfiicient to identify the ship to the satisfaction of the registrar, and which shall be in a form (a) given by the statute, or as near thereto as circumstances permit, and executed by the transferer before and attested by one or more witnesses : no individual is entitled to be registered as transferee till he has made a certain declaration (s. 56): and (s. 57) every bill of sale with the required declaration is to be produced to the registrar, who is to enter the name of the transferee as owner in the registrar. (/>) § 1»519. By the merchant shipping act amendment act, 1862, (25 & 26 Yict., c. 63,) s. 3, it is declared to be the in- tention of the merchant shipping act, 1854, that, Avithout prejudice to the provisions contained in that act for pre- venting notice of trusts from being entered in the register book or received by the registrar, and without prejudice to the powers of disposition and of giving receipts conferred by that act on registered owners and mortgages, and with- out prejudice to the provisions contained in that act relat- ing to the exclusion of unqualified persons from the owner- ship of British ships, equities may be enforced against owners and mortgagees of ships in respect of their interests therein, in the same manner as equities may be enforced against them in respect of any other personal property. (c) (a) Cf The Merchant Shipping 4ct Amend- thereby registered. Orr. v. Dicliinson, .John.s., ment Act, 1855 (18 & 19 Vict., c. 91), 8. 11. 1 ; cf. Holderness v. Lamport, 9 W. R., 327; (b) The registration ofa bill of sale, which 30 L. J. Ch., 489. is in fact invalid, gives no title to the person (c) See Stapleton v. Haymen, 12 W. E.,317. 684 FRY ox SPECIFIC PERFORMANCE OF CONTRACTS. § 15'20. The definition to persons qualified to be owners of British ships is to be found in the 18th section of the merchant shipping act, 1854, which is as follows : " No ship shall be deemed to be a British ship unless she belongs wholly to owners oL the following description ; that is to say, "(1) Natnral-born British subjects : "Provided that no natural-born subject who has taken the oath of allegiance to any foreign sovereign or state shall be entitled to be such owner as aforesaid, unless he has, subsequently to taking such last-mentioned oath, taken the oath of allegiance^^fZj to Her Majesty, and is and continues to be during the whole period of his so being an owner resident in some place within Her Majesty's dominions, or, if not so resident, member of a British factory, or partner in a house actually carrying on business in the United Kingdom, or in some other place within Her Majesty" s- dominions : ••(2) Persons made denizens by letters of denization, or naturalized by or pursuant to any act of the imperial legis- lature, or by or pursuant to any act or ordinance of the proper legislative authority in any British possession : ''Provided that such persons are and continue to be dur- ing the whole period of their so being owners resident in someplace within Her Majesty's dominions, or, if not so resident, members of a British factory, or partners in a house actually carrying on business in the United Kingdom, or in some other place within Her Majesty's dominions, and have taken the oath of altegiance to Her Majesty subse- quently to the period of their being so made denizens or naturalized : "(3) Bodies corporate established under, subject to the laws of, and having their principal place of business in, the United Kingdom or some British possession.'' § 15^1. The result of this legislation appears to be clear : that any person qualified to be the owner of a British ship may sue on any contract for the sale of a ship or share in a ship, and that on obtaining judgment he will be entitled to (d) As to the form of the oath, eee The Promis^iory Oaths Act, 1S^^,8 (31 & 33 Vict. - 7-2), 8. 14, subs. 8. CONTKACTS FOR THE SALE OF SHIPS. 685 \)e registered : but that, pending entry of liis name as owner on tlie register, no notice of liis equity can ajjpear on the register, or be noticed by the registrar : that the registered owner or mortgagee can make a good transfer and give good receipts to purchasers for value without notice of the equity under the contract : and lastly, as regards unqualified per- sons, that they cannor maintain an action ior the sale of a ship or share in a ship to them. § 15^2. It may be convenient very briefly to advert to the history of the legislation on this topic. (r=) The Act 26 Geo. III. c. 60 required (section 17) the bill of sale on every transfer to recite the certificate of registry, and declared that otherwise such bill of sale should be utterly null and void. The act being silent as to contracts, doubts arose which were ended by the Act 34 Geo. III. c. 68, which (sec- tion 14) made void both in law and in equity all contracts unless made in the manner prescribed by the former act. Under these acts a contract for the sale of a ship not reciting the certificate, but having a copy of the certificate annexed, was void.(/) § 15^3. These acts were repealed: and the enactment which then came into force was 4 Geo. lY. c. 41, which pro- vided (section 29) that when and so often as the property in any ship, or any part thereof, belonging to any of His Majesty's subjects, should, after registry thereof, be sold to any other or others of His Majesty's subjects, the same should be transferred by bill of sale or other instrument in writing, containing a recital of the certificate of registry of such ship or vessel, or the principal contents thereof, other- wise such transfer should not be valid or effectual for any purpose whatever, either in law or in equity : to which was added a proviso limiting the effect of an error in such recital. § 1524. This clause, which departed from the language of the older statutes, was re-enacted by the 6 Geo. IV., c. 110, s. 31, the 3 c£- 4 W. TV., c. 55, s. 31, and the 8 & 9 Vict., c. 89, s. 34 : and the 37th section of the last mentioned act further provided that no bill of sale or other instrument in writing should be valid or effectual to pass the property in («) See Liverpool Borough Bank v. Tur- i/) Brewster v. Clarke, 2 .Mer , To. ner, IJ. & H. h)6. QS6 FRY ON SPECIFIC PERFOKMANCE OF CONTRACTS, any sliij), or in any share thereof, or for any other purpose^ until the same was entered on the register. § 1535. The change of hinguage gave rise to a question : but it was determined, under the hist cited act, that execu- tory contracts to transfer not complying with the terms of the act were avoided by them. (17)' § 15!l26. Then came the merchant shipping act, 1854^(17 & 18 Vict., c. 104), which omitted all express reference to executory contracts, and omitted also any such words as are contained in the 37th section of the previous statute (8 & 9 Vict., c. 30): and thereupon the question arose wdiether executory interests might be enforced under con- tracts not complying with the formalities of the act : and this question was determined, as to an equitable mortgage, in the negative. (A) It has, however, been recently decided that an executory contract to transfer a shix) to a purchaser need not be registered, and may be enforced by the registered owner notwithstanding the non-registration. (/) § 1527. Lastly has. come the amending statute of 1862 (25 & 26 Vict., c, 63), which permits the enforcement, under certain conditions, of equities, clearly including the equity which results from a contract for sale not satisfying the statutory requisites for the legal transfer. § 1528. Independently of the statute of 1862. it has been determined that the merchant shipping acts do not apply to a contract relative to the xjroduce of the sale of a ship. A. was the registered owner of certain shares for his father's representatives: he was captain of the ship, and entered into a contract with his father" s administrators that he should navigate the ship for twelve months and account for the profits, and at the end of the twelve months sell the shares and account for their proceeds. He sold the ship: (g) Hughpg V. Morris, 2 De G. M. & G., 349; (A) Liverpool Borough Bank v. Turner, 1 S C. 9 Ha. 6^6; McCalmont v. Rankin, 2 De J. & H., 159; 2 De G. F. & J , 502 See, also, G. M. & G.. 403, 418; Coombes v. Mansfield, Chapman v. Callie, 9 0. B. N. S., 769 3 Drew., 193; Duncan v. Tinciall, 13 C. B., (t) Batthyany v. Bouch, 44 L. T. N. S., 177. 258. ' The requirements of the registry acts, in this respect, are the same by the laws of the United States as those of England. And it is likewise enacted here that, in every case of sale or transfer, there must be some instrument of writing, in the nature of a bill of sale, which shall recite, at length, the certifi- cate of registiy, and, without it, the vessel is incapable of being registered anew. Laws of the United States, 31st December, 1793, § 14; see Kent's Com., vol. '3; p. lio. CONTEACTS FOR THE SALE OF SHIPS. 687 and on the bill filed to enforce the contract, the objection from the merchant shipping acts was overruled. (,/) This case seems to have been thought by other judges open to doubt. (A*) § 1539. It is needless to remark that foreign ships>re entirely outside the observations hitherto made. As re- gards contracts for the sale of such ships, or shares in them,. the case of Hart v. Herwig(Z) may usefully be consulted. , ^ U) Armstrong v. Armstrong, 21 Beav., 71, (l) L. R. 8 Ch., 860; and see observations 78. on this case, supra, § 1L6. (k) Parr v. Applebee, 7 De G. M. & G., 585. Combes v. Mansfield, 3 Drew., 193. 688 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. CHAPTER V. OF CONTRACTS FOR SEPARATION DEEDS. § 1530. It seems clear that a contract providing for the separation of husband and wife at a future time is against public policy, and will not be enforced by the court ; and further that any instrument which provides for a present separation, but also prospectively looks forward to the parties living together again, and then to a future separation, is, so far as it provides for that future separation, equally unenforceable, {a) § 1531. The jurisdiction of courts of equity to enforce the specific performance of contracts for present separation, by the execution of proper deeds of separation, was estab- lished in the House of Lords, after a learned argument against it, in the case of Wilson v. Wilson, (&) where Lord Cottenham showed .that the law does not now consider a contract for present separation so contrary to public policy as to make void all arrangements of property arising out of it. § 153^. In order to enable the court thus to interfere, there must of course be a valid contract.. It is essential to this that the contract be between persons capable of con- tracting, and therefore, on the ground of a husband's general inability to contract with his wife without the inter- vention of some third jDcrson, it has been supi^osed that a simple contract between them to live separate will not be enforced by the court, (c) § 1533. In more than one case, however, Lord Hather- ley has expressed an opinion that a wife suing her husband for a divorce is in a position to contract with him, without the intervention of a trustee, for the abandonment of the suit in consideration of an annuity to be paid by him. {cl) (a) See per Lord Eldon in Westmeath v. (c) Hope v. Hope, 22 Beav., 8 De G. M. & Salisbury, 5 Bli. N. 8,366,367; Earl of West- G. 731; Wilkes. 3 Dick., 791; Walrond v. meath V. Oountess of Westmeath, Jac, 142. Wahond, John. IS. Of. Woodgate v. Watson, in C. A., 16th (d) Vansittart v. Vansittart, 4 K. & J., 62; November, 1880. Nicholl v. Jones, L. R. 3 Eq.. 696; Gibbs v. (6) 1 H. L. C, 538, affirming S. C. 14 Sim., Harding, L. R. 5 Ch., 336, affirming S. C. L. 405; Fletcher v. Fletcher. 3 Cox. 99; Gibbs R., 8Eq.,490. V. Harding, L. 11. 8 Eq.. 49il; 5 Ch , 336; IJucknell v. Bucknell, 7 Ir. Ch. R., 130. CONTRACTS FOR SEPARATION DEEDS. 689 And in the case of Besant v. Wood(d) Jessel, M. R., adopted this view, holding that a married woman must take, as inci- dent to her undoubted right to sue (by a next friend, or even alone), for divorce or restitution of conjugal rights, the right to contract, i. e., to compromise her suit ; that as a necessary corollary to the right to sue, she must have the right to contract not to sue ; and that therefore she can en- ter into a valid and enforceable contract to live separate and ^part from her husband.' § 1534. There must also be a good consideration : and as in contracts for separation this is sometimes peculiar, it will be well very briefly to allude to a few of the cases." § 1535. It has been decided that the staying a suit in the Ecclesiastical court for nullity of marriage, on the ground of impotency of the husband, is a sufficient consideration as against him :(/) and where the husband had so behaved as that the wife might have obtained a divorce a mensd et thoro, and she agreed, instead of prosecuting her right, to accept maintenance from the husband, this was held a good consideration, {g) A good consideration is also afforded by an engagement by the trustees to indemnify the husband against the wife's debts ;(y^) or even by a covenant to that («) L. B. 12 Ch D., 622; cf. Marshall v. Mar- (h) Stephens v. Olive, 2 Bro. C. C, 90; Karl shall, 5 P. D., 19. of Westmeath v. Countess of Westmeath. (/) Wilson V. Wilson, 1 H. L. C, 538; S. Jac, 126, 141; Elsworthy v. Bird, 2 S. & S . €. U Sim., 405. 372. {g) Hobbs v. Hull, 1 Cox, 445. ' There is, to say the least, considerable confusion in the cases on this point. It may, however, be laid down that courts of equity will, on no occasion what- ever, enforce articles of separation by decreeing a continuance of the separa- tion. Wilkes V. Wilkes, 2 Dick. R, 791; Worrall v. Jacob, 3 Merriv., 267; Westmeath v. Westmeath, Jac. R., 126; St. John v. St. John, 11 Ves.,' 529; Frampton v. Frampton, 4 Beav., 287; The People v. Mercein, 8 Paige, 45.' But it seems that a contract for separation between husband and wife will be enforced by the chancellor upon proof that there was such a cause for separa- tion as would have authorized the court to grant a divorce. McCrocklin v. McCrocklin, 2 B. Monr., 370. And equity will not, upon slight proof of con- ciliation, set aside articles of separation, however much disposed chancery may be to the adjustment of difficulties of this kind. Therefore, in Heyer v. Bur- ger, 1 Hoff's. Ch., 1, where, after articles of separation, a casual intercourse, between the husband and the wife, had taken place, but upon a mere friendly footing, without cohabitation, for three or four days, and loose expressions by the wife of an intention to destroy the articles, and an expression of a wish that they had not been made, were held not to be proof of such a permanent reconciliation and agreement to live together as would warrant the court in setting aside the articles. '' A /ewe covert m&,j make a valid agreement with her husband to discontinue a suit against him for separation ; but she cannot make a binding contract with him for separation, except under the sanction of the court. Rogers v Rogers 4 Paige, 516. ' 44 690 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. effect conditional on an annuity, which was agreed to be paid, being secured ;(/) or, as it seems, by a covenant of a third party to pay the husband' s debts. (J ) So, in a contract which provided ior the execution of a separation deed to contain all proper and usual clauses, and also a stipulation that the costs of the deed should be paid by the husband and wife's father in moieties, the court found consideration not only, it appears, in the contract as to the costs, but also in the covenant by the father to indemnify the husband, which seems to have been held to be a usual clause. (A*) § 1«>36. In many contracts for separation there have been contained provisions as to the care of the children which have been held to be at variance with the law, and so have formed a bar to the performance of the contract. For the law of England gives to the father the custody and control of his children, and casts on him the duty of caring for them and seeing to their education ; and this duty he can neither renounce nor delegate. {I) § 1537. On this ground the following contracts have been held incapable of performance : a contract by the father to allow an infant son to remain under the care of his mother :(m) a contract that the mother should have the children above seven years of age :{)i) and a contract to allow an infant daughter to remain under the control of and to be educated and supported by her mother. (o) But a stipula- tion in a deed that her children should remain at such schools in England as the husband, or such schools else- where as the husband, with the consent of the wife, should from time to time direct, and that the holidays of the chil- dren should be passed by them at such places and in such manner as the trustees should from time to time direct, having regard as far as practicable to the wishes of each of them, the husband and wife, was held by Lord Hatheiiey, reversing the decision of Lord Komilly, M. R., to be reasonable. (^) § 1538. An alteration in this branch of the law has recently been effected by statute (36 Vict., c. 12). The 2d (i) Wellesley v. Wellesley, 10 Sim., 256. (»») Hope v. Hope. 8 De G. M. & G., 731. (j ) Wilson V. Wilson, 1 H. L. C. 538. (n) Vansittart v. Vanslttart, 4 K. & J., 62. (k) Gibbs V. Harding, L. R. 8 Eq., 490; 5 (o) Walrond v. Walrocd, John., 18 Cii 336 (p) Hamilton V. Hector, L. R. 13 Eq., 511. (I) Lord St. John v. Lady St. John, 11 Ves., 6 Ch., 701. 525; Lord Weetmeath's case, Jac, 251 n. CONTRACTS FOE SEPARATION DEEDS. 691 section of this act enacts that no agreement contained in any separation deed made between the father and mother of an infant or infants shall be lield to be invalid by reason only of its providing that the father of such infant or infants shall give up the custody or control thereof to the mother ; provided always that no court shall enforce any such agreement if the court shall be of the oj^inion that it will not be for the benefit of the infant or infants to give effect thereto. § 1539. It will be observed that this enactment apjDlies in terms only to agreements contained in deeds, and not to contracts to execute separation deeds. But as the invalidity of the deed itself is removed, the whole objection to the specific xierformance of the contract falls also. § 1540. The questions which arise on specific relief with respect to the stipulations contained in deeds of separation do not, of course, fall within the purview of this treatise, which relates to executory contracts only. 692 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. CHAPTER VI. OF CONTRACTS TO COMRPOMISE. § 1541. The court will specifically enforce private com- promises of rights in the way in which it will any other contracts ; and, inasmuch as the compromise of a bond fide claim to which a person believes himself to be liable, and of the nature of which he is aware, is a good consideration for a contract, the court, in enforcing the compromise, will not inquire into the validity of the claim on which it is founded, (a) § 154S. Where the compromise sought to be enacted re- lated to proceedings in another court, it was manifest that the Court of Chancery could only entertain jurisdiction on a bill filed. (6) But where the primary litigation was also in the Court of Chancery, the question arose whether the compromise could be enforced in the original suit, by an interlocutory proceeding in it, or only by a fresh suit, based on the compromise. § 1543. It seems that where the immediate interference of the court was necessary to give effect to the contract, as where a party to the contract was, but for it, liable to an immediate attachment, there the court would to that extent interfere to execute the contract in the original suit.' § 1544. Further, there is authority to show that, where all the parties to the compromise were parties to the original suit, and the equity arising out of the compromise was of (a) Attwood T. Anon.. 1 Russ., 353. (6) See, for example, Nicholl v. Jones, L. • The compromise, to be upheld by a court of equity, must relate to a doubt- ful claim; where the claim is undisputed, payment of a part will not discharge the rest for want of consideration. Blanchard v. Noyes, 3 N. H., 518; Sey- mour V Mintern, 17 John,, 169; Wheeler v. Wheeler, 11 Vt., 60; Geiser v. Kershner, 4 Gill. & Johns., 305; State v. Payson, 37 Me., 361. As to family disputes and settlements, see Gordon v. Gordon, 3 Swanst., 400; Stapleton v. Stapleton, 2 Whart. & Tucker's Eq. Cas., note; Bailey v. Wilson, 1 Dev. & Batt. 183; Price v. Winston, 4 Munf., 63; Waikins v. Watkins, 24 Ga., 412; Fulton V. Smith, 27 id., 413; Smith v. Smith, 36 id., 184; Puller v. Ready, 2 Ark., 587; Mercier v. Mercier, 50 Ga., 546. The agreement to settle a family dispute must be final to be enforced; it must silso be complete in itself. John- son V. Johnson, 40 Md., 189; Wister's App., 81) Pa. St., 484. CONTRACTS TO COMPROMISE. 693 the same nature as the original equity, as where an account was to be taken alike under the original suit and under the compromise — where the whole matter was before the court, and the acts to be done were simple— there the court might enforce the compromise by interlocutory proceeding in the original suit.(c) § 1545- But, before the judicature acts, if not in all other cases, at least in all cases where the contract to com- promise went beyond the ordinary range of the court in the existing suit, or the equity sought to be enforced was different from that on the record, or the contract was dis- puted, or the right to have it enforced in the suit was dis- puted, or the parties were not identical, there the proper course of proceeding was by bill for the specific performance of the contract to compromise. (cZ)' § 1546. In the litigation which arose out of the will of Mr. Samuel Swinfen, the mode of enforcing a compromise entered into by counsel was much discussed, as well as the authority of counsel to bind his client to a compromise. The original proceeding was a suit in chancery by the heir of one of the next of kin, for the purpose of securing the testator's real and personal estates whilst proceedings were being taken to set aside the will on the ground of the want of testamentary capacity. The will gave the property to Mrs. Swinfen, the widow of the testator's son. Lord Romilly, M. R., directed an issue demsamt ml non, in which Mrs. Swinfen was plaintiff' and the heir was defend- ant During the trial at Stafford the leading counsel for the plaintiff and for the defendant signed a memorandum of ic) Dawson v Newsome, 2 Giflf., 272. The ton, 9 Ha., 65; Richardson v. Eyton, 2 De G. Court of CJhancery woul(i not enl'orce a con- M. & G., 79; Pryer v. Gribb.e, L. K. 10 Ch., tract for compromise between an infant and 634; which seem to overrule the dictum of an adult, there being no mutuality : per Lord Lord Eldon in Kowe v Wood, IJ . & W .,337, J^anedale, M R , in Hargrave v. Margrave, and the c.se of Tebbutt v. Potter, 4 Ha., 164. 12 Heav., 411. See, also, King v. Pinsoneauli, L. R. 6 P. C , (rf) Forsvth V. Manton, 5 Mad , 78; Wood 245. V. Rowe, 2 Bli., 595,617; Askew v. Milling- ' The compromise of doubtful and conflicting rights and claims is a good and sufficient consideration to uphold an agreement, and highly favored at law. Zane v. Zane, 6 Munf., 406; Taylor v. Patricli, 1 Bibb. 1()8; Fisher v. May. 2 id., 448; Mills v. Lee, 6 Monr.. 97; Hoge v. Hoge, 1 Watts; Covode v. M'Kel- vey Addis., 56; O'Keyson v. Barclay, 2 Penn., 531; Mclntire v. Johnson, 4 Bibb, 48; Chamberlain v. M'Clurg, 8 Watts & Serg., 31; Moore v. Fitzwater, 2 Rand., 442; Bailey v. Wilson, 1 Dev. & Bat.'s Ch., 182. And, therefore, an agreement between a creditor and a third person, founded on a valuable con- sideration, to compromise the claim of the former against his debtor, will be specifically enforced by a court of equity. 694 FRY ON SPECIFIC PERFORMAIS^CE OF CONTRACTS. compromise, including a stipulation for a conveyance of the land by the plaintiff at law to the defendant and the pay- ment by the defendant to the plaintiff of an annuity. The memorandum of comiDromise was embodied in an order at Nisi Prius, and afterwards made a rule of the court of com- mon pleas. Mrs. Swinfen declined to perform the contract, as made without her authority and against her wishes, Thereupon a rule nisi for an attachment against her was obtained, but discharged on the ground of want of evidence of demand of performance and refusal, (e) A second ap- plication for an attachment was refused because one of the judges of the court of common pleas doubted the authority of counsel to bind the plaintiff at law.(/) Thereupon the defendant. at law and original plaintiff in equity filed a supplemental bill for the specific performance of the con- tract, or in the alternative that another issue demsai)it vel non might be directed. This bill was dismissed by Lord Romilly, M. R., without costs, on the ground of want of authority of counsel :(,.7) and this decision was affirmed by Knight Bruce and Turner, L. J. J.,(/0 on the ground that, even if the plaintiff at law was bound at law, the contract was not one of which, under the circumstances, specific per- formance should be decreed. Mrs. Swinfen subsequently brought an action ag'ainst her leading counsel (then Lord Chelmsford) for damages, but failed. (/) § 1547. The judicature act, 1873, has introduced a great improvement in this practice. By section 24, sub-section 7, the court has in every cause power to grant all such remedies whatsoever as any of the parties may appear to be entitled to in respect of any claim properly brought forward by them in such cause ; so that as far as possible all matters so in controversy 'between the parties may be completely and finally determined. Accordingly it has been decided that the court has jurisdiction to stay all further proceed- ings in the action compromised, in cases in which an in- dependent suit would probably have previously been necessary, (y) (e) Swinfen v Swinfen, 18 C. B., 485, (i) Swinfen v Lord Chelmsford, 5 H. & N., (/) S. C. 1 C B. N. S., 3(;4 890. (fir) Swinfen V. Swinfen, 24 Beav., 549. (j) Compare Eden v. Naish, 7 Ch. 1)., 781, (A) S. C. 2 De G. & J., 381. Cf. HoU v. an) The court thus decreed their performance "be- cause," to use Lord Eldon's language, " the award sux3poses an agreement between the parties, and contains no more than the terms of that agreement ascertained by a third person. "( 6*)' § 1549. Lord Hardwicke(r7) seems to have laid it down that a bill to carry an award into execution, where there (rt) Norton v. Mascall, 2 Verne., 24; Hall v. per Turner, L. J., in Nickels v Hancock, 7 Hardy, 3 P. Wms., Is7; Walters v. Morgan, De G. M. & a., 300. H Cox. 369. (d) Thompson v. Noel, 1 Atk., 60, and see (6) Note of reporter, 3 P. Wnis., 190. other cases cited in Russell on Awards (5th (c) In Wood V. (iriflith, 1 Sw., 54; see also ed.), 548 et seq. ' Courts of equity will geaerally decree the specific pevformance of awards. McNeil V. Magee, 5 Mason, 244; Jones v. Boston Mill Corporation, 4 Pick., 507; Cool V. Vick, 2 How, (Miss.), 882; Kirksey v. .Fike, 27 Ala., 383. And the ground on which the court interferes to decree specific performance of an award, is, that the award is an agreement between the parties to the submis- sion, and that most, if not all, of the principles regulating specific performance are applicable. If, therefore, the arbitrator exceeds his authority, or does not decide all the matters submitted to him, or decide something which cannot be carried out consistently with the intention of the parties as shown by the terms of the submission, specific performance of the award cannot be decreed, as the award, to that extent, does not embody an agreement between the parties. It seems, also, that the court cannot, in such a case, separate that part of the award which cannot be enforced, and decree specific performance of the rest. JSickels V Hancock, 35 Eng Law and Eq., 'Sij'S; McNeil v. Magee, 5 Mason, 244; Kirksey v. Fike, 27 Ala., 383. In reference to the specific performance of awards to simply pay money, the general rule of this country seems to coin- cide with that of England. Turpin v. Banton, Hardin, 312; Storv v. Norwich and Worcester R. R. Co., 2 Conn., 94; Babier v. Babier, 24 Maine, 42. But in Wood, 2 P. & H. (Va j, 442, it is said that a court of equity has jurisdiction to enforce specific execution of an award concerning real estate, or of an agree- ment for the purchase and sale of real estate, notwithstanding that it involves the enforcement of an award to pay money. It is clearly not the rule to suffer the ends of justice to be defeated, and the jurisdiction of equity to be ousted, in cases of hardship, because of an obligation in an award to pay monej'. And probably the rule is the same, whether the hardship arise because of loss of remedy at law, or the inate unconscionableness of the award itself. Story v. Norwich and Worcester R. R. Co., 24 Conn., 94; Vie'le v. Troy and Boston R R. Co., 21 Barb., 381.. 696 FRY ON SPECIFIC PERFORMANCE OF CONTRACTS. was no acquiescence in it by the parties to the submission^ or contract by them afterwards to have it executed, would not lie. But, as we have seen, subsequent cases established that the jurisdiction was not subject to these restrictions. § 15^0. The fact that the submission had been made a rule of the common law court created no impediment to its specific performance by the Court of Chancery, (e) though it would have been otherwise in a suit to set it aside. (/) § 1551. There is an old case in which the Court of Chan- cery specifically enforced an award not binding by form of law.(^) But, in Blundell v. Brettargh,(7i) Lord Eldon said he had met with no authority for the specific performance of an award by arbitrators appointed for the valuation of interests, where their acts, for the purpose of carrying into effect the contract for an award, were not valid at law, as to the time, manner or other circumstances, unless in the cases of acquiescence or part performance: and accordingly in the case before him he refused specific performance of a contract to sell at a valuation, which, on the construction of the contract, the court held was to be made during the lives of the parties, one of them having died before the award was made.' § 155^. It is, however, plain that by mutual abandon- ment of some provision of the submission, as e. ^., that limiting the time for the award, the defendant may be pre- cluded from raising in a court of equity an objection which might otherwise prevail. (i) § 1553. The objection arising from unreasonableness, not of the submission but of the award itself, the court is not willing to entertain ; for the arbitrators being judges of the parties' own choosing, it has been held that the award can- not be objected to by either of the parties, on the ground of its being unreasonable. (,/) This principle was stated and (e) Wood V. Griffith. 1 Sw., 43; Hawks- strictly one of arbitration and award, but worth V. Bramhall, 5 My. & Cr., 281 ; Black- rather of contract to sell at a valuation. See ettv. Kates. 2 H. & M , 270, 610; reversed, on Kinneen v Persse, 7 Ir Cli. R., 438. point, L R. 1 Ch., 117. (i) Hawksworth v. Brammall, 5 My. & Cr.,, (/) Auriol V. Smith, T. & R., 121. 281. (iike of Somerset, 19 Whitaker, 4 Drew , 134; Vickers v. Vickers, Ve^.,429; A ear v MacUlew, 2 8. & s.,418; L. R. 4 Eq., .'5'29; supra, § 338 et seq. Gervais V Ed«a.ublic nature may be urged. § 1570. Accordingly, in a case where the defendant com- pany contracted with the plaintiff company not to make (a) AVare v. Grand .Tunction AVaterworks See, too, Steele v. North Metropolitan Rail- Co., 2 R & My, 470, 483; Heathcote v. North way Co., L R. i Ch., 237. Staffordbhire Railway Lo., 2 Mac. & G., 100; (c) Heathcote v. North Staffordshire Rail- Lancaster and Carlisle Railway Co v. North- way < o, 2 Mac. & G , HO. Western Railway Co , 2 K. & J., 293. See (tit) Lancaster and Carlisle Railway Co. f. also, Att'y-Gen. v. Manchester and Leeds Northwestern Railway Co., 2 K. i. inequitable refusal to refer to 700 ARBITRATOR : award will be enforced 699 n. award in excess or authority of 699 death of, before award 700 misconduct of 186, 698 price to be fixed by 165 rent referred to 186 valuer, distinguished from 164 714 INDEX. ARCHDEACON: page. jurisdictiou of, over contracts 6 AREA: COMPENSATION (q. V.) eiven for deficiency of 595 not given for deficiency of 596 ARTICLES OF ASSOCIATION, liow far a contract 131, 132, 257 ASSENT: must be to that wbicii is offered 134 n. ASSIGN : cannot by notice prevent completion with his assignor 102 enforcement of contract by 93, 100 extent of rights of 103 FKAUD (q. v.), of contract tainted by 350 insolvency of 465 notice of previous contract, with 102 recognized as tenant 99 ASSIGNEE : BANKRUPTCY {q. «,), in, suing 99 time allowed to procure concurrence of 626 insolvency, in, contract for lease enforced against 103 n. ASSIGNMENT : amalgamation of companies, upon 105 contract, of 93 ei! seq., 93 n. , et seq. exceptions to general rule as to 96 EXPECTANCY (g. ^.), of 100 family arrangement, where 99 general rule as to 93 illegal 96, 99, 101 71. MISREPRESENTATION («?. V.), of contract affected by 336 offer of 102 personal contracts, of 96, 99, 113 pretended rights or titles, of 99 previous personal relation between contractors, where 97 property, of the 102 provision against, where 96 waived 99 public policy, contrary to 96, 101 right at the time undisputed, of 100 to bring action, of 100 satisfied term, of 631 set off, where a 97 statutory powers, of 102 trustee in bankruptcy, by 100 ASSIGNOR : completion of contract with , 102 insolvent 93, 465 party, when a 93 INDEX. 715 ASSISTANCE: paae. writ of 559 ASSYRIA : contracts in ancient 3 n. ATTACHMENT : enforcement of order by 556 AUCTION : improvident sale by 190 AUCTIONEER : agent of purchaser at auction ■ 262 authority of 264 clerlv of, how far purchaser's agent 264 confirming, contract "on behalf of the vendor " 163 co-plaintiff > H" declaration by ^69 defendant 119 deposit, his rights and liabilities in respect of 119, 120, 661 entries in sale-book by 264, 268 interpleading 119 party, when made a ■. 119, 127, 651 purchase in private from 262 signature by 263 n. solicitor for vendor 120 stakeholder 120, 661 substitute, may not appoint 264 AUTHOR: contract by, to complete work 92 AWARD : abandonment of a term of the submission, after 696 alternative directions, giving 486 death of party before 696 defective 698 exceeding arbitrator's authority 696, 698 founded on improper submission 697 hardship in 195 ILLEGALITY {q. V.) Oi 228 not binding by form of law 698 not signed by valuers together 186, 187 partial execution of 405 price to be determined by 689 specific performance of, when decreed by the Court of Chancery 695 11 695, 696 uncertain 698 ■ unreasonableness of 195, 228, 695, 697 unsuccessful proceedings to set aside, effect of 47, 473, 698 valuation, on sale at a 696 BAILIFF: accountability of 645 to purchaser, vendor in possession is not 645 716 INDEX. BANKRUPT: page. purchaser 464 vendor 464 BANKRUPTCY : act of, a bar to action for specific performance 464 assignees in, suing '. 99 contract, does not per se discharge 464 personal contracts, its effect on 96 trustee in, assignment by 99 covenants by 463 disclaimer by 464 enforcement of contract by 463 specific performance against 106, 464 BANKRUPTCY ACT, 1869 : disclaimer under 464 BIDDINGS 188 opening 446 (And see Puffer.) BILL OF LADING : stipulating as to leakage and breakage in 642 BILL OF SALE: transfer of ship {q. v.) hj 683 BOND: alternative conditions, containing 487 ante-nuptial 37 contract contained in condition of 57 evidenced by 57 to give 406 marriage articles by 60 n. relief from penalty of _ 485 to refer to arbitration 699 {And see Penalty.) BREACH : COVENANT {q. v.), oi 36, 468, 470 et seq. duty, of 192 good faith, of .- 473 BREACH OF TRUST: assignees in bankruptcy, by 192 contract necessitating, not enforced 190 objections for, precluded by conditions of sale 191 setting aside contract for 192 trustees for sale, by 1 90 BUILDING CONTRACT : anciently enforced 34, 39 damages uuascertainable, where 42 defined work to be done, where 41 divisiljle 403 house to be built and leased, concerning 39, 156, 157 liability of court to enforce 39 Lord Cairns' Act, since 41 INDEX. 717 BUILDING CO'^TRA.CT—Coniinued. page. market-house, for erection of 42 plaintiff's interest in, material 41 possession obtained, where 42 savouring of the realty 34 Scotland, in 41 uncertainty of 39 where court will enforce 41, 39 n. {A7id see Railway, Siding.) BURDEN OF PROOF 131, 141, 400 {See Onus.) BUSINESS : covenant not to carry on 58, 36 n. CALLS : indemnity against 664 made before contract 673 CANAL : covenant to repair 43 CANON LAW : obligation of actual.perf ormance recognized by 6, 7 CAPACITY : acquired after contract 480 to contract 124 e^ seq, 688 perform contract 479, 480 {And see Incapacity, Incapacity to Contract.) CERTAINTY : amount of, what required 175, 176 boundaries, by ascertainment of 160 essential in contracts 155 FKAUD {q. V. ), less required in cases of 180 indefinite words, in cases of 176 reasonable 175, 176 user and course of dealing, given by 176 {And see Uncertainty.) CERTIFICATE : against the title, but defect cured 629 should state the defects 628 application to discharge or vary 628, 630 defect discovered before signing of 627 form of, upon inquiry as to title 627, 628 in favor of title 628 objecting to, before signature 627 n. purchase under the court, of 445 reference-back of 628, 629 result of inquiry as to title, of 627 sale, of 653 CESTUI QUE TRUST: contracts injurious to, not|enforced 191 real estate devised in trust, of 88 n. {And see Parties.) 718 INDEX. CHAMPERTY : page. contract unenforceable on ground of 229 doctrine of ^^^ CHARIOT: ' contract to supply ^^^ ^^^ CHARITABLE CORPORATION: contract by '^^^ CHARONDAS: principle of •* CHARTER-PARTY : effect of exception in, as to pirates 642 negative term implied in 414, 415 specific performance of, enforced 28 ». CHATTELS : connected with enjoyment of estate 34, 34 convenient 33 deliverj' of 3, 5, 9 part of contract 28 w. disclosure of latent defect in • 341 execution for return of 5 of judgment for delivery-up of, stay of 31 n. essential 38 generally court refuses to interfere in respect of 28 implication of existence of 444 improper dealings by agent with 34 instalments, delivery of, and payment for, by 35 not in possession of vendor, sale of 481 peculiar value, of 33 pretium affectionis, having 28 price agreed on, where 33 specific 32 trust constituted, where 34 unique 28 CHAUCER . contracts mentioned by 6 CHOICE OF REMEDIES: must seek redress first at law 47 n. CHOSE IN ACTION : contract to assign 16, 79 n. CICERO : concealment, on j 343 CIVIL LAW : alternatives, as to 489 n. COAL: contract for supply of 518 COLLATERAL CONTRACT 277, 278 default by plaintiff in respect of 458 INDEX. 719 156 approval of draft not a 248 arbitration not enforced for 195 n. articles of association constituting 131 assignment of 93 et seq benefit of, had in specie 42 BREACH OP TRUST {q. V.) Or of prior contract, involving 190 BUILDING {q. V.) 34, 156, 39 n. business, not to carry on 57 CERTAINTY (q. V.) of 155 et seq. COMPLETENESS {q. V.) 155 et seq. change of 163 n. 726 INDEX. CONTRA.CT— Continued. page. charitable purposes, for 47 CHATTELS (rj. v.), foT Sale and delivery of 5, 28 e^ seq. Chaucer's mentiou of 6 chose in action, to assign 16 collateral 277, 458. common law, how regarded at 15 coxrPANY {q. V.), of 118, 232, 309 compounding a felonj- 230 n. complete, must be 155 7i. concluded 131, 248 conditional '. 447 consideration, where no 45, 203 n contemporaneous 404 contingencies, involving 184, 475 et seq. continuous acts, involving 35, 40 corrupt consideration 225 n- cross 403 death of party, to 88 ?i. debt to purchase 19 deed, contemi)lating 406 defect in subject matter of 421 n definitions of 1, 133 n. discrepant with itself 177 divisible or not 399, 419 7i., et seq. donee of power, by 73 effect of 633 elements of, classified 169 n. enforcement, of, when impossible 17 n. equity, how regarded in 15, 571 essentials of 155 events prior to 443, 445 subsequent to 446 existence of 131 EXPECTANCY (q. «.), relating to 677 et seq. expectation of 131 FAiKNESS {q. V.) of 181 et seq. foreign 49, 49 n. foreign government, by 48 full performance impossible 399 w., 410 n. future acts, depending on 410 stipulating for 406 future day, to convey on 481 general terms, framed in 168 GOOD WILL (q. V.), respecting 36 guide-book, to edit ■ 357 HARDSHIP (^q. V.) of 188, 193, 193 71. , et seq. HIRING AND SERVICE (q. V.), of 43 HUSBAND AND WIFE (^q. V.), between 128 ILLEGALITY (q.v.)of 223, 229, 448, 222 n., 46 n. INDEX. 727 CONTKACT— Cb«^2VmefZ. p^ob. immovable property, relating to 49 implied terms of 169 e< seq. impossible 45 incapacity of defense 124 n. indemnify, to 391 instalments, to be performed by 35 instructions for a settlement .... 131 intoxicated person, by 189 n. judge's order, 131 LEASE {q. v.), to accept 41, 125 n. lunatic, of 130 marine insurance, for 341 marriage, in restraint of 224 n. MAERiED WOJIAK {q. 1).), oi 125, 129 material terms of 168 music-hall, to let 478 MUTUALITY {q. V.), of 213, 220, 221 71. notice of withdrawal from 659 n. non-conclusion of 131 et seq. new, must not be inconsistent 182 obligations arising from 2, 635 of the parties to 634 option, giving 65 parliamentary 53 PARTNERSHIP {q. V.), for 38, 680, 681 PART-PERFORilANCE (q. V.) of 281, 301 71. passing of the property in subject-matter of 633 payment of money for , 5 satisfied by .' 25 not part performance 301 n. PENAL SUM {q. V. ) , with 55 personal 92, 96, 98, 99, 113 personal services, for 43, 44, 404, 478, 36 n., 45 n. (See Hiring and Service.) philanthropy, for purposes of 47 piecemeal execution, providing for 162 w., 403, 407 place of execution -. % n. pleasure, for purposes of 47 pollicitatio distinguished from 133 n. positive 478 posting, perfected by 295 premium, to reduce 35 privity of » 50 promoters, by 107 et seq. (And see Com/pany.) public policy, against 96, 101, 676, 7i., 222 %., 226 n. purchasing goods 232 n. real estate 50 n. RAILWAY {q. v.), to make 25, 179, 215 (And see WorJcs.) 728 INDEX. CONT'RACT—Co7iii7iued. page. reasonableness of WS, 181 recital evidencing 131 recission of 497 n. registered land or charge, relating to 81 renewal, for 169 renew perpetually, to 65 repairing 39, 40, 43. {See Building Contract.) REPRESENTATION (rj. V.), by 147 et seq. RESCISSION (q V.) of 492 et seq. reversion, for sale of 211, 213 {See Reversionary Interest.) revocable 37, 88 roads, to make 173 savouring of the realty 34 scientific pursuits, for purposes of 47 several documents, contained in 266 n., 251 n. SHARES {q. V. ), for 664 et seq, SHIP (q. v.), for sale of 683, 686 SIGNATURE {q. V.) of 253 et seq. specific chattel, for delivery of 31 spes successionis, concerning 16 STOCK (q. v.), for purchase or transfer of 26, 19 STOCK EXCHANGE {q. V.), made on the 664 et seq. subscription of 253 n. tenancy, for 24 tenant in tail, by 73 third person's decision, referring to 169' timber trees, for purchase of 19 time of payment may be of essence of 512 n. time, when complete 512 n. to contract 169, 658 trust created under 404 n. uberrimm fidei 341 ULTRA VIRES {q.v.) 110, 232 n. unbusiness-like 192 UNCERTAINTY {q. V.) oi 160, 172, 173 w., et seq undated 171 underlease, for 170 undertaking, in nature of 217 UNFAIRNESS {q. V.) of 181 et seq. unlawful consideration 223 n. unilateral 217. 527 unreasonable 196 n. unregistered 103 utmost endeavours, to use 485 voluntary 45 way-leave, to grant 25 will, to make 105 working mines or quarries, for 40 INDEX. 729' PAGB. CONTRAVENTION OF CONTRACT, ACTS IN AGT et seq. {See Acts in Contravention of the Contract.) CONVEY : effect of direction to 70, 628 ?i. CONVEYANCE : legal estate passes by 633 by parents for children 680 n. questions of 680, 631 vendor's obligation to execute and procure execution of 634 COPYHOLD : cannot generally be forced on purchaser of freehold (and vice versa), 424, 424 n., 579, 579 n. compensation for 581, 582 CORPORATION : common seal, absence of, when not a defense to 311 must generally contract under 309 companies act, 1867, as to contracts by 310 companies clauses act, 1845, as to contracts by 309 contracts by 235 n. distinction between individuals and 235 n. ecclesiastical, covenant for renewal by 485 every-day contracts of 309 fraudulent representation by agents of 336 n. formalities requisite in contracts by 309 HAKDSHiP (q. « ) on individual members of 198 irregularity in contract by 239 omission of formalities in contract by 239 PART-PERFORMANCE [q V.) of invalid contracts of 285 power of, to contract ^ 232 prima facie bound by contract under seal 232 validity of contracts of 232 RATIFICATION {q. V.) by 235 trading, contracts of 309 ULTRA VIRES (q. V.), contracting '. 466 ei seq. (And see Company.) correction of mistake in deed 372 n. , 376 n. COSTS : application to rectify register, of 541 contract respecting 679, 689 county court, where action within jurisdiction of 540 demand as relating to 630 n. inquiry as to damages, of 604 n. issue to ascertain damages, of 646 laches, in case of 531 land transfer act, 1875, under 541 lien on estate for 629, 6G0 purchaser's objections overruled, where 630 reference of .title prevented by purchaser, where 630 representative of deceased vendor, of 88 n., 90 7i. 730 INDEX. , ■COSTS — Continued. page. rescission of default after judgment, upon 556 small breaches of good faith may affect 473 title assured by payment of 439 too doubtful to force on purchaser, where 628 up to time of first showing a good title 630 waiver of rights, by 235 n COUNTERCLAIM 80, 538, 660 COUNTY COURT ACTS, 1865, and 1867 540 COUNTY COURT RULES : appeal from 540 concurrent jurisdiction of high court in cases cognisable by 541 jurisdiction of, in specific performance 540, 541 transfer of actions to and from 540 COVENANT : breach of, frequent 36 involving merely nominal damages 470 breach of, landlord defendant objecting on ground of 471 trifling , 470 under contract for lease 33, 467, 470 waived 470 willful 470 canal, to repair 43 construction of the word 563 deeds, to produce ■ • • • 479 farming lease, in 35, 58, 408 further assurance, for 460, 478 indemnify, to 460, 704 INJUNCTION {q. V.) to restrain breach of 407 et seq. by insolvent 465 n liquidated damages, protected by provision for 124 mines, to work 471 mutual as to building 124 notice of 105 oppressive to lessee of mines 201 possible liability under 575 prima facie right to enforce 407 real 6 renew, to 20, 217, 469, 471 repair, to 467, 470 to leave buildings in 201 restrictive 470 reversioner enforcing 74 right of pre-emption, to give 102 n. separation deed, in 470 settle lands, to 407, 677 three classes of 56 n. trustees, by 464 ULTRA VIRES {q. V.) 190 usual 168 7i. , 423 TO. INDEX. 731 ■COVENANT— Co?j^2>Mierf. page. variation of 372 writ of 6 CREDITORS : deceased vendor's contract enforced by , 90 cross bill 63 ?i. CY PRES EXECUTION : .COMPENSATION {q. V.), in enforcing contract with 588 illegality created by statute, in cases of 448 incapacity of defendant to perform contract literally, in cases of 483 subsequent legislation, where contract partly invalidated by 485 utmost endeavors, of contract to use 485 DAMAGES : act of part-performance answerable in 43 addition to specific performance, in 599, 603, 603 bringing suit to hearing for 603 building contract, for breach of 156 chattels, a sufficient remedy in respect of 38 COMPENSATION (q. V.), a spccies of 597 distinguished from 599 condition, for non-performance of 411 contrasted with specific performance 3,5 delay in performance, for 603 deterioration, given by means of inquiry as to 599 elected alternative, for non-performance of 490 equity will not interfere, when IS n. evidence as to amount of 604 French law, as to '^05 inequitable action 607 inexactness of measure of 33 inquiry as to 603, 604 jurisdiction of the Court of Chancery in respect of 599, 600 High Court in respect of 601 liquidated • 57, 59, 58 7i. {See Penal Sum.) Lord Cairns' Act (q. v.), under 411, 600, G02 loss of profits, for 602 mistake of defendant, where specific performance is refused for G04 no case for specific performance, where 601 non-building, for 603 no title, where vendor shows •■ 503, 603 part-payment and outlay by purchaser, in case of 601 positive contract, for non-performance of 479 quantum damniflcatus, ascertained by issue of 599 n. railway cases, in 33 remedy by, unavailable from form of contract 19 rule as to 606 ?j. specific performance impossible, where 600, 601 specific performance in lieu of 21 7i. station, for non-erection of 603 732 INDEX. BAMAGES—Contmned. page. stay of proceedings, upon 557 subsequent to decree • 601 substitution for specific performance, iu 600, 601, 603 trial, assessed at the 604 utility of the jurisdiction in 602 vendor of land, an incomplete remedy to 25 where performance cannot be had 608 n. DEATH : admission in pleadings, after 275 author, of ■ ^5 contract enforced notwithstanding 88 rendered impossible by 19 personal contracts, in cases of 92 principal, of 265, 88 n. proposed lessee, of 92 purchaser, of 91 revivor after 91 tenant in tail in common, of 483 vendor, of 88 DEBT: contract to purchase 19 sale of proved, contract for 23 specific performance 14, n. DEBTORS ACT, 1869 : defendant about to quit England, as to 553 DECEIT : action for 316, 319. 320, 323, 337, 344 aggressive 345 {And See Fraud, Misrepresentation.) DECEPTION : as to the person contracted with 98, 313, n. et seq. DECLARATION : indemnity, of liability to perform covenant of 704, 705 purchaser's lien, of 662 vendor's lien, of 558 DEED: accidental destruction of 170 antedating 473 contract contemplating execution of 406 to execute 681 decreeing execution of 681 deUvery up of 170, 465, 480, 565, 466 n. description in 490 n. duplicate when had 17 w. fraudulent misdating of 473 n. loss of 465, 46 n. mistake in, may be corrected 372 n. not in proposed covenantor's power 480 INDEX. 733 DEED— Continued. page. prepare, who must 499 n. 535 n. production of ^'^^ secondary evidence of execution of 466 n. verification of 632 {And see Title Deeds.) DEFAULT OF PLAINTIFF ; ACTS IN COXTRAVEXTION OF THE CONTRACT {q. «.), by 467 et SCq. collateral contract in respect of 45S excused ^"^ independent covenant, in respect of ^60 {And see Perfm'mance.) DEFAULT OF BOTH PARTIES 536 n. DEFECT IN SUBECT-MATTER: easements, consisting in existence of 422 essential 421, 425 latent, obligation to disclose .• 341, 421, 423 liability, consisting in existence of 423 minute examination of, not demanded 422 patent 332, 421, 422, 577 question of title not a 421 sale with all faults, in cases of 424 subject matter 4-1 n. uncertain description, in cases of 424 unessential 4»o unknown at time of contract to both parties 423 DEFENSE: of personal incapacity 124 n., 187 n. DEFINITION: mistake 360 n. signed 253 n. specific performance in . . • 133 n. subscribed ; '. 254 n. DELx-^Y: abandonment, amounting to 526 acceptance must be without 139 of title, in regard to 527 accidental 64«/ act of God, arising from 643 action, in instituting 525, 526, 529 n., 530, 531, 536 n. prosecuting 5-6 constituting laches 526 et seq. damages for 60- death of vendor, arising from 643 defendant, attributable to 532 "from whatever cause" 640 e« seq., 649 interlocutory injunction, as an objection to grant of 546 interest, not exempting purchaser from payment of 642 lessor of wine-vaults, of 532 734 INDEX. DELAY — Continued. page. liability or loss, involving 521 mine, in contract iof lease of 529, 530 negotiation, pending 531 notice limiting time (q. v.), after 522 of refusal to perform, after 53(X performance, in 526, 537 possession, where plaintiff is in 529, 531 possibility of, contemplated 642 protest against 533 purchase-money, in payment of 517 purchaser in possession, by 657 purchaser's objections, occasioned by 639 unilateral contracts, in cases of 527, 528 untenable objection, arising from 532, 643 vendor, attributable to 637 "waiver of 533 et seq. conduct, by • 533, 534 notice of abandonment, after 534 what, sufficient to bar right to relief 529, 530 DELIVERY : of deed 466 n. DEMAIs'D: relating to costs 630 n. of performance 529 n. DEMURRER: compensation, to vendor's bill for performance with 570 Statute of Fkauds {q. v.), on ground of 240, 243, 244 work and labor done, to bill for 289 DEPENDANT COVENANTS 459 n. DEPOSIT: allowed to remain in vendor's hands « 533 AUCTIONEER {q. V.), holding 119, 661 condition as to time for payment of. 516 for repayment of 662 discretion of Court of Chancery as to ordering return of 662 forfeiture of 58 n., 661 infant cannot recover 215 n. injunction against action for 549, 574 interest on 629, 639, 644 lien on estate for 629, 659 et seq. memorandum of terms of 18 purchaser disentitled to sue for 611 retainer of vendor's costs out of 662 sale by auction, on 659 n. private contract, on 659 stakeholder of 119 sued for before day fixed for transfer of possession 661 vendor ordered to repay 629, 662, 665 INDEX. 735 DESCRIPTION : PA»E. deflniteness of, what required 159, 490 n. flourishing 583 " freehold residence " 563 general 157, 184, 424 indefinite 177 misleading 561 MISREPRESENTATION (^ t'.) in 582 name, instead of 161 parties, of 160, 162 reference to holder of deeds, by 159 subject-matter, of 157, 159 sufficient, instances of 163 UNCERTAINTY {q V.) of 161, 424 variation from, a ground of defense 421 vendor prima facie responsible for 571 DESTRUCTION : of SUBJECT-MATTER {q. V.) of coutract 443, 444, 447 et seg., 675 DETERIORATION: accidental 647 accountabitity of vendor for 592, 646, 647 acts of ownership occasioning 656 after purchaser takes or ought to have taken possession 647 COMPENSATION {q. V.) for 592, 64& discovery in case of 646 due to purchaser himself 64& inquiry as to • • • • 599 negligence of vendor or his tenants, arising from 593 set-off of amount of, against interest 646 vendors' lessees, by 646 working mine, by 647 yearly tenancy, where property sold is let on 646' DETINUE : action of 13 (And see Chattels.) DEVISE: agreement to 105 '^- DEVISEE : purchaser's, when a party 91 vendor's, when a party 88 DIRECTOKS : agents of company H^ breach of duty by 1^2 irregularity in contracts by 23& liability of, on contracts 118 MISREPRESENTATION {q. V.) hj ' 318, 324 principals 118 refusal of, to register transfers 873 resolution of, where a contract 118 '736 INDEX. DmBCTOHS— Continued. page. statutory power of, to contract 309 suing without joining shareliolders 75 ULTRA VIRES (q. V.) in cascs of contracts 285 DISCLOSURE: obligation to 340 cJ seq. patent defect, of • - 343 state of house, of 343 {And see Fraud. ) DISCOVERY : deterioration, in case of 646 DISCRETION OF COURT: Companies Act, 1863, s. 35, under 542 injunction, as to 624 Lord Cairns' Act, under 599, 602 relief on admissions of fact, as to 624 return of deposit, as to 662 specific performance, as to 10 transfers of shares after winding up, as to 676 when it ceases 11 n. DISENTAIL: contract to (cf.) 48 n. DISMISSAL OF ACTION: certificate against the title, upon '. 629 title, for defect or want of 427, 609 DISTRESS : evidences of 187 DIVISIBLE CONTRACT 399 ei! seq., 419 n. builder, by 403 contemporaneous contracts intended to be separate, where there are . . 404 distinct lots, for 401 piece-meal execution, providing for 403, 407 ship and freight, for 400 two estates included in same contract, where 403 DIVISION LINE: by parol agreement '• 508 DOLUS DANS LOCUM CONTRACTUI 322, 342 DOWER: rule for computing 128 n. right of a cloud on title 432 ?i. DRUNKENNESS 188 (See Intoxication.) EASEMENT : construction of condition as to 564 ECCLESIASTICAL CORPORATION: contract for purchase by 521 ECCLESIASTICAL COURTS: former jurisdiction in specific performance of 6, 7 INDEX. 737 « PAGE. ECCLESIASTICAL LAW 7 EGYPT: contracts in ancient 3 n. ELECTION: alternative, of 487 e^ seq. assignees in bankruptcy, by 464 award, respecting 47 bond, where contract comprised in 60 common law, to proceed at 47 completion and recission, between 486 contract becomes single by 490 decree, given by 123 destroyed by obligee 490 discovery of fresh incidents of fraud after 353 express or inferred, may be 353 FRAUD (g. V. ), as to contract tainted by 351 et seq. , 354 inadequacy of coksideration {q. v.), in cases of •. 210 indemnification of vendor and rescission between 200 interest and rents, between 649 Lands Clauses Act, by proceedings under 47 marriage articles by bond, not imported from form of 60 w. married woman, of 128 MISTAKE (q. v.), in cases of 371 mode of ascertaining price, as to 165 negotiation for payment of money, by 47 once determined 353 open reference of title and dismissal of bill, between 625 parol variation, in cases of 369 payment into court and giving up possession, between 653, 656 performance and payment, between 55, 57, 60 {And see Penal Sum.) plaintiff's offer, arising from 392 present practice, under 47 proposal giving l43 ratification and annulment, between 378 rescind, to 353, 507 settlement, in contracts for 64 SUBJECT-MATTER^?. 1).) of contract ascertained by 160 time for exercise of 353 EQUALITY : essential in contracts 155, 181 EQUITY : relief by 555 ti. creates no right of action \Z n. EQUITABLE ESTATE : sale of 61^ revesting of 633 when it passes 4^'''' ^33, 633 n„ 47 738 INDEX. , EQUITY OF REDEMPTION : page. person interested in, a party 67 ERROR : antecedens and consequens, distinction between 336 iu COMPENSATION (g. v.)ioT 544 et seq., 579, 583, 595 knowledge of 319 means of discovering, before completion 561 person contracted with, as to 98 reduction of contract into writing, in 369, 371 n. . {And see Mistake.) ESTATE AGENT: ACCEPTANCE (q. V.) hj 252 ESTOPPEL: by treating contract as subsisting 616 EVIDENCE: abandonment, of 524 additional terms, of 308 AGENCY {q. v.), of 259, 259 n., 263 n. agreement to rescind, of 466, 494, 495 arbitrator, of 698 buildings not being on copyhold part, of 698 collateral matters, of 493 conflicting, as to breach of covenant 472 connecting subject-matter of contract with claim 159 damages, as to amount of 60S defendant's denial, overcoming 379 distress, of 187 earnest as 285 extrinsic 167 fraud, of 205 n. identity, of 157, 619, 633 knowledge of misrepresentation, of 333 litigation, to maintain 100 ii. matters of, distinguished from matters of title 632 MISTAKE (q. v.), of 360, 373, 378 new contract, of 497, 499 (And see Novation.) non-waiver of objection, of 616 PAROL {q.v.) 157, 159, 277, 386, 308, 360, 371, 377, 49S admission of, for plaintiff 387 ei seq. latent ambiguity, in cases of 379 only acted on when no writing exists 379 PART PERFORMANCE (q. V.), in cases of 281, 313 {And see Parol Variation.) admission in pleadings, where there is 303 conflict of testimony, where there is 304 one witness, of 304 variation between contracts alleged and proved, where there is. . . 304 recovery of property, for 100 n. REFERENCE OP TITLE {q. V.), under 627 INDEX. 739 EVIDENCE— Conimy^c?. page. secondary, of execution of deeds. 465 n. SUBJECT-MATTER (g. V.) of contract, as to 157 terms of sale, of 284 trusteeship for real purchaser, of 278 usage of trade, of 378 variation of written contract, of 494 vendor, as to the real 163 willingness to remove objection, of 503 ■wills, of persons and things mentioned in 157 EXCHANGE: contract for 16 n. EXECUTED CONTRACT: EXECUTORY CONTRACT {q. V.), contrasted with 9, 408 injunction as a right flowing from 407 notice, effect of, on the relief in respect of 105 PARTNERSHIP (q. V.), of 408 principle of entire performance does not apply to 407 rescission of, for innocent misstatements 319 specific performance may be refused Qn. EXECUTORS : contract enforced by 66, 91 discharged from hability, where 93 one of two, contract for sale by 191 personal qualities required, where 92 proposed lessee, of 93 suing before probate 91 EXECUTORY CONTRACT: converted into actual sale by election 160 EXECUTED CONTRACT ((/. V.), Contrasted with 9, 408 implication in, as to usual stipulations 171 negative term, containing 412 et seq. PARTNERSHIP {q. V.), fOT 409 performance of whole of 404, 407, 545 EXPECTANCY: annuity charged on 679 contract relating to 677 et seq. lunatic, from 679 personal nature of contract relating to 680 transfer of, not forbidden by the 82 Hen. VIII. c. 7 100 wife, of 679 {And see Contingent Interest, Will.) EXTINCTION : of SUBJECT-MATTER ((/. t).) 443,444,460, 675 FAILURE : of CONSIDERATION {q. V.), et seq 443, 442;n. FAIRNESS : compromises, in. ••-.•• 183 740 INDDX. YAIR^BSS— Continued. page. contingencies, in contracts involving 184, 193 essential 155, 181 famil}^ arrangements, in 183 " surrounding circumstances, of 186 when to be judged of 181 {Atul see Unfairness.) FAMILY AERANGEMENT 99, 183, 214, 294 FAULTS: sale with all 334, 335, 434 FEE-FARM RENT : conditions of sale of 611 FELONY: plaintiff, of 465 FINES . manorial 635 n. misstatement as to 597 FINES AND RECOVERIES ABOLITION ACT: dispositions of lands by tenants in tail under 48 FIRE: benefit of insurance against / 449 deeds destroyed by 465 music-hall destroyed by 478 subject-matter destroyed by 447 FISHERY : contract for lease of 375 FOREIGN CONTRACT: enforced here, may be 49, 49 n. immovable property, relating to 49, 50 in specie, to deliver a thing here 50 legaUty of 223 lien on foreign real estate 50 marriage contract made in France 49 Mr. Justice Story on the English doctrine 50 Statute of Frauds {q. v.), affected by 240 FOREIGN GOVERNMENT: contract by ._ 48 FORFEITURE: acts which would have worked or would work 467 apprehension of, not a defense 199 calls, for non-payment of 519 deposit, of 661 equity will not enforce 467 n. liability to, a hardship (?.«.) 198 relief against 470, 471, 659 n., 661 n. resulting from other acts of defendant himself 199 WATVER {q. V.) of ■ 533 waste, worked by 468 INDEX. 741 FORM OF PROCEEDINGS: paoe. alternative relief 48 amendment ^° {And see Inquiry, Issue, Pkculing, Reference of Title, Rules of Court, ^rii.) FORMALITIES . CORPORATION (q. V.) required in contracts by 309 e« seq. omission of, in contract by corporation 239 Statute of Fratjds {q. v.) not required by 245 FRAUD: absolute conveyance, in cases of 276 affects the entire contract .• . 350 agent, by 3*^ antecedent wrong done, where 340 apparent defects no subject of 332 assign for value of contract tainted by 350 belief, by warranty of 320 certainty less required in cases of 179 certificates, in withholding 409 collateral parol contract or promise, in cases of 277 comes before the court in several relations 337 company, by 3~o concealment by 338, 344 et seq. CONDITIONS OF SAXE (q V.) in relation to 565 consideration, inadequacy of 205 n. constituents of 287 corporations are incapable of personal 350 deceit, a ground for an action for 337 disclose, where there is an obligation to 330, 339 n. dispositions by defrauding party to persons not privy to 352 election to be bound by contract tainted with, et seq 352 fiduciary relationship, in cases of 339 how shown 338 n. imperfect statement, by 342 inducement to the contract, must have been 325 innocent party cannot derive benefit from another's 349 in toio, vitiates contract ^^*^ knowledge of the untruth requisite to constitute 219 legal ■ 320 marriage articles or contracts, in relation to 279, 280, 300 married women, of 1^° memorandum only ancillary to verbal contract, where 278 MISREPRESENTATION {q. V.), a larger word than 337 non-disclosure in cases of 338 non-performance of parol contract to sign a writing is not 279 obtaining contract, in 337 opening biddings for 365 parol evidence in cases of • • • • 2(9 part of contract, as to 350 partnership, in contract for 682 742 INDEX. FRAUD — Continued. pagb. PART-PERFORMANCE {q. V.), prevented by the operation of the principle of 286 perf onnance of contract, in 337 personal bar to performance, a 351 plea of 320 promise to rectify objection, by non-fulfillment of 391 prospectus, in 342 proviso for defeasance or redemption omitted, where 278 public, on the 357 PUKFER {q. v.), by employment of 347 et seq. receipt of dividends before discovery of 364 refusal to sign a written contract is not 279 rescind, partly defrauded may 368 n. RESCISSION (q. V.) for 181, 337 restitutio in integrum in cases of 354 et seq. right to complain of, not marketable 100, 228 sale with all faults, in cases of 344 settlement, upon 589 shares, inducing contract to take 354 SILENCE (q. V.) generally is not 317, 338, 343 et seq. may he 341 specific performance, a defence to an action for 337 Statute of Frauds, an exception to 375, et seq. stranger, by 350 suppression of material fact, in cases of 338 uberrimm fidei, where contract is 341 voidable only, renders contract 351 waiver of 349, 350 wills, in relation to 281 {See Misrepresentation.) FRAUDS, STATUTE OF 2^ et seq. {See Statute of Frauds.) FREEHOLD : cannot be forced on purchaser of copyhold, and vice versa, 424, 424 n., 579 n. FRENCH LAW: inadequacy of consideration ; as to 209 no specific performance in 707 price, as to non-ascertainment of 63 /i. rescission, as to 209, 356 FUNDS. {See Stock, 26.) FURTHER CONSIDERATION: specific performance ordered on 628, 629 FUTURE ACTS: judgment relating to 704 GIFTS OF REAL ESTATE 204 n. GOING CONCERN: contract for sale of 518, 561 INDEX. 743 PAGE. GOOD FAITH IN FORMING CONTRACT 321 n. GOODS: appropriation of 160 GOODWILL: attorney's business, of 36 contract for sale of t 36, 521 nature of 36 term respecting, introduced by acceptance 133 GOVERNMENT STOCK. {See Stock, 26.) GREGORY, DECRETALS OF. {De Pactis, 6.) GUIDE-BOOK: contract to edit 357 HARDSHIP: acts of plaintiff after contract, arising from 196 et seq. alteration of state of property, arising from 196 annuity, in contract to sell 449 AWARD {q. v.), in 195 bars the court's interference 193 BREACH OF TRUST {q. V.), wliere contract necessitates 190 brought upon defendant by himself 198 companies, in contracts between 202 covenant to leave buildings in repair, arising out of 201 discretion of court not affected by 10 disregard of time, resulting from 520 failure of purchaser's speculation not a 198 forfeiture, wliere apprehension of 199 where liability to 199 impossibility of enjoying thing purchased, where 201 inadequacy of consideration a form of 202, 204 et seq. indemnity, where vendor has not stipulated for 200 latent and patent, distinguished 197 members of corporation, resulting to 198 mortgage, on 200 oppressive covenant, of 201 option, arising from grant of 201 partnership, in contract for • 682 plaintiff's conduct a trap to purchaser, where 197 service, of contract for 201 SILENCE (q. V.) creating 188 submission, in 195 subsequent events, arising from 193 et seq. trustees for sale, on 200 when to be judged of 193 when a defense • • 193 n. , 198 n. HEIE: costs of 88 «., 90 n. 744 INDEX. B-EIR—Contimied. . fagb- disposition of succession by 677 EXPECTANCY (q. V.) of 677 infant 90, 460 non-performance by .- 460 purcbaser's, wbere a party 91 specific performance decreed against 18 trustee, declared 90 imauthorized sale, decreed to make good 481 vendor's wben a party 80, 90 HEIRLOOM 20 HIKING AND SERVICE: auctioneer, of 45 broker, of 417 confidential office, in cases of 44 contracts for, formerly enforced 43 HARDSHIP {g. iJ.) of 201 now not enforced. ,43, 45, 416 manager for life, of 43 sbipping broker, of 45 HONORARY ENGAGEMENT 131, 148, 149, 268, 289 partly legal 418 HUSBAND AND WIFE: assignment by, of wife's expectancy 679 bond given before marriage, where 19 consent of, to trustees' contract 104 contracts between. . ..'.... 128, 482 n. , 688 by 482, 588 with 215 TO. {And see Married Woman, Wife.) IDENTITY: declaration of 619 evidence of 157, 619, 632 parties, of 161 (And see Description.) SUBJECT-MATTER {q. V.), of 157 et seq. IGNORANCE: common 675 (A7id see Knowledge, Mistake.) ILLEGALITY: a bar to specific performance 222, 223 n. , 224, n. alternative, of 486 AWARD (q. v.), of act directed to be done by 228 breach, of trust, where contract necessitates 190 clearness of, what required to be shown 228 compensation of 497 ?i. foreign contracts, in cases of 223 immoral consideration 230 n. impossibility of performance resulting from 448 INDEX. 745 ILLEGALITY— Continued. page. inquiry as to 228 Jessel, M. E., on 229 modelling contract to obviate 484 nature of the defense of ■ 224 partnership, in contract for 082 part-performance, objected after 155 public policy, in regard to 223 stock, in contract for transfer of 229 subsequent statute, created by 222, 448 trade unions, in rules of ♦ - 230 trust constituted, where 229 ILLITERATE PERSON: contract, by 187 IMPLIED TERMS: contract, of 455, 169 purchaser's lien, as to 600 rebutted l"^! silence as to 1^^ title, as to : 610 waiver of 1 *" IMPROVEMENT: made under promise of gift 508, 638 n. IMPOSSIBILITY: amalgamation, of executing contract for 410 COMPENSATION {q. V. ), of ascertaining amount of 590, 597 consent, of procuring 481 of fulfilling contract 45 n. default of defendant, due to 410, 507 delivering-up deeds, of • 465, 480 elected alternative, of 490 extinction of subject-matter, owing to 444, 478 fraudulent misconduct, induced by 507 illegal contract, of performing 448, 479 lease of performing contract to grant 603 legal 479 one alternative, of 4ob by act of God 487 e< seq. by act of other party - 489 by act of stranger - 490 original ; '*'"" plaintiff's part, of performing 460 putting parties in position stipulated for, of 35 / 481 removed RECissioN (g. V ) for 507 winding-up, arising from • • • " * '^ INADEQUACY: COMMON LAW {q. V. ) remedy, oi -^ CONSIDERATION {q. V.), of ~^"-' 213, 449 -746 INDEX. IN ADEqU ACT— Contimied. page. evidence of fraud 205 7i. what is 206 n. when a defense v 206 n. INCAPACITY: defendant the author of his own 480, 401 n., 419 n. of court to execute contract 35, 399, 682 (jbid see Partial Execution.) defendant to perform his part 478, 479, ?i. vendor to convey, knowledge of 587 ^INCAPACITY TO CONTKACT: agent of 130 confidential relations, of persons standing in 130 distinguished from incapacity to execute contract 124 ground of defense 124, 187 guardians of 130 husband and wife, of 688 LUNATIC ((?.«.), of 139 MARRIED WOMAN (q. 1).), of 125, 129 when judged of 124 INCOME-TAX: deducted from interest paid by purchaser 644 occupation-rent, on 648 payment into court, in cases of 657 INCOMPLETENESS : contract, of the 155, 171 defendant's default, arising from 156, 460 evidence of the contract, in the 156 future agreement, where matter reserved for 169 implied terms, as to 169 instances of 168 material item wanting, where 171 PRICE iq. v.), ast 162 remediable 156 treaty, in cases of 249 (_And see Completeness.) ^INDEMNITY: calls, against 664 charge on estate, against 593 COMPENSATION {q. V.), a specics of 575 contract for, enforced 481, 704 when broken 704 declaration of liability to perform covenant for 704 ELECTION (q. V.) between, and rescission 200 equitable owner of shares, from 671 FRAUD (q. v.), against loss resulting from 355 future demands, against 704 inquiry as to, in respect of charge 577 new contract (for shares), enforced by action for 670 INDEX. 747 INDEMNITY— Cfe?i appropriation of money is not 301 arbitrators, acts done by, are not 288 auction-duty, by payment of 297 building by 294 cohabitation may be 800 compensation, where acts admit of , ' 295 compulsory taking under Lands Clauses Act, by 284 consistent with the contract alleged, must be 284 consent to lease, by giving 290 n. corporations, in contracts by 286, 293, 311 damages, answerable in 43, 295 defense claims benefit of the statute, where 303 delivery of rent-roll and abstract to purchaser not 302 dissolution of partnership, by 303 essentials of 283 execution of deed by vendor not 301 lease by married woman not 303 settlement by husband not 300 expenditure distinguished from possession as an act of 295 review of the cases on, as an act of 297 FRAUD {q. V ) prevented by the operation of the principle of 286 where refusal to perform does not amount to 287 honorary engagement, of 289 incomplete contracts, of 290, 308 injustice prevented by the operation of the principle 286 instruction for lease or conveyance not acts of 301 knowledge of, in party to be charged ' ... 287 lapse of time in relation to 294 laying out money, by 294, 499 marriage, acts connected with, may be 299 n., 300 alone is not 298 contracts, in respect of 293 mutual wills, in cases of 289 new contracts supported by acts of 499 objections raised after 155 parol evidence let in by • 283, 303, et seq^ • origin of the jurisdiction in cases of ' 43 payment of money not 301 n. pleading 306 n. possession as an act of acquiesced in 293, 294 adverse 290 both parties bound by 293 company, against 293 family arrangements, under 294 marriage contracts, under 293^ occupier, by 293^ 768 INDEX. PART-PERFORMANCE— Continued. faqb • owner, by 292 stranger, by 291 tenant, by 285, 291 preparatory acts not 295, 301 principle of, as an exception to the Statute of Frauds 282, 286, 307 purchase-money, part payment of, is not 288, 296 purchase of release of a right not an act of 301 railway cases, in 42 rebuilding of party-wall as 285 referrable to contract, must be 284 no other title, must be , 285 registration of deed by vendor not an act of 301 remainderman, when binding and when not binding on 287 rent, payment of additional, as 297 rescission after 493 seal, where want of ; ... 290 service, by 300 n. siding, construction and user of , -as 290 specifically enforceable contracts, applies only to 288 Statute of Frauds, may preclude party from setting up 281 strangers' acts are not 287 sufficient evidence of the contract, cannot be 284 surrender of lease, by 303 vague contract, of 304 vendee may insist on 609 n. work and labor done, in cases of 289, 311 PATENT : contract contemplating the obtaining of 518 PATENT MEDICINE : contract relating to 682 PAYMENT : charter party, in pursuance of 28 w. contract satisfied by 23, 25 instalment, by way of 659 neglect to make 449 notice of mortgage after 660 such a sum as A. may fix, of . • '. 168 time of, of essence of contract 512 n. time, when not fixed 537 n. PAYMENT INTO COURT ; acts of ownership, on the ground of 618, 656, 657 admission of title by purchaser in possession, upon 653 affidavit in support of application for 657 before delivery of defense 657 contract allowing possession to be taken before completion of title, in case of 654, 655 deduction of income-tax in cases of 657 election between, and givmg up possession 654, 656 instalment of purchase- money received by vendors, of 655 INDEX. 769 PAYMENT INTO COURT— Continued. pasb. interest payable after time appointed f or 653 laches on vendor's part in cases of 654 loss of purchase-money in consequence of opposition to order for 658 motion, ordered on 657 payment by > 658 «. possession under some other title, in cases of 656 rent of 656 stakeholder, where purchase-money is in hands of 658 vendor's right to require 653 PECULIAR PROPERTY: specific performance in regard to 13 ?i., 29 7i. PENAL SUM OR PENALTY: alternative contract, in 61, 65 amount of, largeness or smallness of 62 benefit of, and of contract, where different persons would take 64 bond, contained in 57 common law remedy, as regards 57 compensation, where fixed sum to be paid by way of 60 contracts with a 55 n.,Gl fi., 62 ?i. classification of 55 general rule of equity as to 56 intention governs construction of 60, 64 unreasonable unless giving option 65 where enforced 56 where not enforced 55 courts of equity, how regarded by 60 effect on the jurisdiction of a clause for paj-ment of 55 election between performance and payment of 55, 56, 60 to pay, not imported by contract being comprised 'in bond 59 form of contract as to •. 60 higher rate of interest not a 650 increased rent not, a (cf . ) 58, 65 where there is a stipulation for forfeiture in addition to 65 liquidated damages distinguished from 57 obligation and contract distinct, where 59 penalty strictly so called, where a 56 rights of obligee with respect to 59 sum single and continuing act, where 64 variable, where . 64 PERFORMANCE: alternative, of 486, 490 common law, at 457, 510 CONDITION (?.«.), of 446, 447 consent of third party necessary to 481 continuous acts, of 35 delay in 524 enforcement of actual 12 complete, where possession taken 156 49 770 INDEX. PERFORMANCE— Con imu^. paok. essentials to enforcement of 155 exact 457 frequent breaches, where 36 immediate 460 IMPOSSIBILITY {q. V.) of 410, 444, 448, 460 infant heir, by 460 lease, of contract to accept 156^ MARRIAGE CONTRACT {q. V.), in cases of 461, 462 neglect in 505 plaintiff, by 454, et seq. alternation of position, involving 461, et seq. collateral contract, in respect of 458, 460 express terms, of 455 future acts, in respect of 468, 465 implied terms, of 455 impossible 460 non-essential terms, of 454, 458, 470 prevented by defendant 460 representations of future acts 455, et seq. substantial part of contract, of 461 waived 460 positive contract, of 478 REPRESENTATION {q. V.), of 147, 455 result of default in 12 separate contemporaneous contracts, of ■ 404 unenforceable by court 35 unless, where 37 WAIVER {q. V.) oi 460, 477 worse than non-performance, where 43 {And see Part perf&rmance, Specific Performance. ) PERSON: error in regard to 98 PERSONAL : acts • 36 n., 45 n., 177 n. contracts."."."*'.' 92, 96,98, 113 incapacity, a defense 124 to., 187 n. motives disregarded by Lord Thurlow 97 property 13 ». , 34 n. relation, where motive to contract 97 services, contracts for 43, 44, 815 {And see Hiring and Service.) PLAINTIFF : conflicting parties should not be joined as 71 n> PLAN: act of parliament, referred to in 45& doubt as to identification of 177 exact performance of scheme not rendered obligatory by 456 exhibited by vendor 456 incorporated 244/1., 466 INDEX. 771 PLAN — Continued. pa«s. intended division of estate, showing 458 misleading 374 present state of property, representing 457 silence of contract as to 456 PLEA: covin, of 320 fraud, of 320 statute of 32 Henry VIII, c. 9, of 8, 99 STATUTE OP FRAUDS {q. V.), of 242 PLEADING : adding parties 80 admissions in 274, 615, 624 alternative relief 48, 505, 660 amendment 48, 307 compensation, case for 570 connection of subject-matter of contract with claim 157 counter-claim 80, 538, 660 defect in title put forward in 609 distinctness in 120 n.. 122 n., 128, 243 implied contract 273 misjoinder 71, 113 «. notice to bare trustee 80 third parties 80 objection as to parties precluded by 74 PLEA iq. v.), 99, 242, 243, 320 remedy or relief over 79 separate trials 79 several causes of action 79 special case 539 dating contract 306 n. STATUTE OF FRAUDS {q. V.) 242, 272, et seq. third parties 80 waiver 621 {And see Judicature Acts, 1873 and 1875, Parties, Rules of Court.) POSSESSION: account of rents and profits against purchaser in 505 agreement to pay interest implied in act of taking 649 acquiescence in non-performance of promise, not amounting to 532 complete title previously shown, with 519 continuing in, under arrangement 533 estate and purchase-money, of 635, 633 immediate, condition for 473 injunction restraining company from continuing in 550, 559 intended lessee, taken by 170 lapse of time where plaintiff is in 53O often taken before completion , .• 635 order for delivery-up of 655 PART-PERFORMANCE {q. V.), an act of 291 772 iXDEx. VOSSESSIO'S— Continued. pase. purchase of right to 655 n. purchaser turned out of 576, 653 purchaser's obligation to take 634 referable to contract to give a fair-consideratiou 167 some other title 655, 656 returned by purchaser 650, 65S reversionary estates, on sales of 653 specified day, to be given on 519 statutory power, taken under 652 tenant in common, as 655 to vendor, as 655 time at which purchaser can prudently take 638 transfer of, where no stipulation as to 635 under the contract 531 under parol gifts , 479 n., 508 «. vacant 639 n. vendor in, is not bailiff to purchaser 645 vendor's obligation to give 634 waiver not worked by 618 worked by 616, 618 without receipt of rents 654 POSTING: of ACCEPTAXCE {q. V. ), contract dates from 144 POST-OFFICE: acceptor not answerable for casualties of 145 PRACTICE. (See Costs, Pleading, Rules of Court.) PRAECIPE QUOD REDDAT 6 PRE-EMPTION, RIGHT OF: contract made in forgetfulness of 191 n. covenant to give 102 n. enforced 16 limited by personal nature of acts to be done 97 n. notice in pursuance of 141 statutory offer of, not made 612 violation of 16 PREMIUM: contract to reduce 35 lease conditional on payment of 516 PRESUMPTION : bona fides, of 438 implied term, of, may be rebutted by notice 171 new contract, of 499 previous parol contract, of 390 settlement silent as to promise, wliere 150 TITLE {q. v) depending upon 432 PRETENDED TITLES 99 INDEX. 773 PRICE : Txn. arbitrators, fixed by 699, 165 award of surveyor, to be determined by 639 defendant preventing ascertainment of 165 determination of 165 different, for different parts of subject-matter 403- essential ingredient of contract 163 fair 163, 164 inadequacy of 206 (And see Consideration.) instalments, to be paid by 410 Lands Clauses Act, fixed pursuant to 6, 52, 166 mode of ascertaining : alternative 165 essential 163, 164, 699 no election as to 165 not essential 163, 166, 168 provided by contract 164 omission of 392 referees as to 166 n. reserved 349 Roman law as to ascertainment of 164 third person, to be fixed by 337, 186, 163 unascertained 162 valuers, to be ascertained by 163, 183 QAnd see Part Payment, Purchase Money.) PRINCIPAL : AGENT {q. v.), sued with. 117, 119 MISREPRESENTATION {q. V.), innoccnt of 320 named 113 question whether contractor is, where 117 sued 113 suing 113, 115, 117 unnamed 113 PRINTED NAME: regarded as signature 254 PRIVITY : of contract 50 of estate 50 PROFIT: on appropriated purchase-money 651 PROMIt^E 146 {See Bepresentaiion.) PROMISSORY NOTE: compelling indorsement of 16 contract as to 23 PROMOTERS : contracts by 107 {See Company.) 774 INDEX. PROPERTY: pag«- passing of the ^^^ where no right to, taken away 43 »., 47 PROPOSAL: and ACCEPTANCE (q. v.), contract constituted by 132, 144 creates no mutuality, no obligation 140 determined by: WITHDRAWAL {q. V. ) of proposcr 140 refusal of person to whom it is made 140, 141 (And see Eetractration.) election, giving 143 formal contract, subject to provision as to 250 invalidity of, without acceptance 132 leaving term to be ascertained or decided 137 marriage treaty, on 1^1 memorandum of, distinguished from memorandum of agreement 132 not revived by tender of acceptance after refusal 141 payment on a particular day, involving 138 promise, by ^46 REPRESENTATION (q. V.), hj 146 SHARES (q. v.), to take 1^6 variance between, and acceptance 136, 142 variation of, by proposer 143 verbal, distinguished from written 151 PROSPECTUS : Companies Act, 1867, as to 342 material fact, silent as to 342 PROTEST: delay against 533 mere "oo PUBLIC: fraud on the 357 injury to the 1^2 PUBLIC DUTY: arising from private contract 4, 5 PUBLIC HOUSE: deposit on sale 661 essentiality of time in contracts relating to 518 sale of stock in 517 (And see Going Concern.) PUBLIC POLICY: application to Parliament on grounds of 702 assignment contrary to . 96 contract against 222 7i. court of equity cannot judge of '''02 delegation of statutory powers, as to 101 illegal contracts, as to proceedings on 23 separation, as to contracts for 688 INDEX. 775 PUFFER: »*«■. all parties having liberty to bid, in cases 347 FRAUD (g. V.) in employment of 348 more than one 348 one 347 sale of land by Auction Act, 1867, as to 348 vendor's solicitor 188 without reserve, where sale is 347 PURCHASE-MONET : amount of, left by contract for subsequent ascertainment 639 appropriation of, by purchaser 639, 643, 650 constructive trusteeship of 634 estate and, mutually exclusive 653, 635 inadequacy of 203 {And see Consideration.) interest in, under prior contract 73 part-payment of 288, 296 PAYMENT INTO COURT (q. V.) oi 653 profit made by purchaser on appropriated 651 purchaser's obligation to pay 634 (And see Lien, Price.) PURCHASE : pendente lite 635 n. PURCHASER: constructively a trustee 634 obligations of 634 QUARRY: COMPENSATION {q. V.) foT stone subtracted from 592 contract to work 40 QUASI-CONTRACTS 61 {See Lands Clauses Consolidaiion Act 1845.) QUIT RENTS : incidents of tenure 577 RAILWAY : abandoned 25 branch, contract to lay down 294 confidential services in working 215 construct, contract to 25, 40, 177, 215 contracts conditional on formation of 470, 485 neglect to complete purchase after making 655 sale of 55^ siding ^ user of, contract as to 406 work, contract to 47 works, contract to execute 406 for convenience of plaintiff's lands 42 RATIFICATION : acquiescence, by 269 agency, may take the place of 259 776 INDEX. HATIFICATION—Continmd. pasb. benefit of contract, by taking 259 corporation, by 235 essentials of 263 infant, by 215 7i. l^rinted name, of .• 254 {And see Signature.) STATUTE OP FRAUDS {(J. V.), may take contract out of 259 vague expressions not implied from 259 KEAL ESTATE : consent of wife to sell •182 n. contract to purchase 50 n. contract for sale of 400 n. conveyed without warranty 452 gift of • 204 n. improvement by vendee 289 specific performance as to 13 n. , 34 n. variance between description and quantity of 421 n. veodor of, has choice of remedies 13 n. must give good title 428 n, EEASOXABLE : contract must be 181 n. RECALL : of offer 1-11 n., 142 n. RECEIVER: ACTS OF OWNERSHIP (q. v), in consequence of 618, 656, 657 appointment of. pending sale , 558 RESCISSION: of contract 497 /i. RECITAL : evidence of contract 131 RECOVERY OF LAND : counter-claim in action for 538 equitable right to specific performance appearing in action, for 539 RECTIFICATION : ambiguous writing, by 379 articles of agreement, of 377 bond, of 395 common error, of 376 et seq. consequential relief in addition to 395 election between amendment and 378 intentional omission, in cases of 385 judicature act, 1873, by virtue of . . ." = 394 mistake of one party, in cases of 378 plaintiff, for 364 parol evidence admitted as a ground for 378 payment of money, of contract for 395 plaintiff suing for specific performance, where 387 et seq- policy, of 375, 377 INDEX. 777. BECTIFICATIOI^^— Continued. page. previous parol contract, by reference to 390 prior actual contract, requires 377 register of shares, of 542 rent, as to amount of 388 strongest possible proof required for 379 KEFEE : contracts to, not enforced 699 n. REFERENCE TO TITLE : admission of title (g. v.) by defendant's pleading, in case of 615 answer, before " p23 CERTIFICATE (q. V.) of result^ of 627 et seg. chambers, to 627 compromise of disputed rights, in cases of 602 conditions of sale, in accordance with 614 costs of 630 court of chancery, at what stage directed by the 621, 624 covenants in lease, having regard to 615 decision of objection without 615 delay, questions of, raised on application for 625 n. disallowance of purchaser's costs of ^ 610 either party generally has a right to 616 everything connected with the title, may extend to 624 evidence under 627 form of 615, 624 n. frivolous questions raised by the answer, where 622 general terms, in 609 good holding title, confined to 615 hearing, at the 615 before the 615, 622 immediate, where vendor should apply for 624 hmited 615, 625 loss of right to 618 motion, on 622, 623 by purchaser defendant for 623 no objection at all, though purchaser has 609 not confined to sales of real estate 610 only one objection, where 609 open 625- origin of purchaser's right to 609 present practice, how obtainable under 624 prevented by defenses which failed at the hearing 630 purchaser defendant is entitled to 609- plaintiff seeking 610 purposes for which premises were taken, having regard to 615 question of title only, where 622, 623 reference back to chambers after 629 resulting in showing that good title was shown in due time 610 sale with all faults, in cases of 424 shares in railway companies, in respect of 610- 778 INDEX. REFERENCE TO TITLE— Continued. pagm. mines, in respect of "1*^ time allowed for completion of title under 626 at which title shown, should include inquiry as to 624 not allowed for completion of title under 626 questions of, raised on application for 625 n. varjing nature of 610 vendor cannot except to the title on 610 selling such interest as he has, in cases of 611 Vendor and Purchaser Act, 1874, under 627 waiver of objections should be recognized in judgment directing 610 where purchaser has asked for 610 of right to, by purchaser 615 by vendor 615 when title may be made out under 625 where not directed 610, 615 REFRESHMENT-ROOM : accommodation in, contract for 177 assign of lease suing for occupation of 102 enforcement of covenant in lease of 407 REFUND : covenant to convey carries an obligation to 661 n. REFUSAL : of one party to perform 495 PROPOSAL iq. V. ) determined by 140, 141 to register transfer 673, 674 REGISTER : application to rectify, under Companies Act, 1862 542 shipping, of 683, 685 substitution on, part of contract 676 REGISTER COUNTIES : contracts relating to land in 103 REGISTERED LAND OR CHARGE: contracts relating to land in 81, 439, 642 REGISTRATION : of transfer of shares {g. v.) 664, 665, 668, 671, 675 REGISTRY ACTS: in United States 686 RELATIONS : agreements between 85 n. RELIEF : alternative 48, 505, 662 grounded on right perfect in itself, and resulting from transactions under contract 409 .RELIEF AFTER JUDGMENT: attachment, by writ of 556 costs, by order for payment of 556 damages, by way of 557 INDEX. 779 EELIEF AFTER JUDGMENT— Contmwed. pasb. injuuction, by 558, 559 necessary, when 555 payment and delivery of deeds, by order for 556 receiver, by appointment of 558, 559 rescission, by order for 556 sale, by 558 sequestration, by 556 stay of proceedings, by 557 vendor's lien [q. v.), by enforcement of 557 vesting order, by 559 writ of assistance, by 559 REMAINDERMAN : leasing power, bound by contract under 216 PART PERFORMANCE {q. V. ) , when not bound by acts of 287 prejudiced by contract of tenant for life 189 suing or sued "^^ tenant in tail, not liable on contracts of 73 REMEDY: alternative 25 COMMON LAW {q. V.) ♦. .• 15 RENEWAL: covenant for, not enforced 469 ztlira vires 190 variation of 373 delay under contract giving right of 527 ecclesiastical corporation, by 485 mining lease, of 471 sub-lessee, to 194 s^ippressio veri in obtaining 188 time of 516 RENT: abatement of, by parol 496 by written contract 499 account of arrears of 451 additional, payment of 297 ai'bitrators, referred to 186 commencement of, not stated 168 fee-farm - 611 mode of reservation of, held essential 484 occupation 564, 648 reduced proportionately to deficiency of acreage 589 n. RENTS AND PROFITS: actually received, vendor is usually charged with 644 contract silent as to 636 dispossession of purchaser, in case of 652 election between, and interest 649 interest and, mutually exclusive 635, 649 payment into court of 656 780 INDEX. RENTS AND PROFIT S—C&ntiiimd. p^eK. possession without receipt of 654 n. reserved to vendor by conditions of sale 640 time from which purchaser takes, where contract fixes date for completion 637 fixes no date for completion 636 estate sold is reversionary 652 interest much exceeds rents and delay is owing to vendor 637 title is made out in chambers 637 willful default in relation to 644, 646 who entitled to MS n., 663 n, REPAIRS : contract to do 39, 40, 412, 447. 461 (And see Building Contract. ) engines and rolling stock 44 lessor, by 455 specific performance as to 40 7i. who liable for 638 n. REPORT ;. • • 628, 631 {See Certificate.) REPRESENTATION : accounts, founded on 335 acts, by 313 act not done in relianee on 146 n. acted on by other party 146 agency, of 257 clear and absolute 147 contract constituted by 148 founded on 146 directors, by 323 discovered to be untrue 341 distinct effect of 334 dry-rot, as to 578 executor, by 1 53 existing facts, of 146, 153, 319 ■ false, classified by Stephen J 146 n. falsity of 319 {And see Misrepresentation.) future things, of 146, 455 general statement, not counterveiled by 334 insurance company, by 322 n. intention, of 148, 322 et seq. lease, as to existence of 153 marriage not induced by 150- marriage-treaty, on 146, 147, 150 et seq. means of verifying 327 et seq. notice, as to fact of which there would be implication of 333 past things, of 146 plaintiff, by 455 PLA]5i {q. v.), by 456 INDEX. 781 REPRE SENT ATION— Continved. page. position in life altered on faith of 152 stranger, by 153 subsequent settlement silent as to 150 truth of, obligation to know 322 vague 147, 325 vendor, by 455 KEPUDI ATION: after party has disabled himself from making restitution 355 of contract G59 REQUISITIONS : between vendor and purchaser 614 inconvenient but legitimate 566 precluded , 613 time for sending in 52 1 Vendor and Purchaser Act, 1874, as to 539 WAIVER {q. V.) of 617 RESCISSION: act of God, when restitution has been rendered impossible by . . . 355, 357 action for deceit after loss of right of 357 acts tending to 357 agreement, by mutual 492, 605 n. with a third person by 500 alternative claim for 505 assurance, of contract for 375 bar to performance, a 492 before day fixed for transfer of possession 661 BREACH OF TRUST {q. V.), foi ^ 200 collateral to the contract, is 494 concealment, for 338 condition for 501, -m, 603 conduct, by 494, 506 not amounting to - 496 consent generally requisite to 501 defect in thing sold, for 425 delay, for 506 election prevented by 352 events prior to the contract, for 443 executed contracts, of - 319, 337 false statements believed to be true, for 319 fishery, of contract for lease of 375 FRAUD {q.v.),iox 181, 337, 354, 368 n., 505 fraudulent misconduct, for 506, 507 use of power of 565 French law as to 209, 355 fresh agreement, by 496, 507 impossibility of performance, for 356 impossible . . - 352, 858, 356 inadequacy of consideration (g. v.) as a ground for 204, 210 inequitable 353 782 INDEX. RESCISSION— C(?nerty Act, 1870 (33 and 34 Vict., c. 93), s. 11, 127 n. Merchant Shipping Act, 1854 (17 and 18 Vict., c. 104), s. 18 686 Merchant Shipping Act, 1854 (17 and 18 Vict., c. 104), ss. 55-57, 683, 686 Merchant shipping Amendment Act, 1855 (18 and 19 Vict., c. 91), s. 11 683 Merchant Shipping Amendment Act, 1862 (25 and 26 Vict., c. 63), s. 3 683, 686 Promissory Oaths Act, 1868 (31 and 32 Vict., c. 72), s. 14 (8) 684 n: Registering of British Vessels [1825] (6 Geo. IV, c. 110, s. 31) 685 Registering of British Vessels [1833] (3 and 4 Will. IV, c. 55), s. 31. . . 685 Registering of British Vessels [1845] (8 and 9 Vict., c. 89), ss. 34, 37. . 685 Registering of Vessels [1823] (4 Geo. IV, c. 41), s. 29 685 Sale of Land by Auction Act, 1867 (30 and 31 Vict , c. 48), ss. 4-6. . . 349 Sale of Land by Auction Act, 1867 (30 and 31 Vict., c. 48). s. 7 446 Sales of Reversions Act (81 Vict. , c. 4) 212 Sir George Turner's Act (13 and 14 Vict., c. 35) 440 «. Statute of Frauds (29 Cha. II, c. 8). ss. 4, 17 143, 240 Statute of Limitations (3 and 4 Will. IV, c. 27), s. 42 658 Trade Union Act, 1871 (84 and 35 Vict., c. 31) 230 Trustee Act, 1850 (13 and 14 Vict., c. 60), ss. 3, 4 130 Trustee Act, 1860 (13 and 14 Vict., c. 60), 8. 7 90 Trustee Act, 18.50 (13 and 14 Vict., c. 60), s. 30 90, 559/1. Trustee Extension Act, 1852 (15 and 16 Vict., c. 55), ss. 10, 11 130 792 INDEX. STATUTES— Continued. r^e,. Vendor and Purchaser Act, 1874 (37 and 38 Vict., c 78), s. 2 170, 560, 614, 620 Vendor and Purchaser Act, 1874 (37 and 38 Vict., c. 78), s. 9. . . . 539, 627 STAY OF EXECUTION 31 n. STAY OF PPtOCEEDINGS 550, 556, 694, 700 STEWARD : made a party 68 STOCK : government 26 life-interest in, contract to sell 26 Neapolitan 26 purchase of, contract for 19 South Sea 26 transfer of, contract for 13 n., 26, 27 n., 27 York Bijilding 27 STOCK EXCHANGE : account (or settling) day on the 665- brokers on the 665 contracts on the : for cash 665 for the account 665 customs of the 664 jobbers on the 665 MISREPRESENTATION (q. V.), to the secretary of the 623 name day on the 72, 665 novation in sales on the 72, 668 peculiarity of contracts on the 668 registration of transfer of shares sold on the 674, 676 statement of the practice on the 665 (And see SJiares.) STRANGER: agency, in cases of 83^ assignee under insolvency 77 cestui que trust of contractor 83 change of condition in life, "where 85 claiming adversely to contractors 77 claiming benefit resulting from the contract 86 conscience of, affected by notice 87 executed contracts, in cases of 84 FRAUD (q. V.) by 350 generally cannot be sued for performance 86 sue for performance 82 Land Transfer Act, 1875, as to 87 marriage contract, pei'son claiming under 84 near relationship, in cases of 84 person in actual possession affected by relief claimed 87 possessed of subject-matter of contract with notice 86 representations by 158 INDEX. 793 STRA.^GER— Continued. p^eB. Scotch law as to ^•^ solicitor °* sued for performance 86, 87 suing for performance ^~> ^^ taking benefit under contract 82 SUBJECT-MATTER : ascertainable, though not ascertained 159 connected with claim, must be 159 daily variation, exposed to 517, 518 DESCRIPTION {q. V.) of 1" different contracts relating to same 1 ' ~ ELECTION ('-I- v.), ascertained by 160 event prior to contract, destroyed by 443 materially affected by '^'^^ subsequent to contract, destroyed by * 446, 675 extrinsic evidence {q. v.) as to 157 lapse of time, extinguished by 450 misstatement of '^^^ non-existent at date of contract 18o not originally within the jurisdiction 48 question as to existence of, precluded by contract 445 TIME (q. V.) essential from nature of 518 n. , 519 UNCERTAINTY (5. f.) aS tO 185^ SUBMISSION 696, 697 {See A'tcard.) SUB-MORTGAGEE: plaintiff ^5' SUBPCENA ; remedy by ' SUB-PURCHASER : lien of. 83 n. 660^ suit by ' SUBSCRIBER: action against to the erection of public buildings 61 1 SUBSEQUENT EVENTS: when a ground for resisting performance 446, 448 when not a ground for resisting performance 448 SUCCESSION : contract concerning hope of 16- ^77 (And see Expectancy ) SUGGESTIO FALSI 338, 345 SUPPLEMENTAL: bill 69.3 601 decree SUPPRESSIO VERI 338 renewal of lease, in obtaining 188 794 INDEX. SURPRISE: P^"- where there are circumstances of 187 SURRENDER: contract to procure ^''^ TELEGRAM: contract made by 1'*^ "■• TENANCY: contract for j'earlj' ** misrepresentation as to ^°^ substituted ^^' TENANT FOR LIFE: compensation, decreed to maliC 584 contract by, for sale of fee ^88 excess of power, contracting for lease in 589 leasing power, contracting under 216 Lord Redesdale on contracts by 219 mining lease, decreed to execute contract for 200 mistake of 366 remainderman, contracting prejudicially to 189, 219, 588 reversioner, concurring with 211 trustee, purchasing from 639 n. TENANT IN COMMON: in tail, contract for sale by 483, 656 n. possession as, with vendor "5o TENANT IN TAIL: disposition of land by '^8, to issue in tail not bound by contract of 483 tenant for life's contract, cannot enforce 215 (A7id see Mutuality, Remainderman.) TENDER 474 n. , 507 n. , 536 n. by payment into court 658 7i. waiver of ""'I ^^* TENURE: ascertainment of 1"*^ compensation for difference of 579, 580 TERM: IMPLIED (q.V.) 169, 171, 455 supplied, by construction, expression, or inference 171 years, of, commencement of 171 (And see Lease, Performance.) THEATRE : contract to let box in 1^^ perform at 41~/ TIMBER: future time, to be cut down at 410 injunction against cutting 546 installments, to be paid for by 410 purchase of, contract for 19 supply of particular, contract for 33 INDEX. '795 TIME: PA«B. abstract, for delivery of 516, 643 allowed for completion of title 626 annuities on lives, in contract for granting 517 chapter, in purchase by 521 coal, in contract for supply of 516 commercial enterprise, where object of contract is 518 common law, at 510, 515 n. COMPLETION [q. v.), Specified for 513 n., 516, 637 condition as to, must be clear 516 contract substantially executed, where 530 crossings, for directing the making of 528 daily variation, where subject-matter is exposed to 517 delivery of objectioiFs, for 584, 565 deposit, for payment of 514 election between payment into court and giving up possession, for. . . 654 to rescind, for exercise of 353 equitable title, where plaintiff is relying on 530 equity, how regarded in 510, 515 n., 512 essentiality of 510^ conditions, by the 51S, 576 implied 517 intention of the parties, by - 516 original 512 some of the conditions, as to 521 subject-matter, from nature of 517, 519 surrounding circumstances, from 521 waived 5oo, ooo without delay, to be insisted on 512 express condition as to 514 extension or giving of 535, 5o6 n . going concern, in contract relating to 518 government stock, on purchases of 517 hardship resulting from disregard of 521 Judicature Act, 1873, as to 511 laches, in relation to = 5-4 lapse of, a defense 510, 531 n. letters-patent, in contract relating to 518 mere claim or protest, in cases of 533 mills, where land purchased for erection of 518 MINES (g. ■».), in contracts relating to 518 negotiation, pending 531 no general right to limit 5,v non-essential 516, o<,0 not designated ^""^ ^■ not allowed for completion of thle 626 notice limiting 5^^' ^'~ parol ^-* previous refusal to remove objection, after 523 reasonableness of 519, 522, 523 796 INDEX. TIME — Continued. pagb. unequivocal 504 unreasonable 522 option in contract giving 519, 520, 537 ra., 528 part-performance, in cases of 294 payment for ,534 possession, after default as to taking 535 where stipulation for taking 519 wliere tenant is in 530 possibility of postponement contemplated, where 520 prima facie non-essential 510 public-house, in contract relating to 518 purchase-money, for payment of 516 Railway Act, where land taken under 533 reasonable, performance within 510 reference-back of certificate, in cases of 629 renewal, in respect of covenants for 514 requisitions, for sending in 521 reversionary interests, in sales of 517, 520 right to rescind, for exercise of 503 shares, in contracts relating to 519 stipulation as to 513 n. waiver of 533 distinguished from waiver of act 585 where it does not run 530 works, in contracts relating to 518 (And see Delay ) TITHE; compensation for 574^ 592, 599 contract for sale of 577 estate sold as free from 574, 577, 599 TITLE : acceptance of, worked by acts op ownership (5 v) 618 accepted under common mistake 612 need not be if doubtful 432 n., 439 n. accordance with conditions, in 614 acquired subsequently to the sale 627 acts of purchaser before knowledge of objection to 616, 618 with knowledge of curable objection to 616 incurable objection to 616 administrator's sale at 45I n, admission of 615, 653 CERTIFICATE (q. v.) agaiust or for 028 claim for compensation {q. v.) involving objection to 596 costs, purchaser ordered to pay, after decision in favor 439 crown grant, cured by. 626 cured by purchaser's own act 621 dealing about, after day for completion 533 decision of inferior or other court as to 430 defense, inability to obtain a good title a 440 ?i. INDEX. 797 TITLE— Continued. p^ge defect of, discovered by purchaser aliunde G14 disclosed bj' vendor himself 614 delay in accepting 527 different subject-matter from that contracted for, relating to 421 dismissal of action at the trial for want of 437, 609 doubtful, amount of doubt required by the rule as to 430 arguments for and against the rule as to 429 former and present tendencies of the court in cases of 430 nature of the doubt in cases of 432 origin of the rule as to 428 where court would consider title to be 432 not to be 435 dower, right of, an incumbrance 432 good 560, 630 good holding 615 implied condition for 170, 611 inquiry as to 609, 672 into, excluded GIO, 613 limited 613, 625 precluded 618 iron works, to share in 617 legal right of purchaser as to 560 lessor of 170, 012, 614 making and showing, distinction between 632 marketable 430 matters connected with 624 of 632 MISREPRESENTATION {q. V ) aS tO 331 misstatement not amounting to an objection to 595 necessarj^ pa-rty to, not under vendor's control 631 new 626 obligation to disclose 343 old practice of court of chancery in disputes as to 428 particular objection to 616 pleading facts constituting 615 possibility of fraud in extrinsic facts, where there is 435 presumption, depending on 432 questions of, are mixed questions of law and fact 331 defects in subject-matter are not 421 defined 623 distinguished from questions of conveyance 630, 631 evidence 632 right to rescind for 503 REFERENCE OF (q. V.) 609 restrictive stipulations as to , 611 shares, to ' 610, 672 special case on question of 440 suspicious circumstances, in cases of 435 time for completion of, when and when not allowed 626 798 INDEX. TITLE— Co7itinued. rxat. validity of purchase by solicitor from client, depending on 435 Vendor x^d Purchaser Act, 1874 {q v.), under 170, 560 vendor showing no 502 vendor's obliijation to show 170 n., 634 voluntary settlement, depending on invalidity of 432 want of good 427 n., UO n. WAi\'ER (7. r.) of 170 will, depending on validity of 439 TITLE DEEDS: deposit of, as indemnity 18 {Ajid see Deed ) TRADE : covenant not to carry on 58 unions 280 TRADE UNION ACT, 1871 230 TRANSFER : of SHARES {q. V.) 664 of SHIP (q. V.) 683 TRANSFER OF ACTION: chancery division, to 538 counterclaim, upon 538 COUNTY COURTS (q. 'V.), to aud from 540 TREATY 131, 136. 249 {See Xegotiaiion.) TRUST : chattels, respecting 34 contract, contrasted with 9 created under contract 404 n, designed to give effect to unenforceable contract 228 equity will enforce a parol 279 n. performance of, distinguished from specific performance 9 raised on property devised or bequeathed 281 secret 98 TRUSTEE: BANKRUPTCY [q. V.) iu, enforcement of specific performance against. . 106, 464 cest'ii que trust, sued for performance by ' 218 contract by, amounting to breach of trust {q. r.) 190 in excess of power 190 covenants by 463, 464 disclaimer by 464 entering into contract ultra vires 190 illegality {q. V.) of trust, setting up 229 improvident sale by ' 190 incapable of contracting with cestuis que trust 180 injurious contracts by, generally not enforced 191 insolvent lessee, for 96 liquidation, in 106, 464 INDEX. 799' TWUSTEE— Continued. pase. man of straw 671 married woman 1-9) 215 misrepresenting value of property sold 191 {Arid see Misrepresentation.) party to action, when 76 purchaser constructively a 634 real purchaser, for 278 sale, for- ••••• 120, 161, 191 secret 96, 97 separate estate, of • - • 127 unbusinesslike contract by 192 vendor constructively a 634, 646 is after payment of purchase-money 659 TRUSTEE ACT, 1850: party to action declared trustee by virtue of 90 vesting order under . 90, 559 ULTRA VIRES: acquiescence in act which is 235 agents of corporations, in acts of 235 COMPANY {q. V.) and stranger, where question between 236 where contract is 233 n . CORPORATION (q. V.), in contracts by 232 covenant for renewal, in 190 directors and members of company, where question between 237 promoters, in cases of contracts by HO purchase of assurance company's business held void as 383 ratification of act which is • ■ • 235 UNCERTAINTY : AWARD (g. v.), of 698 compromise rendered fair by 183 contingency, where contract involves 184, 185 DESCRIPTION (5. V.) of subject-matter, in 159, 424 ELECTION (q. v.), removed by • • 160 FRAUD {q. v.), in cases of 180 instances 1^''^ marriage articles, of l"*"^ mining contract, of 185 reduced to certainty (q. v.) 159 removed by user and course of dealing 176 stibject-matter iq. v.) asio 185 terms of contract 173 ??. theatrical engagement, in 177 UNDERLEASE: contract for •. 170 duration of, not specified 172 sold as lease 580, 582 UNDERTAKING: contract in nature of 217 800 INDEX. #AGE. UNDERVALUATION 210 (And see Value?'.) UNDERWRITER'S SLIP: does not constitute a contract 377 UNFAIRNESS : BREACH OF TRUST (q. v.). of Contract necessitating 190 cestui que trust, to 191 extrinsic matters, in 182 intentional, need not be 188 intoxication, in cases of 188 misstatements, arising from 188 {See Misrepresentation.) particulars, in 561 SILENCE {q. v.), by 188 submission, in contract for 195 suppression of a fact, by 188 {See Fraud.) terms of contract in 188 third persons, to 189 {And see Fairness.) UNILATERAL CONTRACTS: DELAY {q. V.) in cases of 527 discretion of court in cases of 217 MUTUALITY (g. v.), excepted from doctrine of 217 UNREASONABLE CONTRACT 196 n. VALUATION: contract to sell at a 696 n., 699 inaccurate 186 incapable of being acted on 162 incidental matters, of 166 partnership, at expiration of 166 subsidiary stipulation for 166 unfairness in 183, 186 vendor obstructing 165, 699 VALUER : arbitrator, distinguished from 164 Common Law Procedure Act, 1854, not applicable to 164 duty of 186 impropriety on part of 162, 186, 698 injunction against obstructing 548 PRICE {q. v.), for ascertainment of , 168, 699 refusing to proceed 165 under-valuation by 210 unfairness of 186 VARIANCE; between land sold and real quantity 421 n. VARIATION: acquiescence a ground of 372 INDEX. 801 YABIA.TIO'^— Continued. pabb. alleged and proved contracts between 304 covenant for renewal, of 372 description in contract, from 421, 425 excess, in the nature of 424 immaterial, in cases of part-performance 305 nugatory, in acceptance 138 omission of term in plaintiff's favor, by 305 PAROL iq. V.) 308, 308 partnership, in terms of 498 VENDEE: abandonment of contract by 537 n. equitable estate in 633 n. VENDOR: chattel of, action by 33 commendation by "'-' ' constructive trusteeship of., 634, 646 enforcement of contract to extent of interest of 5S6 { See Compensation. ) obligations of 634, 648, 673 of land, damages not complete remedy to 25 responsible for description of thing sold 571 right of, to sue 25 suing, must show ability to perform his part 571 VENDOR AND PURCHASER ACT, 1874: action brought after proceedings under 539 position of parties to application under 539, 627 summons under s. 9 of 53 J title to the freehold, as to I'^O, 620 VENDOR'S LIEN: acts diminishing value of 656 declaration of 55*\ 558 enforcement of 55 / , 655 railway companies, against 558, 655 results from non-performance of contract 635 when it will and will not prevail 557 {And see Lien.) VERBAL CONTRACT 143,277,279,299,308, 372 {See Parol.) VESTING ORDER 90, 559 VOID: stipulation that contract is to be, in specified event 501 VOLUNTARY : contract 45 settlement ^^2' "^^ settlor, contract enforced against 218 not assisted to override settlement 190, 432 willing purchaser from 190, 218 51 802 INDEX. VOLUNTEER : paob. limitatious in favor of '4*^' WAGER CONTRACTS: unlawful 224 n.. 225 n., 230 v. WAIVER: abstract, by retaining 61^ act of, distinguished from waiver of time •'^3o acts before knowledge of objection, by 618 not amounting to 618 ACTS OF OWNERSHIP {q. v.),hy 618 assignment, of proviso against 99 award, of claims under 698 breaches of covenant, of 469 clear evidence of, required 495 conditions for benefit of purchaser, of 170, 411 precedent, of 47 < conditional, of notice 523 stipulation as to day of payment 535 conduct, by 494, 620 contract not enforced notwithstanding, of right to investigate title. . . 521 defect, of 578 DELAY (g. v.), of 533 essentials of - 477 forfeiture, of • 534 form of declaration as to 520 n. FRAUD [q v.), of 349 granting lease, by 616 intention and knowledge requisite to 534 lessor's title, of 620 misdescription, of objection on the ground of 616 mutual parol agreement, by 494 MUTUALITY {q. V.), of Want of 217, 627 objections to title, of 610 partial 495 particular objection to title, of 616 performance by plaintiff, of 460 personal bar to relief, of right to insist on 357 pleaded, how 621 possession, by continuing in 617 by giving 535 by taking 616, 617, 535 question of evidence, a 536 n., 535 receipt of rent, by 469 royalty at reduced rate, by 503 subsequent instalment, by 503 REFERENCE OF TITLE (g. V.), Of right tO 615 requisition, of 6is right to rescind, of 503 separate breaches, in cases of 504 silence of subsequent contract, by 619 INDEX. 803 WAIVER — C