Wolfe v. Morgan

NOURSE, J.

Plaintiffs sued for the reformation of a written contract for the purchase of a lot of real property. They had judgment and the defendant has appealed on a typewritten record.

The contract was executed by respondents and the agents of appellant, who had theretofore been authorized in writing by appellant to execute such contracts with purchasers of lots owned by appellant and placed in the hands of her agents for sale. As an inducement for the sale these agents assured respondents that the cost of street improvements then contemplated and proposed by the city had been or would be paid for by the owner (appellant) and that the purchasers would be required to meet the cost of future assessments for future street improvements. The contract between respondents and appellants’ agents merely provided that “said buyer shall pay all assessments which may be levied on the premises.” The theory of the complaint is that, through the mistake of the parties, the contract failed to express their real intention and the respondents prayed that it be reformed accordingly.

On October 10, 1922, appellant entered into a written contract of employment with her agents for the subdivision and sale of a tract of land which was conditional upon appellants securing a loan in the sum of $6,900 to defray expenses to be incurred by her agents, included in which was the cost of the street improvements which is the basis of this controversy. Paragraph seven of this .contract provided that of this loan “4000 should be available when

needed

to pay the cost of the

improvement now pending

to the portion of Peralta Avenue adjoining the said property.” Paragraph four of this contract -provided that all contracts of sale of the lots should obligate the purchaser to pay all “assessments of

[658]

every kind

thereafter levied

or

thereafter becoming a

lien” upon the lot sold. Paragraph eight of this contract provides that it is “understood and agreed . . . that in the event . . . the payment of the cost by the party of the first part of the improvement of Peralta Avenue, shall exceed the said sum of $6900, then any excess cost, plus the cost of any sewer improvements and of any and all other improvements” shall be added to the price of the lots in such manner as the contracting parties should agree. Before any lots were offered for sale the appellant and her agent discussed the cost of the street work then pending on Peralta Avenue and other contemplated improvements, and fixed the sale price of each lot accordingly.