Whitson v. Adams

• Decision Date: 06 March 1922
• Docket Number: No. 67.,67.
• Citation: 117 A. 154,93 N.J.Eq. 456
• Court: New Jersey Supreme Court
• Parties: GEORGE WHITSON and GRACE WHITSON, his wife, complainants-respondents, v. HATTIE H. ADAMS, defendant-appellant

117 A. 154

WHITSON et ux.

v. ADAMS.

No. 67.

Court of Errors and Appeals of New Jersey.

March 6, 1922.

(Syllabus by the Court.)

Appeal from Court of Chancery.

Suit by George Whitson and wife against Hattie H. Adams.Decree for complainants, and defendant appeals.Affirmed.

Babcock & Champion and Bourgeois & Coulomb, all of Atlantic City, for appellant.

Bolte, Sooy & Gill, of Atlantic City, for respondents.

KATZENBACH, J. Laura B. Myers, a widow, owned a property in Atlantic City, known as No. 1 South Sovereign avenue.On September 25, 1916, a lease of this property was made for a period of five years from November 3, 1916, to George Whitson and Grace Whitson, his wife.The lease reads that it is—

"between Hattie H. Adams, of the city of Atlantic City, in the county of Atlantic and state of New Jersey, daughter and agent for Laura B. Myers, party of the first part, and George Whitson and Grace Whitson, his wife, of the aforesaid city, county, and state, parties of the second part."

Mrs. Adams was the only child of Mrs. Myers, and, if Mrs. Myers died intestate, would, of course, be her heir at law.The lease was under seal, and signed "Hattie H. Adams."The lease contained the following provision:

"It is further understood and agreed that in the event of the death of the said Laura B. Myers, mother of Hattie H. Adams, above mentioned, at any time during the continuance of this lease, the said party of the second part has the privilege and the first option to purchase said property for" the sum of $12,000; the sum of $6,000 to be paid in cash, and the balance, the sum of $6,000 to be secured by a purchase-money mortgage for said sum, with interest thereon at the rate of 6 per cent. per annum, payable semiannually, together with $3,500 fire insurance to accompany said mortgage."

In May, 1919, Mrs. Myers died intestate.Mrs. Adams survived her.The lessees had entered upon the property under the lease, paid the rent to Mrs. Myers, or the agent designated by her, and had made improvements upon the property.On November 5, 1920, the lessees notified Mrs. Adams of their intention to exercise the option of purchase of the property given in the lease, and on the following day tendered to Mrs. Adams $6,000 in cash, a mortgage for $6,000, and fire insurance policies for $3,500 upon the property to accompany the mortgage.Mrs. Adams refused the tender.Mr. and Mrs. Whitson thereupon filed a bill in the Court of Chancery against Mrs. Adams for the specific performance of the option to purchase given in the lease.After a hearing, specific performance was decreed.From this decree, Mrs. Adams has appealed.

The defenses interposed by Mrs. Adams were: First, that the agreement was not her personal and individual contract, and that there was no contract signed by the principal or her authorized agent, as required by the statute of frauds; second, that the terms and conditions of the mortgage to be given by the complainants were not sufficiently definite to warrant a decree of specific performance; and third, that the description of the property to be conveyed was too incomplete and uncertain to be the subject-matter of a decree for specific performance.At the hearing it was also urged that the complainants had not exercised their option of purchase within a reasonable time.

The second defense, relating to the terms of the mortgage, was eliminated by the offer of the complainants to pay the entire consideration in cash.The third defense was also removed from the case, as the decree is for the conveyance of the land without the furniture which was leased with the property by the indenture of September 25, 1916.With reference to the time within which...