Public-domain · open source
OpenJurist

27 Jones & S. 321

Blewitt v. Boorum

The Superior Court of New York City · decided 1891-05-04

<p> Contract under seal, delivery of, parol evidence admissible to establish the fact that the delivery was conditional, and the condition never fulfilled. </p> <p>A sealed contract, not relating to an estate in lands, that was executed and delivered to take effect when some act had been done or condition fulfilled by one of the parties thereto, does not become binding upon the parties thereto until the act is done or condition fulfiled. Parol evidence is admissible to establish the facts relating to such conditional delivery and to the act and condition required to be done and fulfilled before the contract became of binding effect as between the parties. The contract in question was made by William H. Russell and the plaintiff, as parties of the first part, and the defendants, as parties of the second part, and by its terms the parties of the first part granted to the parties of the second part the full and exclusive right and license to manufacture, sell and use a certain invention covered by a patent, issued to Russell, during the term of the patent ; and as consideration for such grant, the parties of the second part (defendants) agreed to manufacture the patented article and to pay to each of the parties of the first part the sum of two and one-half cents on each article manufactured as a royalty. This agreement was executed by all the parties under their respective hands and seals, and one copy so executed was actually delivered to the plaintiff. The answer admits the making of the contract, but alleges, as a defence, that it was agreed between the parties, at the time of making, that it was not to take effect as to the plaintiff until after he had acquired a one-half interest in the patent by the performance of an agreement between him and Russell, the other ]Jarty of the first part to the contract, for the purchase of said half interest. That the plaintiff never carried out nor fulfilled such agreement with Russell, and never acquired a half interest in the said patent, and subsequently abandoned all attempt to gain an interest in such patent, and relinquished and transferred to said Russell all his rights and interest in this contract.</p> <p>On the trial the defendants offered to prove, and did prove, by parol testimony, against the objection of the plaintiff, the oral agreement between the parties as stated; and upon this evidence the court found, as matters of fact, that at the time of the execution of the contract it was expressly agreed between the parties that it should not take effect as a contract until the plaintiff should have acquired a one-half interest in the patent from Russell, etc., and that the plaintiff had never acquired that interest. These findings were fatal to plaintiff’s case, if the evidence upon which they rested was admissible, and the only question presented on this appeal is whether or not it was error to receive such parol evidence.</p> <p>The court, on review, held as follows: (1) A deed of real estate delivered to . a party or to his authorized agent, and not to a stranger, is absolute, and parol evidence of conditions qualifying the delivery, or affecting its delivery, is inadmissible. (2) Parol evidence is admissible to prove that a writ- ' ten paper, not under seal, which in form is a complete contract, although delivered, was nevertheless not to become a binding contract until the | performance of some condition or act, the proof of which rested in parol evidence. (3) It remains to be fully determined what the rule is in regard to an instrument under seal which is not a deed or conveyance and does not relate to the transfer of the possession of land. Under this last point great confusion exists among the decisions. Formerly the tendency was to distinguish generally between sealed and unsealed instruments. Of late the tendency has been to disregard the distinction between sealed and unsealed instruments whenever it can be done without a violation of some settled principle of law. The precise point at issue and now under consideration has never been put to rest.</p> <p>Á careful analysis of all the cases, with reference to the state of facts peculiar to each, shows that the existing confusion arises not so much from the decisions as from dicta which are obiter, and that the strict enforcement of the rule which rejects parol evidence qualifying the delivery, has been almost exclusively in cases of instruments under seal in which the delivery constituted or involved a symbolic transfer of the possession of land.</p> <p>Held, that after due consideration of all that has been urged on .both sides, the rule prohibiting parol evidence as to a qualified or conditional delivery should be confined to the class of instruments in which the delivery constitutes or involves a symbolic transfer of the title and possession of land. In this view of this case the evidence was properly admitted and the exceptions of the plaintiff are untenable..</p>

Relies on Harnickell v. . New York Life Ins. Co. · Dietz v. . Farish

Decided 1891-05-04

By the Court.—Freedman, J.

¶1There is no certificate or statement that the case contains all the evidence. The facts, therefore, are not open for review and only questions of law can be considered. .

¶2*328The contract sued on was made by William H. Bussell and the plaintiff, as parties of the first part, and the defendants, as parties of the second part. By it the parties of the first part granted to the parties of the second part the full and exclusive right and license to manufacture, sell and use a certain invention covered by a patent issued to Bussell during the term of the patent; and as consideration for such grant the parties of the second part (the defendants) agreed to manufacture the patented article and to pay to each of the parties of the first part the sum of two and one-half cents on each binder as royalty. The agreement was executed by all the parties under their respective hands and seals, and it was actually delivered to the plaintiff.

¶3The answer admits the making of the contract sued on, and alleges, as a defence, that it was agreed between the parties at the time of the making of the contract that the same was to take effect as to the plaintiff only when he should have acquired a one-half interest in the patent by performance of a certain agreement that he (the plaintiff) had made with Russell, the other party of the first part to the contract in suit, whereby the plaintiff was to acquire from Russell a one-half interest in the patent; that the plaintiff never carried out such agreement with Russell, never acquired a half interest from Russell, and subsequently abandoned all attempt to obtain an interest in such patent, and relinquished and transferred to Russell all his right, title and interest under the contract.

¶4At the trial there was no controversy as to the actual delivery of the contract, or a copy of it, to the plaintiff, but the defendants offered to prove the oral agreement between the parties as above stated and that the plaintiff had failed to acquire from Russell a one-half interest in the patent. The plaintiff duly objected to such evidence as inadmissible, but the *329court overruled the objection and received the evidence, to which ruling the plaintiff duly excepted. Upon the evidence thus received the court found, as a fact, that at the time of the execution of the contract sued upon it was expressly agreed between the parties thereto that the same was not to take effect as a contract until the plaintiff should have acquired a one-half interest in the patented improvement and letters patent in pursuance of the agreement between plaintiff and Russell, and that the plaintiff did not at any time acquire such half interest. The court also found, as a fact, that the contract was never delivered to the plaintiff as a subsisting legal obligation. These findings are fatal to plaintiff’s case, if the evidence upon which they rest was admissible, and the only question presented, therefore, is whether or not it was error to receive such evidence.

¶5It is settled in this state that if a deed is delivered to a party or his authorized agent, and not to a stranger, it is absolute, and parol evidence of conditions qualifying the delivery is inadmissible. Worrall v. Munn, 1 Seld. 229, and cases there cited.

¶6It is also settled that parol evidence is admissible to show that a written paper not under seal which in form is a complete contract, of which there has been a manual tradition, was, nevertheless, not to become a binding contract until the performance of some condition resting in parol. Reynolds v. Robinson, 18 N. Y. State Rep. 235; Harnickell v. N. Y. Life Ins. Co., 111 N. Y. 390.

¶7It remains to be seen what the rule is as to an instrument under seal which is not a deed and does not relate to the transfer of the possession of land.

¶8Upon this point great confusion exists in the books. Formerly the tendency undoubtedly was to distinguish generally between sealed and unsealed instruments. Of late the tendency has been to disregard the distinction between sealed and unsealed *330instruments whenever it can be done without a violation of some settled principle of law. The precise point now under consideration has never been put at rest. In Dietz v. Parish, 79 N. Y. 520, Church, Ch. J., even says with reference to a deed: “ The court, in Kidner v. Keith, 109 E. C. L. R. 34, announced the well-established rule. It said: There is no doubt in point of law that where by express declaration, or from the circumstances, it appears that the delivery of a deed was not intended to be absolute, but that the deed was not to take effect until some contemplated event should have happened, the deed is not a complete and perfect deed until that event has happened.”

¶9' A review of all the cases to which our attention has been called upon this point, would serve no useful purpose. Suffice it to say that a careful, analysis of them with reference to the state of facts peculiar to each, shows that the confusion which does exist arises not so much from the decisions as from dicta which are obiter, and that the strict enforcement of the rule which rejects parol evidence qualifying the delivery,' has been almost exclusively in cases of instruments under seal in which, the delivery of the instruments constituted or involved a symbolic transfer of the possession of land. After due consideration of all that has been urged on both sides, I am of the opinion that the rule prohibiting parol evidence as to a qualified or conditional delivery should be confined to the class of instruments last referred to, and that it should not be • extended generally to all executory contracts under seal. If this view is sound, the evidence in this case was properly admitted, and the exceptions taken by the plaintiff are untenable.

¶10The judgment should be affirmed, with costs.

¶11Truax and McAdam, JJ., concurred.

/27/joness/321 · .json · Public domain