Glassell v. Coleman

Citations

• 94 Cal. 260
• 29 P. 508
• 1892 Cal. LEXIS 673

Syllabus

<p>Vendor and Purchaser—Action upon Guaranty—Pleading — Former*1 Canceled Agreement—Consideration ov Contract Guaranteed. — In an action by the vendor of land against the guarantors of the purchaser on aeeeount of a breach of his contract to purchase the land, allegations in the complaint in reference to a former canceled agreement of purchase cannot be considered upon demurrer for the purpose of determining whether the plaintiff has a cause of action against the guarantors arising out of the breach of a later agreement, in respect to which alone the guaranty was made, although it is alleged that the later agreement was executed as a substitute for the former agreement, and although the cancellation of the former agreement was upon the consideration that the later agreement should be executed.</p> <p>Id. — Obligation for Purchase-money — Liability of Guarantors. — Sureties who guarantee the payment of a note or obligation given by a purchaser of land on account of purchase-money are bound only by the obligations they have expressly assumed. Their liability is limited by the terms of the guaranty, and cannot, in any contingency, exceed the liability of the purchaser upon the contract guaranteed.</p> <p>Id. — Rescission of Contract — Forfeiture — Termination of Purchaser’s Obligation — Action for Breach. — Where a vendor, under a contract for the sale of land, elects to rescind the contract, upon a breach thereof by the purchaser, by claiming a forfeiture of all his rights under the contract, pursuant to its terms, which provide for such forfeiture, the contract ceases to be a subsisting or enforceable obligation against the purchaser; and his liability upon the agreement to pay the purchase price ceases with the vendor’s rescission of the right to receive the land upon such payment, and the vendor has no right of action whatever on the contract, but simply a right of action for damages for the breach thereof, which necessarily implies that the contract has been termi