Greenstreet v. Cheatum

Citations

• 99 Kan. 290
• 161 P. 596

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Unconditional Promise to Pay Debt — Payment Postponed Until Happening of Future Event — Event Never Happens — Debt Payable Within Reasonable Time. If the existence of a debt is conditioned upon the happening of an event it can not become enforceable until the event happens, but if a promise is made which constitutes a present liability and payment is postponed until the happening- of an event which does not happen the law requires payment to be made within a reasonable time.</p> <p>2. Same. One person who had an interest in a residence transferred it to the other upon the agreement that the other would pay the former a certain sum of money, payment to be made when the residence could be sold for a stated price, which was about the actual value of the same. It was also agreed that the liability so fixed should constitute a Pen upon the property. The residence was never sold, and about two years after the agreement was made the house was burned and the obligor collected a substantial amount of insurance for which she had contracted and paid. Shortly afterwards she built another house which cost only one-third of the insurance received and which was worth much less than the one which was burned. In this condition it became improbable that the property could ever be sold for the price named in the agreement. Held, that a liability was created when the agreement was made and the property transferred, that under the circumstances the debt became payable within a reasonable time and that a reasonable time had elapsed when the action to enforce payment was begun.</p>