Krhut v. Phares

Citations

• 80 Kan. 515
• 103 P. 117
• 1909 Kan. LEXIS 104

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Contracts — Sale of Land by an Option-holder. A contract granting an option to purchase a tract of land and binding the owner to convey on stated terms does not, before acceptance by the option-holders, yest in them any estate or interest in the land; but since they have such control of the title that by performance they can compel a conveyance, and so secure the land to themselves, they may, before the option expires, lawfully make a sale of it to a third party.</p> <p>2. - Agent to Account to Option-holder. An agent of option-holders effecting a sale of the land for them under an arrangement whereby the option is relinquished and the owner conveys directly to the purchaser can not refuse to account for the profits of the transaction because his principals had no estate or interest in the land.</p> <p>S. Variance — Unnecessary Allegation in Pleading Disregarded. In an action by option-holders against their agent for profits which he has fraudulently secured to himself in making a sale of the land for them to a third party it is not necessary to allege or prove that the option-holders were equitable owners of the land, and an allegation to that effect in the petition may'be disregarded.</p> <p>4. Principal and Agent — Accounting. Whatever the situation of a principal with reference to a tract of land may be, if an agent lawfully undertake to sell it for him, make the sale, and secure to himself the fruits which the agency was created to obtain, he is bound to account to his principal.</p> <p>5. - Forfeiture of Commission by Bad Faith. If by suppressing the truth and 'misrepresenting the facts an agent to sell land for option-holders should obtain a relinquishment of the option, effect a sale to a third party, and secure to himself the profits of the transaction, he forfeits his commission.</p>