McHenry v. Mitchell

Citations

• 219 Pa. 297
• 68 A. 729
• 1908 Pa. LEXIS 563

Syllabus

<p>Contract — Option—Sale of land — Intention.</p> <p>Whether an instrument in writing agreeing to sell and convey real estate shall be considered as an absolute conveyance, or only an agreement to convey, or an option to purchase, depends, not on any particular words or phrases, but on the intention of the parties to be derived from the instrument itself by a consideration of all its parts, and when that is doubtful, from the circumstances attending it.</p> <p>An owner of coal agreed in writing to sell the same to another person for a certain sum per acre, payable on or before three months from date, one-third at the time of the presentation and delivery of the deed, and other payments subsequently. A clause in the agreement provided:</p> <p>“That in case payment is notmade as hereinbefore stipulated then this agreement to be null and void and of no effect whatever, and all parties hereto to be released from all liability hereunder.” Held, (1) that the optionor could not assert a forfeiture on the ground of failure to make the payment within the time specified, if he failed to first present a deed for delivery within that time; and (2) that a notice given by the optionee within the time specified of his election to purchase was sufficient to require the optionor to tender a deed before he could assert a forfeiture for failure to make the payment within the time specified.</p>