Reeves v. Wisconsin & Arkansas Lumber Co.

42 S.W.2d 11 · Supreme Court of Arkansas · 1931

Facts

On May 9, 1919, Wisconsin & Arkansas Lumber Co. (appellee) contracted to sell 60 acres of land in Grant County to H. G. Toler for $450. Toler paid $100 cash and gave two promissory notes for $175 each, due in one and two years, with 7% interest. The contract stipulated a special warranty deed upon full payment, but would be void if notes were unpaid, with the land reverting to appellee, and included a mineral reservation clause. On April 11, 1920, Reeves (appellant) bought the land from Toler, assuming the outstanding debt to appellee. Appellant took possession, made valuable improvements, but failed to pay the notes in full after making some small payments. After notice and demand, appellant defaulted and refused to pay.

Procedural history

Appellee brought an action to recover possession of the land or to enforce a lien for the balance due. A trial resulted in a decree for appellee, declaring and enforcing a lien on the land for the balance of the purchase money. Appellant sought a reversal of this judgment.

Issue

Is the land sale contract void due to alleged improper execution or an ambiguous mineral reservation clause, or because the seller's title is purportedly not good?

Holding

The court affirmed the lower court's decree, finding the contract valid and enforceable, and rejected the appellant's contentions regarding its validity and the seller's title.

Rule

A contract is not void for want of execution if the party challenging it admitted its proper execution in their answer, thereby waiving the issue. Similarly, an alleged ambiguity in a mineral reservation clause is not an issue if admitted as valid in the answer. A contract executed in duplicate, with each party signing one copy, is valid, and it is unnecessary for the seller to sign their copy if they are asserting its validity. The court found the mineral reservation wording was not misleading to a person of ordinary intelligence. A special warranty deed only warrants title against defects done or suffered by the grantor, not general covenants.

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