VENDOR -PURCHASER-PROSPECTIVE INABILITY OF VENDOR TO CONVEY

Authors

Abstract

In a contract for the sale of sixty-three lots of a subdivision, the defendant agreed to take the purchase money by installments extending over a period of eighteen months, and promised to convey the premises free from encumbrances when twenty-five per cent of the sale price was paid. While the plaintiff was not in default the defendant mortgaged the entire subdivision to one who was not charged with notice, to secure the payment of bonds some of which did not mature for five years. Stipulations m the mortgage allowed the release of any lot on deposit with the mortgagee of part of the proceeds from its sale, provided, however, there was no default in the payment of principal or interest on the bonds, nor in respect to any of the covenants of the mortgage. One of these covenants conditioned the sale of the lots to a specified price which was higher than that at which the defendant had contracted to sell to the plaintiff. It was held that the acts of the defendant in so disabling itself that it could convey by no other deed than one which would compel the plaintiff to assume a pro rata portion of the mortgage indebtedness constituted an anticipatory breach of contract. Miswald- Wilde Co. v. Armory Realty Co., (Wis. 1932) 243 N. W. 492.

Recommended Citation

VENDOR -PURCHASER-PROSPECTIVE INABILITY OF VENDOR TO CONVEY, 31 Mich. L. Rev. 1002 (1933).
Available at: https://repository.law.umich.edu/mlr/vol31/iss7/24