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C. S. ANDERSON v. JOHN BACKLUND

Minnesota Supreme Court1924-05-29No. No. 23,951
159 Minn. 423

Summary

Holding. The alleged oral contract between the parties was not established by the evidence because the conversation lacked sufficient certainty and mutual assent regarding essential terms. The trial court's directed verdict for the plaintiff was affirmed.

A tenant on a large farm counterclaimed against his landlord's suit to collect on a promissory note, alleging that the parties had reached an oral agreement in June whereby the tenant would purchase additional cattle to graze the pasture if the landlord would ensure an adequate water supply for the expanded herd. The tenant testified that the landlord encouraged him to stock more cattle and promised to provide sufficient water, relying on which the tenant purchased over 100 cattle. When the water supply allegedly failed and the cattle deteriorated, the tenant sought damages of $2,500.

The appellate court examined the tenant's testimony—the only evidence supporting the alleged oral contract—and found it insufficient to establish a binding agreement. The court determined that the parties' conversation lacked the definiteness required for a valid contract, as critical terms such as the method and timing of water provision remained unspecified. The language used suggested casual discussion and advice rather than mutual assent to definite contractual terms. Because the minds of the parties never met on the essential terms of any alleged agreement, the counterclaim could not succeed.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether an oral agreement to purchase cattle in exchange for water provision constituted a binding contract
  • Whether the parties achieved mutual assent to definite essential terms
  • Whether informal conversation and advice can constitute a contract

Procedural posture

The landlord sued to recover on a promissory note; the tenant filed a counterclaim for breach of an alleged oral agreement; the trial court directed a verdict for the plaintiff and denied the tenant's motion for a new trial; the tenant appealed.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Wilson, C. J.

TMs is an action to recover on a promissory note. Plaintiff’s cause of action is not in controversy. The defendant alleged a counterclaim. Defendant was a tenant on a 640-acre farm owned ■by plaintiff and a written lease defined the terms of this tenancy. He alleges, however, that, in the month of June, the parties made a further oral agreement, for the purpose of more securely assuring plaintiff that he would receive certain cash rent accruing in prior years, wherein defendant agreed to buy 100 head of cattle and bring upon the farm and consume good pasture thereon and that plaintiff agreed to provide, keep and maintain on the farm a well, watering equipment and water ample and sufficient for the needs of such 100 head of cattle as well as for 67 head of cattle then owned and kept on the farm by defendant; and that, relying upon such agreement and being induced thereby, defendant purchased and ¡placed on the farm 107 head of cattle. That plaintiff violated his agreement; that the water supply failed, and because thereof all the 174 head of cattle became wasted, thin and depreciated in value and defendant was damaged in the sum of $2,500.

The court directed a verdict for the plaintiff for the amount claimed in the complaint, and from an order denying defendant’s motion for a new trial he has appealed.

Our first inquiry is as to whether the oral contract as alleged by defendant is in fact established by the proofs. The only evidence in support of this allegation is the testimony of the defendant, John Backlund, which is as follows:

“Well Mr. Anderson drove on the place, come there the same as always, and asked how everything was and how we got along. I told him it began to look pretty blue for me, two years kind of light crop I said and it looked to me I can’t make both ends meet, and Mr. Anderson said ‘Well now John’ — I remember the words— ‘Why don’t you get some more cattle on here and make good use of all that grass and make some money.’ Well, I says, ‘Some of my neighbors tells me if I stock up too heavy in the pasture and there be a ‘short spell’ I will be short of water and I will be up against it and that is the reason I am waiting for you.’ Well he said ‘Never mind the water, John, I will see there will be plenty of water because it never failed in Minnesota yet’ and I say ‘all right, I got it all arranged to get all the cattle I want from Long & Hanson in Sioux City, all I have to do is to go to the phone and call them up and the cattle be here in 2 or 3 days.’ And he said all right. And then furthermore Anderson always told me ‘I am good for my word.’ ”

If this constitutes a contract, what were the terms? How was he to provide water? Was he to drill a well? If so, when? What was the significance of the words, “because it never failed in Minnesota yet”? This rather characterized the talk more as visiting or advice than a contract, and we are forced to the conclusion that the parties did not make a contract. There is a lack of mutual assent to the same proposition, and the language is entirely too indefinite and general as to the usual elements of a contract. The minds of the parties never met upon the essential terms. Contracts must be certain in terms and not so indefinite and illusory as to make it impossible to say just what is promised. The proof in this respect is insufficient. Because of such insufficiency the counterclaim falls, and the learned trial court was right in directing a verdict.

It becomes unnecessary to discuss the assignment of error relating to the rulings of the court in excluding testimony offered in support of the measure of damages.

Order affirmed.