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KAPLAN v. KRANTZ

Supreme Court of Georgia1947-04-19No. No. 15786
202 Ga. 194

Summary

Holding. The court affirmed the trial court's decision to overrule the general demurrer, holding that a petition for specific performance of a lease agreement is timely when brought after the option is exercised, that no tender must be alleged when the other party has declared refusal, and that an agreement to lease is sufficiently certain when it specifies the property, term, rent, and includes a renewal privilege.

Kaplan sought specific performance to compel Krantz to execute a lease agreement. Krantz challenged the petition through a general demurrer, raising three objections: that the suit was brought prematurely before the lease's operative date, that no tender of performance was alleged, and that the lease terms were too indefinite to constitute a binding contract.

The court rejected each argument. Although the lease would not commence until August 5, 1946, the performance obligation arose when Kaplan exercised his option on March 21, 1946, giving him an immediate right to demand execution of the lease. Because Krantz had already refused to lease the property, no formal tender was required—equity does not demand useless formalities when the other party has declared refusal in advance. The written agreement contained all essential terms necessary to form a binding lease: the property description, a three-year term, monthly rent of $75, and a renewal option. Additional provisions that might ordinarily be appropriate were not legally required for the contract's enforceability.

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

Key issues

  • Whether a specific performance suit is premature when brought before a lease's operative date but after an option is exercised
  • Whether formal tender of performance must be alleged when the defendant has declared refusal
  • Whether a lease agreement is sufficiently definite without detailed standard form provisions

Procedural posture

Krantz filed a general demurrer to Kaplan's petition for specific performance of a lease agreement, which the trial court overruled, and Krantz appealed.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Atkinson, Justice.

(After stating the foregoing facts.) Counsel for the plaintiff in error insist that the general demurrer should have been sustained because the petition for specific performance of the agreement to execute a lease was prematurely brought on June 21, 1946, since the lease was not to commence until August 5, 1946, and that the plaintiff in error would have had the right to change his mind up to the time when the lease was to become operative. Gilleland v. Welch, 199 Ga. 341 (34 S. E. 2d, 517), is cited in support of this contention. In that ease, involving specific performance of a contract for the sale of land, it was held that, where performance was not required until a later date as fixed by the agreement, a suit for specific performance was premature when brought without waiting for the date of performance to arrive.

Whether the present suit was prematurely brought depends upon the date of performance as fixed by the sales agreement. While the lease was not to become operative until August 5, 1946, the sales contract granted an option which could be exercised, at any time, not later than six months from the date of the sales contract. Upon the exercise of this option on March 21, 1946, the date of performance became fixed as of that date, and the purchaser obtained a present right to have executed the lease provided for in the contract, although the lease would not become operative until August 5, 1946. The failure of the defendant to comply with this agreement, after the exercise of the option by the purchaser, and the resulting obligation upon the defendant, authorized the purchaser to institute at once a proceeding for specific performance of the agreement to execute the lease, without waiting until the date when the lease should become operative. The petition here was not, therefore, prematurely brought as contended by the defendant.

It is also insisted that the general demurrer should have been sustained because the petition for specific performance of the agreement to execute a lease did not allege any tender. The allegations show that the purchaser exercised his option within the time provided for under the agreement, and offered to carry out the terms of the contract, but the defendant informed the purchaser that he would not lease the premises to him.

Since equity will not require a useless formality, it is unnecessary to make a tender where the vendor, by conduct or declaration, proclaims that, if a tender should be made, acceptance would be refused. Fraser v. Jarrett, 153 Ga. 441, 451 (3) (112 S. E. 487); Groover v. Brandon, 200 Ga. 153, 165 (5) (36 S. E. 2d, 84), and citations. Furthermore, while the agreement in the case under review was that the respective parties would, upon exercise of the option, execute such legal instruments as were necessary to carry out the terms thereof, there was nothing in the agreement to show that any rent would become due before the date upon which the lease was to become operative.

The present case differs on its facts from Christopher v. Whitmire, 199 Ga. 280 (34 S. E. 2d, 100), and Washington Mfg. Co. v. Wickersham, 201 Ga. 635 (40 S. E. 2d, 206).

Finally, it is insisted that the general demurrer should have been sustained because the written lease contract attached to the petition failed to show that there was a meeting of the minds of the respective parties, since there was no agreement to execute the standard lease form contract with reference to business property, either in the short form, or the long form, or as to many other stated provisions which it is contended were necessary to be included in a lease contract between parties leasing business property.

The written agreement in question was that, upon exercise of the option, the parties would execute such legal instruments as were necessary in the leasing of described real estate for a term of three years, commencing August 5, 1946, at a rental of $75 per month. The agreement further provided that the lease should contain a privilege of renewal. While doubtless it would have been appropriate to include in such lease many of the provisions that were insisted upon, these provisions were not necessary in order to make a binding contract to lease the described property for a term of three years at the stated rental.

The petition was sufficient to withstand the general demurrer and to meet the requirements of law, as set forth in F. & W. Grand Stores v. Eiseman, 160 Ga. 321, 331 (7) (127 S. E. 872), where it was said: “Where a contract for the sale of land is in writing, signed by both parties, is certain and fair, is for an adequate consideration, and capable of being performed, a court of ’equity, as a matter of course, will decree specific performance of the contract. Clark v. Cagle, 141 Ga. 703 (82 S. E. 21, L. R. A. 1915A, 317); Funke v. Browne, 145 Ga. 828 (90 S. E. 64). The same principle is applicable in cases of contracts for the lease of land.”

Accordingly, the trial court did not err in overruling the general demurrer to the petition.

Judgment affirmed.

All the Justices concur.