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WHITE v. SIKES

Supreme Court of Georgia1907-11-15
129 Ga. 508

Summary

Holding. The court affirmed the dismissal of the plaintiff's complaint for specific performance, holding that a minor's isolated real estate transaction is voidable and that the minor's use of contract proceeds to purchase an intangible benefit such as education does not constitute ratification requiring him to make restitution.

A minor entered into an executory contract to purchase real estate through a bond for titles. The minor received money as consideration, which he spent entirely on obtaining a dental education before reaching adulthood. Upon reaching majority, the minor repudiated the contract and refused to complete the purchase. The plaintiff sought to enforce the contract through specific performance.

The court held that the minor was not bound by this isolated real estate transaction because he was not engaged in the business of buying and selling property. The court also rejected the argument that the minor had ratified the contract by retaining the benefits of the consideration received. Although the minor had spent the money he received on his dental education, the education itself does not constitute tangible property that would require him to restore its value as a condition of repudiating the contract. The law does not require a minor to estimate the value of intangible benefits like education and tender that amount.

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

Key issues

  • Whether a single real estate transaction by a minor constitutes him 'engaged in business' and thus binding
  • Whether a minor's retention and use of contract consideration to purchase education constitutes ratification of the executory contract
  • Whether intangible benefits like education are property subject to valuation and tender requirements upon contract repudiation

Procedural posture

The trial court dismissed the plaintiff's petition for specific performance for failure to state a cause of action, and this appeal challenges that dismissal.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Atkinson, J.

The only prayers in the petition are for specific performance and general relief. Hence the only relief that can be granted under this petition would be that connected with the specific prayer. See Sapp v. Williamson, 128 Ga. 743, 58 S. E. 451. It is therefore only to be determined whether under the allegations of the petition the plaintiff was entitled to a decree for specific performance of the contract contained in the bond for titles. This was a mere executory contract of the infant. The contracts of an infant g.re voidable, except for necessaries. Civil Code, § 3648. If an infant, by permission of his parent or guardian, or by permission of law, engages in any business as an adult, he is bound for all the contracts connected with the business. Civil Code, §3650. But a mere single transaction by an infant does not constitute him one engaged in a business. If an infant, with the consent of a parent, were engaged, in the business of buying and selling real estate, and there were no question about the fact that such was his occupation, he would be unquestionably bound by the contracts relating to that business; but that is not this case. The infant was engaged in no business whatever. A? far as can be determined from the averments of the petition, he was at home with his mother. He was desirous of obtaining a professional education to fit him for business, but he was at the time engaged in no business. The contract in question was simply one isolated transaction not connected with any occupation or business whatever. Southern Cotton Oil Co. v. Dukes, 121 Ga. 788 (7).

But it is said -that the law declares that if an infant receives property, or other valuable consideration, and after arrival at age retains possession of such property or enjoys the proceeds of such valuable consideration, this is such a ratification of the contract as will bind him. Civil Code, §3648. If an infant makes a contract, either executory or executed, and receives the consideration in whole or in part during his minority and disposes of the same before his majority, either by losing, expending, or squandering it, this is nothing more than the law anticipates of him, and he will not be required to make any tender of the amount so disposed of before repudiating the contract which he made during his infancy. Southern Cotton Oil Co. v. Dukes, 121 Ga. 788 (5). But if, upon arrival at majority,, he has in his possession either the exact consideration that he received during infancy or any substantial part of the same, or property which is purchased with such consideration, that is, if he has then anything of a substantial nature into which can be traced the proceeds of the contract made during his infancy, then neither law, equity, nor good conscience will permit him to repudiate his contract and retain that which is the fruits of the contract. But it must appear thatthe infant after attaining majority, retains possession and control of something which is tangible, which has become his property as a result of his having used the consideration paid to him under the contract made while he was an infant. If he expends the amount in the purchase of food and the food is consumed, the principle alluded to would have no application; and so, if he used the land in the purchase of an education, which is a thing of value in a sense, but is intangible, the principle would have no application. 2 Warvelle on Vendors (2d ed.), §860. Under the averments of the petition, the infant was not required to make any tender as a condition to his repudiating the contract on his arrival at his majority. It distinctly appears from the averments of the- petition that he had none of the money that he had received; for it is alleged that ho had expended all of it. There is no allegation that he had in his possession any property which was purchased with the money which had been paid to him. It is true that it is alleged that the money was expended by the infant in taking a course in a dental college; but what he acquired in this way was not property within the meaning of the rule requiring that he should pay back the value of the property which he had acquired as a result of the contract. It may he that the education thus received would be of value to him, but it is not a thing of value within the ordinary meaning of that term, and the law does not require him to estimate its value and tender the amount of the estimate thus made. See, in this connection, Timmerman v. Stanley, 123 Ga. 850. Under no view of the case was the plaintiff entitled to a decree for specific performance, and the court did not err in dismissing the case for the réason that no cause of action was set forth.

Judgment affirmed.

All the Justices concur, except Holden. J., who did not preside.