Street v. Johnson
1936 Tex. App. LEXIS 792, 96 S.W.2d 427 (1936)
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Rule of Law:
A memorandum for the sale of real estate satisfies the Statute of Frauds if it is signed by the party to be charged, identifies the property, and indicates a sale, even if it consists of multiple documents, does not state the consideration, and is not signed by the buyer.
Facts:
- W. A. Sherry owned four duplexes in Amarillo, Texas.
- Sherry provided his agent, Sarah E. Johnson, with written instructions to sell the four duplexes.
- Johnson contacted an unnamed appellant (the buyer), who agreed to purchase the four duplexes for $1,000.
- Sherry executed a bill of sale for the houses, leaving the purchaser's name and the consideration amount blank, and delivered it with instructions for the blanks to be filled in.
- The agreement was allegedly evidenced by various letters, writings, and telegrams passing between Sherry and Johnson, which were shown to the appellant.
- Before the transaction was finalized, Sherry repudiated the agreement.
- Sherry subsequently sold the properties to Jones and the Panhandle Building & Loan Association.
Procedural Posture:
- The appellant sued Sherry and Johnson in a Texas trial court for specific performance of a real estate contract.
- In the alternative, the appellant sued Sherry, Johnson, Jones, and the Panhandle Building & Loan Association for damages.
- The trial court sustained the appellees' general and special demurrers, which argued that the appellant's petition failed to state a valid legal claim.
- Following the ruling on the demurrers, the trial court dismissed the appellant's case.
- The appellant (plaintiff) appealed the dismissal to the Texas Court of Civil Appeals.
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Issue:
Does a plaintiff's petition state a valid cause of action for breach of a real estate contract sufficient to survive a demurrer when it alleges the existence of multiple writings signed by the seller, which together form the contract, even though the writings are not in the plaintiff's possession and the buyer has not signed any document?
Opinions:
Majority - Martin, Justice.
Yes. A petition that alleges a contract for the sale of land evidenced by writings signed by the seller is sufficient to state a cause of action and survive a demurrer. The Statute of Frauds requires a contract for the sale of land to be in writing and signed by the party to be charged, but this requirement can be satisfied by a combination of documents, such as letters and telegrams. The writing need only be signed by the party against whom enforcement is sought (the seller), and it is not necessary for the buyer to have signed or for the writing to contain all contract terms, such as the consideration. Furthermore, a plaintiff is not required to plead that the contract was in writing, as that is a matter of evidence to be presented at trial. Therefore, the appellant's petition sufficiently alleged a cause of action, and he must be given the opportunity to prove the existence and contents of the alleged writings.
Analysis:
This decision reaffirms and clarifies the flexible application of the Statute of Frauds in Texas concerning real estate contracts. It establishes that the "writing" requirement is not rigid and can be satisfied by piecing together various informal communications, which lowers the barrier for proving the existence of a contract. The case also draws a sharp line between the requirements of pleading a cause of action and the evidentiary burden at trial, holding that a plaintiff need only allege a sufficient writing exists to survive a motion to dismiss. This precedent protects plaintiffs from premature dismissals and ensures they have an opportunity to use discovery to obtain documents held by the opposing party to prove their case.
