Opinion ID: 1125501
Heading Depth: 1
Heading Rank: 1

Heading: The Bargaining

Text: The appellees, Mr. and Mrs. Leavey, residents of California, owned the Hereford Ranch in Wyoming. Edward F. Murray, Jr., of the real estate firm of Ed Murray & Sons Realty Company, learned the ranch was for sale. Although Murray had no listing on the ranch, he obtained several offers of purchase and submitted them to the Leaveys. All offers made prior to one submitted by plaintiff Woods were rejected. The written offer of purchase made by Woods was taken by Murray to the Leaveys in Los Angeles. There was a question about Woods' financial ability, and Murray suggested Mr. Leavey make a telephone call to plaintiff Trautwein, a banker in Cheyenne, Wyoming. Before doing so, Leavey informed Murray a provision in the Woods offer requiring a guarantee of 2522 head of cattle could not stand because Leavey did not know how many cattle were on the ranch; also, contrary to the Woods offer, Leavey insisted to Murray there would have to be a provision permitting Leavey to sell cattle between the time of a contract and delivery of possession of the ranch. Thereupon, Leavey and Trautwein had a telephone conversation, which all parties agree was short. The most plaintiffs claim from this conversation was that Trautwein agreed to come into the deal as an equal buyer with Woods; that Leavey said he could not guarantee the cattle count; that it was agreed Leavey could sell up to $20,000 worth of cattle to obtain money to run the ranch; that Leavey said there were other things to be settled; that Trautwein said Murray would work out everything with Leavey; and that the price discussed was $2,300,000. Let us point out some of the reasons for considering that a completed contract or meeting of the minds had not been arrived at when the telephone conversation ended. In the first place, Trautwein said Murray would work out everything with Leavey. In that regard, appellants say in their brief some of the details were negotiated by Murray and Leavey after the telephone call. Moreover, at the time of the telephone conversation the Leaveys had not yet agreed with Murray on the commission to be paid for selling the ranch. This would appear to be a substantial consideration for sellers. All parties agree the agreement between Leavey and Murray on the amount of commission to be paid, if the sale was completed, came after the telephone conversation between Trautwein and Leavey. In any event, any doubt as to whether a final contract was arrived at when Trautwein and Leavey talked on the telephone is removed when we consider that Woods was not in on the conversation. He had not yet agreed to Trautwein coming into the deal as an equal purchaser; nor to any change in the terms of his written offer. Negotiation proceedings which took place after the talk between Trautwein and Leavey further verify that parties did not consider a contract yet arrived at. Leavey's accountant prepared a 16 paragraph handwritten memorandum containing terms and language which should be in a new written offer  this one to be made by Trautwein and Woods and not by Woods alone. After Leavey approved the memorandum, his attorney had an instrument typed. It was entitled OFFER TO PURCHASE AGREEMENT and substantially duplicated what was in the memorandum. The typed instrument was not signed by the Leaveys as owners. It was contemplated, and this is not disputed, that the typed instrument would be signed by Trautwein and Woods as an offer, after which it would be returned to the Leaveys for their acceptance. One of the terms was that if the offer was not accepted by midnight, December 4, 1967, it would become null and void. It is not claimed that Leavey expressly promised in so many words, either in writing or orally, that owners would accept the offer of Trautwein and Woods if made in accordance with the terms set forth in the newly typed instrument. However, for purposes of our decision, we will assume his promise to that effect can be implied from his actions and from words he did speak. Disregarding for the time being the effect of the statute of frauds, we can consider Leavey made an oral offer of sale. But before any oral offer on the part of Leavey could ripen into a contract, it would have to be accepted without alteration of the terms of the offer.