Opinion ID: 901213
Heading Depth: 1
Heading Rank: 8

Heading: Tender Unconditional

Text: [¶ 14.] Once the money was available to McKinnies, their offer was unconditional. For tender of payment under SDCL 20-5-18 to toll interest, the tender must be unconditional. Schmidt v. Iowa Beef Processors, Inc., 347 N.W.2d 897, 898 (S.D.1984). Once the title policy issued, the funds were available. Further, the availability of funds pending issuance of a title policy is not conditional as that term has been used in prior opinions. In Schmidt, the offer to deposit ... carried with it the condition that IBP be released from any liability arising from the lawsuit. Id. IBP was asking for something in addition to its agreement with Schmidt. In contrast, the McKinnies did not impose an additional requirement on Adrian; rather, they were merely engaging in a common process  acquiring title insurance  for closing on real property. [10] See SDCL 20-5-9. [¶ 15.] An unconditional tender must be sufficient to discharge the liability. Dougherty v. Beckman, 347 N.W.2d 587, 591 (S.D.1984). In Dougherty, the purchaser offered a lesser amount than the seller claimed was due. The parties disagreed to the amount due under their agreement. The purchaser offered a lesser amount as final payment. Id. The seller articulated [its] objection to the tender and returned the money. Id. We concluded that tendering a lesser amount as full payment was a conditional tender and was insufficient to toll the interest. Here, McKinnies offered to pay off the Schedule A balance of $122, 327.38 plus interest (pro-rated rental payments) as payment in full. In fact, they acknowledged in their May 10, 2000 complaint that they were willing, ready and capable of paying off the balance and pro-rated rental payments. Further, Adrian did not reject McKinnies' tender because the amount was in dispute; Adrian rejected it because it was not tendered within the 30 day time period of the option to purchase and because Adrian wanted the land. SDCL 20-5-15. [¶ 16.] Adrian's deposition and trial testimony clearly indicate that he rejected McKinnies' tender. The law does not require futile acts. Herron v. Fox, 67 S.D. 36, 288 N.W. 459 (1939). With regard to tender, if the tenderee makes any declaration which amounts to a repudiation of the contract, or takes any position which would render a tender, as long as the position taken by him is maintained, a vain and idle ceremony, as where he expressly declares that he will not accept the tender if it is made, or where he makes clear that he will not perform ... or in any other way obstructs or prevents a tender, as by ... admitting that a tender would be fruitless, by denying the existence of a binding contract, [or] by declaring the contract to be at end [tender is waived]. 86 CJS Tender § 6 (1997). Stanley v. Pilker, 40 S.D. 403, 167 N.W. 393 (1918) (party was released [ ] from the useless act of making any further tender); Warren v. M. Samuels & Co., 57 S.D. 105, 230 N.W. 807 (1930) (party stated that tender would not have been accepted therefore the making of such tender would have been a wholly useless act); McPherson v. Fargo, 10 S.D. 611, 74 N.W. 1057 (1898) (party did not have to tender because other party stated that he was no longer bound to the contract). Adrian's deposition and trial testimony clearly show he rejected McKinnies' tender and that he would have continued rejecting it. See Pittman v. Pomeroy, 552 So.2d 983, 992 (La.App.1989) (party admitted that tender of purchase price would have been refused). His rejection was based solely on his belief that McKinnies had broken the contract and that he had no obligation to accept the payoff and release the deed. Adrian did not object to the sufficiency of the tender. Objections to tender must be made at the time of tender or they are waived. SDCL 20-5-15; Am. Fed. Sav. and Loan Ass'n of Madison v. Mid-America Serv. Corp., 329 N.W.2d 124, 127 (S.D.1983); SDCL 20-5-14. McKinnies, through their counsel, attempted to pay off their debt to Adrian; Adrian refused the tender.