Opinion ID: 2613827
Heading Depth: 1
Heading Rank: 5

Heading: Effect of Defendant's Misrepresentation and Subsequent Undertaking

Text: The foregoing analysis omits any consideration of either (1) the defendant's representation that the property was buildable and had the approvals or (2) the defendant's later effort to get the zoning and subdivision taken care of. As to the defendant's representation, we note that the plaintiff's complaint contains neither any allegations of misrepresentation nor any request for damages or an abatement of the purchase price on account of the fact that the lots were not buildable. [3] As for the defendant's subsequent attempt to obtain zoning and subdivision approvals, we question whether her attempt amounted to a modification of the contract to the effect that she would be bound to do so. She was under no contractual obligation to do so, and we doubt that plaintiff would have had any additional cause of action against her had she declined to do so. When the problem initially arose, the plaintiff could have (1) rescinded because of the misrepresentation of the seller, Gardner v. Meiling, 280 Or. 665, 674, 572 P.2d 1012 (1977), or because of the failure of the contractual condition, The Simms Co. v. Wolverton, et al, 232 Or. 291, 297, 375 P.2d 87 (1962); (2) sued for damages for breach of contract or for misrepresentation, see Crahane v. Swan, 212 Or. 143, 157, 318 P.2d 942 (1957); Stark v. McKenna, 124 Or. 332, 346, 263 P. 391 (1928); Freedman v. Cholick, 233 Or. 569, 572, 379 P.2d 575 (1963); II Williston, Contracts 525, § 1399 (3d ed 1968); or (3) sued for specific performance. Plaintiff ultimately chose to sue for specific performance of the contract as originally written. [4] His rights under the contract were not enlarged, however, by reason of his decision to wait until the subdivision problem was resolved. Later, after the property had increased in value and after the defendant, unsuccessfully as it turns out, sought to rescind, the plaintiff opted to sue for specific performance. By this time, all that remained to be done (according to the Yamhill County Planning Director) was either to file a plat showing that the road had been built or to post an appropriate    surety that the road will be built   . As stated above, the contractual condition was included in the contract at the request of and for the protection of the buyer. He had the right to waive that condition and his filing of the suit for specific performance operated to waive the condition. [5] But there is a total absence, in the pleadings and in the evidence, of any request for damages or abatement of the purchase price, or any claim that the contract was orally modified so as to bind the defendant contractually to obtain zoning and subdivision approval. Finally, we note that there is no suggestion by the plaintiff and there is no evidence in the record that either when the contract was executed or when the earnest money agreement was so modified, it was contemplated by the parties that a road would have to be built. The first suggestion that a road might be required was in 1977, nearly two years after the original contract was executed. The plaintiff argues that (1) when defendant undertook to obtain the necessary approvals, she undertook to do everything necessary to obtain the approvals, and (2) that under the prayer for general relief, the imposition of these costs was appropriate. As to the second proposition, the rule is well settled that It is elementary that in a suit in equity, and under a complaint with a prayer for general relief, as in this case, a court of equity will determine with which party the equities are and may then shape a decree according to the equities of the case. Stan Wiley v. Berg, 282 Or. 9, 21, 578 P.2d 384 (1978). But it is not proper, under the guise of incidental relief, to impose an obligation which was not within the contemplation of either party. To the extent that the subject property, with a road, is worth more by reason of the existence of a road thereon, under the trial court decree and the opinion of the Court of Appeals the plaintiff would get more than he bargained for. Looking at the contracts in light of the contemplation of the parties, the granting of such relief effectively would rewrite the contract in violation of the well settled rule that [a]lthough the powers of an equity court are broad, they do not permit the court to rewrite the contract for the parties. Usinger v. Campbell, 280 Or. 751, 755, 572 P.2d 1018 (1977). Accord, Wikstrom v. Davis, 211 Or. 254, 268, 315 P.2d 597 (1957). We therefore remand to the trial court for entry of an appropriate decree in accordance with the opinion of the Court of Appeals as modified herein, to-wit: the defendant shall deliver into escrow an appropriate deed and other necessary documents; the plaintiff shall deposit an appropriate amount of cash; escrow costs shall be shared equally, the transaction to close pursuant to the original decree as modified by this court and the Court of Appeals. Costs to neither party in this court.