Court Opinion

ID: 9548136
Source: CourtListenerOpinion
Date Created: 2023-08-07 17:58:02.110971+00
Date Added: 2024-06-11T15:18:30.535018
License: Public Domain

McFADDEN, Justice,
dissenting.
I dissent from the majority’s opinion. My specific point of disagreement is with the holding that the legal description was sufficiently incorporated into the earnest money agreement to be part of it. I would hold that the legal description was not sufficiently incorporated and that, without it, the earnest money agreement is so incomplete as to be unenforceable under Idaho’s *156statute of frauds relating to transfers of real property interests.1
There appears to be no dispute that seller’s action is based on the “Earnest Money Agreement” and that seller’s rights are determined by that document. Nor can there be any serious disagreement with the proposition that the earnest money agreement is a contract for the sale of realty.2 Our law is clear that in order to be enforceable, such contracts must meet the requirements of the statute of frauds relating to the transfer of real property interests. See Schulz v. Hansing, 36 Idaho 121, 209 P. 727 (1922) (by implication); Allen v. Kitchen, 16 Idaho 133, 100 P. 1052 (1909); Thompson v. Burns, 15 Idaho 572, 99 P. 111 (1908). Very early this court construed the statute of frauds as requiring that such contracts describe the property being conveyed under the contract. . Thompson v. Burns, supra; Kurdy v. Rogers, 10 Idaho 416, 79 P. 195 (1904). Although this court has adopted no highly defined standard for judging the sufficiency of a description in a contract, we have adopted a general standard:
An agreement for the sale of real property must not only be in writing and subscribed by the party to be charged, but the writing must also contain such a description of the property agreed to be sold, either in terms or by reference, that it can be ascertained without resort to parol evidence. Parol evidence may be resorted to for the purpose of identifying the description contained in the writing, with its location upon the ground, but not for the purpose of ascertaining and locating the land about which the particular parties negotiated, and supplying a description thereof which they have omitted from the writing.
Craig v. Zelian, 137 Cal. 105, 69 P. 853 (1902) cited with approval in Allen v. Kitchen, supra, 16 Idaho at 142, 100 P. 1052.3
In the instant case, the earnest money agreement describes the property being conveyed as in Gem County, “Full legal attached of Howard Russell Property located on Beacon Road, Emmett, Idaho consisting of approx. 200 acres.” A second sheet apparently accompanying the earnest money agreement (but not attached) contained *157legal descriptions of two farms owned by Russell. The trial court determined that the extra sheet was not properly incorporated into the contract of sale and that, therefore, the only description in the contract was “Howard Russell Property located on Beacon Road, Emmett, Idaho consisting of approx. 200 acres.” The court found this description inadequate to satisfy the statute of frauds and the contract therefore unenforceable.
The majority rejects the trial court’s holding that the writing containing the legal descriptions was insufficiently incorporated into the main contract. This is where my brethren and I part company.
While a separate writing can be incorporated into a contract by reference, Clinton Sheep Co. v. Ogee, 34 Idaho 22, 198 P. 675 (1921), and both writings relied upon to satisfy the statute of frauds, e. g., Milkovich v. Orr, 529 P.2d 1382 (Mont.1975); Laramie Printing Trustees v. Krueger, 437 P.2d 856 (Wyo.1968), "their relation or connection with each other must appear on their face. The writings must contain either an express reference to each other or the internal evidence of their unity, relation or connection sufficient to make parol evidence of their relation unnecessary.” Glockner v. Town, 42 Haw. 485 (1958) (emphasis supplied); Young v. McQuerrey, 54 Haw. 433, 508 P.2d 1051 (1973). Or, as stated by the Missouri Supreme Court:
While a writing which consists of several separate documents may satisfy the statute of frauds, the fact that each is a part of the total writing relied upon must be shown either by express references in the documents or must appear from the contents of the documents; and, of course, the fact that two or more writings constitute part of an entire written agreement may not be shown by parol in so far as satisfying the statute of frauds is concerned. Logan v. Waddle, Mo.App., 252 S.W. 469, 470.
Frostwood Drugs, Inc. v. Fischer & Frichtel Const. Co., 352 S.W.2d 694 (Mo.1961), cited with approval in Abboud v. Cir Cal Stables, 190 Neb. 396, 208 N.W.2d 682 (1973). See also, Herman Bros. Co. v. Wacker, 96 Neb. 102, 147 N.W. 127 (1914); Gruss v. Cummins, 329 S.W.2d 496 (Tex.Civ.App.1959).
In the instant case the earnest money agreement states, “Full legal attached.” The record is uncontroverted that nothing was attached. As a result, parol evidence was necessary to show the particular piece of paper the parties intended to attach. Parol evidence was also required to determine which of the descriptions on that piece of paper was the applicable one. Under these circumstances the trial court did not err in ruling that the page of descriptions was not part of the earnest money agreement. I would affirm that ruling as well as the court’s conclusion that, without the writing, the earnest money agreement fails to satisfy the statute of frauds. I do not think the rulings below were based on “pure semantics” as the majority asserts. Further, it is irrelevant that “the legal description was kept side by side with the earnest money agreement in the broker’s files.”
The practical effect of the majority’s decision is to condone the continued careless use of forms like this “Earnest Money Agreement,” and, indirectly, to promote litigation. I have no doubt that this form properly completed could be a specifically enforceable contract of sale. But improperly completed the document gives no party any clearly defined legal rights and, if recorded, confuses rather than promotes “security of property and titles.” Thompson v. Burns, supra, 15 Idaho at 597, 99 P. 111. In upholding the instant contract, the majority has decreed that henceforth incomplete and informal land sale contracts may be enforced — but only to the extent determined by litigation.
For these reasons I dissent from the court’s opinion.

. I.C. § 9-503 provides:
No estate or interest in real property, other than for leases for a term not exceeding one year, nor any trust or power over or concerning it, or in any manner relating thereto, can be created, granted, assigned, surrendered, or declared, otherwise than by operation of law, or a conveyance or other instrument in writing, subscribed by the party creating, granting, assigning, surrendering or declaring the same, or by his lawful agent thereunto authorized in writing.

. First, the agreement provides that the money paid by buyer will be “refunded” if the seller fails to accept buyer’s “offer.” If the buyer were purchasing an option, the seller would keep the money in any event. Secondly, the agreement provides that the seller may declare a forfeiture of the contract if the buyer “shall fail to promptly perform any covenant . . . and to do all things necessary and prerequisite to the consummation of this sale.” If the contract merely gave buyer an option, he would have no obligations: no “covenants” to perform. Kessler v. Pruitt, 14 Idaho 175, 93 P. 965 (1908). Thirdly, the agreement provides that the buyer’s payments should be retained by the seller as “liquidated damages” in case of forfeiture. The liquidated damages clause argues strongly for interpretation of the document as a contract of sale. E. g., Karr v. Stevens, 297 S.W. 287 (Tex.Civ.App.1927); Texlouana Producing & Refining Co. v. Wall, 257 S.W. 875 (Tex.Com.App.1924). Finally, and perhaps most persuasively, the document contains the words, “SELLER ACCEPTS the foregoing terms and conditions and agrees to sell the above property to Buyer.” This statement indicates that the document was more than an offer from the buyer or an option to purchase given by the seller. On the basis of these provisions in the “Earnest Money Agreement,” I must conclude that it is a contract for the sale of realty and must have the legal attributes of one in order to be enforceable.

.Justice Ailshie further noted that “This court has uniformly held that such a contract must speak for itself, and that parol evidence will not be admitted to supply any of its terms.” Allen v. Kitchen, supra, 16 Idaho at 142, 100 P. at 1055. Thompson v. Burns, supra; Kurdy v. Rogers, supra. Cf. Robison v. Frasier, 89 Idaho 326, 404 P.2d 877 (1965) (suit for broker’s commission; overruled in Central Idaho Agency v. Turner, 92 Idaho 306, 442 P.2d 442 (1968)); Laker Land & Loans v. Nye, 40 Idaho 793, 237 P. 630 (1925) (suit for broker’s commission); Murphy v. Livesay, 34 Idaho 793, 197 P. 536 (1921) (suit for broker’s commission).