Court Opinion

ID: 9514917
Source: CourtListenerOpinion
Date Created: 2023-08-06 22:52:29.159637+00
Date Added: 2024-06-11T09:06:22.543883
License: Public Domain

*589AMUNDSON, Justice
(concurring in result).
[¶ 36.] I agree with the majority that the trial court must determine the rights of all parties, now that this second land sale contract is held void. The effect of voiding this contract is to place the parties back in their original position. Cf. Wolken v. Wade, 406 N.W.2d 720 (S.D.1987). Once a court declares a contract void, it is treated as if it is rescinded.
The right to rescind must be exercised in toto, allowing the contract to stand or fall as a whole.... [T]he effect of rescission of a contract is to put the parties back in the same position they were in prior to the making of the contract. Rescission requires restoration of the status quo. There can be thus no partial rescission of a contract. It is either valid or void in toto.
Holden v. DuBois, 665 P.2d 1175, 1177 (Okla.1983) (internal citations omitted). “[T]he law abhors a forfeiture.” BankWest v. Groseclose, 535 N.W.2d 860, 864 (S.D.1995) (citing Ford v. Hofer, 79 S.D. 257, 111 N.W.2d 214, 216 (S.D.1961)). To avoid forfeiture, it is only fair that all parties are placed in the same position each occupied prior to the voidance of the contract. This would require the trial court to order City to return the property it received from SEA, and SEA to return the property or monies received from the lot sales to City. Also, both City and SEA should be required to execute all deeds or documents necessary to insure that good title remains in the hands of the subsequent purchasers now part of this action.