David Properties, Inc., v. Selk

Facts

P sold D a 320-acre tract of land. A purchase-money mortgage was executed by D to P to secure payment of the remaining $45,000, payable in annual installments of $9,000 each. P continued to live on the property after the sale. D had paid four annual installments but was several months overdue in payment of the final $9,000 installment. P sued to foreclose on the mortgage. After a time, d filed an ejectment suit against P, which resulted in the execution of a written lease agreement. P expressly agreed that he will vacate the premises subject to the lease and turn over possession of the same to D at or prior to midnight, December 31, 1959.' P did not vacate by December 31, 1959, but continued to live there from January 1, 1960, until November 27, 1961, a period of almost 23 months after the date set by the lease for him to vacate the property. About a month and a half after P was supposed to vacate the property, D wrote and stated that the rent would be $300 per month and that P must vacate immediately. About a year later the same exchange occurred, but now a bill for $3,600 was presented for the prior 12-month rental. D attempted to reconcile the final installment due with the monies P owed D for rent. P sued to foreclose the mortgage. D countersued for the $7,200 offset from rent. D claimed an implied contract based on the two demand letters sent to P. The Chancellor found that P was an old man who did not occupy the enter 320 acres but only a shack on the land and that D had not been injured. D had not been deprived of any income or has suffered any damage by virtue of such occupation. The building was no more than a shack, had no rental value, was unsafe and uninhabitable. Also, D had no use or plans for the use, rental or improvement of the building; and it had no value for use or occupation. D’s counterclaim was dismissed. D appealed.  

Issues

Rule of Law

Holding and Decision

Legal Analysis

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