Walgren v. Dolan

226 Cal.App.3d 572 (1990)

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Nature of the Case

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Facts

P entered into a contract with D for the purchase of property offered for sale by D, through a real estate agent. The contract provided that $1,000 would be placed in escrow, and another $14,000 would be deposited by P shortly thereafter as down payment. The contract provided that should D be unable to furnish a marketable title; D would agree to 'perfect said title at his expense.' D was the trustee of the trust under which the property was held. P deposited $1,000 in escrow; however, when P tendered an additional $14,000 cashier's check for the balance of the down payment, the escrow company refused to accept it. Two months later, D. died. D and his wife were the settlors and sole beneficiaries of the trust. According to the terms of the trust, all duties of the trustee were exercisable only pursuant to the written instructions of D, and his wife, or the survivor of them. D's wife died, and her share was to be 'irrevocably vested' in her appointees subject to a life estate for the benefit of D her surviving husband, as well as discretionary authority in the trustee to invade principal for D's benefit. P's theory at trial was that the contract is enforceable against the trust because D, had both an equitable interest in the property and the absolute right to direct the trustees to sell the property. D moved for a nonsuit. It was granted. The judge charged P with knowledge of the actual status of the title to the property because of record title in the trust at the time the contract was signed. P appealed.