England v. Hing

Plaintiffs owned 160 acres of land in Pinal County, Arizona. The defendant Max Kent was interested in purchasing this land after talking with a Mr. Utter, the real estate broker who had originally sold the land to plaintiffs. Mr. Utter suggested that Mr. Kent make a written offer for the property. In the meantime, Mr. Utter called the plaintiffs in Minnesota and indicated a buyer was available for the property. The plaintiffs testified that on the phone Mr. Utter indicated that the Kent offer was for $750 an acre. The plaintiffs accepted this offer by telegram. Thereafter, the written offer arrived offering only $700 per acre. A second phone call was made to Mr. Utter. He explained that they had been mistaken about the price, but that in any event, their contract should include a release clause which would provide for forty-acre parcel releases at $1,000 per acre. The plaintiffs contend that Mr. Utter gave them to understand that if such a release clause were exercised they would receive $1,000 per acre as the sales price of any such land so released, rather than the $700 specified in the contract.