Full title: MOFFATT v. WYMAN
Court: Supreme Court of Arkansas
No. 5-109
Date published: Jun 29, 1953
Facts:
- L. A. Wyman and his wife, appellees, were facing foreclosure on their 40-acre homestead in 1950.
- E. W. Moffatt, the appellant, offered to assist the appellees in saving their homestead by lending them money.
- After negotiations, on March 28, 1950, the appellees executed a warranty deed conveying the land to the appellant.
- On the same date, a written contract was made between Wyman and the appellant, stipulating that Wyman could repurchase the land for $1,615 by December 1, 1950, with possession retained by Wyman until that date. Time was declared to be of the essence.
- The contract also stated that Wyman must exercise the right to repurchase by December 1, 1950.
- The appellant collected $1,000 from an insurance policy after a combination home and store building on the land was destroyed by fire in May 1951.
Issues:
- Whether the evidence supported an alleged extension of time for payment and the amount necessary for appellees to redeem the land.
- Whether the appellant’s right to insist on a forfeiture for non-payment by December 1, 1950, was waived.
- Whether the transaction should be treated as a mortgage or as a specific performance of the repurchase contract.
Decision:
The court affirmed the chancellor’s decision.
- The court found that there was sufficient evidence to support an extension agreement for the time of payment and a waiver by the appellant of his right to insist on a forfeiture.
- Even if the transaction was not intended as a mortgage, the appellant, by entering into the extension agreement and accepting weekly payments, waived his right to insist on a forfeiture.
- The chancellor’s finding as to the amount required to redeem the land was supported by the evidence, whether the suit was treated as one to redeem from a mortgage or for specific performance of the repurchase agreement.