Story Case

James Wiley, a boat builder, had a motorboat which he claimed could attain a speed of thirty-five miles an hour. Walter Desmond liked the boat very much and had expressed a desire to buy it, but he doubted greatly whether it could make the time which Wiley claimed for it. Finally, they agreed that Desmond should have the boat for $150, if, upon trial, it showed a speed of thirty-five miles an hour. It developed that Wiley was "boosting" his boat without really believing that it could run at the speed he claimed and, when upon trial, it reached a speed of thirty-seven miles an hour, he refused to sell for the price agreed upon. Desmond tendered the $150 and demanded the boat. Should he have it?

Ruling Court Case. Hunt Vs. Wyman, Volume 100, Massachusetts Reports, Page 198

Hunt had a horse for sale, and one day, Wyman examined it and inquired the price. Hunt made an offer of $250. Nothing further was said about the price, but Wyman asked if he might take the horse out and try it, promising to return it in perfect condition, in case he did not like the animal. Hunt agreed to permit Wyman to try the horse as requested. A servant was sent for it on the following day. Without any fault on the part of the servant, the horse escaped, ran away, and was severely injured. Under this state of affairs, when the horse was not returned, Hunt sued Wyman for the price of it.

Wyman contended that the title to the horse had not passed to him; that this was a bailment until a sale had been perfected involving the condition precedent. Since the condition was made impossible of performance, he was under no further obligation in respect to the horse.

Mr. Justice Wells said: "Upon the facts stated in this case, there was a bailment and not a sale of the horse. The only contract, aside from the obligation implied by law, must be derived from the statements of the defendant, that if the plaintiff "would let him take the horse and try it, if he did not like it he would return it in as good condition as he got it." This contract, it is true, is silent as to what was to take place, if he should like it, or if he should not return it. It may perhaps be fairly inferred that the intent was that if he did like the horse he was to become owner at the price named. But, even if that were expressed, the sale would not take effect until the defendant should determine the question of his liking. An option to purchase if he liked is essentially different from an option to return a purchase if he should not like it. In one case, the title will not pass until the option is determined; in the other, the property passes at once, subject to the right to rescind and return." Judgment was given for Wyman.

Ruling Law. Story Case Answer

A sale may be conditional or absolute; an absolute sale is one in which title has passed absolutely and nothing, save the mutual agreement of the parties, will revest the title in the seller. A conditional sale, however, is one in which finality of the sale depends upon the happening or non-happening of a given condition. The condition may be precedent or subsequent. A sale upon a condition precedent is one in which title has not passed and will not pass until some specified condition happens, or has been fulfilled. A says to B: "I will buy your horse, provided he is gentle." In this case, no title to the horse will pass until it is shown that the horse is gentle; accordingly, the fact of the gentleness of the horse, as yet unproved, is a condition precedent to the passing of title. If the horse is shown to be gentle, the condition is performed, the title passes, and the sale becomes absolute.

In the Story Case, the sale was conditional and the element of a bailment did not enter. There, Desmond agreed to buy the boat for $150, if it attained a speed of thirty-five miles per hour. The fulfillment or nonfulfillment of that condition was to determine the passage of title. Upon proof that the boat could run at the speed specified, the condition precedent to the passage of title was satisfied. Wiley could have held Desmond to his agreement to pay $150 and, consequently, Wiley must abide by the agreement, upon Desmond's demand.