Supreme Court of Minnesota
23 N.W.2d 362 (1946)
Mr. and Mrs. Shaughnessy (plaintiffs) leased a house from Bernt Eidsmo (defendant) pursuant to an oral agreement. The lease term was one year and gave the Shaughnessys an option to purchase the house by a contract for deed at the end of the term, with the Shaugnessys’ rental payments being applied to the purchase price. The Shaughnessys also purchased a stove from Eidsmo for $119.50, which was to be paid in installments of $4 per month. During the term, the Shaughnessys notified Eidsmo that they were exercising their purchase option. They asked that Eidsmo have the contract for deed drawn up, to which he responded that he was too busy at the time but that they could rely on his word. After the lease term ended, the Shaughnessys remained in possession of the house for another year and continued to make payments to Eidsmo on both it and the stove. Eventually, the Shaughnessys brought suit against Eidsmo for specific performance of the conveyance. The Shaughnessys prevailed after trial, and the court denied Eidsmo’s motion for a new trial. He appealed.
Rule of Law
Holding and Reasoning (Matson, J.)
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