McDaniel v. Gray & Co., 69 Ga. 433 (1882)
Legal information, not legal advice. Verify against the cited opinion.
- Citation: 69 Ga. 433 (1882)
- Court / Year: Supreme Court of Georgia, 1882
- Topic tags: forfeiture · rescission · restitution · bond_for_title · election_of_remedies
- Facts: McDaniel (buyer’s agent) bought a vacant lot, paying 100 cash and giving notes for the balance, and took a **bond for title** providing that on payment of the notes the sellers (Gray & Co.) would convey title, but on failure to pay the bond "would be void and of no effect." The buyer failed to pay; the sellers retook possession and resold the lot to a third party. The buyer sued to recover the 100 paid.
- Holding: On the buyer’s default, the bond-for-title seller has an election of remedies: (1) reduce the debt to judgment, file (tender) a deed, and sell the land under execution; (2) bring ejectment; or (3) if the land is vacant, re-enter and take possession. When the seller chooses to re-enter/retake possession (and resell), the seller has thereby elected to rescind, and an implied obligation arises to restore the purchase money paid, less such amount as would prevent actual loss to the seller by reason of the buyer’s non-performance.
- Reasoning: A bond for title is a security and contract device, not a pure forfeiture instrument. Repossession-and-resale is inconsistent with enforcing the contract, so the law treats it as rescission and requires the seller to return the buyer’s money, netted against the seller’s actual damages — the equitable status-quo-ante principle later codified at O.C.G.A. § 13-4-62.
- Practical impact for CFD operators/buyers: The foundational Georgia rule that a contract-for-deed/bond-for-title seller cannot both retake the land and keep all the payments. A seller’s repossession is an election to rescind that triggers a net refund. Reaffirmed 123 years later in crowell-v-williams-2005.
- Good-law status: Good law; the seminal Georgia authority on bond-for-title default remedies, still cited (e.g., in Crowell v. Williams, 2005).
- Source (retrieved): https://case-law.vlex.com/vid/mcdaniel-v-gray-co-887134805 · Verified: 2026-06-08
Jurisdictions that follow / cite: georgia
Disclaimer. Legal information, not legal advice. Confirm the opinion is still good law before relying on it.