Sadler v. Ballantyne, 268 N.W.2d 119 (N.D. 1978)
Legal information, not legal advice. Verify against the cited opinion.
- Citation: Sadler v. Ballantyne, 268 N.W.2d 119 (N.D. 1978)
- Court / Year: North Dakota Supreme Court, 1978
- Topic tags: forfeiture, cancellation_by_notice, waiver, equitable_interest
- Facts: The Sadlers sold a ~3,200-acre Slope County farm to Ballantyne under an October 16, 1972 contract for deed (32,650 down; balance in 25 annual installments at 6¾%). After Ballantyne defaulted on installments and on the obligation to pay real-estate taxes, the Sadlers served a chapter 32-18 notice stating the contract would be canceled one year from service unless the defaults were cured. But the Sadlers continued to retain installment payments after learning of the defaults, and refused to transfer 14,400 bushels of wheat until Ballantyne cured.
- Holding: A seller may waive the right to cancel a contract for deed on the buyer’s default if, with full knowledge of the facts, the seller acts in a manner inconsistent with the intent to cancel or forfeit. The Sadlers’ retention of installment payments after learning of the defaults — and their conduct as to the wheat — was inconsistent with an intent to cancel and constituted a waiver of the right to cancel under chapter 32-18, N.D.C.C. Waiver, however, cannot be predicated on conduct undertaken without full knowledge of the facts.
- Reasoning: Cancellation/forfeiture of a contract for deed is governed by chapter 32-18’s notice-and-cure regime, but the vendor’s right to invoke it can be lost by election/waiver. Accepting and keeping the benefits of the contract (installment payments) after a known default is conduct affirming the contract rather than terminating it; the court will not let a vendor both keep the money and cancel.
- Practical impact for CFD operators/buyers: A North Dakota vendor who keeps accepting (or retaining) payments after a known default risks waiving the right to cancel under chapter 32-18 — the operator must act consistently with cancellation once it elects that remedy. For buyers, the vendor’s post-default acceptance of payments is a defense to forfeiture. The case also confirms the chapter 32-18 one-year cancellation notice period in operation.
- Good-law status: good_law (North Dakota Supreme Court; cited for the waiver/election rule in contract-for-deed cancellation).
- Source (retrieved): https://law.justia.com/cases/north-dakota/supreme-court/1978/9441-2.html · Verified: 2026-06-08
Jurisdictions that follow / cite: north-dakota
Disclaimer. Legal information, not legal advice. Confirm the opinion is still good law before relying on it.