Vozar v. Francis ( 1978 )

BOOCHEVER, Chief Justice,

dissenting in part.

I would affirm the trial court’s judgment whereby payments for the balance of the purchase price are to be made at the rate of $250.00 a month from which shall be deducted interest at nine percent per annum. There is no question but that the original proposed sale agreement provided for payment in monthly installments at $250.00 per month at nine percent interest. The original proposal did have a balloon payment provision of $5,000.00 payable on or before December 31, 1977.

After consideration of the Francis’ desire not to have the property in their name in order to avoid claims of Mr. Francis’ former wife and creditors, an option agreement was executed. The signed agreement of August 12, 1974, stated in part:

2) PRICES and TERMS: The Payment of the said property shall be Two Hundred Fifty Dollars'and no cents ($250.00) per month. Optionee shall have paid and Owners signatures below hereby acknowledges receipt of Two Hundred Fifty Dollars ($250.00). If Optionee abides by the State of Alaska Uniform Residential Landlord and Tenant Act and desires in either his name or his wife’s name by June 30, 1975 he may request to Owners to exercise this Option and receive the Two Hundred Fifty Dollars a month paid into Owners at that time to apply in full towards the purchase price of Twenty Thousand Dollars ($20,000.00) at Nine (9) Percent Interest per Annum upon the outstanding balance from the date of execution hereof. Monthly payments to be due and payable in legal tender and mailed or delivered to Owner at 3110 W. Northern Lights Apt. # 3 Anchorage, Alaska 99503 by the 15th of each month.

The agreement does not specify that the balance of the $20,000.00 must be paid upon exercising the option. In fact, the final sentence refers to “Monthly payments to be due and payable in legal tender and mailed or delivered to Owner at 3110 W. Northern Lights Apt. # 3 Anchorage, Alaska 99503 by the 15th of each month.” It thus seems to me that the intent of the parties, as can be determined from all of the circumstances surrounding the execution of the agreement and leading up to it, was that payment be made in monthly installments. Moreover, the agreement was prepared by the Vozars; and, if there is doubt, it should be construed against them. Tsakres v. Owens, 561 P.2d 1218, 1220 n.2 (Alaska 1977).