NORTH DAKOTA STATUTES
TITLE 9 CONTRACTS AND OBLIGATIONS
CHAPTER 9-01 GENERAL PROVISIONS
9-01-01. Definitions.
In this title, unless the context or subject matter otherwise requires:
1. A contract is an agreement to do or not to do a certain thing.
2. An obligation is a legal duty by which a person is bound to do or not to do a certain thing.
Source: Civ. C. 1877, §§ 798, 870; R.C. 1895, §§ 3762, 3835; R.C. 1899, §§ 3762, 3835; R.C. 1905, §§ 5207, 5280; C.L. 1913, §§ 5763, 5836; R.C. 1943, § 9-0101.
9-01-02. Requisites of contract.
It is essential to the existence of a contract that there should be:
1. Parties capable of contracting;
2. The consent of the parties;
3. A lawful object; and
4. Sufficient cause or consideration.
Source: Civ. C. 1877, § 871; R.C. 1895, § 3836; R.C. 1899, § 3836; R.C. 1905, § 5281; C.L. 1913, § 5837; R.C. 1943, § 9-0102.
9-01-03. Executed and executory contracts defined.
An executed contract is one, the object of which is performed fully. All other
contracts are executory.
Source: Civ. C. 1877, § 952; R.C. 1895, § 3919; R.C. 1899, § 3919; R.C.
1905, § 5365; C.L. 1913, § 5921; R.C. 1943, § 9-0103.
9-01-04. Joint and several contracts.
A promise is presumed to be joint and several when:
1. All the parties thereto receive some benefit from the consideration, whether past or present;
2. It is made in the singular number but executed by several persons.
Source: Civ. C. 1877, §§ 950, 951; R.C. 1895, §§ 3917, 3918; R.C. 1899, §§ 3917, 3918; R.C. 1905, §§ 5363, 5364; C.L. 1913, §§ 5919, 5920; R.C. 1943, § 9-0104.
NORTH DAKOTA STATUTES
TITLE 9 CONTRACTS AND OBLIGATIONS
CHAPTER 9-02 PARTIES
9-02-01. Persons capable of contracting.
All persons are capable of contracting except minors and persons of
unsound mind.
Source: Civ. C. 1877, § 872; R.C. 1895, § 3837; R.C. 1899, § 3837; R.C.
1905, § 5282; C.L. 1913, § 5838; R.C. 1943, § 9-0201.
9-02-02. Minors and persons of unsound mind.
Minors and persons of unsound mind have only such capacity as is
specified in statutes relating to such persons.
Source: Civ. C. 1877, § 873; R.C. 1895, § 3838; R.C. 1899, § 3838; R.C.
1905, § 5283; C.L. 1913, § 5839; R.C. 1943, § 9-0202.
9-02-03. Identity of parties essential to validity.
It is essential to the validity of the contract, not only that the
parties should exist, but that it should be possible to identify them.
Source: Civ. C. 1877, § 874; R.C. 1895, § 3839; R.C. 1899, § 3839; R.C.
1905, § 5284; C.L. 1913, § 5840; R.C. 1943, § 9-0203.
9-02-04. Third-party beneficiary may enforce contract.
A contract made expressly for the benefit of a third person may
be enforced by him at any time before the parties thereto rescind
it.
Source: Civ. C. 1877, § 875; R.C. 1895, § 3840; R.C. 1899, § 3840; R.C.
1905, § 5285; C.L. 1913, § 5841; R.C. 1943, § 9-0204.
NORTH DAKOTA STATUTES
TITLE 9 CONTRACTS AND OBLIGATIONS
CHAPTER 9-03 CONSENT
-03-01. Requisites of consent.
The consent of the parties to a contract must be:
1. Free;
2. Mutual; and
3. Communicated by each to the other.
Source: Civ. C. 1877, § 876; R.C. 1895, § 3841; R.C. 1899, § 3841; R.C. 1905, § 5286; C.L. 1913, § 5842; R.C. 1943, § 9-0301.
NORTH DAKOTA STATUTES
TITLE 9 CONTRACTS AND OBLIGATIONS
CHAPTER 9-06 FORMATION OF CONTRACT
9-06-01. Express and implied contracts defined.
A contract is either express or implied. An express contract is one the
terms of which are stated in words. An implied contract is one the
existence and terms of which are manifested by conduct.
Source: Civ. C. 1877, §§ 915 to 917; R.C. 1895, §§ 3882 to 3884; R.C.
1899, §§ 3882 to 3884; R.C. 1905, §§ 5327 to 5329; C.L. 1913, §§ 5883 to
5885; R.C. 1943, § 9-0601.
9-06-02. What contracts may be oral.
All contracts may be oral except such as are specially required
by statute to be in writing.
Source: Civ. C. 1877, § 918; R.C. 1895, § 3885; R.C. 1899, § 3885; R.C.
1905, § 5330; C.L. 1913, § 5886; R.C. 1943, § 9-0602.
9-06-03. Written contract prevented by fraud — Oral contract enforceable.
When a contract which is required by law to be in writing is prevented
from being put into writing by the fraud of a party thereto, any other
party who by such fraud is led to believe that it is in writing and acts
upon such belief to his prejudice may enforce it against the fraudulent
party.
Source: Civ. C. 1877, § 919; R.C. 1895, § 3886; R.C. 1899, § 3886; R.C.
1905, § 5331; C.L. 1913, § 5887; R.C. 1943, § 9-0603.
9-06-04. Contracts invalid unless in writing — Statute of frauds.
The following contracts are invalid, unless the same or some note or memorandum thereof is in writing and subscribed by the party to be charged, or by his agent:
1. An agreement that by its terms is not to be performed within a year from the making thereof.
2. A special promise to answer for the debt, default, or miscarriage of another, except in the cases provided for in section 22-01-05.
3. An agreement for the leasing for a longer period than one year, or for the sale, of real property, or of an interest therein. Such agreement, if made by an agent of the party sought to be charged, is invalid unless the authority of the agent is in writing subscribed by the party sought to be charged.
4. An agreement or promise for the lending of money or the extension of credit in an aggregate amount of twenty-five thousand dollars or greater.
5. An agreement or promise to alter the terms of repayment or forgiveness of a debt that is in an aggregate amount of twenty-five thousand dollars or greater.
Source: Civ. C. 1877, § 920; R.C. 1895, § 3887; R.C. 1899, § 3887; R.C. 1905, § 5332; C.L. 1913, § 5888; R.C. 1943, § 9-0604; S.L. 1985, ch. 139, § 1; 1985, ch. 190, § 10; 1991, ch. 94, § 1.
9-06-06. Auction sale — Auctioneer memorandum sufficient.
When a sale of any goods or choses in action is made by auction, an
entry by the auctioneer in his salebook at the time of the sale of the
kind of property sold, the terms of sale, the price, and names of the
purchaser and person on whose account the sale is made is a sufficient
memorandum.
Source: R.C. 1943, § 9-0606.
9-06-07. Written contract supersedes oral negotiations.
The execution of a contract in writing, whether the law requires it to
be written or not, supersedes all the oral negotiations or stipulations
concerning its matter which preceded or accompanied the execution of the
instrument.
Source: Civ. C. 1877, § 921; R.C. 1895, § 3888; R.C. 1899, § 3888; R.C.
1905, § 5333; C.L. 1913, § 5889; R.C. 1943, § 9-0607.
9-06-08. Written contract takes effect on delivery.
A contract in writing takes effect upon its delivery to the party in
whose favor it is made or to his agent.
Source: Civ. C. 1877, § 922; R.C. 1895, § 3889; R.C. 1899, § 3889; R.C.
1905, § 5335; C.L. 1913, § 5891; R.C. 1943, § 9-0608.
9-06-09. Law of transfers of property applies.
The provisions of the laws of this state concerning the delivery of
grants, absolute and conditional, apply to all written contracts.
Source: Civ. C. 1877, § 923; R.C. 1895, § 3890; R.C. 1899, § 3890; R.C.
1905, § 5336; C.L. 1913, § 5892; R.C. 1943, § 9-0609.
9-06-11. Seals abolished.
All distinctions between sealed and unsealed instruments are
abolished.
Source: Civ. C. 1877, § 925; R.C. 1895, § 3892; R.C. 1899, § 3892; R.C.
1905, § 5338; C.L. 1913, § 5894; R.C. 1943, § 9-0611.
NORTH DAKOTA STATUTES
TITLE 32 JUDICIAL REMEDIES
CHAPTER 32-18 CANCELLATION OF LAND CONTRACTS
32-18-01. Instruments for future conveyance — Cancellation — Owner must give written notice to vendee or purchaser.
No owner of real estate, or owner of any equity therein, who shall make
or execute a contract for deed, bond for deed, or other instrument for
the future conveyance of any such real estate or equity therein, shall
have the right to declare a cancellation, termination, or forfeiture
thereof or thereunder, except upon written notice to the vendee or
purchaser, or the vendee's or purchaser's assigns, as provided in this
chapter, and such notice shall be given to such vendee or purchaser or
such vendee's or purchaser's assigns, notwithstanding any provision or
condition in any such instrument to the contrary.
Source: S.L. 1903, ch. 204, § 1; R.C. 1905, § 7494; C.L. 1913, § 8119;
R.C. 1943, § 32-1801.
32-18-02. Default — Contents of notice.
Whenever any default shall have been made in the terms or conditions of
any such instrument for future conveyance of real estate or equity
therein, and the owner or vendor shall desire to cancel or terminate the
same, the owner or vendor, within a reasonable time after such default,
shall cause a written notice to be served upon the vendee or purchaser,
or the vendee's or purchaser's assigns, stating that such default
occurred and that said contract will be canceled or terminated, and the
time when said cancellation or termination shall take effect, which shall
be as provided in section 32-18-04.
Source: S.L. 1903, ch. 204, § 2; R.C. 1905, § 7495; C.L. 1913, § 8120;
R.C. 1943, § 32-1802; S.L. 1971, ch. 327, § 1.
32-18-03. Notice of default — How served.
Notice of cancellation shall be served upon the vendee or purchaser, or
the vendee's or purchaser's assigns, in the manner provided for the
service of a summons in the district court of this state, if the person
to be served resides within the state. If such vendee or purchaser, or
such vendee's or purchaser's assigns, as the case may be, resides without
the state or cannot be found therein, of which fact the return of the
sheriff of the county in which said real estate is situated that such
person cannot be found in the sheriff's county shall be prima facie
evidence, then such notice shall be served by the publication thereof in
a legal newspaper within said county, or, if there is no legal newspaper
within said county, then in a newspaper published in an adjoining county
and having a general circulation in the county, once each week for three
successive weeks.
Source: S.L. 1903, ch. 204, § 3; R.C. 1905, § 7496; C.L. 1913, § 8121;
R.C. 1943, § 32-1803.
32-18-04. Time allowed to correct default.
The vendee or purchaser, or the vendee's or purchaser's assigns, shall have the following periods of time after the service of notice of cancellation upon such party in which to perform the conditions or comply with the provisions upon which the default shall have occurred:
1. If the amount claimed due under such instrument at the date of notice is more than sixty-six and two-thirds percent of the original indebtedness, the time allowed to correct the default shall be six months.
2. In any other case, the time for correction shall be one year.
Upon such performance and upon making such payments, together with the
cost of service of such notice, such contract or other instrument shall
be reinstated and shall remain in full force and effect as if no default
had occurred therein. If, however, such vendee or purchaser, or such
vendee's or purchaser's assigns, shall not complete such performance or
make such payment within the time periods provided by this section, the
contract shall be terminated and shall not be reinstated by any
subsequent offer of performance, or tender of payment. No provisions in
any contract for the purchase of land or an interest in land shall be
construed to obviate the necessity of giving the aforesaid notice and no
contract shall terminate unless such notice is given, any provision in
such contract to the contrary notwithstanding, but the notice herein
required shall not be deemed necessary where the contract in question is
sought to be terminated by an action at law or in equity brought for that
purpose upon failure to perform. This section shall apply to all
instruments for a future conveyance of real estate or an equity therein
which are executed on or after July 1, 1971. The time allowed to correct
the default shall not be less than one year except in contracts involving
an area not to exceed three acres.
Source: S.L. 1903, ch. 204, § 4; R.C. 1905, § 7497; C.L. 1913, § 8122;
S.L. 1915, ch. 180, § 1; 1917, ch. 151, § 1; 1921, ch. 65, § 1; 1925
Supp., § 8122; R.C. 1943, § 32-1804; S.L. 1971, ch. 327, § 2.
32-18-05. Notice of cancellation to be recorded.
In all cases of cancellation by notice of any contract for deed which
has been recorded in the office of the recorder, the following documents
shall also be recorded in that office: a copy of the notice of
cancellation served upon the vendee, together with an affidavit of
service and an affidavit of the vendor or the vendor's assigns that the
default of the vendee under the terms of the contract was not cured,
after the date of service of such notice, within the time periods
provided in section 32-18-04.
Source: S.L. 1903, ch. 204, § 4; R.C. 1905, § 7497; C.L. 1913, § 8122;
S.L. 1915, ch. 180, § 1; 1917, ch. 151, § 1; 1921, ch. 65, § 1; 1925
Supp., § 8122; R.C. 1943, § 32-1805; S.L. 1971, ch. 327, § 3; 2001,
ch. 120, § 1.
32-18-06. Counterclaim — Injunction against canceling contract.
When it shall be made to appear by affidavit of the vendee or
purchaser, or the vendee's or purchaser's assigns, agent, or attorney, to
the satisfaction of a judge of the district court of the county where the
property is situated, that the vendee or purchaser, or the vendee's or
purchaser's assigns, has a legal counterclaim or any other valid defense
against the collection of the whole or any part of the amount claimed to
be due on such contract, such judge, by an order to that effect, may
enjoin the vendor or the vendor's successor in interest from the
cancellation of such contract by notice and may direct that all further
proceedings for the cancellation be had in the district court properly
having jurisdiction of the subject matter, and, for the purpose of
carrying out the provisions thereof, service may be made upon the vendor
or the vendor's assigns or upon the vendor's attorney or agent.
Source: S.L. 1917, ch. 151, § 2; 1921, ch. 65, § 2; 1925 Supp., § 8122a;
R.C. 1943, § 32-1806.
NORTH DAKOTA STATUTES
TITLE 47 PROPERTY
CHAPTER 47-10 REAL PROPERTY TRANSFERS
47-10-01. Method of transfer.
An estate in real property, other than an estate at will or for a term
not exceeding one year, can be transferred only by operation of law or by
an instrument in writing, subscribed by the party disposing of the same
or by his agent thereunto authorized by writing. This does not abridge
the power of any court to compel the specific performance of any
agreement for the sale of real property in case of part performance
thereof.
Source: Civ. C. 1877, §§ 622, 993; R.C. 1895, §§ 3531, 3960; R.C.
1899, §§ 3531, 3960; R.C. 1905, §§ 4968, 5407; C.L. 1913, §§
5511, 5963; R.C. 1943, § 47-1001.
47-10-02. Sale of realty — Duty of seller. —
An agreement to sell real property binds the seller to execute a
conveyance in form sufficient to pass the title to the property.
Source: Civ. C. 1877, § 988; R.C. 1895, § 3955; R.C. 1899, §
3955; R.C. 1905, § 5401; C.L. 1913, § 5957; R.C. 1943, §
47-1002.
47-10-03. Agreement to give usual covenants on sale — Duty imposed. —
An agreement on the part of a seller of real property to give the usual
covenants binds him to insert in the grant covenants of seizin, quiet
enjoyment, further assurance, general warranty, and against
encumbrances.
Source: Civ. C. 1877, § 989; R.C. 1895, § 3956; R.C. 1899, §
3956; R.C. 1905, § 5402; C.L. 1913, § 5958; R.C. 1943, §
47-1003.
47-10-04. Form of covenants. —
The covenants mentioned in section 47-10-03 must be in substance as follows:
The party of the first part covenants with the party of the second part
that the former now is seized in fee simple of the property granted, that
the latter shall enjoy the same without any lawful disturbance, that the
same is free from all encumbrances, that the party of the first part and
all persons acquiring any interest in the same through or for him on
demand will execute and deliver to the party of the second part, at the
expense of the latter, any further assurance of the same that reasonably
may be required, and that the party of the first part will warrant to the
party of the second part all the said property against every person
lawfully claiming the same.
Source: Civ. C. 1877, § 990; R.C. 1895, § 3957; R.C. 1899, §
3957; R.C. 1905, § 5403; C.L. 1913, § 5959; R.C. 1943, §
47-1004.
47-10-05. Grants — Execution — Witnesses sufficient — Seal unnecessary. —
The execution of a grant of an estate in real property to entitle the
same to be recorded, if it is not acknowledged, must be proved by a
subscribing witness or as otherwise provided in sections 47-19-23 and
47-19-24. The absence of the seal of any grantor or his agent from any
grant of an estate made in real property shall not invalidate or in any
manner impair the same.
Source: Civ. C. 1877, § 623; R.C. 1895, § 3536; R.C. 1899, §
3536; R.C. 1905, § 4973; C.L. 1913, § 5516; R.C. 1943, §
47-1005.
47-10-05.1. Presumption of corporate authority of officers — Application.
An officer of any foreign or domestic corporation, or a manager of any
foreign or domestic limited liability company, is presumed to have the
power and authority to execute and acknowledge, in its behalf, any
instrument granting, conveying, or otherwise affecting any interest in or
lien upon any property of the corporation or limited liability company,
including contracts, mortgages, deeds, plats, replats, easements, rights
of way, options, dedications, restrictions, releases, and satisfactions.
Any such instrument executed by an officer of the corporation or limited
liability company prior to July 1, 1983, and otherwise proper, is valid
and effective.
Source: S.L. 1983, ch. 502, § 1; 1993, ch. 54, § 106.
47-10-06. Form of grant.
A grant of an estate in real property may be made in substance as follows:
This grant made the _____ day of _____, in the year of _____, between A.B., of _____, of the first part, and C.D., of _____, of the second part, witnesseth: That the party of the first part hereby grants to the party of the second part in consideration of _____ dollars, now received, all the real property situated in _____, and bounded (or described) as follows:__________________________
Witness the hand of the party of the first part.
A.B.
Source: Civ. C. 1877, § 624; R.C. 1895, § 3537; R.C. 1899, § 3537; R.C. 1905, § 4973; C.L. 1913, § 5516; R.C. 1943, § 47-1006.
47-10-07. Deed — Execution — Post-office and street address of grantee a prerequisite. —
Each deed executed in which real estate is described shall contain the
post-office address, and any known or existing street address if within
the corporate boundaries of a city, of each grantee named in such deed.
Source: S.L. 1929, ch. 249, § 1; R.C. 1943, § 47-1007; S.L.
1975, ch. 421, § 1.
47-10-08. Grant conclusive against whom. —
Every grant of an estate in real property is conclusive against the
grantor and every one subsequently claiming under him, except a purchaser
or encumbrancer who in good faith and for a valuable consideration
acquires a title or lien by an instrument that first is duly recorded.
Source: Civ. C. 1877, § 629; R.C. 1895, § 3540; R.C. 1899, §
3540; R.C. 1905, § 4977; C.L. 1913, § 5522; R.C. 1943, §
47-1008.
47-10-09. Grant valid pro tanto. —
A grant made by the owner of an estate for life or years, purporting to
transfer a greater estate than he could transfer lawfully, does not work
a forfeiture of his estate but passes to the grantee all the estate which
the grantor could lawfully transfer.
Source: Civ. C. 1877, § 630; R.C. 1895, § 3541; R.C. 1899, §
3541; R.C. 1905, § 4978; C.L. 1913, § 5523; R.C. 1943, §
47-1009.
47-10-13. Grant presumes fee simple title. —
A fee simple title is presumed to be intended to pass by a grant of
real property unless it appears from the grant that a lesser estate was
intended.
Source: Civ. C. 1877, § 633; R.C. 1895, § 3545; R.C. 1899, §
3545; R.C. 1905, § 4982; C.L. 1913, § 5527; R.C. 1943, §
47-1013.
47-10-14. Grant takes effect on performance of condition. —
An instrument purporting to be a grant of real property to take effect
upon a condition precedent passes the estate upon the performance of the
condition.
Source: Civ. C. 1877, § 633; R.C. 1895, § 3546; R.C. 1899, §
3546; R.C. 1905, § 4983; C.L. 1913, § 5528; R.C. 1943, §
47-1014.
47-10-15. After-acquired title. —
Where a person purports by proper instrument to grant real property in
fee simple and subsequently acquires any title or claim of title
thereto, the same passes by operation of law to the grantee or his
successors.
Source: Civ. C. 1877, § 633; R.C. 1895, § 3547; R.C. 1899, §
3547; R.C. 1905, § 4984; C.L. 1913, § 5529; R.C. 1943, §
47-1015.
47-10-16. Reconveyance when estate defeated by nonperformance of condition subsequent. —
When a grant is made upon condition subsequent and subsequently is
defeated by the nonperformance of the condition, the person otherwise
entitled to hold under the grant must reconvey the property to the
grantor or his successors by grant duly acknowledged for record.
Source: Civ. C. 1877, § 633; R.C. 1895, § 3548; R.C. 1899, §
3548; R.C. 1905, § 4985; C.L. 1913, § 5530; R.C. 1943, §
47-1016.
47-10-18. Liability of grantor. —
Whoever conveys real estate by deed or mortgage containing a covenant
that it is free from all encumbrances, when an encumbrance appears of
record to exist thereon, whether known or unknown to him, shall be liable
in an action of contract, to the grantee, his heirs, executors,
administrators, successors, grantees, or assigns for all damages
sustained in removing the same.
Source: S.L. 1899, ch. 89, § 1; R.C. 1899, § 3549; R.C. 1905, §
4987; C.L. 1913, § 5532; R.C. 1943, § 47-1018.
47-10-19. Covenants implied from use of word "grant". —
From the use of the word "grant" in any conveyance by which an estate of inheritance or fee simple is to be passed, the following covenants, and none other, on the part of the grantor for himself and his heirs to the grantee, his heirs and assigns, are implied unless restrained by express terms contained in such conveyance:
1. That previous to the time of the execution of such conveyance, the grantor has not conveyed the same estate, nor any right, title, or interest therein, to any person other than the grantee; and
2. That such estate, at the time of the execution of such conveyance, is free from encumbrances done, made, or suffered by the grantor, or any person claiming under him. Such covenants may be sued upon in the same manner as if they had been inserted expressly in the conveyance.
Source: Civ. C. 1877, § 628; R.C. 1895, § 3539; R.C. 1899, § 3539; R.C. 1905, § 4976; C.L. 1913, § 5521; R.C. 1943, § 47-1019.
47-10-20. Attornment — When unnecessary. —
Grants of rents, reversions, or remainders are good and effectual
without attornments of the tenants, but no tenant, who before notice of
the grant shall have paid rent to the grantor, must suffer any damage
thereby.
Source: Civ. C. 1877, § 632; R.C. 1895, § 3543; R.C. 1899, §
3543; R.C. 1905, § 4980; C.L. 1913, § 5525; R.C. 1943, §
47-1020.
47-10-23. Transfer by grantor to himself and another in joint tenancy.
Any person, firm, corporation, or limited liability company owning a
legal or equitable title to or interest in any real property in the state
of North Dakota may sell, transfer, and convey the same to himself,
herself, or such firm, corporation, or limited liability company, and any
other person, firm, corporation, or limited liability company, including
the spouse of said grantor, in joint tenancy, with right of
survivorship, without the necessity of any transfer or conveyance to or
through any third person.
Source: S.L. 1943, ch. 213, § 2; R.C. 1943, § 47-1023; S.L.
1993, ch. 54, § 106.
47-10-23.1. Nontestamentary transfer between spouses — Presumption.
A nontestamentary transfer of real property between spouses shall be
presumed to be for a consideration, and not a gift, unless otherwise
stated in writing at the time of transfer. This presumption is
conclusive.
Source: S.L. 1979, ch. 483, § 1.
47-10-24. Description and definition of minerals in leases and conveyances.
All conveyances of mineral rights or royalties in real property in this state, excluding leases, shall be construed to grant or convey to the grantee thereof all minerals of any nature whatsoever except those minerals specifically excluded by name in the deed, grant, or conveyance, and their compounds and byproducts, but shall not be construed to grant or convey to the grantee any interest in any gravel, clay, or scoria unless specifically included by name in the deed, grant, or conveyance.
No lease of mineral rights in this state shall be construed as passing
any interest to any minerals except those minerals specifically included
and set forth by name in the lease. For the purposes of this paragraph
the naming of either a specific metalliferous element, or
nonmetalliferous element, and if so stated in lease, shall be deemed to
include all of its compounds and byproducts, and in the case of oil and
gas, all associated hydrocarbons produced in a liquid or gaseous form so
named shall be deemed to be included in the mineral named. The use of the
words "all other minerals" or similar words of an all-inclusive nature in
any lease shall not be construed as leasing any minerals except those
minerals specifically named in the lease and their compounds and
byproducts.
Source: S.L. 1955, ch. 235, § 1; 1957, ch. 245, § 1; R.C.
1943, 1957 Supp., § 47-1024; S.L. 1969, ch. 403, § 1; 1983,
ch. 503, § 1.
47-10-25. Meaning of minerals in deed, grant, or conveyance of title to real property.
In all deeds, grants, or conveyances of the title to the surface of
real property executed on or after July 1, 1983, in which all or any
portion of the minerals are reserved or excepted and thereby effectively
precluded from being transferred with the surface, all minerals, of any
nature whatsoever, shall be construed to be reserved or excepted except
those minerals specifically excluded by name in the deed, grant, or
conveyance and their compounds and byproducts. Gravel, clay, and scoria
shall be transferred with the surface estate unless specifically reserved
by name in the deed, grant, or conveyance.
Source: S.L. 1975, ch. 422, § 1; 1983, ch. 504, § 1.
NORTH DAKOTA CASE LAW
Where the vendor and purchaser have entered into a contract for the sale of land, and the purchaser is in default, vendor cannot have contract cancelled to enable him to get back the land, and at the same time keep it alive to enable him to get purchase price or any part of it. Dennis v. Pease, 240 N.W. 611, 1932
Where a vendor retakes possession of land sold by an executory contract on the ground of default by the vendee in paying the purchase price according to its terms, he cannot thereafter assert further claims against the vendee on account of the unpaid balance of the purchase price. Id.
A contract for the sale of land cannot be avoided by the vendee in the absence of fraud or mistake unless vendor abandons the contract or fails to comply with its terms. Johnston Farm Investment Company v. Huff, 204 N.W. 333, (1925)
Where defendant went into possession of land under contract to purchase and made improvements thereon, he is not entitled to compensation for such improvements after he forfeited the contract. Id.
A seller may waive his right to cancel a contract for deed upon a buyer's default if the seller, having a full knowledge of the facts, acts in a manner inconsistent with the right to cancel or forfeit the contract. However, waiver by the seller of the right to cancel a contract cannot be based upon the conduct of the seller which occurred while the seller was acting without a full knowledge of the facts. Sadler v. Ballantyne, 268 N.W.2d 119 (1978)
A purchaser rescinding a contract for deed must offer to account for the rents collected or to pay the reasonable value of the use and occupation of the premises. Alton v. Long, 352 N.W.2d 198
Section 32-18-01 is applicable only where there is an operative and binding contract for deed; where purchaser was required to make a down payment to put the contract into effect and was unable to do so, the contract was never operative, and seller was free to sell the property to another without proceeding under this section.Gerhardt v. Fleck, 256 N.W.2d 547 (N.D. 1977).
Cancellation of a contract for deed by notice pursuant to this chapter is not an exclusive remedy, and the seller may elect to cancel the contract by action whereby written notice of intent to cancel the contract is not required; when a seller chooses to cancel by action, there is not a statutorily prescribed period for redemption and that matter is left within the sound discretion of the district court. Straub v. Lessman, 403 N.W.2d 5 (N.D. 1987).
