This section contains the nature of the case and procedural background.

Stanley Stilwell & Sons, Inc. (D), a developer, conveyed a one-acre parcel of land to Caullett (P) for $4,000 with a warranty deed. The deed was delivered January 13, 1959. D reserved the right to build the original dwelling on the granted property in the warranty deed. Negotiations collapsed over agreement as to what kind of house D could build and the cost of that house and how much D would charge. This restriction in the deed was meant to be a covenant running with the land that would bind the purchasers, their heirs, executors, administrators, and assigns (as so stated in the deed). After a series of negotiations for a settlement on the construction of the agreement, P sued to quiet title. P claimed that no contract ever existed with D for the construction of any building on the lot. D claimed that one of the foremost considerations in fixing the price of the lot, and one of the primary conditions of sale was the understanding that when the purchasers declared themselves ready and able to build, D would act as a general contractor. P received summary judgment from the trial court; the provisions in the warranty deed were unenforceable and should be stricken from the deed. D appealed.

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