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Contracts Keyed to Ayres
Browning v. Johnson
Facts
Plaintiff agreed to sell Defendant his osteopathic practice and equipment in a contract of sale. Plaintiff then changed his mind and asked to be released from the contract. The parties entered into a new contract where Plaintiff promised to pay Defendant $40,000 to cancel the sale. Plaintiff later regretted this second contract and filed an action for declaratory judgment and restitution, arguing that the contract was not supported by consideration and was based upon a mutual mistake. The trial court held that the sale contract lacked mutuality and was unenforceable, but that the cancellation contract was supported by “adequate” consideration and was enforceable. Plaintiff appealed.
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