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Contracts Keyed to Murray
Knott v. Racicot
Facts
A property owner and a tenant entered into an option contract for the sale of the owner’s property. The contract was executed under seal and granted the tenant a right of first refusal on the property. Knott (Plaintiff), who wished to purchase the property, sued to invalidate the tenant’s right of first refusal, arguing that the agreement between the property owner and the tenant lacked consideration. The lower court held that consideration is not required for a contract executed under seal, and the court of appeals affirmed. Plaintiff appealed.
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