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Property Keyed to Rabin
Gates Rubber Co. v. Ulman
Facts
In 1963, Gates Rubber Co. (Plaintiff) leased the property in question from Louis Lesser Enterprises, Inc. (Lesser) for 20 years. The unrecorded lease contained four successive options to extend the terms for five years each an option to purchase the property during the twentieth year of the lease. Plaintiff and Gates did record a short-form lease, which stated the basic terms of the agreement and referenced the long-form lease, stating that it was the sole agreement of the lease between the parties. However, it did not mention the purchase option. The lease required Lesser to build an office and warehouse building on Plaintiff’s behalf. In 1969, Charles Ulman took present ownership of the property through a series of conveyances starting from Lesser. None of these deeds referred to the option agreement. In 1983, Plaintiff exercised its option to purchase, but Harry Ulman (Defendant), administrator and executor of Charles Ulman’s estate, refused to convey the property because there was no evidence that Charles was ever aware of the purchase option when he purchased the property in 1969.
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