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Contracts Keyed to Kunz
Fingerhut v. Kralyn Enterprises, Inc.
Citation:
337 N.Y.S.2d. 394 (Sup. Ct. 1971)Facts
Plaintiff was the sole general partner of a private investment company called Mt. Vernon Associates. On September 22, 1968, plaintiff and his attorney informed the owners of Bel Aire Golf & Country Club of plaintiff’s interest in purchasing the club and began negotiations. The parties agreed on a price of $3,075,00 and plaintiff’s attorney wrote a binder to bind the agreement with a $25,000 down payment. On September 25, the parties negotiated a formal contract and on the next day plaintiff paid a further down payment of $200,000. The closing date was to be on November 15th. On November 8th, plaintiff sent a letter (through his attorney) seeking to postpone the closing until December 15th and on November 19th, plaintiff’s attorneys wrote a letter seeking to rescind the contract due to having discovered that plaintiff suffers from a form of manic depressive psychosis. The plaintiff brought witnesses to substantiate these claims and the defendant brought witnesses to testify that plaintiff was sane.
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