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Contracts Keyed to Dawson
Lojo Realty Co. Inc. v. Isaac G. Johnson’s Estate, Inc.
Citation:
253 N.Y. 579Facts
Lojo Realty Co. Inc. entered into a contract to purchase real property from Isaac G. Johnson’s Estate, Inc. with the explicit intention of using the property for commercial purposes. During negotiations, the defendant’s representatives assured the plaintiff that the property was zoned for business use, which was a critical factor in the plaintiff’s decision to purchase. After the contract was signed but before closing, both parties discovered that the property was actually zoned exclusively for residential use, making the plaintiff’s intended commercial development legally impossible. The plaintiff immediately sought to rescind the contract upon learning this information, as the property’s zoning status was fundamental to their purpose in acquiring it.
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5m 47s