Contracts Keyed to Farnsworth
W.W.W. Associates, Inc. v. Giancontieri
Facts
Plaintiff began to negotiate with Defendants for the purchase of a parcel of real estate. During negotiations, Plaintiff learned that litigation was pending against Defendants. Despite reassurances from Defendants that the litigation was meritless, Plaintiff anticipated difficulties in obtaining financing, and so it was agreed that the contract would contain a cancellation clause solely for Plaintiff’s benefit. Said clause, however, was memorialized in the written contract as a reciprocal cancellation clause that permitted either party to cancel the contract in the event that the pending litigation was not resolved by June 1, 1987. Plaintiff avers that this action was begun because Plaintiff learned that Defendants were not defending the litigation, but rather, they were awaiting June 2, 1987 to cancel the contract in order to get a higher price for the land.
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