Legal Question in Real Estate Law in New York

Reinstatement of Terminated Contract

Party A(the buyer)is in a real estate sales contract with Party B(the seller). Party B fails to meet the conditions of the contract at the first closing and fails to show up for the second closing even though time was made of the essence. At their third closing, Party B purosely makes misrepresentations of fact to Party A. Based on these misrepresentations and the emotional duress of yet another failure on the part of Party B to close (Party A did not know them to be misrepresentationa at the time), Party A agrees to sign a hand-written ''Contract Termination Agreement'', in the presence of both of both attorneys. This agreement simply stated that ''Party A and Party B agree to terminate their contract at that date without any further recourse, action or liability of the parties''. Party A's Downpayment check is returned at that time. Party A now beleives that they were unfairly pressured and fraudulently induced into signing that termination agreement. Do they have a case for rescinding the termination agreement,reinstating their sales contract and sueing for specific performance of the contract or damages in the alternate?


Asked on 2/11/03, 1:38 pm

1 Answer from Attorneys
Michael Paradise Law Offices of Michael S. Paradise

Re: Reinstatement of Terminated Contract

Without knowing the nature of the alleged misrepresenations, it would not be possible to give a definitive answer. One can always allege fraud in the inducement. It is for the fact finder to determine. During the pendency of any claim, to the extent one has a claim for specific performance, one might try to protect himself (and gain leverage) by filing a lis pendens against the subject property.

None of the foregoing constitutes legal advice and no attorney/client relationship has been established.

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Answered on 2/11/03, 2:25 pm


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