May 15, 2008

Remedies.

Practice point: When a contract for the sale of real property contains a clause specifically setting forth the remedies available to the buyer if the seller is unable to satisfy a stated condition, fundamental rules of contract construction and enforcement require that the buyer's remedies are limited to those expressly provided in the sale contract.

Case: Gindi v Intertrade Internationale Ltd., NY Slip Op 03952 (1st Dept. 2008)

Facts: Paragraph 3 of the rider to the contract of sale provided, in pertinent part, that "[i]f for any reason, except for seller's willful default, the seller shall be unable to convey good and marketable title, subject to and in accordance with this Contract, then the sole obligation of the seller shall be to refund to the purchaser the deposit made hereunder and to reimburse the purchaser for the net cost of title examination." (emphasis added).

There was no evidence of a willful default on the part of defendant, and so plaintiff was not entitled to specific performance of the contract of sale.